Success Case Study: Heytea - How a differentiated product became a hot new trend

Success Case Study: Heytea - How a differentiated product became a hot new trend

Summary

With globalization, the eating and drinking habits of young Chinese people are evolving and they seek unique and differentiated products. Heytea has designed a differentiated product that became a social media sensation in China. The company uses a unique formulation and innovative marketing strategies to reinvigorate the millennia-old tea tradition among young Chinese consumers.

Though China is a tea-drinking nation, Millennials with growing middle incomes are replacing tea with coffee. Heytea effectively rejuvenated the tea tradition among young Chinese consumers by adding a new ingredient (cheese) and offering it in a to-go format. The company leveraged the popularity of social media apps in China and focused on cross-industry promotions to gain visibility and connect with its target consumer segment.

Scope

• Young Chinese people perceive tea to be an old-fashioned drink and are switching to coffee.


• Heytea used fresh cheese and convenient packaging to position its cheese tea as a "cool" drink among young Chinese consumers.


• The company used innovative marketing strategies to raise brand awareness and connect with its target consumer segment.


• Heytea emphasizes clean-labeling claims to add a touch of premiumization to its product.

Reasons to buy

• Reduce the risk of failure by learning from brands/products that have under-performed: failed innovation can severely impact profit and reputation.


• Understand the relevant consumer trends and attitudes that drive and support innovation success so you can tap into what is really impacting the industry.


• Gain a broader appreciation of the fast-moving consumer goods industry by gaining insights from both within and outside of your sector.


• Access valuable strategic take-outs to help direct future decision-making and inform new product development.