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.

26

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.

26

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.

26

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

26

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.

26

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

26

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

26

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

26

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

26

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)

26

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.

26

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©

26

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.

26

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.

26

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.

26

The biggest changes we will make to the current product line is work toward

discontinuing unpopular flavors and cycling through unique limited edition seasonal

flavors to keep consumers interested and promoting impulse purchases in the juice aisle.

26