TANG EXPANDS ITS UNIVERSE!Presented by: Melisa Fryman and Yu Chen

TANG SALES BLAST OFF WITH NASAOriginally invented and marketed in the U.S. in 1957 by General Foods. Kraft Foods acquired Tang and used NASA as a marketing tool.

In 1962 Tang was adopted by the space program to improve the taste of drinking water produced as a byproduct of the life support system in the Gemini space craft. In 1968 Tang sponsored ABCs network coverage of Americas first manned flight around the moon - Apollo 8 mission.

Early Television Promotion Strategy:http://www.youtube.com/watch?v=TWghCdIqedA&feature=player_embeddedhttp://www.youtube.com/watch?v=Wf1kw5Yp9Ck&feature=related

TANG MARKETING STRATEGY GOES GLOBAL25 years ago Kraft began marketing Tang to China to mothers who believed children needed more nutrition and found water boring - Tang fit their needs. In 2006 sales including the China market grossed $500,000.

Beginning in 2007 an aggressive international marketing campaign known as Winning Through Focus implemented in new markets.

Tang makes water more exciting

S. W. O. T Strengths:

1. Market penetration - Tang holds the largest powder drinks market share in China.First introduced to China in 1986Tang = the powdered fruit drinkAnd the powdered fruit drink = Tang

Tang Makes Water More Exciting 2. Tang is creating new products and engaged in indigenization.

http://www.tudou.com/programs/view/p23sQQ89oTI/

DISTRIBUTION3. Kraft has its own Tang manufacturing facilities in Tian Jing, Su Zhou and other districts, which guarantees the distribution of the product. Tang has its own unique distribution method in China.

Weakness:

Price: The price of Tang is higher than other similar products.Cost: Raw material costs and labor costs have increased, so the production costs have also increase.

S. W. O. T

S. W. O. TOpportunities:

Currently, salaries are higher than before, so consumption ability has increased. The demand of healthy food has increased.

S. W. O. TThreats:

1.Competition and challenges from other drinking products. 2.Now people are changing their attitude towards drinks.

REBRANDING TANG IN NEW MARKETSKrafts Tang sales doubled in the last 4 years to $1billion.2/3 of Growth comes from new flavors, sizes & packaging in five new markets: Argentina, Mexico, Brazil, Philippines & the Middle East.

Innovative flavors cater to local tastes.Krafts acquisition of Cadbury in 2010 assisted growth by opening up more distribution channels- corner stores to core Tang markets.

MARKET CUSTOMIZED PACKAGINGAffordable, convenient packaging unlocks growth. Traditional canisters were too big in some markets. Smaller 2 liter sizes were made for Mexico priced below 50 cents USD, and single-serve sizes were made for the Middle East.

NUTRITION AND LOCAL CONTROL

Giving local leaders from target markets freedom to act as entrepreneurs was a main factor to the success of Tang in developing markets. They use a glocal approach, combining global and local expertise.

Nutrition and tastes were customized for local markets. In addition to the basic formulation with vitamins C and A with minerals, Iron was added in Brazil and the Philippines.

http://www.youtube.com/watch?v=Bj1DoChcEEk&feature=related

MACROENVIRONMENTKrafts Marketing Strategy included manufacturing Tang in the countries of the new international markets: Brazil, the Philippines, and China.The Economic Environment effects consumer purchasing power. Value marketing offers consumers in developing markets quality at a fair price. Results: lowered selling price in market segment, and employment that provides increased income to increase overall sales.

Tang Manufacturing Facility in Pernambuco, Brazil (1of 6) Opened in May of 2011, employing 800 locals, and providing an economic benefit to society. Latin America is the largest international market for Tang.

KRAFT PUBLIC RELATIONSTang Goes Green

New standardized powdered beverage pouch size in Latin America eliminated 3 mil. pounds of package refuse annually. Dry mix packaging uses less materials than bottled beverages.Tang launched the Prep, Drink, Do Public Relations campaign in Brazil (2010) and recently in Mexico. 90,000 kids joined the Green Brigade for package recycling.

$10 million donation to Bangladesh & Indonesia

To eradicate childhood malnutrition by empowering women with agricultural education and creating microcenterprises for sustainable farming.This is an investment in the region with expectations of future sales of food products.

SUMMARYThe corner stone of the marketing strategy in the international markets was more autonomy for local leaders. It allows the company to act like a small operation incountry, while leveraging its scale as an international firm. Ideas from the local leaders assisted Kraft in packaging and flavor/formulation decisions.

Market research in the developing international markets was key for producing products that fit the cultures. Initially, China preferred powdered drinks by the glass not the pitcher. Flavors to fit the cultures were essential to boosting sales. In 2009, after introducing new specialized flavors to specific regions, sales jumped from a meager 4% growth in 2008, to a 42% increase in Latin America and 25% increase in Asia Pacific markets.

Building manufacturing facilities in new markets reduced costs of production, provided jobs for local residents and increased incomes and buying power of those residents. Thus, increasing sales of Tang in those markets.

SOURCEShttp://articles.latimes.com/print/2010/mar/25/business/la-fi-packaged-foods25-2010mar25http://www.fooducate.com/blog/2011/06/22/tang-drink-mix-krafts-international-strategy/http://adage.com/article/news/tang-grew-a-billion-dollar-global-brand/228264/http://www.msnbc.msn.com/id/36852847/ns/business-us_business/t/tang-hit-again-just-not-us/http://theopenend.com/2009/01/19/tang-the-drink-of-choice-among-gemini-astronauts/http://www.foxbusiness.com/industries/2011/06/16/krafts-tang-powdered-drink-crosses-billion-dollar-mark/http://money.cnn.com/2011/05/02/news/companies/kraft_pernambuco_brazil_plant.fortune/index.htmhttp://www.youtube.com/watch?v=Wl3ktIzMdrs&feature=relatedhttp://www.youtube.com/watch?v=Wf1kw5Yp9Ck&feature=related

Hi my name is Melisa and this is Yu. Our current event presentation is about Tang.*Im going to give you a bit of history of Tang because the product has been around for decades.Invented and marketed in the U.S. in 1957. Acquired by Kraft in the early 1960s.Kraft used the NASA program to advertise Tang people aspired to be like the astronauts.*Mothers in China had a problem or need that could be solved by drinking Tang. Hydration and nutrition. It was an opportunity for Kraft to market their product.*******Yu discussed marketing in China, but the most dramatic growth of Tang over the last four years is from other international markets. Latin America is the largest market Krafts Tang catered to local tastes by adding flavors like pineapple in dry form in pitcher sized packaging.In the Middle East, such as Pakistan, single serving packages have been very popular as well as the larger traditional container for the dry mix. Lemon Mint is a flavor developed for that market. (Notice the Arabic) The mix was also fortified with Iron and other minerals to go with the vitamin C already in the formulation.Acquisition of Cadbury opened up networks of distribution channels and local that were already selling Cadbury products.*Single serves were already being sold in China due to One Child policy.*Giving local leaders from target markets freedom within a framework to act as entrepreneurs was a main factor to the success of Tang in developing markets. They use a glocal approach, combining global and local expertise.Nutrition and tastes were customized for local markets using local fruit flavors such as Mango in the Philippines, Soursop in Brazil, Horchata in Mexico and Pineapple in the Middle east. In addition to the basic formulation with vitamins C and A with minerals, Iron was added in Brazil and the Philippines.

***In 2009, after introducing new specialized flavors to specific regions, sales jumped from a meager 4% growth in 2008, to a 42% increase in Latin America and 25% increase in Asia Pacific markets. **