Marketing Strategy Vitasoy Soybean Drink
Background
Soybean milk was first introduced in Hong Kong by Dr. K.S. Lo under the brand name “Vitasoy” in 1940, with an intention to provide consumers with an affordable nutritious and high-protein soymilk drink.
Since then, Vitasoy became a well-known household name and is now the flagship product of Vitasoy International Holdings Limited (VIHL), contributing 48% of the company total revenue by categories in fiscal year 2013/2014.
With the priority to promote quality of life through a wide range of great-tasting and nutritional products, the company expanded beyond the soy beverage with a wide variety of food & beverages, under the derivative brand name "Vita”.
Vitasoy Soybean Milk (Regular) - Marketing Mix
Product
Vitasoy soybean milk is the preferred brand among local consumers, but it is fast losing its attractiveness. Consumers are becoming more sophisticated and health conscious where many are switching out to “Fresh/ Organic” soymilk which are fiercely competed by many rivals. The launched of Low Sugar variant may have helped to slow down its eroding share, but the product has passed the maturity stage. Instead of rationalizing the existing product line (multiple pack formats, photo below), the company continue to stretch the product line with different pack formats (of recent, the PET packaging). This initiative may potentially lead to cannibalization and causing diseconomies of scales in production.
Price
Targeting the masses with price positioned below most of the “organic” and “non-organic” soymilk products across most channels. With exception to chain convenient stores, its pricing is much higher than most of the “organic” soymilk products. This conflicting price positioning in chain convenient stores may lead to consumers switching out to “organic” soymilk, which is cheaper, fresher & healthier.
As observed (photo below) in 7-Eleven, pack of Vitasoy soybean milk 250ml
Soybean milk was first introduced in Hong Kong by Dr. K.S. Lo under the brand name “Vitasoy” in 1940, with an intention to provide consumers with an affordable nutritious and high-protein soymilk drink.
Since then, Vitasoy became a well-known household name and is now the flagship product of Vitasoy International Holdings Limited (VIHL), contributing 48% of the company total revenue by categories in fiscal year 2013/2014.
With the priority to promote quality of life through a wide range of great-tasting and nutritional products, the company expanded beyond the soy beverage with a wide variety of food & beverages, under the derivative brand name "Vita”.
Vitasoy Soybean Milk (Regular) - Marketing Mix
Product
Vitasoy soybean milk is the preferred brand among local consumers, but it is fast losing its attractiveness. Consumers are becoming more sophisticated and health conscious where many are switching out to “Fresh/ Organic” soymilk which are fiercely competed by many rivals. The launched of Low Sugar variant may have helped to slow down its eroding share, but the product has passed the maturity stage. Instead of rationalizing the existing product line (multiple pack formats, photo below), the company continue to stretch the product line with different pack formats (of recent, the PET packaging). This initiative may potentially lead to cannibalization and causing diseconomies of scales in production.
Price
Targeting the masses with price positioned below most of the “organic” and “non-organic” soymilk products across most channels. With exception to chain convenient stores, its pricing is much higher than most of the “organic” soymilk products. This conflicting price positioning in chain convenient stores may lead to consumers switching out to “organic” soymilk, which is cheaper, fresher & healthier.
As observed (photo below) in 7-Eleven, pack of Vitasoy soybean milk 250ml
References: 1) 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.hk 4) Facebook – VitaVitasoy 5) Blog - childhoodsnacks.blogspot.hk 6) EuroMonitor International, website www.euromonitor.com/soft-drinks-in-hong-kong-china/report 7) Blue Ocean Strategy, W. Chan Kim & Renee Mauborgne, 2006 Harvard Business School Publishing Corp