Hawaiiann Punch Case

1. How would you characterize the competitive position of Hawaiian Punch?

Found in 1934, Hawaiian Punch has the competitive advantage of being the number one juice drink in the US and the fourth largest brand of Cadbury Schweppes. Its brand has a very large percentage of awareness among US consumers (94%).

Beside the brand awareness, Hawaiian Punch is also the only brand of Cadbury Schweppes that has a unique 2 distribution networks in both fruit juice and soft drink areas.

- The first network is Finish Goods (FG), where the juice drink is manufactured and packaged by the company then shipped to distribution centers before products get delivered to the fruit juice aisle. This network contributed 63.7% total case sold, 82.4% gross sale volume, and has a contribution margin of $0.80/case for year-end 2004.

- The second network is Direct Store Delivery (DSD), where the company sell concentrated products to its exclusive licensed bottlers. These bottlers then added other ingredients and sale the finished products to retailer in the soft drink aisle. This network contributed 36.3% total case sold, 17.6% gross sale volume, and has a contribution margin of $0.96/case for year-end 2004. DSD has a bigger contribution margin even though the gross sale volume is only a small portion comparing to FG because bottlers incur cost of bottling and distribution.

The 2 distribution networks target different groups and offer wide variety of products, which consist of 12 different flavors (Fruit Juicy Red, Light Fruit Juicy Red, Orange Ocean, Grape Geyser, Berry Blue Typhoon, Green Berry Rush, Strawberry Surfin’, Lemonade, Bodacious Berry, Mazin’ Melon Mix, Tropical Vibe, and Wild Berry Smash) in 6 different sizes and packaging (1Gal, Half Gal, 6.75oz single serve pouch, 2L, 20oz, and 12oz can) to meet different needs of consumers.

2. Does the Hawaiian Punch buyer behavior differ between the juice/juice drink aisle and the soft drink aisle in supermarkets and other retail...