Coffee is deeply emblematic of culture & time. Now Suntory brand coffee is launching a Ready to Drink variant. But what is the optimal target and positioning for this line extension? Should Suntory RTD coffee draw on its coffee credentials – or....? Qualitative research provides the answers.

1. Learnings by Millward Brown
Successful Line Extensions
Coffee is deeply emblematic of culture &
time.
Now Suntory brand coffee is launching a
Ready to Drink variant.
But what is the optimal target and
positioning for this line extension?
Should Suntory RTD coffee draw on its
coffee credentials – or....?
Qualitative research provides the
answers.

2. Learnings by Millward Brown
Background / Context:
• The RTD Coffee market in China is experiencing expansion but
remains at a fairly early stage of development
• Brand S feels that the time may be opportune to launch a new
product on to the China market to best position itself
• And MB Fireflies qualitative research was to help understand the
market & recommend target market and positioning
opportunities for the Brand S RTD Coffee.

3. Learnings by Millward Brown
Our Observations / findings:
On a macro level, the ‘in’ drinks in China are those that are seen
as ‘healthy’ & ‘contemporary’.
Coffee is not specifically seen as ‘healthy’ and it has a classic
rather than contemporary image

4. Learnings by Millward Brown
Our conclusion & recommendations - So what :
We pull Brand Suntory RTD coffee away from its coffee market
shell, towards the ‘in’ drinks in the burgeoning RTD market.
This would require abandoning ‘classic’ coffee culture associations

5. Our conclusion & recommendations - So what :
But potentially still retaining its Western credentials in order to
differentiate from the ‘Oriental’ credentials of Tea (& RTD Tea)

6. Learnings by Millward Brown
Learnings:
From this case study, we would like to share on the following
views regarding new product extensions (for mainland China –
but possibly also relevant in other markets):
• An existing category (& category consumer) may not always be
helpful for a new line extension, esp. where tradition & history
play an important role in category consumption.
● (i.e. lovers of coffee culture will not accept a RTD coffee / or lovers
of classic cola taste may not accept a sugar free variant)
• Therefore, it may be better to explore potential outside of the
immediate category/ core product consumer group – either by
leveraging emerging trends/needs – or to by establishing a new
micro sub-category in which the product can be positioned to a
totally new set of consumers.
● (i.e. position RTD coffee to RTD beverage consumers / position
sugar-free cola V’s sports drinks to a sports/energy consumers)
• Qualitative research provides an essential insight into consumer
needs states and opportunities for new products.