Success Case Study: Classmate Xiaoming – How product differentiation helped the brand to break through the oversaturated Chinese tea market
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With globalization, the eating and drinking habits of young Chinese people are evolving and they seek unique and differentiated products. Realising the untapped potential, Uni-President launched a unique tea drink, Classmate Xiaoming, focused on teens and younger adults. The drink is positioned as a "trendy" drink for Generation Z through fresh flavors of cold-brewed tea, bright and interesting packaging, and humorous promotional campaigns.
The Chinese ready-to-drink (RTD) tea market is oversaturated primarily due to a lack of new product development and intense competition from soft drinks. Uni-President China has uncovered the untapped opportunity in the market by introducing an innovative RTD tea drink made using cold-brewed technology, targeted at consumers born since 1995. It became a huge success soon after its launch, and the company's market share increased significantly in the RTD tea market.
Scope
– Uni-President actively explored and targeted Generation Z when other brands in the market were focusing on adults.
– The company devised marketing strategies focused on younf people that established an emotional connection with the core consumer segment, thus enhancing the product's relevance.
– Classmate Xiaoming has been continually upgrading the packaging and introducing new flavors in line with changing consumer behavior, enhancing its value.
Reasons to Buy
– Reduce the risk of failure by learning from brands/products that have under-performed: failed innovation can severely impact profit and reputation.
– Understand the relevant consumer trends and attitudes that drive and support innovation success so you can tap into what is really impacting the industry.
– Gain a broader appreciation of the fast-moving consumer goods industry by gaining insights from both within and outside of your sector.
– Access valuable strategic take-outs to help direct future decision-making and inform new product development.
Classmate Xiaoming
Nestle
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