Ivey Publishing
Zheng Shan Tea Company: Growing the Home Market
Product Number:
9B16A013
Publication Date:
05/19/2016
Revised Date:
03/27/2017
Length:
10 pages (6 pages of text)
Product Type:
Case (Field)
Source:
Xiamen/Ivey
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.
Learning Objective:
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).
Issues:
Disciplines:
Marketing,  International
Industries:
Agriculture, Forestry, Fishing and Hunting
Setting:
China, Small, 2014
Intended Audience:
Undergraduate/MBA
Price:
$4.25 CAD / $4.25 USD Printed Copy
$3.75 CAD / $3.75 USD Permissions
$3.75 CAD / $3.75 USD Digital Download
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