Hawaiian Punch Case Study

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Hawaiian Punch Problem Identification • Role and positioning of the two-manufacturing, sales, and distribution networks. • Flavor innovations for both finished goods and DSD networks. • Product placement and media advertising. Alternative Identification 1. Continue with the current marketing and positioning strategies. 2. Remove the finished goods network and focus entirely on DSD networks. 3. Remove the DSD networks and concentrate only on the finished goods networks. 4. Keep distributing through both networks but revamp the product and marketing efforts of each network. Alternative Evaluation • The current marketing and position strategies showed some struggles with flavors and sizes of the product compared to customer preferences, along with slow growth in case sales. • By removing the finished goods network the company would save $137 million in cost of goods sold because the bottling companies take on most of these costs. Cadbury would possibly lose $49 million in case sales and $39 million in Gross contribution after marketing. This also only allows the product to be sold in the soft drink isle moving it away from the juice isle where 56.7% of Hawaiian Punch volume is sold. Decreases Cadburys control on product sizes. • By removing the direct-store delivery networks the company is potentially losing $27 million in gross contributions after marketing. This strategy removes them from the soda isle to be sold exclusively in the juice isle potentially losing 18.1% of our Hawaiian Punch volume. This would give use more control on the size of our product offered. • In pursuing the fourth alternative we would only make our product available in one isle determined geographically from consumer reports and market research. This will reduce some of the companies money spent on the COGS and allow us to tailor our product to our

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