milk powder - research & point of view
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TRANSCRIPT
Fens Sato – Creative & Business Director
6 Aug, 2013
Research & POV
For Milk Powder
Projected sales Trend in China
• Appreciation of Chinese
currency and steady economy
growth are offering more
opportunities
• Online shopping of baby care
products is gaining importance.
(e.g. Tao Bao)
Sales trend estimate of 2009-2014 conducted at 2009.
Premium (international) vs. Domestic (Chinese)
• Premium (international) brand
demand outperforms domestic
brands
• Low consumer confidence in Chinese
local brand (melamine incident in 2008)
• Brands with established reputation
of high quality and safety will
continue to yield.
• Demand for premium product is
huge as income level population is
rising.
• Mothers are willing to spend on premium
products for their children (e.g. wanting
the best for the kids)
Pediatric milk formula of total retail sales of
domestic and international brand in China 2005-
2009
E- Commerce Market in China
According to China Internet Network Information Center
(CNNIC):
•There’s a 66.5% increase of China’s e-commerce market from 2011 to
2012, reaching up to 1.3 trillion RMB
Huge part was driven by mobile users:
•40.7% online shoppers use a mobile device to browse e commerce
merchandise
•More than half (53.6%) browsed a merchandiser’s mobile app instead
using internet browser
Sales Trend and insights in Hong Kong
• Hong Kong baby food market continues to grow at an 8% • reaching $1,936 million HKD in 2012
• Influx of mainlanders purchasing milk formula helps market performance • Causes supply shortage and customer
complaints.
• Need for a better distribution?
E Commerce?
• Euromonitor International states…”Hectic lifestyles of working females cause reliance on milk formula over breastfeeding” • Need for a better digital platform for
Mama Club to boost engagement and build connection between moms?
Source: Hong Kong Customer Council (2011)
2013: government banning number of milk formulas that can be taken out of HK:
http://blogs.wsj.com/chinarealtime/2013/02/04/hong-kong-milk-formula-hotline-flooded-with-calls/tab/video/
Marketing Approach
Mead Johnson
• Mead Johnson continued to lead market share at 35% at 2011,
with:
• Well established product line with pediatric nutrition focused
– caters pregnant women
– infants 0-6 months up to 12 years old
• Brand image: Long history; most trusted by moms; doctor’s choice
Marketing Approach
Pfizer (Wyeth Gold)
• 2nd strongest in Hong Kong with 28% market share
• Brand Image: Dedication of being the most innovative,
scientific, and pediatric nutrition
Marketing Approach
Abbott • Mama Website and Club driven; less from the brand
• As brand also involves other medical and nutritional products
• Brand Image: comprehensive product line catering all age group
(infants to elderlies)
Marketing Approach
Friesland Foods (Friso)
• Product line caters pregnant
women and children up to 3 years
old+
• Selling point: has their own farm in
Netherlands
• Brand Image: Natural and targets
young infants
POV
Global leader in pediatric nutrition focused. Research
oriented and innovative
Doctor’s recommendation; most trusted by
moms;
Comprehensive product line from
infants to elderlies
Natural; targets young infants and pregnant women
only
DIGITAL MARKETING
Competitor Involvement in
Wyeth Gold
Homepage
• Wyeth Gold brand homepage
• Includes video, TV ads, 學習專區, 育兒專欄, event
notification
• Offers promotion and free
trial products
Wyeth Gold
Facebook App and Youtube Channel
• 學習驚喜頻道: Encourages
parents to guide and kids to
learn
• Share videos and winning
family get prizes
Wyeth Gold
Mama Club
• BB 互動地帶: play games, learning
Wyeth Gold
Phone App
• For children learning
purposes
• Enhance speech and
recognition
• Learning English and
Mandarin
• Include DIY Flashcards
Wyeth Gold Digital Marketing List Page
Website
Mama Club
Facebook App
Youtube Channel
iPhone App
× Facebook page
Friso
Homepage
• Video and commercials
introduce Netherlands
farmland
• Sign up for trial products
• Offers order and delivery
service
• Soft background Music
Friso
Mama Club
Member receive benefits and
news updates:
•Gifts
•Attend pre-labor talks
•Free consultation hotline on
nutrition
•Product order and delivery
Friso
Facebook and Youtube page
• 26000+ likes
• 251 subscribers
• Lisa S endorsement “Love Stories
of a First Time Mum”
Friso
phone App: 輕鬆訂
• Baby formula order services
• Can choose delivery or pick up
Friso Digital Marketing List Page
Website
Mama Club
Facebook Page
Youtube Channel
Phone App
× Facebook App
Abbott
Homepage
• Old-fashion design
• Offers company information,
health and medical tips, etc.
Abbott
Mama Club and Website
• Product information
• Interesting contents, tips
Eye Q 教室:
– 最強湊B網絡
– 腦力培訓班
– 幼稚園面試分享
Abbott
phone app: 保兒齊齊chok
• Offers news and event updates, product information
• Track baby growth, diet and nutrition
Abbott Digital Marketing List Page
Website
Mama Club
Phone App
× Facebook App
× Facebook Page
× Youtube Channel
Channels/Brands Wyeth
Gold
Friso Abbott
Website
(Homepage)
X X X
Mama Club X X X
Facebook Page X
Youtube Channel X X
Phone Apps X X X
Facebook App X
Digital marketing involvement at a glance
Mead Johnson
Homepage
• Website layout: similar to
Wyeth Gold
• Product information
• Includes 育兒資訊 (tips), BB
餵哺小百科 (problems and
scenarios), My Baby 互動區
(games and learning)
Mead Johnson
Mama Club
• Interactive and flash
base
• Daily Tips and games
• Background music for
children
Mead Johnson
Phone App:《A+潮媽媽小助手》
• BB「踢踢」紀錄
• BB成長計算器
• 潮媽食譜
• 潮媽知識
• 潮媽SHOPPING LIST
• 產前產後小TIPS
Mead Johnson Digital Marketing List Page
Website
Mama Club
Phone App
× Facebook App
× Facebook Page
× Youtube Channel
Channels/Br
ands
Wyeth
Gold
Friso Abbott Mead
Johnson
(currently)
Website
(Homepage)
X X X X
Mama Club X X X X
Page
X
Youtube
Channel
X X
Phone Apps X X X X
App
X
Digital marketing involvement at a glance