How effective were these choices. A Bittersweet Partnership case study solution After refreshing your mind, read your case study solution critically. Often history is provided in the case not only to provide a background to the problem but also provide the scope of the solution that you can write for the case study.
Coca-Cola continues to dominate in urban areas however, Wahaha has generated more awareness recently to attempt to gain an edge in those urban areas.
But, still sector has high entry barriers there by resulting into limited potential entrants. This ensures that local consumers know who they are and how reliable they have become. They invested heavily in Brand recognition and used lots of advertising and sponsoring to support their cola brands.
This allows the company to take over these markets and establish itself as a dominate force in that particular category. Make a time line of the events and issues in the case study.
The soft drink industry targets consumers in the age range. Time line also provides an insight into the progressive challenges the company is facing in the case study.
They identified the opportunity in rural markets which was untapped by big multinationals and advertised heavily on local TV Channels, especially CCTV to create a solid Brand image in minds of Chinese consumers. However, later Wahaha successfully competed against them due to good knowledge of Chinese culture, sound distribution network and excellent Brand Management and timely launch of quality products in rural areas which was untapped by big companies.
A Bittersweet Partnership HBR Case Study To write an emphatic case study analysis and provide pragmatic and actionable solutions, you must have a strong grasps of the facts and the central problem of the HBR case study.
This is due to the fact that Coca-Cola has already made high profit in urban areas Chan, They spent half of their advertising on CCTV which had huge rural coverage and credibility among consumers. Coca-Cola continues to dominate in urban areas however, Wahaha has generated more awareness recently to attempt to gain an edge in those urban areas.
It provided a chance for Wahaha to obtain world-class production technology as well as protect itself from local and international competitors Cravens, This leads to unstructured learning process resulting in missed details and at worse wrong conclusions.
The prices of Wahaha products were generally lower than those of competitors such as Coca-Cola. Unlike Multinational companies, Wahaha had set up its own bottling plants as subsidiaries which allowed it great flexibility and also opened 68 production lines over China in various provinces.
There should be a Four Step Action Plan which Wahaha should consider to compete successfully against such large multinational enterprises: Dominating product categories all across China and taking on consumer giants, this local company has displayed good management as well as company goals to get where it is today.
Pepsi and Coke preferred to establish their own distribution networks while setting up Joint Ventures with bottlers and bottlers managing sales in their assigned territory.
Once done it is time to hit the attach button.
So instead of providing recommendations for overall company you need to specify the marketing objectives of that particular brand. Coke spent heavily on Marketing to create a sound brand image and included Chinese cultural icons like windmills and dragons in its advertising.
Chinese cola consumers were segmented into two broad areas urban and rural, while urban market was captured mostly by Coke and Pepsi and Wahaha had excellent rural reach due to its unique relationship with its distributors in remote parts of China.
Case Study Analysis Source: The next step is organizing the solution based on the requirement of the case. In Coca-Cola felt the need to expand its market into rural areas in an attempt to maintain its market share in China Chan, Wahaha does a phenomenal job targeting its audience.
What future strategies should Wahaha consider to compete successfully against such large multinational enterprises.
You can do business case study analysis by following Fern Fort University step by step instructions - Company history is provided in the first half of the case. Case study solutions can also provide recommendation for the business manager or leader described in the business case study.
This has resulted in Danone preparing to quit the joint venture in Future cola in china. DANONE CASE 1. What were the intentions of Wahaha Group and Danone when setting up joint ventures in China? Based on Danone first experience in China, Danone looking for experince partner in China who knows about the culture inside China.
Wahaha’s R&D: Wahaha co-operated with R&D institutes and leading domestic flavor producers to ensure that its cola would be of a high quality and conducted thousands of taste tests worldwide.
Its taste was designed to be close to international colas, but a little bit sweeter and stronger to cater to the Chinese consumers’ taste. Wahaha Group Co., Ltd. is much smaller than Danone.
Since its founding in the late s, the company has Though this dispute makes a great case study for MNCs doing business in China, it also illustrates some bigger issues about public opinion, nationalism, and the rule of law. Access to case studies expires six months after purchase date. Publication Date: June 12, In AprilZong Qinghou, founder of Hangzhou Wahaha Group and chairman of all its joint ventures.
Danone & Wahaha: A Bittersweet Partnership Case Solution, This Case is about EMERGING MARKETS, GROWTH STRATEGY, JOINT VENTURES, NEGOTIATIONS, PERFORMANCE MEASUREMENT, RISK MANAGEMENT PUBLICATION DATE: August 14, 2. Wahaha’s R&D: Wahaha co-operated with R&D institutes and leading domestic flavor producers to ensure that its cola would be of a high quality and conducted thousands of taste tests worldwide.
Its taste was designed to be close to international colas, but a little bit sweeter and stronger to cater to the Chinese consumers’ taste.Wahaha case study