International Marketing Mix Commentary
Hui Lu N8035636
Jiaduobao is the most popular herbal tea brand in China and targeted to the customers who afraid of the internal inflammation. Australia ranked as the second easiest country to do business and it offered some strong future growth opportunities for the Chinese herbal tea since Australia has the long-standing business relationships with China and the healthy drink became more and more popular. Competition within the herbal tea market also remains relatively low because there is no competition for herbal tea existing at the current market. It is suggested that Jiaduobao use the direct export to enter the Australia and use the contingency approach to enter the market. It is also recommended it to use a pull strategy, such as to invest a TV show to help build brand awareness and relationships with their target market.
1.0.0 Guangdong Jiaduobao Drink & Food Co., Ltd.
1.1.0 Company background
Jiaduobao Group is a large beverage enterprise owing to their healthy drink in Hong Kong. With the nationwide development strategy, they established Guangdong Jiaduobao Beverage & Food Co., Ltd as a subsidiary to enter the Mainland China market. Currently, Guangdong Jiaduobao Beverage & Food Co., Ltd played a leading role in healthy drink industry in China based on its famous product red-canned Jiaduobao, which as a kind of ancient herbal tea and has more than 170 years of history. They also have the non-alcohol drink, such as juices and bottled water. The sales network of Guangdong Jiaduobao Beverage & Food Co., Ltd has extended more than 30 provinces in mainland of China, and it also entered some countries in Southeast Asia, Europe and the US. 2.0.0 Marketing Mix
Positioning refers to some sustainable competitive advantage or unique selling proposition of products as a critical factor to over other competing brands (Keller, 1998, str. 77). According to the Unique Selling Proposition strategy, Jiaduobao positioned as a kind of beverage that prevents excessive internal inflammation and started their marketing activities based on it (JDB, 2012). 2.2.0 Target market
Jiaduobao found the unique positioning that aimed at the majority of people who afraid of the internal inflammation. 2.3.0 Marketing mix
Jiaduobao is a kind of function drink based on traditional herbal tea hundreds years ago to prevent inflammation in China. After the brand war with Guangzhou Wanglaoji Pharmaceutical Company Ltd, Jiaduobao still use the red can with the Chinese character ‘Jiaduobao’ instead of ‘Wong Lao Kat’. 2.3.2 Price
The price of Jiaduobao is higher than most beverages in China since it is a special healthy drink from various Chinese herbal. 2.3.3 Place
Jiaduobao is sold through the supermarkets, retail-stores and restaurants, especially hot pot, and barbecue restaurants. All places are where people may get excessive internal heat. 2.3.4 Promotion
Jiaduobao is the most popular local brand in China for several years, one of the most important factors is the huge investment on advertising. Firstly, they use story as a mini movie to promote through national TV channel on the golden time. Secondly, they design the great poster to explain the function of the herbal tea; it implies the company concentrate on customers’ healthy. The satisfaction of basic human needs will trigger the search for higher levels of needs (Mathew, 1993). Thirdly, Jiaduobao invested 60 million in the show called Voice of China, a Chinese reality talent show, become the most popular topic in current China. Since 2001, Jiaduobao has donated more than RMB 8 million Yuan to help more than 1,600 students to have the chance to study. For the big earthquake in 2008, they donated 110 million Yuan as the biggest donor at a charity event broadcast live on CCTV and immediately triggered a rise in popularity of herbal tea...
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