Marketing Plan By:  

Phillip  Hammer  Leona  Lam  Cindy  Lu  

Duanrui  (Gloria)  Shi  Eunice  Wang  

Jingbi  (Marina)  Yang  

   

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  TABLE  OF  CONTENTS  

1. Executive  Summary……………………………………………….....2  2. Situation  Analysis…………………………………………………......3  

i. Customer  Analysis…………..…………………………...…3  ii. Competitor  Analysis…………………………………….....4  iii. Market  Analysis……………………………………………...6  iv. SWOT  Analysis………………………………………………..7  

3. Recommendations………………………………………………...…..9  i. Marketing  Strategy……………………………………...……9  

1. Targeting  &  Positioning……………………………….9  ii. Integrated  Marketing  Strategy………………………….11  

1. Product……………………………………………………...11  2. Price…………………………………………………………..11  3. Place…………………………………………………………..11  4. Promotion…………………………………………………..12  

4. References…………………………………………………………………13      

   

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EXECUTIVE  SUMMARY  

Vitasoy  has  already  effectively  been  saturated  into  the  Hong  Kong  market,  

becoming  a  household  name  that  most  hold  dear  throughout  generations  as  

more  and  more  drinkers  are  introduced  to  the  Vitasoy  through  the  familial  

branding  of  this  product.    With  the  soybean’s  increasing  popularity  due  its  

health  factors,  and  in  addition  to  the  construction  of  a  new  plant  in  Foshan  

(Southern  China),  the  Mainland  China  market  makes  for  an  attractive  

market  for  Vitasoy  to  expand  its  distribution  channel  and  push  its  way  into  

new  territories  made  of  millions  of  potential  lifelong  consumers.  

By  asserting  Vitasoy’s  mission  to  promote  lifelong  health  for  all  age  groups  

through  entering  the  Mainland  Chinese  market,  we  will  be  able  to  see  the  

same  result  that  has  been  seen  in  Hong  Kong.    By  bringing  more  awareness  

to  the  Mainland  market,  we  plan  to  create  Vitasoy  as  a  brand  that  is  not  only  

health-­‐conscious  but  family  oriented  as  well,  which  is  best  done  by  reaching  

out  to  the  youths  of  today  who  will  become  the  future  of  tomorrow,  passing  

along  their  brand  loyalty  to  their  families.  Long-­‐term  relationships  with  

customers  are  extremely  valuable  because  customers  are  consistent  sources  

of  positive  word-­‐of-­‐mouth  and  product  consumption.    

In  order  to  promote  Vitasoy  as  a  nutritious  and  inclusive  drink  for  those  of  

all  ages,  ideals  valued  by  these  consumers  will  be  considered  when  it  comes  

to  the  Vitasoy  campaign.    The  use  of  celebrities  who  project  a  wholesome  

image  as  well  as  interaction  with  the  consumer  will  be  considered  as  tactics  

to  connect  with  the  mainland  audience.  

   

   

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SITUATION  ANALYSIS  

Customer  Analysis  

Personal: Research has shown that soymilk can benefit women’s health because

it can reduce the risk of breast cancer by more than 30% for Asian women who

have habitually drinking soymilk. As for children, there is no doubt they are in

desperate need of protein, necessary for growing children. Vitasoy’s soymilk has

many flavors such as strawberry and chocolate, all of which can attract children

to drink an otherwise plain old healthy drink. In addition, protein is also of great

importance for senior citizens. It can maintain the metabolism of the body,

enhance the immune system and assist in aging gracefully. In fact, people

demand more protein as they age. Thus, soymilk is a good choice for women,

children and also senior citizens.

Cultural: About 2000 years ago, the king of the western Han dynasty started to

make soymilk for his mother, showing that soymilk has had a long history in

China, just as coffee has in western countries. Soy is so imbedded in Asian

culture that it goes beyond just beverage, but there is food made from soybeans

as well, Tofu for example. Many nutrition experts think that soy based foods

make digestion and absorption of nutrients easier for those from Asian countries.

Psychological: There are various ways for people to gain protein and many think

drinking soy milk is the healthiest way compared to eating meat or protein

powder. As a result, many believe herbs and vegetables have fewer side effects

than animal and medical products, so soymilk is their best choice. Furthermore,

Vitasoy was established in 1940’s and has become a happy memory in many

Hong Kong citizens’ minds. People may feel warm when drinking Vitasoy in

cold winter because it can remind them the happiest time they had in childhood.

Moreover, if in a family grandparents drink Vitasoy, younger generations may

follow suit.

   

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Competitor Analysis

Nestle:  The  world’s  leading  Nutrition  and  Health  Company.  Nestle  is  an  

international  company,  well  known  in  the  world,  including  the  Chinese  and  

Hong  Kong  market.  They  offer  a  large  variety  of  products,  from  baby  food  to  

bottled  water  to  ice  cream  and  so  on.  The  vision  of  this  company  is  to  better  

the  lives  of  their  customers  by  offering  healthy  foods,  as  is  reflected  in  their  

slogan:  “Good  Food  and  Good  Life”.  They  provide  different  products  in  

different  countries;  in  the  Hong  Kong  market,  Nestle  produces  soymilk  for  

its  Asian  audience,  and  thus  became  Vitasoy’s  competitor.  Nestle  has  also  

shifted  their  targeted  demographic  from  teenagers  to  mothers  such  that  the  

whole  family  may  find  a  drink  suited  to  their  taste.    

Yeo’s:  An  international  corporation  and  drink  manufacturer.  The  main  

products  in  Yeo  are  food  and  beverages.  Yeo’s  offers  many  different  kinds  of  

beverages  in  the  market,  such  as  Asian  drinks,  ready-­‐to-­‐drink  tea,  soymilk  

and  so  on.  Yeo’s  emphasizes  product  innovation,  as  reflected  in  the  

thousands  of  drinks  that  they  offer  in  order  to  reach  a  larger  market  and  

cater  to  the  varying  demands  of  different  consumer  groups.  The  main  

market  for  Yeo’s  is  the  Asian  market.  In  order  to  satisfy  those  customers,  

Yeo’s  developed  a  series  of  drinks  called  the  Asian  drink.  This  line  of  

traditional  drinks,  provides  chrysanthemum  tea,  winter  melon  tea,  

sugarcane  drink  and  so  on,  is  more  popular  among  adults  and  seniors.  Yeo’s  

is  well  known  by  local  Hong  Kong  citizens,  and  to  some,  these  drinks  remind  

hem  of  their  childhood.  Compared  to  other  markets  such  as  Mainland  China,  

Yeo’s  has  better  market  performance  in  Hong  Kong.  

Yili:  A  Mongolian  industrial  group  which  advocates  the  health  benefits  of  

nourishing  drinks  which  focuses  on  5  major  sectors:  liquid  milk,  ice  cream,  

milk  powder,  yogurt,  and  raw  milk.  The  marketing  campaign  of  Yili  centers    

 

   

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on  celebrity  endorsements,  seen  through  the  images  of  celebrities  on  the  

product  as  well  as  advertising  campaigns.  This  distinguishing  feature  

separates  Yili  from  Vitasoy,  giving  Yili  a  comparative  advantage  in  a  culture  

that  values  opinions  and  support  of  well-­‐known  stars.  Yili  also  sponsored  

the  2008  Beijing  Olympic  Games  and  the  Shanghai  World  Expo,  bringing  

more  awareness  to  the  Yili  brand.  Yili  has  a  very  large  share  in  the  Chinese  

market,  establishing  itself  as  a  drink  of  the  masses.  However,  it  has  a  very  

small  market  in  Hong  Kong,  and  is  not  considered  to  be  a  strong  threat  to  

Vitasoy  there.  

 

Similarities:  There  is  one  major  similarity  amongst  the  four  brands:  

promotion  of  health  drink  that  is  currently  high  in  demand.  As  people  obtain  

a  higher  living  standard  than  before,  they  are  also  becoming  more  

concerned  with  nutrition  and  health.  By  following  such  market  trends,  and  

selling  products  at  affordable  prices,  the  competitors  of  Vitasoy  have  been  

able  to  achieve  success  respectively.  

Due  to  the  similarity  among  those  brands,  Vitasoy  has  no  advantage  in  

promoting  itself  as  primarily  a  health  drink.  

Differences:  Although  these  four  brands  sell  similar  products,  they  have  

different  market  performances  in  the  markets  of  Mainland  China  and  Hong  

Kong.  This  may  be  due  to  cultural  differences,  leading  to  different  reception  

of  different  brands.  Nestle,  being  an  international  brand,  is  more  welcomed  

by  the  younger  generation  in  both  Mainland  China  and  Hong  Kong.  Vitasoy  

and  Yeo’s  are  local  Hong  Kong  brands  that  have  become  a  part  of  the  local  

lifestyle,  providing  products  that  target  the  Asian  population.  Comparing  

Yeo’s  to  Vitasoy,  our  research  suggests  that  the  latter  is  more  popular  in  the  

Hong  Kong  market.  

   

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However,  in  the  mainland  market,  Yili  is  the  winner  among  those  four  

brands.  As  mentioned  before,  Yili  promotes  their  products  by  using  celebrity  

endorsements,  which  is  a  good  way  to  use  in  mainland  market.  People  in  

China  are  getting  used  to  seeing  advertisements  with  celebrities.    If  Vitasoy  

wants  to  expand  the  to  the  China  market,  it  should  do  something  similar  as  

Yili  in  order  to  target  people  in  Mainland  China.  

 

Market Analysis

Macroeconomic  forces:  

  Demographic  forces:  VitaSoy  offers  a  large  range  of  suitable  beverages  for  

consumers  of  all  ages.    The  drinks  that  are  produced  target  all  different  

consumers.  

  Economic  forces:  The  recent  global  economic  slowdown  in  the  various  

major  markets  has  negatively  impacted  the  sales  of  VitaSoy.    The  slowdown  

led  to  a  decrease  in  overall  consumer  spending.    There  has  also  been  

inflationary  pressure  and  rising  wages  globally,  leading  to  increasing  costs  

for  VitaSoy.    The  volatile  employment  environment  has  also  posed  

challenges  for  VitaSoy.  

  Natural  forces:    In  the  past  two  years,  there  has  been  unexpected  

downtime  at  various  VitaSoy  operations  due  to  severe  weather  conditions.    

As  a  result,  there  were  production  delays  and  logistical  delays.  

  Cultural  forces:    In  Hong  Kong,  there  has  been  a  trend  of  having  a  healthy  

and  on-­‐the-­‐go  lifestyle.    Drinking  VitaSoy  products  in  moderation  fits  this  

type  of  lifestyle.  

 

   

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Microeconomic  forces:  

  The  company:  VitaSoy  is  based  in  Hong  Kong  and  its  main  function  is  the  

manufacturer  and  distributor  of  food  and  beverages  products.  

  Suppliers:    The  largest  supplier  accounts  for  23  percent  of  total  purchases  

and  the  five  largest  suppliers  account  for  30  percent  of  total  purchases.    This  

is  potentially  detrimental  because  if  anything  happens  to  the  business  of  

these  suppliers,  significant  portions  of  VitaSoy’s  purchases  are  in  danger.  

  Marketing  Intermediaries:  VitaSoy  does  not  have  its  own  retail  shops  and  

third  parties  such  as  supermarkets  and  convenience  stores  sell  all  VitaSoy  

products.  

  Customers:    The  largest  customer  accounts  for  6  percent  of  total  sales  and  

the  five  largest  customers  account  for  20  percent  of  total  sales.    This  is  

potentially  unfavorable  because  if  anything  happened  to  the  business  of  

these  customers,  one-­‐fifth  of  VitaSoy’s  sales  are  in  danger.  

  Competitors:  There  is  intense  competition  among  brands  and  across  food  

and  drink  categories  especially  with  the  influx  of  Japanese,  Korean,  and  

Taiwanese  drinks.  

 

SWOT  Analysis:  

Strengths:  VitaSoy  has  strong  brand  equity,  so  when  people  hear  “VitaSoy,”  

they  associate  it  with  a  strong  sense  of  credibility.    The  company  also  has  a  

good  local  reputation  because  the  people  in  Hong  Kong  have  been  drinking  

VitaSoy  for  many  generations.    VitaSoy  has  also  successfully  penetrated  into  

overseas  markets  and  can  be  found  in  North  America,  Australia  and  New  

Zealand,  and  Singapore.    The  company  offers  a  diverse  selection  of  products  

including  soymilk,  tea,  tofu,  lunch  box  and  snacks,  dairy  milk,  distilled  water,    

   

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and  juice  drinks.    These  products  are  distributed  through  many  different  

channels.  

Weaknesses:  VitaSoy  products  and  drinks  are  only  top  of  mind  in  Hong  

Kong.    While  in  other  places,  VitaSoy  products  are  only  either  brand  recall  or  

brand  recognition  on  the  brand  awareness  pyramid.    Therefore,  VitaSoy  

only  has  a  relatively  small  market  share  in  other  countries.    Another  

weakness  is  that  most  of  the  VitaSoy  drinks  have  large  sugar  contents  and  

this  generates  some  criticism.  

Opportunities:  Soymilk  is  increasing  in  popularity  because  the  antioxidants  

in  the  soybeans  have  been  found  to  prevent  cancer.    VitaSoy  has  built  a  new  

plant  capacity  in  Foshan,  Southern  China  in  hopes  of  expanding  its  

distribution  channels  and  widening  its  territorial  foothold  in  Mainland  

China.    The  company  has  also  penetrated  the  plastic  bottled  drinks  segment  

in  Hong  Kong  and  this  can  compete  with  the  influx  of  foreign  drinks.  

Threats:  VitaSoy  continues  to  face  increasing  labor  costs  and  logistical  costs.    

The  increasingly  competitive  landscape  also  threatens  VitaSoy’s  sales.  

   

   

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RECOMMENDATION    

By  asserting  Vitasoy’s  mission  to  promote  lifelong  health  for  all  age  groups,  

we  hope  that  by  entering  the  Mainland  Chinese  market,  we  will  nurture  

lifelong  customer  relationships  with  the  youth  (and  in  turn,  the  entire  family  

unit).  Seeing  the  results  of  similar  approaches  in  Hong  Kong,  this  can  lead  to  

positive  future  outcomes  as  future  generations  become  repeat  consumers.    

Long-­‐term  relationships  with  customers  are  extremely  valuable  because  

customers  are  consistent  sources  of  positive  word-­‐of-­‐mouth  and  product  

consumption.    

 

Marketing  Strategy  

Segmentation: Vitasoy has segmented the market in several major ways,

including by demographics, geography, Psychographic, and Behavioral.  

Geographic: Vitasoy currently operates in 40 different countries, and has

split the world into five major segments; Mainland China, Hong Kong and

Macau, North America, Australia and New Zealand, and Singapore. Out of these

groupings, Mainland China remains the most important segment, as it has the

largest population, a growing middle class, and a low level of consumer

identification with the Vitasoy brand. This low level of saturation makes the

mainland a more attractive area of expansion than Hong Kong, as there is a much

larger proportion of the population that can be tapped.

Demographics: We have aimed to target all ages, all income levels, and

continue to establish our products as naturally inclusive; appealing to people

from across many demographics can enjoy this product. The company has been

especially focused on attracting the youth to Vitasoy products so that we can

build long-term relationships with these customers for decades. Making an

impact on young consumers is crucial for our long-term

   

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sustainability. Consumers whom we are able to build long-term relationships

with are naturally more profitable than one-time customers, as they offer more

than sales, by providing positive word of mouth. In addition, because of our

family-oriented market strategy, establishing these relationships can yield

positive results as the entire family unit, with multigenerational potential, adopts

our product.

Psychographic: Vitasoy has worked to present itself as a conservative,

family oriented company that can appeal to the family unit. We have family

friendly commercials that promote a positive message of togetherness. Our

“Stand By Me” campaign, for instance, shows people from all walks of life

drinking various Vitasoy products in a variety of environments, all singing one

song together. This contrast greatly with traditional commercials from

competitors like Coke, which runs ads featuring sultry actresses in sports cars,

drinking Coke and conveying poor family values. We are looking to target the

market of the health conscious consumer, and making the case that Vitasoy is a

healthy, delicious, cheap, and convenient substitute to most other

products. Vitasoy can be consumed at any point in the day, but it has been

shown to be a convenient morning beverage that helps start the day off right.

Behavioral: Our marketing scheme aims to target the low loyalty, light use,

low brand recognition, and high potential consumers. We acknowledge that

targeting our most loyal customers is unlikely to result in high returns, as these

consumers are usually near their upper limits in consumption potential. Instead,

by focusing on people who are less committed to the Vitasoy brand, we have

much more potential to grow. In addition, we hope that there will be a positive

spillover effect for our loyal users. While our commercials are aimed at

attracting new customers, they will also have the benefit of reaching loyal

customers, and reinforce their level of satisfaction with our brand.

   

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Positioning: We hope to achieve a level of brand positioning in which we can

reinforce a sense of nostalgic familiarity for parents, and bridge the generation

gap between children and adults. The long history of Vitasoy means that we

have sold our goods to many generations, and we hope that our products will act

as a bridge through time, allowing parents and their children to have a common

bond. We also hope to position Vitasoy to be perceived as health conscious and

delicious. It is important to the long-term success of the company that our

consumers are aware of the health benefits associated with the Vitasoy

brand. Finally, because they are one of our most critical demographics, it is

critical that we maintain a brand image of youth-friendliness in order to attract

new and youthful consumers.

 

Integrated  Marketing  Strategy  

Product: The product we are focusing on is the soy milk, tea, and juice sector of

Vitasoy. The product branding positioning taken as a part of this campaign is

“sincerity”. Our marketing campaign will center on family values—so our

product will convey the message of being beneficial to the family and it’s health.

Price: The strategy we want to use for this campaign is penetration. Thus we

want our product to be produced on a large scale at a low cost. This way,

everyone, no matter what income level they belong to, will be able to afford this

product.

Place: Since we want our product to be thoroughly accessible in the market, we

want Vitasoy to be available in the most convenient locations for the consumers.

Currently in China, we have noticed from personal experience that many

convenience stores do not carry Vitasoy products. Since our target is on family

and children, we want our product to be in areas where children are in. This

includes classrooms, playgrounds and other youth-orientated areas. In Hong

Kong, there is a high use of vending machines in areas such as schools. We will

try to bring this model to China. Euromonitor International did a study on

   

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vending machines in developing countries (n.d.). In Japan, there are very low

rates of vandalism because it is a relatively safe country (Spacey, 2012). In

contrast, China is still a developing country but growth for vending machines is

still on the rise.

Promotion: In order to focus on our “target”, we plan to use promotion in order

to reach our consumers—especially students and the younger generation so that

these purchasing behaviors can stay with them even as they mature.

Public Relations: First off, the competitor brand “Yili” is doing extremely

well in China. Their main strategy is to use celebrity endorsers. For example Yili

uses celebrity images on their products and uses them in all promotional

campaigns across the field. The reason why they are so successful is because this

is aligned with the consumers taste in China. Celebrities are a huge part of

Chinese culture since the Chinese place a great amount of trust amongst

celebrities. For our campaign we will use relevant celebrities that have a “family”

orientated image--viewed by the community as having a healthy lifestyle.

Sales Promotion: Since our target is the youth, we want our campaigns to be

tech-savvy. It is easy to capture the younger generation with new technologies as

they use it quite often. One sale promotion campaign is to have QR codes on the

Vitasoy boxes to scan. After scanning a certain number, they will be able to

obtain a prize –such as a Vitasoy pedometer. This interactive experience engages

the users, while allowing them to share their achievements on social media sites.

Another sales promotion campaign is to give Vitasoy coupons in taxis after users

enter their phone numbers in TouchMedia’s monitor.

Social Media: This campaign is aligned with the public relations campaign.

Celebrities would use Weibo to endorse Vitasoy. This way the consumers can

see the product being tied to their favorite star.

Advertising: We would use vending machines in high profile areas. This not

only gains the attention of many but also increases sales—serving a dual purpose.

   

  14  

As mentioned before, these vending machines would have extra security to

ensure that vandalism is kept to a minimum.

 

   

  15  

   

  REFERENCES  

"The Battle of the Brands: Winners and Losers in the Culture Wars." Yahoo!

Finance. PR Newswire, 21 Mar. 2013. Web. 20 July 2013.

Lau, Adaline. "Vitasoy Makes HK$10m Brand Investment." Marketing, ,

HONG KONG, MARKETING, Campaigns, Out Of Home,. Marketing-

Interactive, 9 July 2013. Web. 9 July 2013.

Spacey, John. "Vending Machines in Japan: 5.6 Million Robots Can't Be

Wrong." Japan Talk. N.p., 12 Aug. 2012. Web. 19 July 2013.

<http://www.japan-talk.com/jt/new/vending-machines-in-Japan>.

"Vending in emerging countries." Market Research World. N.p., n.d. Web. 18

July 2013. <http://www.marketresearchworld.net/content/view/157/77/>.

"VITASOY International Holdings Ltd." VITASOY International Holdings

Ltd. N.p., n.d. Web. 1 July 2013.

Wang, Jasmine. "Vitasoy Finds Favour amid Milk Scandal." South China

Morning Post. N.p., n.d. Web. 10 July 2013.