Wang's Fortune Tea which was marketed as Wanglaoji in China, which was China's top soft drink giant with 90% market share of the Chinese herbal tea industry. The company can proceed with product development by implementing new marketing strategies, so that it gains a top position in the Chinese market. Wang's fortune tea saw drastic increase in its sales when the world was suffering from SARS( Severe acute respiratory syndrome). This herbal tea was highly consumed because it was considered as a Chinese medicine. That is how the company broke its regional image and developed itself as a major national brand.
Wang's Fortune Tea can continue its current product based marketing strategies and implement few more to gain its market share. This tea was majorly known as a health drink rather than a soft drink, in order to avoid this perception among the people of China, Chinese consumers can be educated about it and this might be done by implementing various effective advertising strategies and it has to conduct different surveys and build campaigns for its products with the help of television commercials, promotions, radio and news papers, by which customers will be aware that, Wang's Fortune Tea can also be consumed as a soft drink. But it's promotional slogan which says " Healthy family is always with you" is very unclear and did not improve the herbal tea consumption. In addition to this, in some areas, surveys showed that this tea was just considered as a cold water, and few Chinese had no concept of having internal fire problem. In addition to this, the requirement to reduce this internal fire already existed in the medical products of China. In spite of all these problems faced by Wang's Fortune Tea, it was able to give a st...
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... taste. Wang's Fortune tea can come up with an idea of soft pouch packaging, which can be a substitute for traditional bottles and cans. It can also come up with dual chamber bottles, which are trendy and attracts younger customers. Since there is only one product line for the company, it can diversify and develop a new product line, so that it can attract new customers, who are concerned about another health benefits rather than just diminish internal fire concept. But these marketing strategies might be expensive and might take lot of time for the company to implement and earn profits in the market share. The company can also acquire and merge with other small or large companies which are strong brands regionally, but are not recognized in the Chinese market, to gain its market share. But this might result in risk of declining in Wang's Fortune Tea brand image.
After all thousands of years of traditional tea drinking cannot easily be broken, for example, instead of offering flavored frappacinos and caramel macchiatos like we have here in the united states, Starbucks developed a range of Chinese tea’s flavors, such as green tea-flavored coffee drinks, that appeal to local tastes and began selling traditional desserts like Mooncakes. Another reason why Starbucks in China has become so successful is the cultural difference between American and Chinese consumers. The American consumers is always on the go and have the need to get their food and beverages as quickly as they can, Starbucks now lets consumers order their coffee with a mobile app and have ready to pick up in the store without waiting in the line. And the clients who do decide to have their coffee in the store are in a corner working on their laptops as a "Do Not Disturb Sign" going on with their business without interruption. In China however, Starbucks has a become a ideal social setting to meet up with friends and family. With chic modern interior, comfortable seating, and upbeat music, their locations appeal to the younger
They have dominated the Chinese market since the early 1900s, and as of 2011 they were the number one automaker in the country. They have brand familiarity and brand loyalty from their consumers. They are still seen as an elite brand with an impeccable image of luxury and glamor, which definitely attracts the status-conscious Chinese consumers. They are ahead of the competitors because they are in tune with their costumers wants and produce cars that are relevant and appeal to them. If Buick continues with the same strategy they should stay ahead of the game. However, they have to be aware of the threat of other companies trying to win over the Chinese market. If, in the future, one of Buick’s competitors is able to satisfy the needs of the Chinese consumers better than Buick, then the company could be in
It seemed as if tea was a drug for the Europeans because for them it was just so addicting, to the point they would do anything just to get more and more. The only things that were worthy of trading with the Chinese were gingko (type of plant), shark fin, a soft type of wood (used for incense) and silver. As the demand for tea rose, Britain gradually ran out of silver to trade with, and was desperate to find what China wanted. Then, the British resorted to trading in opium. China was very picky about their opium.
This case study revolves around Starbucks ability to launch an aggressive expansion in China, a coffee frontier steeped in nearly 5,000 years of tea, Starbucks location-scouting skills and marketing savvy will be put to the test. This case study involves three questions: 1) Should Starbucks continue its expansion in China? 2) Will the Chinese be persuaded to drink coffee instead of tea after 5000 years of no consumption of coffee? 3) Will Starbucks current marketing plan work in China without advertising?
...s to the finer things. Niche markets have to be determined in order to reach the Chinese consumer who is unafraid to purchase goods that appeal to the senses, covey status, wealth and higher quality.
By learning from its defeat in Germany, Walmart has been able to make progress in its strategy to expand into the Chinese market, which also has a substantially foreign political and cultural environment. Along with its financial capability, advanced supply chain management capability, and information technology capability, Walmart adapted its business strategy to align itself with the local taste. For example, Walmart sources about 95% products locally and hires Chinese citizens to manage its stores. Due to the heavy pollution and poor safety management, Chinese customers are concerned about the quality of products made in China. Walmart developed private label brands priced 10%-40% cheaper than national brands which positively impacts Chinese customers by providing them with high quality products and low prices. (2015, Wal-Mart And China: A Story Of Missing Customer Trust) Currently, Walmart is the third largest retail chain in China, and plans to open 115 brick-and-mortar stores between 2015 and 2017. (2016, Wal-Mart talks Up China Commitment) Walmart also plans to push up its e-commerce business to leverage its huge global product network. But even then, to ensure its future growth in China, Walmart needs to continually monitor its multicultural
Starbucks is one of the most recognizable and successful coffee brands in the world. Starbucks believes in serving the best coffee possible. Starbucks’ international market that was expanded into China in 2002, still has only a tiny part of the Chinese beverage market (Harrison et al., 2005). The company President, Charles Shultz is ascertaining the possibility of establishing new coffee houses in China.
For Burberry, it recently closed 17 and opened 18 stores in Dubai, London, Moscow, New York, Seoul and Tokyo. Its various channel of distributions like retail, wholesale and licensing can help to expand those opportunities to the company. However, it seems that Burberry rely too much in Chinese market both in region or as tourists with approximately 30% of its sales in Chinese market (Financial times 2016). As mentioned in PESTEL, if the Chinese market experience the decline or political issue, it will significantly influence the sales and performance. Moreover, the company is also trying to attract the young generation for future
Money was a main factor in Wang Lung's attitude which changed completely many times because of his wealth. At the beginning of the story Wang Lung is a poor farmer who always thinks carefully about how he spends his money. As he was a poor farmer, Wang Lung was filled with fear when he first approaches the House of Hwang to collect O-Lan . On his second visit, Wang Lung is already prospering from his crops. This behavior is in contrast to the beginning of the plot, where he is reluctant to drink tea because it is expensive. When O-Lan asks Wang Lung if she should put tea leaves in his father's hot water, he would have liked to say, "`Certainly there must be tea leaves. Do you think we are beggars?'”. However, he does not want O-Lan to think that they are poor, so instead he makes an excuse, "`Tea? No no it makes my cough worse.'". These two incidents i...
The company, a sole proprietorship, was established by Zhang Xiaoming with the help of his wife Lin Su on early 2006. In 2014, the company started venturing into e-commerce to gain web and global presence. This help to increase the trade ability of the business.
KFC is one of the most popular fast-food restaurant chains by the Yum! Brands and fried chicken is what the company specializes. KFC was founded by Harland Sanders, which was later known as Colonel Sanders. Moreover, KFC was one of the first fast-food restaurant chains to expand internationally, including the opening outlets in Beijing, China, in November 1987 (KFC Website, 2013). The fact that KFC was the first Western fast food company in China makes it very challenging to satisfy the Chinese market. Trying to sell the same products or services is a typical approach to most foreign expansion for franchise businesses (Bell, 2011). However, one-size fits all approach is not what KFC chooses to apply for their company. According to Shelman, the writer of the case study regarding KFC’s Explosive Growth in China, key success for KFC China is to change the menu to suit Chinese tastes and style of eating (Starvish, 2011). “One of the lessons I take away from this case is that to ...
The viewers will not be able to relate to the advertisement because many western people do not live with their in laws. They will also not understand the significance of tea within the Indian household.
The first innovative strategy of KFC China is localizing the menu. Trying to sell the same products or services is a typical approach to most foreign expansion for franchise businesses (Bell, 2011). However, one-size fits all approach is not what KFC chooses to implement for their company. According to Shelman, the writer of the case study regarding KFC’s Explosive Growth in China, key success for KFC China is to change the menu to suit Chinese tastes and style of eating. “One of the lessons I take away from this case is that to do China, you have to do China”, says Shelman. KFC localizes their offerings and adapts their existing products to appeal to the Chinese customers’ needs. The menu features Chinese local food like egg and vegetables soup. Examples of innovative products are the Dragon Twister (chicken roll of old Beijing) and the glass jelly milk tea (Zhou...
...ming and also for the launch will create a feeling of owning the brand and the product among them. This will definitely result in better sales of both the products.
This competitive advantage has been rendered sustainable as other players have found it difficult to catch up with the company's competitive strategy. In spite of this clear advantage, it was noted that the company faces some challenges being the world leader in soft drink distribution. The canning and bottling of the product which is done in many countries have now fallen into the hands of independent companies, thus it becomes hard for a given company to control the quality of the packaging