hawaiian punch
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2014
Jacquelyn Sutterman
MKTG 494: Marketing Management
California State University, Long Beach
11/1/2014
Product Strategies
Case Study:
Hawaiian Punch
PRODUCT STRATEGIES
1. Product Classification
DURABILITY & TANGIBILITY
Hawaiian Punch is classified as a nondurable good; it is usually consumed in one
or few uses. It is in a frequently shopped category (Fruit Juice and Juice Drinks)
and thus the appropriate strategy is to have it available in many locations, charge
a smaller markup, and advertise heavily to induce trial and build preference.
CONSUMERGOODS
CLASSIFICATION
Hawaiian Punch is a convenience good.
It is purchased fairly frequently by it’s users, and without much effort; a
lower involvement purchase. Currently, the product is most commonly
sought in grocery store aisles where larger jugs and bulk cans of Hawaiian
Punch are stocked; this places these products under the Staple category,
whereas the individually sold bottles and cans of refrigerated punch lean
more towards being impulse buys, fulfilling one of the lowest of Maslow’s
needs; thirst.
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Therefore, as a manufacturer with a line of individual cold drinks, we must
place the good where consumers are likely to experience this urge that will
compel them to purchase our product; i.e. convenience stores, gas stations,
vending machines.
2. Product Differentiation and Positioning
Image differentiation:
Nostalgiaparticularly the name and iconic mascot “Punchie” and greatly
successful “How about a nice Hawaiian Punch?” advertising campaign,
holds a favorable brand image in the minds of American consumers born
in the 1960’s, 70’s, 80’s, and their early 90’s children who are now in their
early twenties. Thus the brand has strong appeal to the emotions of most
american’s in both the brand as a whole and the product’s design (taste
and look).
Features:
“Made with Natural Fruit Juices”Hawaiian Punch serves as a very
competitive substitute and alternative to carbonated soft drinks that have
been vilified in modern society as laden with chemical ingredients and
deemed generally inappropriate to serve to young children.
Hawaiian Punch now offers a full 100% daily value dosage of immunity
boosting Vitamin C in every serving of their beverages.
Product Innovation
We are looking to modify all future original recipe Hawaiian Punch drinks
to all have less sugar in them, as long as taste falls below the consumer’s
absolute threshold of noticeable difference.
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We will subsequently launch advertising efforts
communicating “Same Great Taste You Love, Now
with Less Sugar” in all future labeling and
promotional efforts.
Hawaiian Punch currently offers an array of 11 flavors.
Some of these flavors lack a lot of consumer awareness. We would like to
replace some of the lower performing flavors with a couple of Hispanicinspired
flavors such as pineapple mango called “Mango Colada”, and cucumber lime
“Pepino y Limon”.
Performance Quality
High Share of Heart: Hawaiian Punch brand holds the number one
position for fruit punch sales in the United States; and is the Dr. Pepper
Snapple Group’s fourth best selling brand behind beverage giants Dr.
Pepper, Snapple, and Seven Up.
Conformance Quality
Hawaiian Punch has consistently delivered it’s classic fruit punch taste
over the past several generations and has earned the public’s trust
concerning the conformance of their product.
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Channel differentiation:
Purchasing AvailabilityHawaiian punch is available to consumers via a
plethora of retail channels, in various different mediums and sizes; from
mass merchandisers like Safeway, or Ralphs, to momandpop liquor
stores and mini markets.
POSITIONING FOR EXISTING HAWAIIAN PUNCH
PRODUCTS We want to position Hawaiian Punch a convenient and modestly priced good;
Also, as a more healthy alternative to other sweet beverages on the market. We
want to continue the brand’s longevity by keeping our punch as the only
recognizable brand in the mind of the American public.
In addition, we are going to work toward discontinuing or limiting production of
flavors with lower sales volume and low consumer awareness.
We will then begin to cycle in more trendy seasonal flavors of punch to keep
people interested and induce trial of line of juice drinks.
Points of Difference
Desirable to Consumer
Hawaiian Punch benefits from favorable brand associations linked
with fun childhood consumption experiences, unique and
refreshing taste, healthier ingredients, and Punchy the mascot who
is recognized among most households.
Deliverable by the Company
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Widespread availability to consumer; well established
distribution channels/supply chain.
Differentiating from Competitors
It can be said that consumers of Hawaiian Punch see the
brand as distinctive and superior to nearly all other brands
of fruit punch available in the United States.
For many consumers in the U.S., the Hawaiian Punch brand
Fruit Juicy Red punch is synonymous with readytoserve
fruit punch.
Points of Parity
Contains Natural Flavors
Contains 100% DV of Vitamin C
It’s not carbonated
Can be seen as a ‘crowd pleaser’ at a party, more exciting than
100% juice, and not as fizzy/chemically as soda, and not as allergy
prone as milk.
Hawaiian Punch, while not falling under the 100% juice category, works
very well as a substitute product to other popular flavored beverages, as
mentioned under Features. Thus the brand’s points of difference stem
from being things that soda is not and also from ways their juice drink is
comparable to direct competitors such as Sunny Delight.
We are attempting to use this angle to appeal to the gatekeepers, mom’s,
and some dad’s packing lunch for their children in grade school.
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3. Packaging & Labeling Criteria Strategies
1 gallon jug (plastic)
1.82L (plastic)
500ml bottle (plastic)
1.62 fl. oz. squeeze bottle (makes 24 servings)
Pack of single serve powder packets
10 oz. bottles
12 oz. cans
6.75 fl. oz. foil pouches
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Most Hawaiian Punch products are shelf stable juice drinks. We plan to keep all
existing forms of packaging. Our goal is to continue to provide packages
appropriate for all occasions, from on the go, to parties or a school lunch.
We are going to add a new form of the product packed in individual foil pouches
sold in standard 10 pack boxes, and in 40 pouch variety packs (4 different flavor
ten packs bundled together).
We believe that offering these individual foil pouches will compete nicely with
the likes Capri Sun and Minute Maid because of our proven unique and classic
taste. (See below).
All packages containing multiple servings are fitted with a
resealable screwtop lid, or a fliptop cap in the case of the squeeze
bottle. All of which are easy to store and reopen. In, addition this
beverage has a formula that allows for a desirably long shelf life;
refrigeration is not necessary.
The brand attempted to launch individual pouch packaging back in 2001, however
the design left much to be desired. It was too different looking than the other pouched
juice drinks and were not competitively marketing or advertised enough. We are looking
to position this as the “goto” form of Hawaiian Punch for kids to drink, that fits in their
lunch and is more appropriately portioned than a larger bottled drink, and pair it with our
new recipe modifications (less sugar).
LABELING & DESIGN
Hawaiian Punch’s most recognized flavor is “Fruit Juicy Red” which is an
obvious eyecatching shade of bright red. The brand has kept the red theme throughout
the labeling of its products. Punchy's hat is also bright red, as well as his surfboard that
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he appears with on all the labels. Red is a powerful color that appropriately symbolizes
the energy and iconicness of the brand.
All flavor varieties of Hawaiian Punch are very brightly colored and usually
packaged in clear containers or are in solid color packages that incorporate matching
colors matching the drink. This is a great way to appeal to children and induce trial.
Hawaiian Punch labels have always
placed the brand name clearly stated in
big white boldface print along with a
descriptive and fun name for the
corresponding drink flavor.
In their more updated
designs, they have added an attractive
grouping of colorful fruit graphics;
Consumers are more attracted to
products they can clearly understand,
and Hawaiian Punch’s existing
labeling accomplishes all this quite
well, now advertising their 100%
daily value of vitamin C per serving.
The
color blue has a predominant presence
on Hawaiian Punch labels, in counterbalance with the
bright red. The shades of blue and red being used are each
other’s exact match as complementary colors. When
placed next to each other, complementary colors tend to
look balanced and are colors opposite to each other on the
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color wheel. When placed next to each other they appear to become brighter.
These colors work together to convey the youthful excitement of the product while
emoting a sense of trust and dependability.
4. Logos, Trademarks & Slogan
In the next section, (5. Line Extension Strategies) we will discuss the details our
new alcoholic beverages flavored with Hawaiian Punch. We will be using the original
artwork for mascot “Punchy”, as he is most famous among generations of consumers who
are mostly all above the legal age for alcohol consumption in the U.S.; Also he was the
source of the famous line, “How about a nice Hawaiian Punch?” which was a little bit
violent play on words that was perfectly clever to the original Punchy’s fans, but would
not be politically correct for today’s young generation.
We are going to replace the three dimensional animated Punchy that presently
appears on products most consumed by teens and younger children in order to dissociate
this him from the newly entered alcohol market. All nonalcoholic juice drinks produced
by Hawaiian Punch will be slightly rebranded by a new mascot, “The Big Kahuna”, who
will sport similar clothing but be rid of the red straw hat and accessorized with sunglasses
and a floral lei.
(for Fruit Juice Drink Labels)
Current New
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We are taking advantage of the Cadbury Schweppes’ purposely keeping Punchy
out of media advertising which diminish Punchy’s recognizability among children; thus
inserting the Big Kahuna should not be much of an issue.
New Slogan for existing drinks: “Hang Loose with the Big Kahuna!”
(Keeping with the Hawaiian mascot and theme)
Hawaiian Punch flavored Alcoholic Beverage Labels:
As mentioned above, the new alcoholic
beverages will display the old Punchy two
dimensional cartoon mascot alongside the
newer white boldfaced logo font and
traditional blue outline.
Generic logo for flavored liqueur
New Slogan for alcohol: “How about a nice Hawaiian Punch?”
(Reintroducing the original slogan)
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5. Line Extension Strategies Hawaiian Punch has extended it’s popular beverages to several other flavored
products, including 7Eleven Slurpees, hard and chewy candies, fruit snacks, punch
flavored popsicles and lip balm. The brand has also entered the onthego water
enhancement space by introducing “Singles To Go” in the form of powder packets as
well a portable flip top liquid spouting bottle that allows the user to personalize the
flavoring to water ratio. We believe these are all commendable efforts and serve as proof
of concept as to the extent to which the flavors of Hawaiian Punch are accepted in the
fruit flavored market.
Hawaiian Punch’s success with licensing their iconic flavors and images has
inspired us to continue such innovation by partnering with other manufactures and license
our iconic punch flavor to new products. We will be introducing a new alcoholic
beverage into the market, which will be targeted at adults ages 2140.
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This brand widening market modification strategy aims to leverage our brand
familiarity among the general American adult population to attract new users from this
new market as well as increase usage rates among current users. For example, we are
attempting to sell this new product however we are simultaneously showing our existing
adult consumer base that Hawaiian Punch does not need to exit their evoked set of fruity
beverage juice drinks just because of it’s popularity among young children. We are
looking to position Hawaiian Punch fruit juice drinks are a lifelong staple good in it’s
category.
POSITIONING FOR NEW ADULT HAWAIIAN PUNCH
PRODUCTS
Partnerships and Licensing Agreements with Alcohol Manufacturers
MALIBU
Flavored Rum (750ml bottles)
“Jungle Punch” with Hawaiian Punch©
“Knockout Punch” with Hawaiian Punch©
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MIKE’S HARD
Mike’s “Spiked” Punch with Hawaiian Punch©
Malibu Jungle Punch as well as Knockout Punch will feature Malibu rum mixed
with different tropical flavors of Hawaiian Punch added. We chose the name Jungle
Punch because of the currently popular trend of “Jungle Juice” circulating through house
parties attended by young people in their twenties. It is essentially a blanket term for a
strong homemade drink that tastes very fruit and contains a surprising amount of alcohol,
there has not yet been a jungle juiceesque drink that’s been bottled and sold.
These product will appeal to people who have had Hawaiian Punch as a child or
some earlier time in their lives and enjoy the nostalgic flavor. We are also appealing
towards alcohol drinkers who prefer a fruitier cocktail that still does the job.
Mike’s Spiked Punch will be promoted around the time of the Superbowl and will
have the flavor of classic Fruit Juicy Red Hawaiian Punch mixed with vodka. This drink
will be more appealing to a younger crowd as well as sports fans looking to mix up their
tailgate.
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6. Brand Strategies and Brand Model Developing the Equity
Consumer Affluence
Customers are usually willing to trade up to Hawaiian Punch brand fruit punch because
of the widespread brand familiarity, assisted by the relatively low mark up from cheaper
noname brands. Hawaiian Punch brand juice has a name that explicitly communicates
the fact that it is a juice drink maker that specializes in ‘punch’, fruit juice medleys
7. Product/market strategies with recommendations
OLD Market NEW Market
Product OLD Penetration
Reminding the users that were once heavier users about the brand via new promotional efforts.
Discounts and incentives. (See promotions)
Market Development Attracting new users to the
brand, suggesting Hawaiian Punch as a mixer, or as an alternative to soft drinks for you kids.
Rebranding juices with new Big Kahuna Mascot and “Hang Loose” tagline.
Product NEW Product Development New Hawaiian Punch
flavored alcoholic beverages.
Diversification Introducing limited edition
flavors catering to the Hispanic consumers.
Continuing to license the Fruit Juicy Red punch flavor to producers of other consumer goods.
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8. Product life cycle and recommended strategies Between 1994 and 2003 the juice drink product appeared to be in the Maturity stage of
the product life cycle.
Hawaiian Punch has by this point
been accepted by consumers and
profits declined a bit and stabilized.
At this point in the PLC, it is most
advisable to attempt to continue to
maximize profit while defending market share.
Around 2003, the target demographic from when business was booming in the mid
1960’s through the early 1990’s has grown up and had children of their own who are just
starting to develop their consideration set of liked/prefered juice drinks. This explains
the turn back up in gallons consumed by the year 2004.
Without much product innovation aside from flavor modification, a staple iconic
american product like this is prone to being stuck in a CycleRecycle type pattern, in
which core consumers develop a preference towards it, outgrow it and sales turn over to
the next generation of consumers.
RECOMMENDATIONS:
Concerning the existing products, we do not intend on making very many full on
modifications. A lot of what Hawaiian Punch is currently doing does work well, but we
simply want to refocus the brand’s strategy by matching their products more
appropriately with different markets and segments.
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