Wrigley Innovation in China's Confectionary Market

2466 Words Sep 8th, 2012 10 Pages
Royal Melbourne Institute of Technology

Product Innovation

Case Study: WM WRIGLEY-- INNOVATION IN CHINA’S

CONFECTIONERY MARKET

Name and Student ID:

Chi-Hao Tu S3296463
Liang Yen-Hsiang S3306170
Sophal PEN S3394842

The role of product innovation for Wrigley in China
Wrigley, the world’s largest confectionary company, operates in around 40 countries, and also distributes in more than 180 countries. In Asia market, it produces wide range of confectionery products such as chewing gum, hard and chewing candy, and lollipops. If we look at market segmentation in China, there are around 28%, 24.4%, and 61.1% of high- class, middle- class, and low- class respectively. Wrigley’s penetrates Chinese
…show more content…
For this situational context, Wrigley produces seasonal confectionery products for local buyers, and creates a new culture where they could reposition the new market in Asia. However, in this competitive confectionery industry, spotting trend is of importance.

How Wrigley’s innovation strategy been successful in China
The strategy of Wrigley in China has been successful so far. "Wrigley Confectionery (China) Ltd continues its leading position in gum with a 39% value share. Wrigley launches new products in terms of functionalities, flavours, and prolonged taste. Chinese are more concerned about their health due to growing health- wellness-awareness day by day. In order to fit in this Chinese market, Wrigley creates lots of functional chewing-gums based on natural resources to fulfil different consumer needs. Wrigley classifies its products into several brands to different target groups.
For example, Extra and Juicy Fruit are the well- known products of Wrigley’s, and both of them are famous for its fashion packaging design, healthy imagine components. In addition, to keep occupying a big market share in Chinese market, the capability of product innovation plays an important role. Be sure, no one can guarantee that one product will be always sit in the marketing place forever; so, this is the reason why new products or new technologies are essentially explored to
Open Document