JDB, a lendary beverage brand in China

Tianyi Wang

Student ID:  214237144

Today, I’m going to introduce a legendary beverage in China.

Guess, what is the most popular beverage in China now? Coca Cola? Fanta? No, its name is “JDB” which is short for “Jiaduobao”

1

First, I should clearify a phrase in Chinese context which is different from English context. When you say someone is “On fire”, you mean he/she is awesome, impressive, but in Chinese, when someone is “On fire”, it means he/she feels uncomfortable, they are thirsty , and they have inflammation. So people should get rid of “On fire”.

 

Positioning

 

JDB is a sort of herbal tea, it’s different from “Iced tea”, herbal tea contains Chinese herbs, which is believed have the effect of preventing inflammation.

 

But JDB only sold good in Guangdong Province, because local people know the effect of herb, but the objectives of the company is to push products nationwide, the biggest problem is, should they sell JDB as a herbal tea, or as a beverage, beside Guangdong area, people often solve “on fire” problem through medicine. At this time the company wants to sell it as a drink, but can not find a good way of advertising.

 

Later, JDB find an advertising company for consultation, advertising company pointed that JDB”s biggest problem is the product positioning, consumers have no hope to treat “on fire” through the drink, they are more likely to prevention “on fire”, meantime, Chinese have a strong concept that herbal medicine can prevent “on fire”. In 2003, JDB broadcast advertising via CCTV (This TV station covers 95% of Chinese), they said this drink can prevent “on fire”, the same year, JDB”s sales achieved a 400 percent increase, which was 1 billion RMB.

2

 

The creation of a new demand

 

During the pre-purchase phase, JDB successfully created the consumer demand, this demand is not achieve through the drink before. When customers search and evaluate products that address their needs, they found that there was only one product on the market, this reminds me of famous words from Steve Jobs “It’s really hard to design products by focus groups. A lot of times, people don’t know what they want until you show it to them.”

 

After the establishment of brand positioning, JDB further formulated the marketing direction, promote the brand mainly by creative advertising. In the advertising JDB appeared in a relaxed, cheerful, healthy way, they tried to avoid the “treatment” image, let consumers know, JDB is a drink, not medicine.

 

To better arouse the consumer demand, TV advertising selected five scenes which consumers think  5 most vulnerable situations to get ” on fire” : eat hot pot, stay up late to watch the football matches, eat fried food and fries, barbecue and the summer sunshine bath, on the screen, people enjoy these activities while they drink JDB. Combined with advertising song repeatedly singing “No need to fear, just enjoy life, if “on fire”, just drink JDB”, encouraging consumers remind of JDB when eating hot pot, barbecue, this facilitate the purchase.

 

 

Sensation and perception

Red is the most popular color in China, symbolizing the festive air, JDB made red as their packaging color.,as colors can convey brand identity, when people see red advertising they could think about the new year eve, the party, the hot pot, fried food, and then remind of “on fire”, then the sentence occurs “If you are afraid of on fire, you should drink JDB” These years, when people come together, waiters asked to drink something, about half of the people will blurt out, “JDB” , in China, most of the restaurant”s dishes are not light, people fear to “on fire”, so the JDB naturally became the first choice.

3

According to Maslow’s hierarchy of needs, there are five needs for individuals. Generally speaking, beverage is often to meet physiological needs,But in 2008, a strategy of JDB, make drinking JDB rose to social needs and esteem needs.。In 2008, Wenchuan suffered 8.4 degree earthquake, large companies made donations, in China,people concern ethics more than laws,there is no legal mandatory for donation, but in the minds of Chinese, donations tend to rise to the height of “patriotism”, JDB announced they decided to contribute entire annual net profit of more than 100 million RMB, all donated to the disaster area, compared with NOKIA, Microsoft’s only 1 million, people thought JDB is crazy, but the development showed this was successful strategy, people began commenting on internet “from now on, I only choose JDB, because I esteem the company.” Then more and more people support JDB, 100 Million donations made people consider ” drinking JDB ” as a social needs, even self-actualization needs, people think, they should belong to those who is virtuous, and choose the virtuous company.

Word Of mouth

Word Of mouth (WOM) is a consumer-dominated channel of marketing communication whereby the sender is independent of the company. WOM is perceived by consumers to be more reliable, credible and trustworthy than firm-initiated communications. (Sicilia, M et al.2016)

4

Afterward,customers generated positive word-of-mouth of JDB, then repeat purchases.

 

 

Reference

 

Sicilia, M, Delgado-Ballester, E, & Palazon, M 2016, ‘The need to belong and self-disclosure in positive word-of-mouth behaviours: The moderating effect of self-brand connection’, Journal Of Consumer Behaviour, 15, 1, pp. 60-71, Psychology and Behavioral Sciences Collection, EBSCOhost, viewed 1 August 2016.

 

https://www.helpscout.net/blog/why-steve-jobs-never-listened-to-his-customers/

 

http://www.warc.com/LatestNews/News/Global_brands_face_China_challenge.news?ID=33349

 

http://www.scmp.com/business/companies/article/1668547/chinas-jdb-plans-global-push-its-popular-herbal-tea-drink

Advertisements

2 thoughts on “JDB, a lendary beverage brand in China

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s