Wang's Fortune Tea Case

Wang’s Fortune Tea’s opportunity

By analyzing the opportunities of each area, we could know whether Wang’s Fortune Tea could enter or remain its competitive of the target market. We choose three representative countries----Japan, US and UK respectively from Asia pacific, central Europe and North America to discuss.

Let’s considering about UK first, the total population is 64.1million in 2013 with a growth rate of 0.6%. According to 2005’s data, British people in 2005 drank an average of 156 litres of soft drinks per year, expected to rise to 186 litres in 2007. Especially, British people prefer carbonated drinks, herbal drinks were much less popular with British citizens than other functional drink types and the forecast seemed to remain the same from 2005 to 2010. In addition, the beverages’ market in UK is an intensively competitive market.

For the British tea culture, they are numerous rules and manners. One of those rules is that they prefer the boiled water to make tea because of the cold winter in UK is continued almost half of the year. What’s more, their habit is to add milk into the tea. In addition, British people remain skeptical in Chinese herbs, and they don’t trust the function of those herbs. They hold a prudent attitude toward chines herbs. Therefore, the mixture of cold tea and Chinese herbs are not easily acceptable for British people.

In short, we decide not to enter the British market. Although the whole industry grows prosperously, there are many causes that will interfere with the acceptance of Wang’s Fortune Tea in British market.

The next consideration is US, which has a total population 0.3161 billion with the growth rate of 0.7%. US was expected to keep its second-place position among the largest functional drinks markets worldwide. Sports drinks were estimated to comprise 45% of the overall functional drinks market share by 2010. What’s more, natural and organic drinks grew by nearly 30% annually from 2000 to 2005. Tea...