wahaha - history, evolution, present and the future

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A comprehensive background of Marketing containing its History and Origins, Early Evolution, Modern Business, Global Expansion, Company Structure, Recent Efforts and Company DNA. As one of the chapters of the book FMCG: The Power of Fast-Moving Consumer Goods by authors Greg Thain and John Bradley. For more details on their success story and that of other leading FMCG companies, check www.fmcgbook.com or Amazon http://amzn.to/1jRyd20.

TRANSCRIPT

Page 1: Wahaha - History, Evolution, Present and the Future
Page 2: Wahaha - History, Evolution, Present and the Future

History & Origin . . . . . . . . . . . . . . . . . . . 3

Early Evolution . . . . . . . . . . . . . . . . . . . . 4

Global Expansion . . . . . . . . . . . . . . . . . 5

Company Structure . . . . . . . . . . . . . . . 6

Summary . . . . . . . . . . . . . . . . . . . . . . . . 7

Social Media Accounts . . . . . . . . . . . . 8

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Page 3: Wahaha - History, Evolution, Present and the Future

Wahaha was founded by Zong Qinghou in 1987

He sold ice cream, soda and school exercise books via tricycle in

Hangtzhou, Zhejiang Province

In 1988, he moved into oral tonic

He did very well but realized none of his competitors targeted

children

A year later, he set up the Hangzhou Wahaha Nutritional Foods

Factory to make the Wahaha Nutrient Beverage for Children

With an advertising campaign aimed squarely at China’s state-

enforced one-child families - nothing being too good for these

‘little emperors’ - it was an immediate success

Wahaha sales hit $65 million in 1990

Wahaha merged with an ailing food business, which greatly

enhanced its market capabilities in 1991

Page 4: Wahaha - History, Evolution, Present and the Future

Launched Wahaha Milk, and a fruit-flavored milk drink

Wahaha had more than its fair share of failures but maintained an

increasing scale by buying up insolvent food and drink companies

It partnered with the French giant, Groupe Danone

Wahaha Pure Water was the new venture’s key launch

It became one of the country’s largest beverages companies

In the 1998 World Cup, Wahaha Future Cola was launched

The Future Cola was 25 % cheaper than the major brands

Between 1998 and 2001, sales of Future Cola increased almost

ten-fold giving it a market share of 14%

A year later, share was up to 18%

In some provinces, Future itself was the market leader

Page 5: Wahaha - History, Evolution, Present and the Future

In 2002, Wahaha’s total soft drink output in China exceeded Coca-

Cola Company with its launching of Future branded tea and fruit

juice lines.

Wahaha launched Future in the U.S., selling through small

convenience stores in New York City and Los Angeles

By 2008, Wahaha’s Future Cola was a number three player in the

Chinese cola market with a market share not far behind Pepsi

Wahaha in total was ranked the number five global beverages

company

It built a shopping complex and a Future Cola factory in Indonesia

They export not only to other Far Eastern countries but also to

France, Germany, Italy, Spain and The Netherlands

They recently signed a sponsorship deal with Manchester United

Page 6: Wahaha - History, Evolution, Present and the Future

Wahaha, in partnership with the French giant, Groupe Danone,

became the number one brand in the market.

Wahaha’s product lines include:

Dairy Beverages

Snacks

Infant Formula

Flavored Drinks

Canned Food Products

Tea Beverages

Medicine and Health Care

Liquor

Children Garments

Packaged Drinking Water

Carbonated Beverages

Juice Series

Page 7: Wahaha - History, Evolution, Present and the Future

Founder, Zong Qinghou started his business on a tricycle, and

managed to grow Wahaha through his market understanding.

The company partnered with Groupe Danone and launched the

Wahaha Pure Water

Wahaha challenged Coca-Cola and PepsiCo through Future Cola

which became a firmly established number three player in the

Chinese cola market by 2008.

Wahaha is China’s number one in the beverage industry with

exports not only to other Far Eastern countries but also to France,

Germany, Italy, Spain and The Netherlands.