Brand Story - H3 in Traditional Chinese Herbal Drinks Market

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Brand Category and Industry Background Traditional Chinese herbal drinks (“CHD”) have various well known functions such as improving digestive system and smoothing throat. CHD can be obtained from traditional kiosk and recently more and more drink manufacturers has explored the market of bottle packaged CHD such as Hoi Tin Tong and HealthWorks. However, none of the brands can succeed in build up a trend for Hong Kong people to develop a habit of drinking bottle packaged CHD when compare with soft drinks. In this essay, a new brand 「H3」, under the brand of Hoi Tin Tong, will be introduced. Firstly, the brand elements, positioning and its competitive advantage will be discussed. Secondly, the respective marketing programmes, the relevant possible product extension and brand extension will be analysed. Thirdly, the 「H3」 brand strategy and its brand equity management direction will be studied. Lastly, opportunities for the brand to go global is examined.

Brief description of Hoi Tin Tong Mr. Ng Yui Ming is the Founder of Hoi Tin Tong. He has mastered the knowledge of applying different turtles and herbs to Chinese traditional medicine through years of experience, especially the Herbal Turtle Jelly. Mr. Ng opened his first store called Hoi Tin Tong in 1990 on Bowring Street in Jordan to facilitate the large growing demand of this Herbal Turtle Jelly. Today's Hoi Tin Tong has developed other products like: Herbal Drink Series, Chinese Herbal Series, Cooking Sauce Series, and Chinese Herbal Gummy Series. All of the products are made of the finest genuine material in a set amount to fulfill the customer's needs. However, other than the Herbal Turtle Jelly, the brand of Hoi Tin Tong seems cannot leverage to other products in an efficient way. That’s why it is suggested to introduce a brand under Hoi Tin Tong to explore the market of CHD in a different market segmentation direction.

Brand Elements Our brand carries a name 「H3」, sounds 「H cube」, meaning “healthy herbal habit”. The font of the logo is in Arial to make it more in fashion and not so serious. The font colour of “H3” in the logo would change upon the type of drink to reflect its trendy style. Nevertheless, the background circle colour of the logo is unified to be light green to make people associate the brand with herbal product. The shape of the bottle is cylindrical in shape, from bottle to top. This would give people a simple image. The material of bottle is made of glass instead of plastic. This would reinforce the message of the brand 「H3」to appreciate the healthy habit. So the brand use glass material as containers for not affecting the earth with plastic waste.

Brand Positioning Simple – the ingredient of 「H3」 is herbs and sugar only, with no additives or flavorings or other unknown substances. The brand name, logo design and the bottle design are also simple enough to convey the brand image to the public. Safe – the manufacturing process is under Good Manufacturing Process “GMP” certified to make sure 「H3」drinks is safe and without impurities. The brand website will elaborate the 「H3」safety in detail. Fashionable – the name and slogan “healthy herbal habit” is a style of living, a modern living attitude in choosing drinks nowadays. This concept will be reinforced in publicity marketing in the initial stage of promotion and advertisement in the later stage of promotion. Trendy – the focus group of 「H3」is youngsters and young energetic people. So the distributional channels of 「H3」 mainly in universities, school-based activities venues in the product introductory stage.

Competitive Advantage 「H3」brand is young but it stresses simplicity, safety and healthy modern living attitude. Moreover, its trendy image is unique among CHD market in Hong Kong and all mentioned above are the competitive advantage of 「H3」brand.

First Phase of Marketing Programme「H3」would provide several well known CHD products such as Wu Hua Tea, Xia Gu Cao, Ji Gu Cao. Wu Hua Tea...
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