Success Case Study: Heytea – How a differentiated product became a hot new trend
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With globalization, the eating and drinking habits of young Chinese people are evolving and they seek unique and differentiated products. Heytea has designed a differentiated product that became a social media sensation in China. The company uses a unique formulation and innovative marketing strategies to reinvigorate the millennia-old tea tradition among young Chinese consumers.
Though China is a tea-drinking nation, Millennials with growing middle incomes are replacing tea with coffee. Heytea effectively rejuvenated the tea tradition among young Chinese consumers by adding a new ingredient (cheese) and offering it in a to-go format. The company leveraged the popularity of social media apps in China and focused on cross-industry promotions to gain visibility and connect with its target consumer segment.
Scope
– Young Chinese people perceive tea to be an old-fashioned drink and are switching to coffee.
– Heytea used fresh cheese and convenient packaging to position its cheese tea as a "cool" drink among young Chinese consumers.
– The company used innovative marketing strategies to raise brand awareness and connect with its target consumer segment.
– Heytea emphasizes clean-labeling claims to add a touch of premiumization to its product.
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.
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