Vitasoy †Sparkling Soy Milk

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 HI-C Ribena Yeo’s 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 dairy milk and soymilk, soymilk of Vitasoy became a popular alternative for customers. Vitasoy is enjoying good reputation and good quality image among Hong Kong people. Apart from Vitasoy’s existing customer, we have to explore more potient customers to increase the market share. Further to the information from the Census and Statistics Department in Hong Kong 2008, there are more females (52. 7%) than males (47. 3%). In the demographic characteristics, the largest age group is 35-64 year old (64. 6%) The second large age group is 0-14 year old (12. 2%). We will base on these statistics for product development. 3. ) Conduct a product analysis Vitasoy is a kind of well-known soymilk in Hong Kong. Despite it is a traditional product among people, new product is required to release in order to sustain the market share. The new product is called â€Å"Sparkling soy milk† which will be one of the beverages in line with Vitasoy series that will be released in mid-November 2009. This exclusive product is limited to be sold during this Christmas season. Overview the product: ? Using soymilk as basis ? Nutrient healthy product that is featured with the most low saturated fat and abundant protein ? Using a plastic bottle as a container ? Selling it for both cool and hot option ? Adding â€Å"Konjac† inside the soymilk Shake it at least 10 times before drinking ? Not only can drink it, even can chew it ? Printed with dark in glow snow pattern that will glow white at night ? A heat sensitive feature. After holding it for a while, it will then change into other color. It is created by using thermal color ink This product is especially suitable for children, teenager. Tradit ionally, adult and elder has been chronically drinking soymilk that they are treated as basic advantage. 4. Conduct a competitor analysis Even Vitasoy is the one of the largest soymilk companies, but there are many companies intend to replace its position. After our observation, we can divide their competitors in three parts: Direct competitor, indirect competitor and Potential competitor. HI-C is the main direct competitor. HI-C has developed several soymilk products to against Vitasoy, HI-C is the second line of Coca-Cola in Hong Kong, which enjoys a huge resource backup against Vitasoy. Melon Flavored Soymilk is the most favorable product of HI-C. As Vitasoy has already existed in this market for 50 years, and became a household brand, so HI-C is still hard to replace Vitasoy’s position in Hong Kong. Ribena is one of the indirect competitors for Vitasoy. Nowadays, Hong Kong people always care their health as the first priority and Ribena provided a high quality drink which offers delicious blackcurrant taste and it provides with a rich Vitamin C, it is very powerful for the customer to choose their product according to the healthiness. Although Vitasoy’s soymilk also provides a health drink to people, but as customers haven’t the brand loyalty for every product, so Ribena should be the big challenge for Vitasoy. Yeo’s should be the potential competitor for Vitasoy. Although their sales amount still cannot threaten in the market, but Yeo’s always develop new product like black soymilk, green bean soymilk etc. And their main product is organic soymilk, this can attract more and more people to buy their products, so we list them to the potential competitor with Vitasoy. 5. ) Justify the customer segment, targeting and positioning strategies In accordance with the data of customer analysis, we target the group of children, teenagers and family for our new product as they are in the large popluation. Our new product is named as â€Å"sparkling soy milk†. It is Vitasoy soybean milk with Konjac, which increases the elements of nutrient. And will shake it before consumption. Customers can make fun with such drink into the boring life. As we know, in Hong Kong, females are in the majority. The product appearance will increase their purchasing interest. In order to catch the attention of female customers, the drink will be dressed up with glow-in-dark snow pattern and heat sensitive feature on the packaging, which will have festival atmosphere and romantic feeling. In fact, the drink packaging is also giving the warm and cheerful outlook to attract family group for purchase. The drink consists of two sizes, 330ml and 500ml in volumes, which provide options to different consumers. During the promotion, we will use both â€Å"above the line† and â€Å"below the line† strategies. For the â€Å"above the line† strategies, Road Show and MTR advertisement are our first launch. We will also introduce the drink to customers via internet, for instance, Facebook and Yahoo website, together with advertisements on teenagers’ magazine. For the â€Å"below the line† strategies, we will put the promotional materials such as store banner and promotional corner on the store to draw the ustomers’ attention. Besides, we will distribute the free sample at the density of crowd districts, Causeway Bay, Mong Kok, to let the popular taste our product. We will contact primary and secondary schools to offer the promotional purchase of our new product with special discount. Compared with our other products and other similar drinks in the m arket, we will suggest selling the new drink at HKD 4. 50 per bottle (for small one) and HKD 6. 50 per bottle (for large one). Consumers can get the drinks from supermarkets, 7-Eleven, Circle K and other self consumption machine. These places can let our products to get reach of consumers at anytime and anywhere. It is much suitable for busy people in Hong Kong. †¢ Advertising and Promotion strategies/ tactics 1. Identify the overall branding strategies Base on the result of the environmental scanning, we find that our target customers will be children and teenagers. And our product is a funny health drink. For the overall branding strategies, we will keep the original and add a little factor for the brand, Creative and Funny. Vitasoy the brand is very strong in HK, so we don’t need promo the brand with great exertion. On the other hand, the other factor make Vitasoy success is creative, but we haven’t used the promo before. So this time, we will use a great exertion for the creative and remind the customers the soymilk is the health drinks. Our new product will show how funny of the brand. Therefore, there are three main points for current branding strategies, Health, Funny and Creative. First, Health – we will through the about the line thematic to remind customers, when you drink Vitasoy soymilk, the how many advantages for you health that you will get. Second, Funny – we will through the about the line tactical (dispatch sample) and below the line thematic (POS display) to education the consumer how to use and how to have fun from the product. Third, Creative – we will through the new product to stick out Vitasoy always is a creative brand. It will bring a message to the consumers, that’s soymilk not only for health, it’s can be fun, an ornament and the order usage when you make more creative. 2. The system approach of communication strategies The concept of marketing communication planning which recognizes the value of an all-inclusive plan that measures the strategic roles of variety of communication disciplines (general advertising, direct response, sales promotion, and public relations) and combines these disciplines to provide clarity, consistency, and maximum communication impact. Clarity means clearness of appearance. Our product has a clear message to all customer which is â€Å"Health†, â€Å"Warm† & â€Å"Have Fun†. In all advertising, we will base on these three messages to promote to the customer how the drink is healthy, why you will feel warm and how you can have fun in this. Consistency means being in conformity with a set of rules, guidelines or policies. Since Vitasoy was born, their name, logo, mission was keep for 50 years. Because of these consistency factors, Vitasoy can keep their name in every people mind. On the other hand, the drink will promote to a limited period product in the last season, but we will still promote this drink which without the dressed up with glow-in-dark snow pattern and heat sensitive feature on the packaging after this period. We will promote this drink which base on the healthy when the soymilk plus Konjac. Therefore, the package will different, very normal. Maximum communication impact which gives the customer a profound impact by the products or advertising. As our product will be dressed up with glow-in-dark snow pattern and heat sensitive feature on the packaging, which does not have any other similar product in the market and it is a limited product in the last season, so we think this is most impactful to the customer. Through the advertising, we can achieve to attract the consumer to buy our product. â€Å"Pull† & â€Å"Push† are the two promotional strategies in our advertising. Pull is the promotional strategy which a new product is heavily advertised before its retail and boost up the demand which draws customers attention into the retail stores. As one of our target groups is teenagers, we will hire some model and send them to Mong Kok, Tsim Sha Tsui, and Causeway Bay etc which the teenagers always go shopping and dining in these places. The models will present them a present which include a sample of our new product and a leaflet to introduce. In addition, we also promote our product in Road Show and MTR advertisements are our first launch. The advertising agency can always broadcasts the advertising in the golden hour which the most audience watch the television or listening the radio. We will make a 20 second advertising and play it in Roadshow and posters in every MTR station because there are more than million people travel bus and MTR every day. We will also introduce the drink to customers via internet such as Facebook and Yahoo website, together with advertisements on teenagers’ magazine. Because there are over million people watch these media every day, so the message can always recall. On the other hand, we will setup promotional counters in the mainly supermarket, because many housewives go to the supermarket everyday and they always go with their children, so they can taste and feel our product together. Also, we will promote the drink in primary school and give free samples to the students. This strategy calls â€Å"Point of Sell†. According to these promotions, we can also call this as â€Å"Above the line† which is a promotional method, included all media, and is under controlled by the client. This can have a long term effective to boost up the customers’ attention. Push strategy which is through the difference channels with a product that customer will be attracted by the advertising and other factors such as rebates. Push strategy also like â€Å"Below the line† strategy which is through the media like sales promotion, banner etc. We will setup some banner and promotional corner in the stores to attract the customers’ attention. 3. The advertising and promotion program elements It divides into 3 major communication objectives to customers: – Health – Warm – Have fun Health It is aimed to present a health image to customers that it is more benefit than they are expecting. Obviously, soy product has been widely introducing into Asian market that can bring health to the customers. In the western, Soymilk is the top soy products by awareness in the United State. It benefits people to prevent Heart Disease, Cancer, Osteoporosis and Menopausal symptoms (Consumer Attitudes About Nutrition (2008) Online PDF). Macronutrient Composition of Soybeans (% Kcal) [pic] Complete protein, providing all 9 essential amino acids As Soymilk is mainly made from soybean, so it has abundant nutrient drink for children, teenager and elder. Thus, it is regarded as healthy and emphasize on low saturated fat (not Trans fats) and high protein. Since more and more people have concerned about their food whether it is harm to their health, and received a knowledge of trans fats product were being used from Macdonald and KFC widely in the market. Recently, such components are going to be removed and refused. In other words, Market is seeking a product who is selling along with health features. All in all, Vitasoy, sparkling soybean milk which is high protein and low saturated fat that can prevent heart disease. Protein can be supplying children’s need of their growing. By releasing this new product, additionally it is added with â€Å"Konjac† which is including a high proportion of fiber to help the digestive system. It is what the parent are looking for. Warm Sparkling soybean milk is positioning at giving delighting and warm to people, such as children, teenager and couple. Children could drink it whenever they have a breakfast, lunch time in daily lives. It accompanies with their childhood. For teenager, it is also appropriate for a party beverage when holding a party. People can keep in connection with their community with drinking together. Couple feels harmony and romantic by drinking hot soymilk with glow in dark plastic bottle during winter and Christmas season. Have Fun It can be playful. First of all, sparkling soymilk with adding â€Å"Konjac† inside. So, it is not only a drink but also can be masticable. Before drinking it, people have to shake it at least 10 times to make sure â€Å"Konjac† are well mixed. Second, it can glow. The container is printed by dark in glow ink to let the bottle glowing in darkness. It is awesome when drinking it at party, birthday celebration and dating. Apart from that, the bottle can be changing its color when holding it by hands. Yet, Couple holds the bottle each other to feel warm and make it colour changing. All above gimmicks can bring people to have a romantic, fantasy and the warmest Christmas festival that they have not experienced ever. By the above 3 objectives, customer should get a feeling and perspective of the new product featured in healthy, warm & harmony and even funny thing. Our key message is â€Å"Warmest Christmas, Sparkling Health† Marcom Tactics: Advertising Creative strategies Story Board: 1. [pic] 2. [pic] . [pic] 4. [pic] 5. [pic] 6. [pic] Media planning For the new product â€Å"Sparkling soy milk†, we design to make above the line & below the line promotion. Above the line active: |Roadshow Advertising – it will be a two parts advertising. First a whole shelter poster in the |[pic] | |densely populated districts, Causeway Bay, Admiralty, Tsim Sha Tsui and Mong Kok. The promotion wil l| | |contain the high level of the line of vision. The poster will show 3 images of our communication | | |objectives. Second, it will be a 30 sec advertising for Warm, Have fun and Health. | | |MTR Station Promotion – it will be a 4-Sheet Panel poster in all line of the MTR. The promotion will|[pic] | |be watch by 3,500,000 passengers for every day. The poster will as same as the bus stop promotion. | | |Radio Advertising – it will be a 3 part of 5 sec advertising. The voice will be record form a famous| | |DJ Sammy. It will produce the audience three images of our communication objectives. | |Print Advertising – it will be advertising on the Eat & Travel Weekly. It’s a page of the new |[pic] | |product usage and key message. | | |Online Web Site – it will be advertising on our main homepage to describe the new product feature. |[pic] | |And open an account on the Facebook to promotion the whole brand and communicate with the consumers. | | |Also we will advertising on yahoo too. | |Dispatch Sample – it will be make people keep an eye on the new product. We will engage some models |[pic][pic][pic][pic][pic] | |to dispatch the sample in densely populated districts, Causeway Bay, Admiralty, Tsim Sha Tsui and |[pic][pic][pic][pic][pic] | |Mong Kok. | | |Cooperative Advertising – it will be advertising with supermarket, Welcome & Parkn shop. We will | | |make a discount for the new product and the cost will be share with each other. It will also affect | | |the consumer buy more. | | Below the line active: |POS Display – it will be me people attention for the new products in the shop. It will carry out on |[pic][pic][pic] [pic] | |Mannings, Watson’s, 7-Eleven and Circle K. | | Sale Promotions activities Beyond the advertising, we will carry out some promotions activities: Coupons – we will provide coupons in the newspaper, Apple daily, The sun. Consumer can use the coupons to buy our new product for save 1. 5 dollars. Premiums – we will provide a small key chain (a small soymilk finger) for buying two of soymilk, it will produce two types. †¢ Conclusions †¢ Appendices †¢ Reference 1. Consumer Attitudes About Nutrition (2008) [Online PDF] Available from: http://www. soyconnection. com/health_nutrition/pdf/ConsumerAttitudes2008. pdf [Accessed 9/11/2009] 2. Product Vitasoy http://www. vitasoy. com. hk/eng/product/soya001. html 3. Annual report of Vitasoy http://www. vitasoy. com/download. php? id=105&lang=en 4. Mingpaonews, Finance http://finance. sina. com. hk/cgi-bin/nw/show. cgi/2880/2/1/1642787/1. html ———————– [pic]