Nutrasweet in China-Sb

2007 Words9 Pages
-Case Study Analysis- | NutraSweet in China | Sandra Burga |

Professor Stephen Rapier
Pepperdine University

Professor Stephen Rapier
Pepperdine University

I. History
Back in 1994 NutraSweet’s Consumer Products division (CPD) considered entering the growing China market. Their intent was to take advantage of the growing Chinese market and expand their brand developing a new sector of brand followers.
The CPD perceived three main opportunities: leverage the product brand, leverage marketing & manufacturing competencies and capitalize on China’s post-Cultural Revolution.
One of the enticing driving factor’s for NutraSweet (NS) was the low sugar consumption
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B. Customer Analysis * Market Demographics
China consumed 14 pounds of sugar/person versus 80 pounds of sugar/person in the US. This interesting fact posed the question, “How can we make this product attractive to a society where consumers for the most part are skinny and do not eat that much sugar?”. This presented a cultural challenge to tackle in the marketing process for Stacey and Monsanto. * Market Behaviors
Chinese consumers spent little on housing and none on transportation to/from work, most used 40% of their disposable income on food. 20% of the 60 million (12 million) habitants owned 80% of the country’s wealth. The “Middle Class” was emerging and estimated to double in 2 years, meaning the target market would be as big as the US target market. In addition, as mentioned before, the Chinese consumers were obsessed with American products, fact that supported NutraSweet’s strategy. * Market Needs & Values
The primary distribution channels for NutraSweet were drug dispensaries therefore people perceived sugar substitutes as socially unacceptable. In addition, sweetness tolerance across China varied from region to region. Consumers saw no need for a tabletop sweetener since sugar was used mostly for cooking. * Market Segmentation
One of the strategies NutraSweet

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