Wahaha's expansion is no laughing matter
By Paula M. Miller (China Business Review)Updated: 2007-06-08 09:34 Third, the company frequently uses celebrities to promote its products. Hong Kong actor and comedian Stephen Chow promoted a series of Wahaha tea drinks, Chinese-American pop singer Wang Lihong promoted bottled water, and Taiwan's Yu Chengqing (Harlem Yu) helped launch Future Cola. Wahaha runs frequent TV commercials that, according to Shan, mainly run on China Central Television Channel 1 around news time.
Distribution
Wahaha's distributors in China are responsible for capital, storage,
and delivery - but Wahaha dealers help them with management and marketing. The
company maintains two grades of distributors: more than 1,500 first-level
dealers that need to meet distribution targets and manage large networks and
capital; and 12,000 second-level dealers that deal at smaller levels. The
company has 35 provincial sales offices, 2,500 sales team employees, and more
than 2 million sales outlets across China.
A bubbly future?
When asked about Wahaha's future, Shan
replied, "Our general manager doesn't like five-year plans because the market
changes so quickly. But the company hopes to increase this year's sales revenue
by 10 percent over last year."
Though it seems certain that Wahaha will continue to grow in China, it will likely take a while for Wahaha products to develop a stronghold overseas. And if the company truly wants Future Cola to compete in the US cola wars, it may wish to adjust its US market-entry strategy. It is logical to launch Future Cola in Chinese-American grocery stores. Yet without expanding its distribution, the cola will remain unknown to many American consumers. Why not repackage the product as an alternative, "Indie" cola that the nontraditional-cola drinking crowd will enjoy? That, or price Future Cola below major US competitors. Or, because extreme sports are ever-more popular for young American athletes and fans, Feichang Kele's translation "Extreme Cola" could entice a new generation of American youth looking for the latest trendy soft drink.
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