Vitasoy – Sparkling Soy Milk

Topics: Soybean, Soy milk, Tofu Pages: 13 (3512 words) Published: April 11, 2010
VITASOY – Sparkling soy milk

• Executive summary
• Background of Studies
• Environmental scanning
• Advertising and Promotion strategies/ tactics
• Conclusion
• Reference
• Appendices
• Executive summary

• Background of Studies
In 1940, Vitasoy was established by Dr K.S. Lo in Hong Kong. Soya bean is the main source of protein for Chinese people for 4,000 years. Mr. Lo brought this big idea to Hong Kong market, he began to sell his Soya bean milk from delivery in fresh to customers’ homes on bicycle, expanded his business to retail outlets after the World War. Nowadays, VITASOY group’s products sell in over 40 markets around the world and become the international organization which is standards in quality and innovative products. Vitasoy’s key product is soybean drink and tofu, which is nutritious and high-protein healthy for people. Vitasoy was built-up nearly 70 years, it is still the one of the most famous local trademark beyond Hong Kong, through the high quality, the great tasting, healthy and sold at affordable price, those are the factors why Vitasoy is successful its unique selling proposition.

The industry uniqueness:
1. Brand loyalty
Through nearly 70 years, Vitasoy is still a leader in the industry in Hong Kong 2. 3 main competitors
3. Affordable price
For wide customer segment (e.g. student, adult, elders)
• Environmental scanning

1. Conduct Situation Analysis

Vitasoy is the biggest supplier of the soymilk market in Hong Kong. According to Mingpao Finance (2008/08/04), she has 75% of the market share of the soymilk in HK, 50% of Shenzhen & Guangzhou, 35% of Australia & New Zealand. The most traditional & strong brand the soymilk product in Hong Kong which is Vitasoy, because she is carrying out her business 69 years in Hong Kong, so everyone knows as her. Although she is much advantage for business in HK, she still needs to care a few points, quality of the soymilk. In 1996, after the incident of soymilk taste deterioration, Vitasoy had a bad reputation for her branding and lost HKD 60,000,000 profit.

Nowadays, customers advocate the health food, soy bean of soymilk is an organic food without artificial preservatives, genetically-modified (GM) foods. This is the biggest business opportunity for Vitasoy, so she begins the overseas business, like Australia and New Zealand, that she has a good return. On the other through, when the similar product like milk occur problems, soymilk will get the extra profit. It’s a fact, when last year, the main land China happen the poison milk, at the same time, the soymilk get the great sales, it increase 56% for the total sales.

However, the opportunity brought a threat of competitors, like Yeo’s and Coca Cola. The largest competitor, Coca Cola has much capital to attack the soymilk market. Vitasoy cannot bear this risk, so she needs to be a pioneer for the overseas and the Mainland China market, to make the strong subtraction for the future expansion

2.) Conduct a customer analysis

Up to 31 March 2009, the major sales market of Vitasoy is Hong Kong and Macau, which carries 53% of total sale amount. The second market is Mainland China, which is 20%. Other markets are Australia, Zealand, North America and Singapore. All these markets are growing gradually.

In the recent years, Vitasoy is keen on launching different varieties and promoting benefits of soy to customers who concern their health. Such strategies widen the customer groups to all ages as well as both genders. It raised Vitasoy’s sales growth and market share. Besides, the Group’s tuck shop business and catering business also recorded a healthy contribution growth.

From the Vitasoy products, most of our customers (44%) choose soymilk while 20% select Lemon tea products. In September 2008, mass alertness to the safety of dairy milk was awakened by the outbreak of the melamine issue. Because of similarity between...
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