An Evaluation of on Vitasoy’s Brand Development Strategy
This report is writing to analysis and justifies the case study on Vitasoy’s brand development. It would be dividing into three parts, and they are company background, brand development strategy and marketing mix. After that it would be finished by the conclusion.
B. Company Background.
Vitasoy is a brand of beverages and desserts which was founded with a sensational story by Dr K.S. Lo in 1940s. (Vitasoy.com, 2014) Now it operates under the Vitasoy International Holdings Limited and it is the leading company and the strongest brand in soymilk product in Hong Kong. It occupies the main market share in soymilk product with 75% in Hong Kong and 50% in Shenzhen & Guangzhou and 35% in Australia & New Zealand. (Mingpao Finance, 2008)
In the past, milk is an unaffordable drink for everyone and many people were suffered from poverty or malnutrition after the world war. In consideration of this situation, Dr. Lo tried to help and he focused on soy milk which determined to have similar nutrition with milk and even for a cheaper price. At first, the drinks were delivered to each consumer door by door unless the technology of sterilization has been discovered. Vitasoy can store without any refrigeration, therefore the distribution was expanded and the business was revolutionized.
Figure 1 the previous
Bottle of Vitasoy
From 1970s, Vitasoy‘s brand name has been spread out quickly. Vitasoy beverages are packed in glass bottles, PET bottles, paper boxes and Aluminum can and it comes in original, malt, coconut, melon and many flavors. Some of the special flavors are available seasonally. In fact, Vitasoy would launch different campaign and activities during diverse period, such as “My own pack” and “seven million people with you”. It has raised the circulation of the Vitasoy soymilk by increasing the brand awareness and brand loyalty. It got a great success in 2000s.
Figure 2 The Campaign of “ Own by Me”
Figure 3 The Campaign of
“Seven million people with you”
C. Brand Development Strategy
In this section, Customer-Based Brand Equity Model (CBBE) (Keller et al., 2012) would be chosen to evaluate the brand strategy of Vitasoy. Actually, there are several theories to explain how brand equity influences the brand development, such as brand Equity (D. Aaker, 1991) and brand identity (Kapferer, 2012). The reason of choosing CBBE to analysis would be explained is as follows.
(1) Brand equity model defies that the relationship between five components and the performance of the brand. And the five components are brand awareness, brand identity, brand loyalty and Perceived quality. (D. Aaker, 1991)
Figure 4 Brand Equity
(D. Aaker, 1991)
(2) Brand identity model stated that there would be six factors to affect the brand Identity which can be divided into two sides and they are internal and external. The element includes physique, personality, culture, relationship, customer reflection and self- image. (Kapferer ,2012)
Figure 5 Brand Identity (Kapferer, 2012)
In fact, both of two theories can also help to explain the relationship between the element and brand equity and explain the performance of the brand development. However, there is no sequence within the components. We cannot find out that which one is the beginning step of the brand development. The developer would not know what a new brand should do to create brand equity and how to achieve the higher level. Based on different stage of the process, there should be different strategies to fulfill different stage. Therefore, that is the reason why CBBE model would be more effective to explain how to influence consumer’s purchasing decision making process step by step to let them become the loyalty consumer.
Customer-Based Brand Equity Model (CBBE)
Figure 6 Customer-Based Brand Equity Model (CBBE)
(Keller et al.,...
Bibliography: Netmba.com, (2014). Product Life Cycle. [online] Available at: http://www.netmba.com/marketing/product/lifecycle/ [Accessed 23 Oct. 2014].
16. Neil H. Borden, 1964, The concept of the marketing Mix.
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