Nestea Iced Tea in China

Nestea Iced Tea in China

  • March 2016 •
  • 15 pages •
  • Report ID: 3730820 •
  • Format: PDF
Introduction

Nestea iced tea was extended into China in the early 2000s by Nestea in conjunction with Coca-Cola, intended to capitalize on the country's growing ready-to-drink (RTD) tea market. After 13 years, the line had to be withdrawn from the Chinese market, having lost brand value for four consecutive years.

Features and benefits

- Learn about Nestea's entry in to the Chinese RTD tea market and understand why it ultimately failed.
- Understand the market dynamics of Chinese consumer markets.
- Assess how other companies may avoid a similar failure.

Highlights

- The RTD tea line was too similar to other products on the market, and therefore it failed to differentiate itself due to the lack of distinct flavor appeal and an unclear brand identity.

- An inability to predict and respond to new emerging trends in soft drinks contributed to the brand losing the chance to win back market share.

- Innovative product offerings and marketing are what help brands to resist strong competition and achieve clear differentiation. Companies should capitalize on the changing Chinese market with more niche products to target new consumer segments.

Your key questions answered

- What is Nestea?
- Why were Coca-Cola and Nestle eager to enter the Chinese RTD tea market?
- Why did the brand ultimately fail?
- What can other companies do to avoid a similar failure?

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