Hawain Punch

Trader Joe’s is a major food retailer who has developed quite the name for themselves. It has well over 350 stores in over 32 states and is expected to continually grow over the next few years (Bond, 2012). For over 50 years, Trader Joe’s has been providing quality customer services, products and a unique shopping experience for its customers. They have come a very long way from when they first officially opened their doors. Trader Joe’s started when its founder Joe Coulombe wanted to find a way to differentiate his 7-Eleven stores (Schermerhorn, Osborn, Uhl-Bien & Hunt, 2012). In the food retailer industry, Trader Joe’s has developed a process that works well and

Gatorade is a flagship brand of PepsiCo and has a commanding 75% market share of the sports nutrition beverage marketplace globally, being sold into 80 different countries according to the latest PepsiCo annual report published in late 2011. Gatorade's success in branding and product marketing has actually expanded the global market for sports nutrition beverages during the late 1990s and into the 21rst century. Recently however the company has faced many channels including product line extensions of the last decade which failed to deliver strong results (Pollack, 1997) and a more critical analysis of their ingredients as many of their beverages are sold in public schools (Tallon, 2009). Despite these challenges however, Gatorade continues to experience strong market share and growth. The intent of this analysis is to evaluate and provide recommendations for each of the four areas of the marketing mix including product, price, promotion and place or distribution.

The existing concentrate business is largely controlled by Coca-Cola Company (Coca-Cola) and PepsiCo (Pepsi), together claiming a combined 72% of the U.S. carbonated soft drink (CSD) market sales volume in 2009. Refer to Exhibit 1 for an illustration of the CSD industry value chain. For more than a century, Coca-Cola and Pepsi have maintained growth and large market shares through mastering five competitive forces, shown in Exhibit 2, that drive profitability and shape the industry structure.

This case describes the various aspects of carbonated soft drink industry and the focuses on Squirt’s annual advertising and promotion plan in 2001. Squirt is a brand under the Dr Pepper/Seven Up, inc. The brand manager was concerned about the market targeting and product positioning and consulted advertising agency, Foote, Cone & Belding. The case also focuses on the entire industry structure and the marketing techniques used by the various leading companies so the Squirt’s annual advertising and promotion plan can be successful, and proper techniques to be used to target the growing Hispanic community in the markets where Squirt was popular. . The main aspect for the marketing planning for the brand, Squirt, is to focus on

Candy is not yet a “mature” industry in the United States. The compound annual growth rate for candy in the past ten years has been close to 6% a year, a very solid gain in an industry that is supposedly mature. In fact, within the chocolate confectionery subcategory, the United States ranks 11th in the world in per capita consumption and fifth in the world in growth since 1980. Based on current demographics, many analysts believe that there will be further growth for confectioneries. A “baby-boomlet” is on the way, significantly increasing the teenage population. By the time the population bulge peaks in the year 2010, it will top the baby boom in the 1960s in both size and duration. According to government statistics, the percentage of children between the age of 5 and 14 will rise during the 1990s, increasing from 14.2 percent of the population in the 1990 to 14.5 percent in the year 2000. This trend will serve as a strong foundation for increasing consumption of confectionery products through the end of the century. Nevertheless, spending for food and drink as a percentage of all personal consumption is declining in the United States, and most manufacturers recognize that future opportunities lie in using profits from domestic

Hawaiian Punch is the top-selling fruit punch drink in the United States, contributing to the ninety-nine percent brand awareness among U.S. consumers. The product line in 2004 consisted of eleven flavors, with the original Fruit Juicy Red flavor being the most popular brand with a wide margin. A Hawaiian Punch light version of Fruit Juicy Red was recently introduced with sixty percent less sugar. At first, the traditional focus of Hawaiian Punch was centered towards children; however, the company now wants to refocus its positioning statement. Another brand consideration is the innovation of a new flavor into both finished goods and direct store delivery networks. The third concern is to address allowances relative to innovation in Hawaiian Punch finished goods and Direct Store Delivery (DSD) networks and to media advertising. Give the previous considerations; we have developed new marketing proposals for future marketing decisions.

The soft drink industry in the United States is a highly profitably, but competitive market. In 2000 alone, consumers on average drank 53 gallons of soft drinks per person a year. There are three major companies that hold the majority of sales in the carbonated soft drink industry in the United States. They are the Coca Cola Company with 44.1% market share, followed by The Pepsi-Cola Company with 31.4% market share, and Dr. Pepper/Seven Up, Inc. with 14.7% market share. Each company respectively has numerous brands that it sales. These top brands account for almost 73% of soft drink sales in the United States. Dr. Pepper/Seven Up, Inc. owns two of the top ten

There is a varying degree of competition amongst grocery and club stores in the market for orange juice. Grocery stores provide consumers with a vast selection of orange juice products; however, individual club stores completely eliminate competition as they generally sign a contract with the company of their choice, and sell only that company’s product. The level of competition in these distribution channels greatly affects how Sunshine Juice Company decides to position its product in order to gain competitive advantage and brand recognition. Sunshine is currently ranked 2nd as lowest in price level in the club store market of three competitors, and 7th lowest in the retail market of 12 competitors. The company has considered retail price changes of either $4.49 or $3.99, both of which would impact overall sales volumes as the price would be far below the price of many competitors.

According to Exhibit 5, from 1985-1989, Orange crushes’ market share decreased from 22% (1985) to 8% (1989), this data shows that prior to the entrance of Coca Cola’s Slice and Pepsi’s Minute Maid, Orange Crush had more of the market share which at the time, they were positioned toward groups between the ages of 13-40. Since 1985, Crush repositioned itself to target individuals between the ages of 12-17.

The article stated that, “many East Coast baby boomers were wondering, “what’s a smoothie?” (Fox & Rushmore, 1999, p. 4). This statement not only indicated that people in the East Coast were not aware of this new juice trend, it also stated that “consumers’ demands and tastes can greatly change from one demographic to another” (Fox & Rushmore, 1999, p. 4); whereas allowing Juice Guys the opportunity to sell more than just juice and also resulting in Juice Guys indentifying between the ages of 18-35 to be their leading influential target market.

Nantucket Nectars' numerous strengths have led to their success. They produce all natural products that have a great taste, have a very strong management team as well as a strong branding, guerilla marketing skills, possess the ability to exploit small, rapidly changing market opportunities, last good access to single-serve distribution in the New Age beverage market, and is the best vehicle for juice companies to expand into the juice cocktail category without risking their own brand equity. In addition, Nantucket Nectars' management team has the required knowledge and experience with the single-serve business and thus has the ability to add value to large player who wants to roll out new single-serve products.

End users are those individuals walking in the company stores, ordering a smoothie and a cookie, paying the cashier and then telling her friend how wonderful the ambiance is. This buyer segment does not purchase large amounts of product at one time and likely chooses Jamba because of the quality of the ingredients. With no switching costs and a growing industry offering many options, patrons of smoothie cafés can freely purchase their delightful cool beverage anywhere. According to the U.S. Census Bureau the number of stores within the “snack and nonalcoholic beverage bars” industry grew from 36,036 in 2002 to 49,463 in 2007 [ (U.S. Census Bureau) ]. This trend means that Jamba Juice will have to increase customer loyalty to battle the increased competition.

Innovation is important to both distribution channels, but more important to the finished goods model since the juice category has seen a decrease on both volume and market share. At the same time the carbonated soft drinks market has grown in both volume and market share. In order to increase the volume sold in the juice aisle a brand extension should be developed. By adding more SKU’s and promoting to the eight to twelve year old group, sales

Gatorade has emerged as the global leader in sports nutrition beverages by continually managing their brand to signify high energy, athletic excellence combine with one of the most efficient new product development and introduced processes in the beverage industry. As a result of being able to consistently synchronize these many components of their business so well, Gatorade today holds a 75% market share in the sports nutrition market globally today. Gatorade is owned by PepsiCo, which has made it possible for the company to sell in 80 countries today. Gatorade relies heavily on the PepsiCo distribution and retail network globally. Gatorades' revolutionary approach to managing branding for beverages has served to increase the total market size for this product category globally (Huang, Sarigöllü, 2012). Despite the continued widespread adoption of Gatorade as a healthy energy drink, the company has encountered resistance to its brand and the ingredients used for creating the many variations of Gatorade energy drinks (Tallon, 2009). Despite these setbacks the Gatorade brand continues to experience exceptional growth and stability over time.

Portland Drake Beverages (PDB) had acquired Crescent Pure, a non-alcoholic, all natural energy enhancing and hydrating functional beverage. Having organic ingredients as the bases of Crescent Pure beverages made the perfect acquisition for extending the PDB organic brand to more markets. These multiple attributes made the drink an attractive product for the consumer, but the necessity to position it, sparked a debate. Some people wanted to market it as an energy drink, while others wanted to market it as a hydrating drink. The VP of marketing, Sarah Ryan, thought that although Crescent Pure fit both of these categories, there was an alternative option. The third option would be to position the new beverages as healthy drinks, this would be a broader market positioning strategy, one that a transcendent product like Crescent Pure, could fulfill. The concern was to simultaneously position the drink in the most lucrative market, while also ensuring that the drinks attributes aligned with the market consumers’ needs.