Promotion Impacting Demand Pattern for Drinking Milk Products in Taiwan: Ken Research
Posted on 21 June 2017 by KenResearch Food and Beverage,
In 2016, due to category maturity and unstable weather conditions in the spring and summer the drinking milk product in Taiwan is registered with current retail value growth of 2%. Wei Chaun Foods Corporation, a famous manufacturer continued to influence fresh milk, after the weak consumer’s confidence in its products. Wei Chaun products was left with excessive inventory and there was insufficient supply of alternative brands as consumer switched over to other manufacturer of SR’s with good quality control or smaller dairy farmers. There will be introduction to a traceable agriculture products (TAP) system for dairy products, which is announced by Wei Chaun. However, the introduction of TAP will take some years to see the effectiveness.
According to the market research report "Drinking Milk Products in Taiwan", drinking milk products in Taiwan is registered with a constant flat retail value in 2016 and in future as well since the imbalance of winter and summer is expected to continue and it will affect the demand and supply of the market. Therefore, there is no expectation of future growth. There is a higher demand and insufficient supply in summer because of no promotion in summer season. The companies invest more in promotion and marketing in winter season as chilled milk is not so popular in winter. Therefore, marketing helps to push up sales during winters.
In 2015, Wei Chaun has lost its leading position because of consumer’s ignorance and substitution to other channel. Uni-President, Kaung Chaun and standard foods was registered with 67 percent of retail value and it continued to gain share.
Advertisements, marketing, product attributes, domestic factors are some elements, which affect the consumer purchasing preferences as well as the sales of the company. Changes in preferences can be from fresh milk to flavored milk or yogurt drinks in Taiwan. The most important product attribute, while the consumer purchase drinking milk product is the freshness. There is one more factor that can influence the purchase of flavored milk is the product prices and the brands. There is a positive impact of advertisement on flavored milk and yogurt.
There is a low demand for flavored milk product in household shoppers with higher educational levels and more demand for fluid milk product in households. Consumers will spend more on fluid milk products after perceiving advertisements if they are more sensitive to fluid milk advertising. Similarly, consumers will tend to increase in consumption of fluid milk in summer if they are sensitive to fluid milk advertising. Because of health effectiveness the advertisement of fresh milk and yogurt drink are more effective.
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