The document analyzes the baby formula market in China and Hong Kong and discusses various companies' digital marketing approaches. It finds that: - Premium international brands like Wyeth Gold and Mead Johnson lead the market through established reputations, while local confidence in Chinese brands was damaged by a past safety incident. - E-commerce is a major driver of growth in China, with over half of online shoppers using mobile apps. Companies like Wyeth Gold and Friso have developed mobile apps and online platforms. - Wyeth Gold engages customers through its website, Mama Club, Facebook app, YouTube channel and mobile app. Mead Johnson also has a strong digital presence with its website and Mama Club.

2. Research & POV
For Milk Powder
Fens Sato – Creative & Business Director
6 Aug, 2013

8. Projected sales Trend in China
•
•
Sales trend estimate of 2009-2014 conducted at 2009.
Appreciation of Chinese
currency and steady economy
growth are offering more
opportunities
Online shopping of baby care
products is gaining importance.
(e.g. Tao Bao)

9. Premium (international) vs. Domestic (Chinese)
• Premium (international) brand
demand outperforms domestic
brands
•
Low consumer confidence in Chinese
local brand (melamine incident in 2008)
• Brands with established reputation
of high quality and safety will
continue to yield.
• Demand for premium product is
huge as income level population is
rising.
•
Pediatric milk formula of total retail sales of
domestic and international brand in China 20052009
Mothers are willing to spend on premium
products for their children (e.g. wanting
the best for the kids)

10. E- Commerce Market in China
According to China Internet Network Information Center
(CNNIC):
•There’s a 66.5% increase of China’s e-commerce market from 2011 to
2012, reaching up to 1.3 trillion RMB
Huge part was driven by mobile users:
•40.7% online shoppers use a mobile device to browse e commerce
merchandise
•More than half (53.6%) browsed a merchandiser’s mobile app instead
using internet browser

11. Sales Trend and insights in Hong Kong
• Hong Kong baby food market
continues to grow at an 8%
•
reaching $1,936 million HKD in 2012
• Influx of mainlanders purchasing
milk formula helps market
performance
Causes supply shortage and customer
complaints.
• Need for a better distribution?
E Commerce?
•
• Euromonitor International
states…”Hectic lifestyles of
working females cause reliance
on milk formula over
breastfeeding”
•
Need for a better digital platform for
Source: Hong Kong Customer Council (2011)
Mama Club to boost engagement and
build connection between moms?
2013: government banning number of milk formulas that can be taken out of HK:
http://blogs.wsj.com/chinarealtime/2013/02/04/hong-kong-milk-formula-hotline-flooded-with-calls/tab/video/

12. Marketing Approach
Mead Johnson
• Mead Johnson continued to lead market share at 35% at 2011,
with:
• Well established product line with pediatric nutrition focused
– caters pregnant women
– infants 0-6 months up to 12 years old
• Brand image: Long history; most trusted by moms; doctor’s choice

13. Marketing Approach
Pfizer (Wyeth Gold)
•
•
2nd strongest in Hong Kong with 28% market share
Brand Image: Dedication of being the most innovative,
scientific, and pediatric nutrition

14. Marketing Approach
Abbott
• Mama Website and Club driven; less from the brand
•
As brand also involves other medical and nutritional products
• Brand Image: comprehensive product line catering all age group
(infants to elderlies)

15. Marketing Approach
Friesland Foods (Friso)
•
•
•
Product line caters pregnant
women and children up to 3 years
old+
Selling point: has their own farm in
Netherlands
Brand Image: Natural and targets
young infants

16. POV
Global leader in
Doctor’s
pediatric nutrition recommendation;
focused. Research most trusted by
oriented and
moms;
innovative
Comprehensive
product line from
infants to
elderlies
Natural; targets
young infants and
pregnant women
only

17. Competitor Involvement in
DIGITAL MARKETING

18. Wyeth Gold
Homepage
•
Wyeth Gold brand homepage
•
Includes video, TV ads, 學習專
區, 育兒專欄, event
notification
•
Offers promotion and free
trial products

19. Wyeth Gold
Facebook App and Youtube Channel
•
•
學習驚喜頻道: Encourages
parents to guide and kids to
learn
Share videos and winning
family get prizes

20. Wyeth Gold
Mama Club
• BB 互動地帶: play games, learning

21. Wyeth Gold
Phone App
• For children learning
purposes
• Enhance speech and
recognition
•
•
Learning English and
Mandarin
Include DIY Flashcards

22. Wyeth Gold Digital Marketing List Page





Website
Mama Club
Facebook App
Youtube Channel
iPhone App
× Facebook page

23. Friso
Homepage
• Video and commercials
introduce Netherlands
farmland
• Sign up for trial products
• Offers order and delivery
service
• Soft background Music

24. Friso
Mama Club
Member receive benefits and
news updates:
•Gifts
•Attend pre-labor talks
•Free consultation hotline on
nutrition
•Product order and delivery

25. Friso
Facebook and Youtube page
•
26000+ likes
•
•
251 subscribers
Lisa S endorsement “Love Stories
of a First Time Mum”

26. Friso
phone App: 輕鬆訂
•
•
Baby formula order services
Can choose delivery or pick up

27. Friso Digital Marketing List Page





Website
Mama Club
Facebook Page
Youtube Channel
Phone App
× Facebook App

28. Abbott
Homepage
•
Old-fashion design
•
Offers company information,
health and medical tips, etc.

29. Abbott
Mama Club and Website
• Product information
• Interesting contents, tips
Eye Q 教室:
– 最強湊B網絡
– 腦力培訓班
– 幼稚園面試分享

30. Abbott
phone app: 保兒齊齊chok
•
Offers news and event updates, product information
•
Track baby growth, diet and nutrition

31. Abbott Digital Marketing List Page
 Website
 Mama Club
 Phone App
× Facebook App
× Facebook Page
× Youtube Channel

32. Channels/Brands
Wyeth
Gold
Friso
Abbott
Website
(Homepage)
X
X
X
Mama Club
X
X
X
Facebook Page
X
Youtube Channel
X
X
Phone Apps
X
X
Facebook App
X
X
Digital marketing involvement at a glance

33. Mead Johnson
Homepage
•
Website layout: similar to
Wyeth Gold
•
Product information
•
Includes 育兒資訊 (tips), BB
餵哺小百科 (problems and
scenarios), My Baby 互動區
(games and learning)

34. Mead Johnson
Mama Club
• Interactive and flash
base
• Daily Tips and games
• Background music for
children

35. Mead Johnson
Phone App:《A+潮媽媽小助手》
• BB「踢踢」紀錄
• BB成長計算器
• 潮媽食譜
• 潮媽知識
• 潮媽SHOPPING LIST
• 產前產後小TIPS

36. Mead Johnson Digital Marketing List Page
 Website
 Mama Club
 Phone App
× Facebook App
× Facebook Page
× Youtube Channel

37. Channels/Br
ands
Wyeth
Gold
Friso
Abbott
Mead
Johnson
(currently)
Website
(Homepage)
X
X
X
X
Mama Club
X
X
X
X
X
X
Facebook
Page
X
Youtube
Channel
X
X
Phone Apps
X
X
Facebook
App
X
Digital marketing involvement at a glance