Wrigley Innovation in China's Confectionary Market

In: Business and Management

Submitted By pensophal
Words 2479
Pages 10
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 local market by segmenting its market carefully. As the picture shown below, Wrigley runs 39% of whole gum market share in 2006. Due to rising Chinese middle class in recent years, Wrigley planned to launch a new set of confectionary products, both gum and non-gum products, to meet emerging new market. Having seen this development, Product innovation plays a critical role to maintain its leading market position in the industry.

Resources: Chicago business.com, (http://www.chicagobusiness.com/article/20080331/NEWS07/200028762/wrigleys-newest-taste-wolfberry)
To sustain consumer’s choice of its products, Wrigley continues to innovate new products not only to maintain its already-segmented market but also to attract new emerging Chinese market. For example, Extra, Cool Air, Juicy Fruit, and Double Mints have spontaneously been introduced into the market. At the same time, Wrigley has tried to maximize the local taste into its new products by having integrated local ingredients to adjust to local market, which is a strategy to not only hold its long-term market leader in the industry but also to attract new market and stay a head of…...

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