Background
Soybean milk was first introduced in Hong Kong by Dr. K.S. Lo under the brand name “Vitasoy” in 1940, with an intention to provide consumers with an affordable nutritious and high-protein soymilk drink.
Since then, Vitasoy became a well-known household name and is now the flagship product of Vitasoy International Holdings Limited (VIHL), contributing 48% of the company total revenue by categories in fiscal year 2013/2014.
With the priority to promote quality of life through a wide range of great-tasting and nutritional products, the company expanded beyond the soy beverage with a wide variety of food & beverages, under the derivative brand name "Vita”.
Vitasoy Soybean Milk…show more content… Both strategies are least risky and are capable to generate further business growth for Vitasoy in this mature market (Hong Kong)
Market Penetration
Vitasoy soybean milk needs to drive off competition and sustain their share in the non-organic soymilk segment via enlarge distribution reach, conduct tactical/ aggressive sales promotions (eg. Discount or bundle sales) and increase share of shelf-space. They need to reinforce barriers to entry in their key strategic channels (ie. chain supermarkets and chain convenient stores), as those are the key market entry channels and key breeding ground for competition. It is also crucial to rationalize their existing product line (multiple pack formats) to achieve economies of scale or prevent production complexity but most critically is to avoid cannibalization. In addition, to ensure the success of the product in PET packaging, it has to be nurtured with more effective marketing efforts with a pricing strategy that will appeal to the masses, specifically in chain convenient stores due to its geographical spread and 24/7.
Product Development
Vitasoy soybean milk has passed its maturity stage, as consumers continue to be inclined towards beverages with higher nutritional benefits (eg. Organic, high calcium, low sugar & low fat). Nonetheless, the company must continue to protect its leadership in this category as it contributes 48% of the company total revenue. This can be
