Marketing Mix of Wlk

Because of the intense market competition, the majority beverage enterprises are in crisis. However, Wong Lo Kat has made a billiant performance in competitive China's beverage market, which was benefit from the success of brand positioning and a reasonable arrangements for the marketing mix – 4Ps (product, price, place, promotion). Through reviewing successful experience on Wong Lo Kat, analyzes  the reason and strategies of Wong Lo Kat's breakthrough in China's market, also analysis how the strategic positioning can change the market forture of a brand and a product.

By using marketing mix – 4Ps and other strategy, analyzes Wong Lo Kat brand positioning and the reason of its success.

The first of the 4Ps of marketing is product strategy which includes product variety and packaging. Product strategy needs to be consistent with the brand positioning, so that brand positioning can be recognized by consumers. Wong Lo Kat was repositioned from being a ”medicinal tea” to being a  “beverage”, that clearly indicated its product as a functional beverage. Also, Wong Lo Kat was changed their brand proposition as “a beverage preventing internal heat” that comes from the consumer awareness of Wong Lo Kat cognition. Therefore, Wong Lo Kat adopted “Drink Wong Lo Kat if you worry about internal heat” as a advestising slogan that reflects they maintained a consistent style on product strategy.

In terms of product variety, the WLK Company adopted undifferentiated marketing strategy. The WLK Company only produced 310 ml cans of red “Wong Lo Kat” herbal tea, that was the only product targets the whole market. Although the WLK was adopted the simple and single product strategy, they tried to make their product become unique and repsentative, rather than extending the product line or product mix. Red cans of Wong Lo Kat abandoned to develop differ kind of items and rather used undifferentiated marketing strategy, ever though it would miss the potential customers, but it could concentrate on the only items developing and be conducive to enter the customer mind. Wong Lo Kat launched the red-can herbal tea that has gained populaity of China's Herbal Tea and become representative of herbal tea. On the other hand, packaging involves designing such as product's color and producing the container or wrapper for a product. Color is the first item for bring image to the customers, and most effective position in consumers' shopping psychology. Therefore, Wong Lo Kat adopted the chinese traditional repsentative colors red for packaging , which aimed to establish the brand identity and a representative color for the brand in consumer hearts.

The second of the 4Ps of marketing is price that would impact profit margins, demand and marketing strategy. Brand positioning shows the unique value of brand through price.

Wong Lo Kat was adopted the high price strategy which was disinctive with other similar products and highlighted the special qualities of functional tea beverage. The 310 ml Wong Lo Kat canned beverages retail price is arround 3.5 RMB per a can, which is higher than other mainstream canned beverages such as Pepsi. The high price will let the customer pay more attention on WLK and build up the image of the high-end beverage. Moreover, the traditional way of consumer thinking “high price, high quality” also lead WLK using the high price strategy, to avoid consumer suspicion for qualityof its product. Besides high prices, WLK was able to keep the price stable for a long time as well. For keeping the good relationship with consumers, no big price adjustment is required. WLK was successfully keep their target consumers in the stable stage by using price strategy.

The third of 4Ps of marketing is place which presented the channel of connecting businesses and consumers. Most of the company's products are necessarily delived to the consumer through different channels. Brand positioning needs to match with appropriate distribution and unique sales channels, so that the distribution channels are one of the method to achieve positioning. WLK cooporated with different contributors, such as supermarkets, market place, restaurants, hot pots shops, Karaoke shops and smiliar beverage outlets. Its densely-covered distribution network enables consumers to buy Wong Lo Kat almost everywhere. In addition to various kinds of supermarkets and market place, the extension and control of other channels were strengthened. WLK quickly gained a foothold by greatly using number of distribution channels.