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Critically Analyze the Marketing Strategies of Wangs Fortune Tea versus Coca Cola文档
IntroductionWith the development of globalization and China’s economy growth, more and more international brands have flooded Chinese market and compete fiercely with Chinese domestic brands. The competition is no exception in China’sdomestic beverage industry. The main reason of the international brands’ entrance can be explained as: Firstly,China with its 1.3 billion populations (21 percent of the world population) owns the largest consumer in the world; In addition, there will be an increase in beveragespending.It is estimated thatthe annual income per capita of approximate 300 million people will grow to 10 million dollars by the year 2016 (Lu Fung, 2008); Furthermore, it is believed that the domestic consumer spending in Chinahas development potential. Chinese consumers’ consumption only took 39.4 percent of China’s GDP in 2010, which is much lower than the average level of developing countries (80 percent) (ibid.). Given the situation of China’s soft drink industry, in recent years, the development of the annual production rate of China’s soft drink has exceeded 20 percent reach 13 million tons (Fang, 2009). Meanwhile, a large variety of soft drinks such as carbonated drinks, tea drinks, fruit juice are provided to satisfy different consumer needs. For a long period, carbonated drinks has topped list the Chinese soft drink market share. However, with the development of people’s living standard, Chinese customershave become more conscious on food safety and health. Thus, the market share of carbonated drinks, which is considered harmful for human health, dropped from 33 percent to 21 percent from 1999 to 2005. Meanwhile, the tea drinks in China expanded its production from 200,000 tons in 1997 to 3,000,000 tons in 2001 has become the second largest soft drink category, following carbonated drinks (Lu Fung, 2008). Thus, in China’s soft drink industry the competition between carbonated drinks and tea drinks hasbe intensive. The main international soft drink bra
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