As we all know, China is playing an increasingly important role in international trade and becoming the most potential consumer goods market. The revenue of soft drinks in China has increased by 49.08% since 2018. By 2022, soft drinks will generate $5.613 billion US dollars in revenue, and 52.9% (18-34 years old) of China's total population of 1.4 billion is expected to contribute to this share. Therefore, China's functional beverage industry is still in the blue ocean stage.

To become a major player in the Chinese consumer market, we intend to gradually open the international market and enter the Chinese market with 100 plus, which was established by Fraser & Neave Limited to build optimism and self-belief by inspiring all with our creativity and determination. Its main potential competitors in China, such as Red Bull, Eastroc Super Drink, and so on, who have accurate positioning strategies and loyal consumers. A full entry into the Chinese market is both an opportunity and a challenge. The formulation of 100plus's international marketing strategy and policy directly impacts the success of obtaining loyal customers in the Chinese market.

2. Identify a suitable product/service (100+) from a home country (Singapore/ Malaysia) that has the potential to be internationalized to a foreign country (China)

Since its debut 27 years ago, 100Plus has become the top isotonic beverage brand in Malaysia and Singapore. While most of their rivals continued to emphasize the need to replenish ions after exercise, Publicis and Mindshare, the brand's agency partners, identified an opportunity for 100 PLUS to expand into new markets as a beverage for daily hydration. In addition to teaching customers about the value of being hydrated generally, the ensuing campaign sought to surprise consumers by claiming that 100Plus hydrates more effectively than pure water.

Why 100+ has the potential to be Internationalized

The goal of Fraser & Neave Holdings Bhd ("F&NHB" or "the Group") is to increase its market share in the ready-to-drink category while supporting the government's push for beverages with less added sugar. Currently, 100PLUS, the top isotonic beverage in Singapore and Malaysia, supplies one of every four carbonated drinks consumed locally. Since its launch in 1983, 100PLUS has expanded outside the sports drink sector to become an isotonic product with a 90% market share. The most recent enhancement to the 100PLUS line, according to F&NHB Chief Executive Officer Lim Yew Hoe, expands the company's line of healthier products. This will help the group lead in every area of the ready-to-drink beverage market and respond to consumers' shifting preferences for healthier options. The 100PLUS brand is now available in its entirety, including its fruity varieties, 100PLUS ORANGE, 100PLUS BERRY, 100PLUS LEMON LIME, and the brand-new 100PLUS BLACKCURRANT. The Group has successfully changed the recipe for the 100PLUS fruity varieties to comply with the requirements for the Healthier Choice logo by the Ministry of Health Singapore while making sure that they continue to taste excellent despite having less sugar.

By providing 100PLUS ACTIVE in powder sachets, which are practical for people who are constantly on the go, F&NHB is also responding to consumers' growing need for increased convenience and flexibility. The 100PLUS powder sachets were utilized by Malaysian competitors at the Gold Coast Commonwealth Games to meet their hydration and energy requirements during such a demanding competition.

Another product from F&N that has potential with 100+ China has seen an increase in demand for bottled water due to an increasingly health-conscious customer base and growing worries about its water supply. Sales of water bottles in China hit 208.4 billion yuan in 2019, up 9.5% from the previous year. Statista predicts that during the next five years, the industry will increase at a compound annual growth rate of 4.93%. Given that Chinese customers typically favor high-quality items in the food and beverage sector, foreign names and luxury bottled water brands are in high demand. China still consumes 19% fewer water bottles per person than the average country worldwide, according to the Direct China Chamber of Commerce, leaving room for investment. This could be a very good opportunity for F&N to introduce 100+ along with Ice Mountain drinking water.

The Chinese Soft drinks market is influenced by the ‘drink healthy’ trend.

Like many other consumer commodities, the demand for carbonated beverages has increased in China in recent years along with the average national per capita disposable income. However, before beginning to gradually drop, sales reached their peak in 2014 at 179.3 billion RMB. Sales of carbonated drinks rebounded in China in 2017 thanks to an especially hot summer, but they dropped 1.6% the following year. Iimedia claims that this reduction is a result of Chinese consumers' growing health consciousness. In China, the growing market for healthy beverages is anticipated to overtake the market for fizzy drinks in the upcoming years. Chinese carbonated beverage manufacturers have begun to roll out healthier new products, like sparkling water and sodas without added sugar, in an effort to combat this cultural shift. Sales of carbonated beverages in China increased to 184.5 billion RMB in 2019 as a result of these new items.

4. Based on your analysis, justify why your product/service is suitable and has the potential to be successful in the country.

5. Recommend and justify the best entry method to adopt into the foreign country.

Answer rating: 100% (QA)

2 Identify a Suitable ProductService for Internationalization The product chosen for internationalization is 100PLUS a popular isotonic beverage brand from Malaysia and Singapore 3 Why 100PLUS has the ... View the full answer