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Failure Case Study: Nestea Iced Tea in China

Failure Case Study: Nestea Iced Tea in China


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Executive Summary

Chinese consumers are experimental when it comes to RTD tea purchases and consumption, and FMCG companies in China are keen to innovate in their food and drink products. A market fueled by innovation is a threat to brands that stand still, but at the same time offers profitable opportunities for those that actively adapt to change. Brand guardians can significantly benefit from developing an in-depth understanding of the reasons for the success or failure of new product launches or marketing campaigns.

Key Findings

During its 13 years in the market, Nestea's flavor options and branding were similar to those of its competitors. Its failure to respond quickly to changing trends made it lose the chance to regain lost ground.

The fast-changing nature of emerging markets is driving food and drink innovation, as well as the growth of niche products in these markets.

Synopsis

"Failure Case Study: Nestea Iced Tea in China" is part of Canadean Consumer's Successes and Failures research and looks at the reasons behind the recent exit of Nestea iced tea from the Chinese RTD tea market and what foreign companies can do to grasp opportunities as they face strong threats from local competitors.

It delivers the critical "what?", "why?", and "so what?" analysis to teach you crucial lessons that increase your chances of launching successful products.

Reasons To Buy

Reduce the risk of failure by learning from brands/products that have underperformed: 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.

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Report can be used by individual purchaser only

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Nestle

Coca-Cola

Uni-President Enterprises Corporation (owner of Uni-President)

Tingyi (Cayman Islands) Holding Corporation (owner of Master Kong aka Kangshifu)

L'Oreal (owner of Garnier)

Revlon (owner of Revlon)

Unilever plc

Success, failure, FMCG, China, emerging market, RTD tea, soft drink, Nestle, Coca-Cola, Chinese market, flavor, positioning, brand identity, Uni-President, Master Kong, younger consumers, white-collar, risk-averse, experimental, undifferentiated, celebrity endorsement, CAGR, on-the-go, functional drink, motivation, health, experience seeking, aspiration, innovation, BRIC, niche


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