Biscuits market in China

31Oct2012

Biscuits can be marketed to any consumer group. Whether young or old, male or female, nearly all consumers have at least tried a biscuit. These consumer groups are offered thousands of choices in terms of brands and taste. Since biscuits’ prices are generally low, small changes, such as shape or taste, may significantly influence a customer’s behavior. In that case, it is of vital importance to product packages to appeal to the target demographic while also finding cost-effective approaches to advertising.
There are so many dazzling brands on the market for consumers to choose and most of them are wholly owned foreign enterprises.

Top biscuits multinational corporations in the Chinese market—“Danone”, “Kraft”, “Ritz”, “Nabisco”
Currently in China, both domestic and multinational biscuit companies are competitive in the biscuit producing industry. However, multinational brands tend to price their products higher. Interestingly, most consumers in China will remain relatively loyal to certain brands of consumer goods, but at the same time, these consumers also occasionally like to try new flavors and new brands. So to precisely gauge the market, these corporation need to conduct marketing research to pinpoint its consumers’ preferences. In the biscuits industry, domestic brands and multinational brands own about half of the market each. One of the most popular brands, Kang Shi Fu(康师傅), a branch brand of Ting Hsin International Group, shared 25.6% of the market.

Cookies manufacturing in China
In recent years, people prefer to buy cookies in cafés where there is a more comfortable environment to chat and rest. Although the prices are not that cheap, homemade bakeries make delicious baked goods that are popular among Chinese consumers. In the northern part of China, such as in Beijing, prices are very high. The most common way to buy cookies is in the supermarket which can offer much lower prices. A typical marketing strategy for cookie manufacturers in supermarkets in Beijing and other Chinese cities is to purposely place cookies on lower shelves, so that they can be reached by shorter children. These kids comprise the main target market for these cookies.

Kraft – one of the top multinational corporations
What is the relationship between Ritz, Oreo, Pacific and Chips Ahoy? They are all sub-brands owned by the world’s second largest food corporation Kraft Food. It markets its brands in more than 170 countries, 40 of which it has operated in for at least a century. Now, it is one of the fastest-growing global snacks company.

Daxue Consulting Marketing Research in China

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Picture Source: Oreos China