Nescafe is an instant coffee brand. It's logical to use the same brand for canned coffee. I suppose it is the biggest canned coffee brand in Hong Kong. Then it extends to tea. Nestea is the brand name. Clever for them to use a hybrid naming appraoach,
Nescafe -->
Nestea and launch lemon tea as the prototype product to pick a head-on competition with Vita previously unchallenged by anyone else. It has managed to get some good business with better tasting, less sweet products. Now it extends to bottled Chinese tea using Nestea to endorse a new brand called 淳茶舍
. I doubt whether this will be successful. First it's all too late as the bottled Chinese tea market is already flooded with too many brands. Second, the whole leaf and no-additive proposition is just too weak to cut through. Third, Nestea as a brand name is more associated with western teas and it doesn't have the power to endorse a Chinese tea brand. Without the brand value transfer from the mother brand, 淳茶舍
is more like a new brand in the bottled Chinese tea market that is getting mature and saturated. Unless it is to invest loads of monies, the chance of success would be rather low.
Nescafe is an instant coffee brand. It's logical to use the same brand for canned coffee. I suppose it is the biggest canned coffee brand in Hong Kong. Then it extends to tea. Nestea is the brand name. Clever for them to use a hybrid naming appraoach, Nescafe --> Nestea and launch lemon tea as the prototype product to pick a head-on competition with Vita previously unchallenged by anyone else. It has managed to get some good business with better tasting, less sweet products. Now it extends to bottled Chinese tea using Nestea to endorse a new brand called 淳茶舍. I doubt whether this will be successful. First it's all too late as the bottled Chinese tea market is already flooded with too many brands. Second, the whole leaf and no-additive proposition is just too weak to cut through. Third, Nestea as a brand name is more associated with western teas and it doesn't have the power to endorse a Chinese tea brand. Without the brand value transfer from the mother brand, 淳茶舍 is more like a new brand in the bottled Chinese tea market that is getting mature and saturated. Unless it is to invest loads of monies, the chance of success would be rather low.
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