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Failure Case Study: Weetabix in China-An international expansion that failed to reach expectations

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Details

Failure Case Study: Weetabix in China-An international expansion that failed to reach expectations

Summary

"Failure Case Study: Weetabix in China" is part of GlobalData's Successes and Failures research. It examines the details of and the reasons behind the failure of Weetabix in China. It delivers the critical "what?", "why?" and "so what?" analysis to teach you crucial lessons that increase your chances of launching successful products in the Chinese market.

In China, consumers tend to prefer hot breakfasts such as congee rather than cold ready-to-eat cereals. These breakfast habits are somewhat entrenched in Chinese culture, so challenging these views is always going to be difficult. However, the Chinese market represents a huge untapped area for Western breakfast cereals producers, and these brands are looking to revolutionise the breakfast habits of Chinese consumers, touting convenience, health benefits, and a trustworthy image.

Scope

The British breakfast cereal, produced in the UK since 1932, was put up for sale in January this year, just five years after the Shanghai based food group purchased the majority stake (60%) for GBP1.2bn back in 2012.

When Bright Food purchased a majority stake in Weetabix back in 2012, it had hoped to revolutionize the breakfast habits of Chinese consumers, touting convenience, nutritional benefits, a royal warrant and the fact that it sources all its wheat within fifty miles of its Burton Latimer factory in Northamptonshire.

The cereal company recorded some success in the market; however, the sale indicates that the brand has failed to obtain a significant market share in China.

Despite having a valuable product proposition, Weetabix has failed to truly immerse itself within Chinese culture, leaving the brand out of touch with Chinese consumers and their preferences.

Reasons to buy

Reduce the risk of failure by learning from brands/products that have under-performed: failed innovation can severely impact profit and reputation.

Understand the relevant consumer trends and attitudes that drive and support innovation success so you can tap into what is really impacting the industry.

Gain a broader appreciation of the fast-moving consumer goods industry by gaining insights from both within and outside of your sector.

Access valuable strategic take-outs to help direct future decision-making and inform new product development.

READ MORE

Table Of Content

Scope

Table of Contents

About Successes & Failures Case Studies

Summary: Weetabix in China

What?

Why?

Take-out

TrendSights

Appendix


List Of Figure


List Of Table

Licence Rights

Single User License:
Report can be used by individual purchaser only

Site License:
Report can be shared by unlimited users within one corporate location, e.g. a regional office

Corporate User License: 
Report can be shared globally by unlimited users within the purchasing corporation e.g. all employees of a single company

Section Purchase

To know more information on Purchase by Section, please send a mail to support@kenresearch.com

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Products and Companies


Companies

Weetabix, Sanitarium (Nutri-Brex), Greenmax, Vitamax, Soul Sprout, Moon Milk

Company Profile

Company Profile Title

Failure Case Study: Weetabix in China-An international expansion that failed to reach expectations

Summary

"Failure Case Study: Weetabix in China" is part of GlobalData's Successes and Failures research. It examines the details of and the reasons behind the failure of Weetabix in China. It delivers the critical "what?", "why?" and "so what?" analysis to teach you crucial lessons that increase your chances of launching successful products in the Chinese market.

In China, consumers tend to prefer hot breakfasts such as congee rather than cold ready-to-eat cereals. These breakfast habits are somewhat entrenched in Chinese culture, so challenging these views is always going to be difficult. However, the Chinese market represents a huge untapped area for Western breakfast cereals producers, and these brands are looking to revolutionise the breakfast habits of Chinese consumers, touting convenience, health benefits, and a trustworthy image.

Scope

The British breakfast cereal, produced in the UK since 1932, was put up for sale in January this year, just five years after the Shanghai based food group purchased the majority stake (60%) for GBP1.2bn back in 2012.

When Bright Food purchased a majority stake in Weetabix back in 2012, it had hoped to revolutionize the breakfast habits of Chinese consumers, touting convenience, nutritional benefits, a royal warrant and the fact that it sources all its wheat within fifty miles of its Burton Latimer factory in Northamptonshire.

The cereal company recorded some success in the market; however, the sale indicates that the brand has failed to obtain a significant market share in China.

Despite having a valuable product proposition, Weetabix has failed to truly immerse itself within Chinese culture, leaving the brand out of touch with Chinese consumers and their preferences.

Reasons to buy

Reduce the risk of failure by learning from brands/products that have under-performed: failed innovation can severely impact profit and reputation.

Understand the relevant consumer trends and attitudes that drive and support innovation success so you can tap into what is really impacting the industry.

Gain a broader appreciation of the fast-moving consumer goods industry by gaining insights from both within and outside of your sector.

Access valuable strategic take-outs to help direct future decision-making and inform new product development.

READ MORE

Scope

Table of Contents

About Successes & Failures Case Studies

Summary: Weetabix in China

What?

Why?

Take-out

TrendSights

Appendix


List Of Figure


List Of Table

Single User License:
Report can be used by individual purchaser only

Site License:
Report can be shared by unlimited users within one corporate location, e.g. a regional office

Corporate User License: 
Report can be shared globally by unlimited users within the purchasing corporation e.g. all employees of a single company

To know more information on Purchase by Section, please send a mail to support@kenresearch.com

INQUIRE FOR COVID-19 IMPACT ANALYSIS


Companies

Weetabix, Sanitarium (Nutri-Brex), Greenmax, Vitamax, Soul Sprout, Moon Milk