Harvard Case - King's Hawaiian: Spreading Aloha beyond the Deli Aisle
"King's Hawaiian: Spreading Aloha beyond the Deli Aisle" Harvard business case study is written by Sheri Lambert, Sara Honovich. It deals with the challenges in the field of Marketing. The case study is 11 page(s) long and it was first published on : Dec 9, 2022
At Fern Fort University, we recommend a multi-pronged strategy for King's Hawaiian to expand beyond the deli aisle and achieve sustained growth. This strategy focuses on leveraging the brand's strong equity, expanding product offerings, and embracing innovative marketing and distribution channels to reach new target markets.
2. Background
King's Hawaiian, known for its iconic sweet Hawaiian rolls, has experienced significant success in the deli and bakery aisles. However, they face challenges in maintaining growth and expanding their reach. This case study explores how they can leverage their brand strength and product innovation to appeal to a wider consumer base and achieve sustained growth.
The main protagonists of the case study are:
- Robert Taira: The CEO of King's Hawaiian, who is tasked with leading the company's expansion efforts.
- The King's Hawaiian team: The company's employees, who are responsible for implementing the new strategy.
- Consumers: The target audience for King's Hawaiian products, whose preferences and needs are crucial for the company's success.
3. Analysis of the Case Study
We will analyze the case using a combination of frameworks, including:
- SWOT Analysis: To identify King's Hawaiian's strengths, weaknesses, opportunities, and threats.
- PESTEL Analysis: To understand the external factors impacting the company, such as political, economic, social, technological, environmental, and legal factors.
- Competitive Analysis: To assess the competitive landscape and identify key rivals.
- Consumer Behavior Analysis: To understand the needs, preferences, and purchasing habits of target consumers.
- Marketing Mix (4Ps): To analyze the current marketing mix and identify opportunities for improvement.
SWOT Analysis:
- Strengths: Strong brand recognition, high-quality products, loyal customer base, strong distribution network, positive brand associations with aloha and Hawaiian culture.
- Weaknesses: Limited product portfolio, reliance on traditional retail channels, potential for cannibalization of existing products.
- Opportunities: Expanding into new product categories, leveraging digital marketing channels, entering new markets, developing strategic partnerships.
- Threats: Increasing competition from other bread brands, changing consumer preferences, economic downturn, supply chain disruptions.
PESTEL Analysis:
- Political: Trade policies, food safety regulations, and government support for agriculture.
- Economic: Consumer spending patterns, inflation, and interest rates.
- Social: Growing demand for healthier and more convenient food options, increasing awareness of food sustainability.
- Technological: Advancements in food processing and packaging, digital marketing tools, and e-commerce platforms.
- Environmental: Concerns about food waste, sustainable sourcing of ingredients, and packaging materials.
- Legal: Food labeling regulations, advertising restrictions, and intellectual property rights.
Competitive Analysis:
- Direct Competitors: Other bread manufacturers, including Pepperidge Farm, Sara Lee, and Flowers Foods.
- Indirect Competitors: Other food manufacturers offering similar products, such as tortillas, bagels, and English muffins.
Consumer Behavior Analysis:
- Target Consumers: Millennials, Gen Z, and families seeking convenient and flavorful food options.
- Needs and Preferences: Convenience, taste, quality, affordability, and health consciousness.
- Purchasing Habits: Grocery stores, online retailers, and food delivery services.
Marketing Mix (4Ps):
- Product: King's Hawaiian's current product portfolio is limited to bread products. They can expand into new categories, such as breakfast pastries, snacks, and desserts.
- Price: King's Hawaiian products are positioned as premium, but they can explore different price points to reach a wider audience.
- Place: King's Hawaiian has a strong presence in grocery stores but can expand into other channels, such as convenience stores, foodservice, and online retailers.
- Promotion: King's Hawaiian can leverage digital marketing, social media, and influencer marketing to reach new audiences. They can also explore partnerships with other brands and organizations.
4. Recommendations
- Expand Product Portfolio: King's Hawaiian should introduce new product lines that leverage their brand equity and appeal to a broader consumer base. This could include:
- Breakfast pastries: Muffins, croissants, and cinnamon rolls.
- Snacks: Pretzels, crackers, and chips.
- Desserts: Cakes, cookies, and pies.
- Frozen products: Pre-made meals and appetizers.
- Embrace Omnichannel Distribution: King's Hawaiian should expand beyond traditional retail channels and leverage online platforms, convenience stores, and foodservice providers to reach new customers.
- Refine Marketing Strategy: King's Hawaiian should focus on digital marketing, social media, and influencer marketing to reach younger generations and build brand loyalty. They should also explore targeted advertising campaigns and content marketing to engage consumers with their brand story and values.
- Develop Strategic Partnerships: King's Hawaiian should partner with other brands and organizations to expand their reach and create new product offerings. This could include collaborations with food retailers, restaurants, and food delivery services.
- Embrace Innovation: King's Hawaiian should invest in research and development to create new and innovative products that meet changing consumer preferences. This could include exploring healthier ingredients, unique flavors, and convenient formats.
5. Basis of Recommendations
These recommendations are based on a thorough analysis of King's Hawaiian's strengths, weaknesses, opportunities, and threats. They also consider the company's core competencies, external customer needs, competitive landscape, and potential for growth.
- Core competencies and consistency with mission: These recommendations align with King's Hawaiian's mission to spread aloha through delicious food. They leverage the company's strong brand equity and focus on product innovation and market expansion.
- External customers and internal clients: The recommendations address the needs of both external customers and internal clients. They aim to expand the customer base while providing employees with new opportunities for growth and development.
- Competitors: The recommendations are designed to differentiate King's Hawaiian from its competitors and create a sustainable competitive advantage.
- Attractiveness - quantitative measures if applicable: The recommendations are expected to generate positive financial returns, including increased revenue, market share, and profitability.
6. Conclusion
By implementing these recommendations, King's Hawaiian can successfully expand beyond the deli aisle and achieve sustained growth. The company has a strong foundation and a loyal customer base, and by leveraging its brand equity, embracing innovation, and adopting a multi-pronged strategy, it can continue to spread aloha and delight consumers around the world.
7. Discussion
Other alternatives not selected include:
- Focusing solely on traditional retail channels: This approach would limit King's Hawaiian's growth potential and expose them to increased competition.
- Developing a new brand for expanded product lines: This could dilute the brand equity of King's Hawaiian and confuse consumers.
Key assumptions of our recommendations include:
- Consumer demand for Hawaiian-inspired products will continue to grow: This assumption is supported by the increasing popularity of ethnic foods and the growing demand for convenient and flavorful food options.
- King's Hawaiian will be able to successfully develop and launch new products: This assumption is based on the company's track record of successful product launches and its commitment to innovation.
- King's Hawaiian will be able to effectively manage its supply chain and distribution network: This assumption is based on the company's existing infrastructure and its ability to adapt to changing market conditions.
8. Next Steps
- Phase 1 (Year 1): Develop and launch new product lines, including breakfast pastries, snacks, and desserts. Expand into convenience stores and foodservice providers.
- Phase 2 (Year 2): Launch digital marketing campaigns and social media initiatives. Explore strategic partnerships with other brands and organizations.
- Phase 3 (Year 3): Evaluate the success of the new product lines and marketing initiatives. Adjust the strategy based on performance data and market trends.
By following these steps, King's Hawaiian can successfully navigate the changing food landscape and achieve its goal of spreading aloha beyond the deli aisle.
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Case Description
Founded in 1950, King's Hawaiian, a Los Angeles-based bakery, operated in the competitive bread industry with an expansive list of rolls and bread, as well as a selection of other baked goods, which varied by region. As the business grew over the years, it had added production facilities and increased marketing. For decades, King's Hawaiian had focused on its core bread products, using occasion-based marketing to target consumers. However, in April 2021, with an ever-increasing market, the company had to decide whether to scale up into a mass-market company or continue to service a niche occasion-based segment by offering its unique sweet bread through in-store bakery and deli departments.
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