Zheng Shan Tea Company: Growing the Home Market
(6 pages of text)
In 2014, Zheng Shan Tea Company, a Chinese tea producer and exporter, noticed an increase in the consumption of black tea, particularly among mainstream, middle-class consumers in China. The company wondered how it could increase its sales and leverage the growing popularity of black tea. The company’s brand director recognized the potential opportunities, but realized that she had two significant challenges. First, because the company had historically been positioned as a premium brand, targeted at high-income consumers, it risked diluting the brand by making its tea more attractive to the mass market. Second, the Chinese government, as part of its crackdown on corruption, discouraged the purchase and consumption of luxury goods. The brand director needed to decide what action to take to realize the company’s goal of increasing sales.
This case is suitable for marketing management or agriculture marketing courses at the undergraduate, MBA, or EMBA level. After completion of this case, students should be able to consider the options of stimulating primary demand (category) versus secondary demand (brand).
Agriculture, Forestry, Fishing and Hunting
China, Small, 2014
$4.25 CAD / $4.25 USD Printed Copy
$3.75 CAD / $3.75 USD Permissions
$3.75 CAD / $3.75 USD Digital Download