Jiaduobao: Transferring Brand Associations from Wang Laoji
(8 pages of text)
Case (Pub Mat)
With a rich history stretching back to the 19th century, Wang Laoji herbal tea was one of the most popular drinks in China. The tea was sold in a green-box version by Wang Laoji and a red-can version licensed to Jiaduobao Beverage Co. Ltd. (Jiaduobao Beverage), but in 2012 the right to use the Wang Laoji name was lost by Jiaduobao Beverage following a legal dispute. Jiaduobao Beverage had to quickly transfer brand associations from Wang Laoji to its own brand and retain consumer loyalty. But was it successful in doing so? Did Jiaduobao Beverage enhance its brand equity through transferring Wang Laoji’s brand associations? What could Wang Laoji do to counter its loss of brand equity?
The case teaches students about methods of building and maintaining a brand, while guiding them to better understand brand association and brand equity theories. This case may be used with undergraduate and postgraduate students of marketing. Other relevant courses include international business and global marketing. The objective of the case is to examine the creation and maintenance of brand associations, as well as effective strategies in building and enhancing brand equity. The instructor should focus on the key issue of the case—how Jiaduobao Beverage struggled to achieve status without using the brand name of Wang Laoji.
China, Medium, 2013
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