Thomas A. Tanamas & Alexis Tyson
Wang’s Fortune Tea (WTF) is a Chinese herbal tea, a remedy that has been around since the 1800’s but Wang’s Fortune Tea created it into a pre-packaged reading to drink functional soft drink with a sweetened flavour. They’re product is unique and there is little else like it in the international market. They have managed to create their unique brand image not only through the product itself, but also because of their marketing mix that helps to promote a strong brand image of healthy life, and ancient Chinese remedy.
WTF implements single-minded product strategies: the product has not been changed since it came into the market in 1997 and neither has it’s packaging. This is something they should expand on for long-term development, as in this day and age product life cycle is limited. One positive about the product in the Chinese market is that the name is easy to read and easy to remember: “Lao Ji” translating to “Old Fortune”. This name instils in consumers mind the ancient remedies, with a pre-packaged 21st century edge that this product tries to promote. Being an easy recognizable and memorable name it also promotes consumer mindset stickiness. In 2003 WTF changed it’s company slogan from “Healthy family always with you” to “Afraid of internal fire? Drink Wang’s Fortune tea?” This slogan is far more direct and conveys exactly what it is that WFT is trying to convey, it also sets up the possibility of classical conditioning: when a consumer feels the “internal fire” they simply need to purchase a WFT.
The pricing of WFT differs depending on which product market you are classing it as. When classing it as a soft drink they appear to have adopted a high price strategy. As the creator and the leader of the “herbal tea” segment, WTF prices its product higher than the average price of soft drinks. Adopting value-based pricing. Instead of the production cost, WFT sets its price based on consumer’s perception of the product value. However, different from other soft drinks, Wang’s fortune tea is positioned as a kind of functional drink, which can prevent internal fire. Compare with other functional soft drinks (such as red-bull), the price of Wang’s fortune tea is not expensive. The higher price is representative of higher quality. WFT proved its quality and value by pricing at a relatively high price to most canned drinks. But as a fast moving consumer good it’s premium pricing in the vitamins drink market makes $.42 US no longer as expensive, resting this product in a happy medium between soft drink and functional drink.
Place refers to the marketing channels in which a product can be purchased. WFT adopts four marketing channels: modern channel, conventional channel and restaurant channel. All these distribution channels allow their product to be readily available and at each of these chains it is heavily advertised. By entering supermarkets, where it contains huge amount of customers, WFT makes its brand known by customers, increasing brand awareness. Moreover it is also sold in convenience stores and other retail stores. Customers obtain convenience by the convention channel. Furthermore, WFT seeks out the restaurant channel to enlarge its market shares. With the slogan “Afraid of the internal fire, drink Wang’s Fortune tea” WFT is sold in restaurants that serve hotpot, Sichuan and Hunan cuisines, and any other foods, which may create internal fire. More specifically WFT paired up with KFC to promote it’s slogan “Afraid of internal fire, drink WFT” this meant consumers could justify the unhealthy act of dining at KFC if they drank a WFT afterwards, instilling the classical conditioning of unhealthy food to WFT.
Promotion is an effective way for companies to make the benefits of their products known by customers. Advertising, sales promotion and social relation are all different means of promotion....