Giving the situation whereby there are some issues in marketing plan which required attention,

Kate Hoedebeck, a new appointed Marketing Director has to play her role to develop marketing
strategy for Hawaiian Punch product in order to surge its brand sales, brand margin and brand
equity without touching on the product price. Hoedebeck shall apply marketing theory Porters
Five Forces to assess level of competitive advantage. Referring to The Relevance of Porter’s
Five Forces in Today’s Innovative and Changing Business Environment, “Porter’s five forces
model has propelled strategic management for many years and has become a focus point of
texts on strategic management, business strategy and examination materials in business
schools globally.”(Bruijl, 2018).

Competitive Rivalry

Hawaiian Punch faces seven major competitors in the fruit juices and juices drink categories,
the PepsiCo, Coca-Cola Company, Kraft Food, Sunny Delight, Cadbury Schweppes, and
Welch. Therefore, Hoedebeck has to identify competitive strategies to ensure Hawaiian Punch
gains competitive advantages. The competitive strategies could be on product differentiation
e.g. ingredients and flavour, packaging innovation, product positioning and advertising
resources aspects. Instead of only focus on radio and magazine print advertising, she shall
consider another advertising resource based on technology pace to suit current needs e.g.
Information Technology. In promotion, she may consider on price discount, coupon, rebates
and etc. to motivate consumer purchases. On product differentiation, it would be good if the
health/nutrition content being considered in the product ingredients to benefit the consumers.
Hoedebeck should improve on the service and distribution networks. On the branding image,
since the Punchy mascot is less relevant, she shall think of improving on the logo e.g. illustrate
Punchy doing physical activities such as cycling, playing sports/games and etc. to relate to the
healthy life and bring back the fun part which initially attract the children.

Threat of New Entrants

New entrants may disrupt existing players in the market and affect competitive advantages. It
is essential to analyse entry barrier in avoiding the threat of new entrants e.g. rights, patents,
technology protection, etc. Some of the new companies may face difficulties and entry barriers
to the market as the entry barrier is depend on the government policy for the new entrants. To
ensure sustainability on customers’ loyalty to the Hawaiian Punch, Hoedebeck should consider
some elements to gain competitive advantages such as specialist knowledge which may
differentiate between Hawaiian Punch and competitors’ products. Specialist knowledge and
knowhow could be on the packaging innovation, advertising, promotion, etc. It is critical to
gain competitive advantage as competitors always find a way to duplicate the specialist
knowledge and knowhow. On the other hand, Kate should consider economic of scale element
in producing the product to ensure price competitive. In this case, flavour and packaging
innovation in DSD network is more economical than finished goods since bottle assumed the
cost of packaging.

Threat of Substitution

Consumers always find for substitute product by considering the product price and ingredients.
More products in the market, higher chance consumers switch from their usual choice. Thus,
it is important to always keep the branding up. Consumers may substitute to fruit juice and
juice drinks category, included carbonated soft drinks, beer, milk, bottled water, coffee, tea,
sports drinks and powdered drinks. For sustainability of consumers’ loyalty to Hawaiian Punch,
Hoedebeck shall come out with product differentiation in term of attractive packaging,
introducing mix flavour and considering nutrient content in the ingredients to ensure healthy
beverages. Most of consumers tend to switch from sugary drink to healthy drink. Hoedebeck
may also evaluate the competitors in term of price offered to ensure price competitive as well
as evaluate the cost of switching product to competitors’ products. Sometime, consumer may
consider the barrier to switch to substitute product e.g. price, ingredients, promotion,
distribution channel, etc.

Supplier Power

Suppliers may threaten by increasing price of product and service and when organisation is
unable to recover the costs, they may increase the selling price. In order to ensure the price is
competitive, assessing the suppliers is one of the crucial part. In the case of high demand,
Hoedebeck should ensure that the suppliers are enough to cater the demand and in the event of
suppliers unavailability, she should consider the costs involved to switch from current suppliers
to another suppliers. For distribution network, there are two (2) methods Finished Goods and
Direct-Store Delivery. Distribution channel only involved in Finished Goods whereby the
finished goods shipped to distribution centers to be delivered to retail outlets and its involve
distribution costs. Hoedebeck should ensure distribution cost is controllable and manageable
to strengthen on the distribution channel, in a way to ensure price competitive.

Buyer Power

Buyers have the greatest bargaining power when they are large. It would be best to identify the
targeted buyers by market segmentation so that it may assess the potential buyers and the
buyers’ concern especially on the sensitivity of the product price. Buyers normally prefer as
much information available to them provided by the company. It would be good if Hoedebeck
shall creates strategy to differentiate Hawaiian Punch from the competitors’ products to reduce
in competitive rivalry. For example, the new flavors introduced may create an awareness to the
consumers and the innovation of the flavor is to ensure consumers are always serve with the
flavor that are in line with their needs. In order to continue to be competitive and grow the
beverage business, it is important to develop new product and make it easy to consumers to
prefer Hawaiian Punch and make it convenient for retailers to stock and sell. It is good for
Hoedebeck to create buyer loyalty program that provides more value than competitors, such as
a just-in-time (JIT) delivery system or increasing quality and services.
Other than Porters Five Forces, taking into account of Hoedebeck’s knowledge on brand
managament and strategic planning, she shall apply marketing theory Maslow’s Hierarchy of
Needs to assist in explaining the connection between human needs and desires.

Physiological Needs

Beverages is one of physiological needs. Human could not live without water/drink. Hawaiian
Punch has been categorised under beverage industry which can be considered one of the
product advantages. However, there are substantial amount of beverages companies which play
the role as competitors to Hawaiian Punch. The best is Hoedebeck should come with the idea
of product differentiation and innovation to gain competitive advantage.

Safety Needs

The most important element in safety needs is health. Hoedebeck shall introduce more products
which less sugar and concern on nutritions content to attract the consumers. She may consider
the idea for tagline ” The safety of our products and consumers is our first priority.” To gain
consumers’ trust and ensure the product is comply to the government beverage policy as well
as to disclose the ingredients which content sensitive or allergen e.g. milk, peanut, some juices,
to bring up awareness to the particular consumers.

Social Needs

Hoedebeck shall think of idea to make the Hawaiian Punch as a social drinks in several aspects
especially in term of packaging innovation. For example, it would be good to have packaging
idea which every people may consider Hawaiian Punch as a drink during the party time,
gathering and picnic. Other action that can be taken is promoting “Party with Punchy” to attract
or reach the bulk buying “mom” customer purchasing for a family or party to serve. Hoedebeck
also can promote a “Party with Punchy” sweepstakes with incentive that encourage purchase
of bulk packaging. Hawaiian Punch will be beneficial from launching the new sizes, packaging
and flavours.
Esteem Needs

This needs is indirectly related to the safety needs. By introducing more healthy and less sugary
products, consumers may tend to be loyal to the product as most of them concern on their
health. By living in healthy lifestyle, it may build self-esteem and increase confidence level to
the consumers.

Self-Actualisation

This also can be related to esteem needs. Most of consumers having self-awareness and concern
with their personal growth. They will prefer healthy drink for their healthy lifestyle. Hoedebeck
may think of product differentiation by diversifying the product to the less sugary and healthy
products to benefit the consumers. Recent trends have revealed that consumers are paying
closer attention to nutrition facts and the benefits of consuming healthy products. Hoedebeck
also need to emphasize more of the health benefits of the products. They should create
connections between healthy foods suggestion and Hawaiian Punch, especially the Light
Hawaiian Punch drinks.

In Scientific Research Publishing, Psychology, 2017, Application of Maslow’s Hierarchy of

Needs in a Historical Context: Case Studies of Four Prominent Figures, by Aishwarya
Shahrawat and Renu Shahrawat, ”This individualistic examination of Maslow’s Hierarchy
allows us to explore the dynamicity across human behaviour towards different and varying
ends. These range from fulfillment of basic needs to achieving the ultimate stage of self-
actualization.”(Shahrawat & Shahrawat, 2017).
Aside from both marketing theories, Kate Hoedebeck should also consider market
segmentation in her marketing plan and marketing strategy to penetrate the market.

Geographic

Under geographic category, Hoedebeck shall assess customer location (urban or rural area) and
region. Different region in US might have different marketing approaches. California based
customer is likely to be differenced from New York and San Francisco due to their needs, lives,
and cultures. U.S has 50 states and it should breaking down the marketing channel by Region
- Eastern and Southern, Western and Central. The marketing channel should distribute to
supermarkets in Eastern and Southern States since Hawaiian Punch sales in the fruit juice/juice
drink aisle are better in those states. Hoedebeck also need to consider distribution to
supermarkets in Central and Western States since Hawaiian Punch sales in the soft drink aisle
are better in those states.

Demographic

Under demographic, it covering age, gender, occupation and socio-economic group.

Hoedebeck shall identify the separation of relevant market and identification of selective
customer segment, Finished Goods: Households with 8-15 years old kids for finished goods
network while Direct-store Delivery: Households with 13- 21 years old kids. The shift from
mom-oriented focus to family-oriented focus would be beneficial in both networks, expanding
into the rural and urban areas rather than concentrating on urban multi-culture would help
widening the market. In term of age, majority of Hawaiian Punch drinkers ranged from 6-18
years of age. Soda aisle is frequently purchased by adolescences. Hawaiian Punch distributed
or sales under Finished Goods Network is very popular when the products located in juice aisle.
Hoedebeck should consider to distribute to supermarkets in Eastern and Southern States of US.
This is to attract families with children who are under the age of 6 and under the age of 12 since
Hawaiian Punch sales in the Fruit juice/juice drink aisle are better in those States. Under Direct
Store Delivery network, Hawaiian Punch is very popular when the product is located in soft
drink aisle. The targeted customer is to attract families with the children age between 6 to 17
years of age. This segmentation strategy is suitable to be implemented in Central and Western
States, since Hawaiian punch sales in the soft drink aisle are better in those states.
Behavioural

Hoedebeck shall evaluate the consumers rate and loyalty of Hawaiian Punch. These are the
behavioural element in this market segmentation. By diversifying the product to more healthy
and less sugary products, consumers may tend to be loyal to the product as most of them
concern on their health. Analysis of consumers behavioural should take into consideration thus
it may help to generate the idea to suit consumers behavioural.

Psychographic

This segmentation is related to the personality, lifestyles and attitudes. Most of consumers
having self-awareness and concern with their personality whereby they will prefer healthy
drink for their healthy lifestyle. Recent trends have revealed that consumers are paying closer
attention to nutrition facts and the benefits of consuming healthy products. Thus, Hoedebeck
need to emphasize more of the health benefits of the products. They should create connections
between healthy foods suggestion and Hawaiian Punch, especially the Light Hawaiian Punch
drinks.
References :

Bruijl, G. (2018). The Relevance of Porter ’ s Five Forces in Today ’ s Innovative and
Changing Business Environment The Relevance Of Porter ’ s Five Forces In Today ’ s
Innovative And Changing Business Environment Author : Dr . Gerard H . Th . Bruijl
Director / Principal Consultant BizChange ( NZ ) Ltd. (December).
https://doi.org/10.2139/ssrn.3192207

Shahrawat, A., & Shahrawat, R. (2017). Application of Maslow ’ s Hierarchy of Needs in a

Historical Context : Case Studies of Four Prominent Figures. 939–954.
https://doi.org/10.4236/psych.2017.87061