Winning the China vitamin war by building a strong brand

Abstract

PurposeTo provide insight on the characteristics of the Chinese multi‐vitamin marketplace and to discuss key issues involved in marketing work, including market testing, product positioning, market segmentation and targeting, differentiation, and branding strategy.Design/methodology/approachThe paper is based on a field‐based case study. An in‐depth interview has been used for data collection. The case is presented on a chronological order and could be divided into four stages (2001‐2005). Substantial information regarding the company's marketing strategy and tactics has been provided. Detailed sales data have also been given to facilitate the case discussion.FindingsThe case presents the uneven growing path of a Chinese multi‐vitamin brand. It has established the importance of brand‐building strategy on the basis of integrated marketing mix.Practical implicationsThe case provides an excellent basis for exploring the pros and cons of numerous marketing tactics – individual branding vs brand extension, penetration vs skimming, choice of promotional tools, etc. It has also illustrated different ways for product positioning and differentiation. In addition, it provides a basis for discussing ethics in advertising – e.g. the soft advertising.Originality/valueThe case has been used successfully in executive MBA courses. The case helps managers and researchers to understand China health supplement market which has indicated many special characteristics compared with Western market, or discuss general issues related to marketing.