Bottled green tea market to be remapped by the big guys?
Bottled green tea market to be remapped by the big guys?
Tan Hiep Phat deserves credit for “changing the wasteland into cultivated land” when it marketed the first bottled green tea products in 2006. However, it does not mean that it would dominate the market, because a lot of big sharks have jumped into the pond.
As a pioneer in the bottled green tea market with the brand Tra Xanh Khong Do, Tan Hiep Phat now holds 50 percent of the market share in Vietnam, according to a recent report of Euromonitor International (EI).
The annual growth rate of Tra Xanh Khong Do has been always at two-digit level. And it is the high growth rate which has prompted other investors to jump on the bandwagon.
A lot of other bottled green tea brands have been marketed, following the success of Tra Xanh Khong Do.
There are three biggest players in the market now, including Tra Xanh Khong Do, a brand of Tan Hiep Phat, C2 of URC and Lipton Pure Green of Pepsi Cola (the big guy has bought Lipton brand for liquid products, while Unilever still owns Lipton brand for packed powder tea).
The appearance of the products of the same kinds bearing the strong brands of the big guys in the drink manufacturing sector has forced Tan Hiep Phat to be more cautious with its business moves.
Tra Xanh Khong Do of Tan Hiep Phat, since the day it was marketed, has become well known in the market with creative ads, heavy investment in technology and good distribution.
Especially, people buy Tra Xanh Khong Do because the products have been positioned as being good to people’s health.
C2 of URC Vietnam, which was launched into the market later than Tra Xanh Khong Do, applied similar methods to approach to customers, has also been developing very strongly, thus threatening the Number 1 position of Tra Xanh Khong Do.
C2 once reportedly obtained a very hot development, 97 percent per annum. Understanding that Tra Xanh Khong Do is a redoubtable rival, C2 has been attacking niche markets. It found that the competitor puts green tea in 0.5 liter bottles, relatively big to many people.
Therefore, C2 has been put in 360 ml bottles. Especially, it has been following a right communication strategy when reminding people that C2 is made of 100 percent of the tea from Thai Nguyen, a famous tea growing area in Vietnam.
C2 has been distributed through a large distribution network of more than 3 million retail points in 63 provinces and cities.
Joining the market in 2008, Lipton Pure Green is also a big rival, because it has been put under the management of a giant in the drink sector – Pepsi.
Lipton Pure Green is positioned as a high grade soft drink which attracts people with its differences. The product is affirmed as made of 100 percent of young tea leaves, while the tea growing has been put under the strict control of the global Lipton.
With the powerful financial capability, professional marketing strategy and the Pepsi’s large distribution network, analysts believe that it would be within the reach of Pepsi to re-map the bottled green tea market with its Lipton Pure Green.
vietnamnet
