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Paper Topic:

Hawaiian Punch

Introduction

The US fruit juice and juice drinks category accounted for only 4 .7 of the from 1994 . This decline in market share may be attributed to increases in market share in other categories , such as bottled drink and carbonated soft drinks . Despite the decline in consumption however Hawaiian Punch , owned by Cadbury Schweppes Americas Beverages , had managed to retain its market leadership position in the fruit juice and juice drinks category . This was probably because of the unique distribution structure which facilitated product placement in the carbonated soft drink aisle

and the juice drink aisle . This might also have led to the high level of brand equity which the product enjoyed However since consumption in the product category was in decline , the new marketing team had to re-formulate strategies in to enhance product penetration in the market . In this respect , the marketing team was considering strategies in three areas : positioning , innovations and allowances and advertising . All three areas were concerned with critical success factors because of the high level of competitiveness in the industry

Analysis of the US fruit juice and juice drinks category

Taken in the context of the fruit juice and juice drinks category represented only a minimal share To make matters worse , this minimal share was in decline . Therefore companies marketing products in this category had to implement competitive strategies in to maintain their market shares . In this respect , the strategies that were mostly being followed by the different companies were concerned with product differentiation . Products in the category came in four forms : 100 percent juice , nectars , juice drinks and fruit-flavored drinks . In addition to differentiation in terms of ingredients , the companies also differentiated their products on the basis of packaging . For example , the 100 juice sub-category was sold both in the refrigerated form and as frozen concentrates while the other three subcategories were sold in bottles and cans in the form of powdered mixes . These products were distributed through a variety of outlets such as supermarkets , trade , convenience stores , discounters independent food retailers and vending machines . Supermarkets accounted for nearly 53 of their products through supermarkets probably because most of the sales in the beverages category took place through this outlet . Trade sales took place in the form of sales to restaurants , foodservice companies and institutional buyers . Promotion , the next element in the marketing mix , took place mostly in televisions and magazines

The major companies made substantial investments in both promotion and distribution because of the highly competitive nature of the industry Based on these two elements of the marketing mix , the major companies differed in their competitive strategies in terms of flavor and package innovation , product (re )positioning and advertising . The competitiveness of the industry was enhanced by threats from outside the fruit juice and juice drinks category . Therefore consumers had a lot of substitutes available in this respect . The substitutes to fruit juice and juice drinks category included carbonated soft drinks , beer , milk , bottled water , coffee , tea , sports drinks , powdered drinks...

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