Analysis of the Drink Market in China and the Expansion of Jdb

Topics: Chinese herbology, Coca-Cola, Chinese classic herbal formula Pages: 7 (2075 words) Published: December 25, 2012
Executive summary:
The JBD company has got a real great successful in the china’s drinke market. It’s products – the red can wang lo kat herbal tea used to only be sold in Zhejiang and Guangdong province. How can they expend the market to the whole country is truly difficult. There are several successful drink enterprise in China such as Kangshifu or coca cola. Achieve marketing consultation help the JDB to position it’s product and give a new strategy to promote the red can herbal tea to the whole China. It was announced recently by GPH that the brand value of WLK had reached 108.015 billion yuan. The Jdb compay has made a sale of 19million RMB in 2010. The essay will shoe the information of the background of Chinese drink market and the development of JDB.


Background of Chinese Drink market1
Chinese drink market development and Pattern1
NO.2 Tea drinks, juice drinks market booming improved steadily2 NO.3 Functional beverage market is booming2
The Development of JDB3
Obstacles to expand the market3


Background of Chinese Drink market

Chinese drink market development and Pattern

Throughout the development and changes in China's drink market, showing the following distinctive features:

NO.1 Soft drinks, bottled water market is mature and increasing slower. In the first half of 2003 The penetration rate of 75.9 percent of urban residents in 30 cities. To the second half of 2003, the penetration rate began to decline, and this trend continued into the first half of 2005, during which, soft drink penetration rate basically stable at nearly 70% . Chinese bottled water market and the soft drink market is exactly the same. The penetration rate of Bottled water is 66.5% in China in 2003, an increase of 72.8% in 2005,.With a growth in the second half of 2005, the penetration rate become 75.7%.

NO.2 Tea drinks, juice drinks market booming improved steadily

From 2003 to 2005, the tea drinks develop steadily in China. The tea drinks market penetration rate is 39%, which increased to 46.8% in 2005 and with the growth of 20% for three years. Chinese tea drink market is occupied by TongYi(TY) and Kang Shifu(KSF), they take nearly 60% of the total market share. Juice drinks in China rise later than the drink market, but the pace of development can not be compared with other markets. The penetration rate of fruit and vegetable juice drinks in the first half of 2003 was 31.3%, and until the second half of 2005, the penetration rate has grown to 50.4%, an increase of 61% The total increase is 32% of the three years. The fruit and vegetable juice drink market is the best stage for old and new brands to compete with. Both old and brand (such as: Huiyuan), there are a large number of new brands to enter. However, based on the total market share, TY, KSF, Nongfuguoyuan(NF) ,Huiyuan occupy the major position in the market. With the NF drink, ‘shake before drinking’ ,the classic slogan is deeply rooted in the hearts of the consumer, juice market’ status of NF fruit and vegetable in China is also advancing rapidly. In 2005, NF broke the situation ofTY, KSF past dominate the whole market and become the Top3 in the ranking of the new generation of the comprehensive competitiveness of the Chinese fruit and vegetable juice dink market brand . Brand growth, NF did its own part, topped the growth index of 109.58.

NO.3 Functional beverage market is booming

Chinese functional beverage truly become the trend was in 2004. 2004 "pulsating" Robust, Wahaha "activate", Yangshengtang(YST) the "Scream", Nestle "soothing" ,TY "stamina" KSF "fresh run" ,Huiyuan "He + She" , setting off a fifth wave of the Chinese beverage market after the soft drinks - bottled water - tea drinks - fruit and vegetable juices and other functional beverage brands appear. However, from the size of the market, functional beverages in China only in the...
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