Success Case Study: Classmate Xiaoming - How product differentiation helped the brand to break through the oversaturated Chinese tea market

Success Case Study: Classmate Xiaoming - How product differentiation helped the brand to break through the oversaturated Chinese tea market

Summary

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.