Hawaii Punch 2 Essays

3081 Words Feb 16th, 2013 13 Pages
Background of the company chosen:
Hawaiian Punch is a well-known brand of fruit punch drinks owned by Dr. Pepper Snapple Group, Inc. (DPS). The company experienced several ownership handovers and some of the most recent ones include Procter & Gamble sold Hawaiian Punch to Cadbury Schweppes in 1999, and Dr. Pepper Snapple was spun off from Cadbury Schweppes in 2008.
The Current Situation of the Company:
The main source of our study comes from an intensive case study that illustrates Hawaiian Punch’s “Go-to-Market Strategy” decision option, faced by the company’s Marketing Director Kate Hoedebeck during the time span from year 2004 to 2005. As the number one fruit punch drink sold in the United States, Hawaiian punch enjoyed its
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Shoppers with children in the under 6 to 12-year-old range group tend to shop at the juice aisle. Shoppers with children in the 6 to 17-year-old range group tend to shop at the soft drink aisle. Also, the soft drink aisle is more popular in western and central states, while the juice aisle is more popular in eastern and southern states.
The study also provided an insight to the relationship between customers’ purchasing habits and Hawaiian Punch package size. 77% of Hawaiian Punch shoppers bought the drink in one package size. The majority of them purchased a gallon and half-gallon package size. 68% of buyers shopped for the gallon size, while 53% of them shopped for the half-gallon size. Only 35% of Hawaiian Punch buyers shopped for 2-liter bottle, and 38% shopped for 20-ounce bottle. These buyers did not shop for other size other than the one they usually purchased.
Market share and profit margin:
Before our analyses, we did some calculations and compared share and contribution margin of two distribution channels. In 2004, Juice and juice drinks has 4.7% market share of beverage market. In the juice and juice drinks category. Juice drinks are second with a 33.7%. According to the calculation, we can see in 2004 case volume of finished goods was 49,267,000, which made up 63.7% market share of Hawaiian Punch. Case volume of DSD was 28,024,366, which made up 36.3% market share of Hawaiian Punch. The gross

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