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FUTURE COLA IN geil
CHINA te
Jingyan Liu
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Hangzhou Wahaha Group Co. Ltd • Future Cola is a product of Wahaha company • Wahaha, the sound of laughter in Chinese • It began as a milk factory run by a school in 1987 • Goal: To provide nutritious drinks to children • It is now China’s biggest beverage maker and top 5 beverage producer in the world QuickTime™ and a TIFF (Uncompressed) decompressor are needed to see this picture. What is Future Cola? • A Preservative free carbonated drink similar to coke • First started in 1998 • Promoted as a national brand to compete against the leaders, Coca-cola and Pepsi • The flavor is modified according to the Chinese taste • Types of Future Cola: 1. Regular Future Cola 2. Kids Cola (caffeine free) 3. Future Coffee Cola Interesting facts about Future Cola • In 2004, Future Cola became the first Chinese Business case that Harvard Business school used in its MBA program. • Coca Cola claimed that Future Cola is its only competitor in Chinese soft-drink market • First enter to promote Chinese Pride: “The coke owned by Chinese!” • Now, associated its image with happiness and festival: “Festival can’t be done without Future Cola.” QuickTime™ and a TIFF (Uncompressed) decompressor are needed to see this picture. Main strategies to fight against the giant incumbents—Pepsi/Coca-cola 1. Promoted as a patriotic brand and a symbol of happiness and luck– This is particularly important in traditional rural families 2. Modified the flavor according to Chinese taste 3. Made use of the huge wholesale and retail network that it has established in the past— 2000 wholesalers and retailers nationwide 4. Enter small – Target market: lower income group esp. peasants and in rural villages – Advantage: Pepsi and Coca-cola were not yet well established in rural areas Yearly Sales 1998 74,000 tons 1999 399,000 tons 2000 488,000 tons 2001 595,000 tons 2002 611,000 tons 2003 616,000 tons 2005 650,000 tons Why Future Cola is so successful in Rural Market? • Wahaha has already established a good image to the rural population. • Price: a 20% lower price than both Coca-cola and Pepsi - Coca-cola: 2.6 - 2.7 yuan (about $0.34) - Future cola: 2.1 - 2.2 yuan (about $0.27) • A very traditional Chinese culture design of the plastic cover, which favored by rural population • The image of the President: he’s also from a small rural town in Jiangsu province, and rural population are so proud of his success. Why Future Cola can’t have Cities’ market? • Presence of Coca-cola and Pepsi: has consumer loyalty • Consumers already knows what a typical coke should taste like. • Future cola taste differently than Coca-cola and Pepsi, thus consumers don’t consider it as a cola (even its name is cola) Continue • Opened its market into about 1000 small towns, and gave the refrigerators to retailers for free.(about 7000) • To compete with the price of Future cola, it started to sell “one-yuan Coca-Cola”(about $0.12) • Advertisement gets more into Chinese style, cultural Conclusion • Future cola is very successful in the rural area. However, there’s a long way to go for the Future cola to gain its market share in the urban areas. • Future cola should also watch out, and prepare to fight with Coca-cola for the rural market share since Coca- cola is expanding into the rural areas.