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High product variety gives customers a lot of choice during their shopping time. Different categories of drinks are located in different aisles make it easier for customers to access the product. Moreover, supermarkets, trade and convenience stores, the three biggest outlets that sold fruit juices and juice drinks, enhance the convenience of purchasing and make Hawaiian Punch available in both urban and suburban. In addition, the beverage industry is in a fast logistic, therefore the probability of out of stock becomes comparatively small, so that leads to a relatively high level in immediacy of availability that provided by both channels.
Indication of the SOD-SOS Analyses:
From the above two analyses, it obviously shows that both channels could provide high service outputs, however, soft drink shoppers’ needs were lower than those of juice shoppers on average. In our opinion, DSD should capture more customers because its service outputs exceeded its customers’ needs. We believe that Hawaiian Punch should shift some shares from finished goods to DSD since its profit margin was much higher than that of finished goods.
Our Recommendations and …show more content…
The 2-liter bottle and 20-ounce bottle sizes are the least popular. There is a gap of about 30% between consumers who purchased a gallon bottle and 20-ounce bottle. Thus, we recommend a short-term solution to increase sales in the 2-liter and 20-ounce bottles.
To increase the sales of the 2-liter bottle, there should be a promotion. We propose that consumers who purchase a gallon or half gallon bottle may receive a discount coupon for 2-liter bottle of Hawaiian Punch. The indication of the discount will be located inside the cap, and it will not be present in every gallon or half-gallon bottle. The second option is to lower the price of 2-liter bottle Hawaiian Punch when bought in decent quantities. We decided that with this option, buyers get one free if they buy three 2-liter bottles.
To increase the sales of the 20-ounce bottle, there should be more Hawaiian Punch available in vending machines. 20-ounce bottle fits perfectly in the vending machine, and vending machine allows sales to charge a premium price compared to supermarkets. Also, a 20-ounce bottle from the vending machine attracts on-the-go consumers, which fits perfectly well with the action-oriented appeal of the DSD network. Currently, vending machine only contributes to 0.2% of sales volume. This is very low and there is definitely room for
Indication of the SOD-SOS Analyses:
From the above two analyses, it obviously shows that both channels could provide high service outputs, however, soft drink shoppers’ needs were lower than those of juice shoppers on average. In our opinion, DSD should capture more customers because its service outputs exceeded its customers’ needs. We believe that Hawaiian Punch should shift some shares from finished goods to DSD since its profit margin was much higher than that of finished goods.
Our Recommendations and …show more content…
The 2-liter bottle and 20-ounce bottle sizes are the least popular. There is a gap of about 30% between consumers who purchased a gallon bottle and 20-ounce bottle. Thus, we recommend a short-term solution to increase sales in the 2-liter and 20-ounce bottles.
To increase the sales of the 2-liter bottle, there should be a promotion. We propose that consumers who purchase a gallon or half gallon bottle may receive a discount coupon for 2-liter bottle of Hawaiian Punch. The indication of the discount will be located inside the cap, and it will not be present in every gallon or half-gallon bottle. The second option is to lower the price of 2-liter bottle Hawaiian Punch when bought in decent quantities. We decided that with this option, buyers get one free if they buy three 2-liter bottles.
To increase the sales of the 20-ounce bottle, there should be more Hawaiian Punch available in vending machines. 20-ounce bottle fits perfectly in the vending machine, and vending machine allows sales to charge a premium price compared to supermarkets. Also, a 20-ounce bottle from the vending machine attracts on-the-go consumers, which fits perfectly well with the action-oriented appeal of the DSD network. Currently, vending machine only contributes to 0.2% of sales volume. This is very low and there is definitely room for