1. Wahaha Company entered the fruit beverage market in 1991 and the cola market in 1998 by launching Future Cola, competing against Coca-Cola and Pepsi in China. 2. By 2010, Wahaha had proven effective in playing in the Chinese beverage market but faced challenges expanding beyond China against the giant competitors. 3. Wahaha considered increasing advertising budgets and expanding distribution networks to other markets to become known globally and maintain sales growth against Coca-Cola and Pepsi.

1. CASE ANALYSIS IN PRODUCT MANAGEMENT

2. Cola War in China Submitted to: Mr. Christian J. Umlas Submitted by: April Alberto Rose Jean Fabillar Nelissa Gabaldon Beverly Jean Gomba Regilisa Perez Kristia Kristel Romero Iyelle Sto. Domingo BSBM 301

3. TIME CONTEXT: 1991 - Whaha Co. established itself in the fruit-based beverage market 1998 - Whaha Co. decided to move into cola market w/launching Future Cola 2010 - Whaha Co. proven their effective playing of their beverage products in China market . 2004 - Competition of Pepsi, Coca Cola & Whaha Co. into cola market

4. VIEW POINT: Advertising department of Wahaha have to think how they will spread and mark their advertisement into other places and into their target market

5. CENTRAL PROBLEM How Wahaha Company exceeds to other places between the giant company like Coca cola and Pepsi Co. in the cola market?

6. STATEMENT OF THE PROBLEM Wahaha Company was exist as a fruit based beverage market and moved into milk market. During its growth, they wanted to enter into cola market and established their wide distribution network among other places. It was a big challenge to them because they need to face the rival wars between 2 giant cola company- the Coca Cola & Pepsi Co.

7. STATEMENT OF THE OBJECTIVES Wanting that the Wahaha Company well known also into other places, maintaining also their increasing sales and marked also as a giant company into cola Market.

8. V. AREAS OF CONSIDERATION: EXTERNAL PROBLEM USING T.O.W.S THREATS -Marketing strategy of competitors -Distribution system for other places -Decrease in Sales OPPORTUNITIES - Recognition not only in China but also in Other Places. -Developing the market (developed distribution) -Increase in sales

9. WEAKNESSES - well-known competitors -Strategy of distribution in products -Concentrates it sales in china’s villages STRENGTHS -Increasing sales in China -Dodging strategy -Using famous strategy to their advertisements

10. ALTERNATIVE COURSES OF ACTION (ACA) present Increasing budget allocation Target market in other places will be aware into Wahaha products 2. Developing Advertisement & Distribution of products into other places present Higher advertisement budget Creating product line acceptance to other target markets Advertising department 1. Making an advertisement that not only Chinese citizen can relate. TARGET DATE CONS PROS RESPONSIBLE PERSON PLAN/ STRATEGY

11. VII. QUESTIONS FOR DISCUSSION What market should Wahaha target in the midst of the two global giants? -It should be the Cola Market

12. 2. What advertising objectives should Wahaha set for its future Cola? At first Wahaha Company should set Advertising objective that can built primary demand, obviously it should be Informative. Second, when the FUTURE COLA builds a selective demand it should be persuasive. They have to tell to the consumer that the product they are serving is better than the competitive brand .

13. 3. What message strategy and message execution recommendations would you make for Wahaha’s bottled water versus for Coca Cola and Pepsi Co? Promote bottled water as China’s own product (never mind the foreign investment) and encourage consumers to support the nation by selecting Wahaha over foreign competitors

14. 4. What sales promotion and public relations recommendations would you make for coke in the Chinese village markets? Serving the customers a best product at a low price. The company frequently uses celebrities to promote its products. In the field of sports, they can sponsor some team athletes and they will promote the product to the sports audience .

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