Marketing Strategy Vitasoy Soybean Drink Essay

BackgroundSoybean milk was premier introduced in Hong Kong by Dr. K.S. Lo under the rat name Vitasoy in 1940, with an intention to suffer consumers with an affordable nutritious and high-protein soya milk drink. Since then, Vitasoy became a well-k let onrightn household name and is now the flagship crossway of Vitasoy International Holdings Limited (VIHL), bestow 48% of the bon ton total tax revenue by categories in fiscal category 2013/2014. With the priority to promote quality of vitality finished a full(a) point of great-tasting and nutritional produces, the play along expanded beyond the soy beverage with a wide variety of food & beverages, under the differential gear brand name Vita.Vitasoy Soybean draw (Regular) Marketing Mix mathematical merchandiseVitasoy soya bean milk is the preferred brand among topical anesthetic consumers, exactly it is fast losing its attractiveness. Consumers ar adequate to a greater extent(prenominal) sophisticated and healt h apprised where many argon switching out to Fresh/ Organic soymilk which ar fiercely competed by many rivals. The launched of scurvyer-ranking Sugar variant may throw aided to slow down its eroding serving, but the ware has passed the matureness stage. Instead of rationalizing the quick product line (multiple occupy formats, word picture below), the company continue to stretch the product line with different pack formats (of late(a), the ducky packaging). This initiative may potentially predate to cannibalization and causing diseconomies of sub collectibles in production.PriceTargeting the mickle with price positioned below most of the native and non-organic soymilk products across most conduct. With exception to stove convenient stores, its set is ofttimes higher than most of the organic soymilk products. This conflicting price positioning in chain convenient stores may transmit to consumers switching out to organic soymilk, which is cheaper, neophyte & healt hier. As observed (photo below) in 7-Eleven, pack of Vitasoy soybean milk 250ml toll HK$6.90 charm pack of Pak Fook 236ml fresh organic cost HK$5.80, both at non-promotion price.Promotionactively engage in promoting its product by several advertising platforms (eg. TV commercial, well-disposed media, magazine/ newspapers, billboards & event sponsorships) and contained many consumer communicating campaigns. Noteworthy is their in-store execution peculiarly in chain super trade which dominates majority of the shelf-space with prominent product displays and conducted tactical bundle sales regularly.The recent campaign Anytime, Anywhere is seen as a desperate attempt to disassociate itself as breakfast-only beverage. The campaign was supported with the launch of positron emission tomography packaging which is a better marriage proposal for an all-occasion beverage. But again, pricing may not be appealing to the target consumers particularly in chain convenient stores which is v ery much costly comparing to other channels. step to the foreThe product is widely available through their extensive geographical c everyplaceage build over the years, reaching out to over 10,000 customers (eg. chain supermarkets & convenience stores, restaurants, bakeries, offices and independent market place stores) serviced by 300 sales coerce and 100 delivery trucks. Also leverage on the company subsidiary Vitaland, specializing in operation and management of school forgather shops and canteen worry, has made the product more accessible particularly among younger consumers. These are the key factors that have helped to strengthen the company leadership in Hong Kong.RecommendationIn view of the competitive environment and military rating of the product marketing mix, the recommended offset strategies would be Marketing Penetration & Product Development. both strategies are least risky and are capable to generate further business growth for Vitasoy in this mature market (H ong Kong)Market PenetrationVitasoy soybean milk needs to drive off competitor and sustain their share in the non-organic soymilk segment via enlarge distribution reach, conduct tactical/ aggressive sales promotions (eg. drop or bundle sales) andincrease share of shelf-space. They need to reinforce barriers to entry in their key strategic channels (ie. chain supermarkets and chain convenient stores), as those are the key market entry channels and key breeding ground for competition. It is as well as crucial to rationalize their existing product line (multiple pack formats) to achieve economies of scale or prevent production complexness but most critically is to deflect cannibalization. In addition, to ensure the success of the product in PET packaging, it has to be nurtured with more effective marketing efforts with a pricing strategy that will appeal to the masses, specifically in chain convenient stores due to its geographical spread and 24/7.Product DevelopmentVitasoy soybean m ilk has passed its maturity stage, as consumers continue to be given towards beverages with higher nutritional benefits (eg. Organic, high calcium, low sugar & low fat). Nonetheless, the company must(prenominal) continue to protect its leadership in this category as it contributes 48% of the company total revenue. This can be do by leveraging on its constitution as Soy Expert and reservation the competition irrelevant. The company must crisply take the lead in exploitation new innovative product with move in product differential verses its rivals, through product line extension of their strategic growth brands (ie. Calci-Plus & Sansui). The new product line has to be innovative nutritious product with relevancy to the health trends, this will eventually help to enhance consumer loyalty, gain more shares and potentially attract more switch-in from non-users.References1) Soyinfo center, website www.soyinfocenter.com/HSS/ks_lo_and_vitasoy.php 2) Vitasoy International Holdings, website www.vitasoy.com , www.vitasoy.com/pdf/pressRelease/EN 3) Vitaland Services Limited, website www.vitaland.com.hk4) Facebook VitaVitasoy5) Blog childhoodsnacks.blogspot.hk6) EuroMonitor International, website www.euromonitor.com/soft-drinks-in-hong-kong-china/report 7) full-bodied Ocean Strategy, W. Chan Kim & Renee Mauborgne, 2006 Harvard Business School publish Corp