Bulletin Board


June 1995 issue

  • CALCUTTA, India -- Consumption and sales of No. 1 beverage, tea, may be threatened by decreasing tea exports (i.e. to the former Soviet Union) and the increasing popularity of colas, lead by Coca Cola and Pepsi Cola. Coke returned to the India market in 1993 after being kicked out by the socialist government in 1977. Pepsi had been gaining its foothold since 1990. Both tea and cola consumption are rising in India by 3.4% and 6.6%, respectively. While cola consumption rises at a rate twice that of tea, the export market of tea is declining. Youth market is key target for colas, supported by heavy ad spending. (Full text)

  • HO CHI MIHN CITY, Vietnam -- In soft drinks, as well as products like cosmetics and bicycles, Vietnamese-made goods are losing ground to foreign goods as the government in Hanoi cautiously opens its long-closed markets. Consumers often favor foreign products after years of socialist privation -- especially small luxuries such as Coke or Pepsi, which are viewed by many as status symbols. Coca-Cola plans to produce 154 million bottles of soda a year in Vietnam when it finishes building its first joint venture factory this summer outside Hanoi. Coke wants to open a second plant in Ho Chi Minh City. Vietnam's two biggest cola producers, Tribeco and S.P., have reportedly lost market share to the modern US facilities since U.S. sanctions ended in February 1994. American companies deny trying to crush domestic competitors, believing that efficiently run operations will thrive in Vietnam -- foreign or domestic.(Source: AP)

  • JERUSALEM, Israel -- McDonald's announced that it will open three kosher restaurants in Israel by the end of the summer. The kosher McDonald's will not serve dairy products and will be closed on Saturdays, the Jewish sabbath. McDonald's already has 10 of its fast food franchises in Israel, but they do not observe Jewish dietary laws. These three new restaurants will be the only kosher outlets among McDonald's more than 15,000 worldwide stores.

  • BEIJING, China -- Increasing competition and opening markets challenge conventional "marketing practices" in China. Principles of western marketing practices become more important in China to leverage brand image and establish name and reputation among consumers. Leading manufacturers in China stress quality and brand name recognition in marketing strategies to gain leading share in China. Until recently, quality brands were associated with foreign, often smuggled, goods. Today, some local mainland companies are forging brand identities that challenge the influx of foreign competition. Among strong, local brands are Changhong televisionwith 13% of the television market and Legend Computer Group which has 10% of the Chinese personal computer market. Other brands include: Rongsheng refrigerators, Jialing motorcyles and Wahaha beverages. Key to future success for local players, among foreign competition, is a strong focus on quality control. In addition to name recognition, local players must win consumer trust to be successful in the long-term.(Source:YOUR LINK HERE)



    May 1995
    June 1995
    July 1995
    August 1995
    September 1995
    October 1995
    November 1995 -- Doing Business in Vietnam - an Insider's Perspective special issue
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