This case study looks into the e-marketplace onboarding strategy of a cordial beverage (non-alcoholic concentrated syrup) company working with Innovative Hub during the post-MCO period. We will be looking into the general market trend of the industry, the company background, and strategy implementation.
Market Outlook – Cordial Beverage
According to a report from 2019, the cordial drinks market saw an increased demand over the years with the increased preference over convenient and non-alcoholic & non-carbonated beverages. Along with the demand for more natural ingredients, such as fruits & vegetable extract, the market has experienced some innovation to compete effectively.
We have also seen the players market their product with additional health benefits and nutrition, such as sugar-free, no preservatives added, Vitamin C, with extra fibers, etc. in Malaysia. Millennials are also expecting more variety of flavors in the cordial beverages have further pushed players to innovate to capture the market and compete effectively with their non-direct competitors (soft drinks, yogurt, and other RTD drink).
According to Ken Research in 2017, they have reported increase competition on social media platforms among the beverage companies in Malaysia. This strategy is meant to get their brand closer to the consumer, along with the increasing active users on major social media platforms in Malaysia over the year.
The cordial beverage company has been in the Malaysian market since the 1970s, offering a variety of cordial beverages. They manufacture and supply their product to major supermarkets and restaurants/cafes. Involves mainly B2B transactions and doesn’t tap into the B2C market.
As the pandemic hit hard globally since the Q2 of 2020, the company has experienced dropped in its sales. Consumers no longer spend time on their favorite restaurant, and spending has been reduced on their groceries. Entering Q3 of 2020, the company has taken its step to enter into the consumer market through an e-marketplace strategy (Lazada & Shopee).
Establishing E-Marketplaces – Lazada & Shopee
Objective: To establish the sales channel on Lazada & Shopee in order to reach the consumer market easily in Malaysia & integrate with their current website and marketing strategy.
After the initial discussion, we have worked within a limited budget and timeframe to quickly establish the e-marketplaces for the cordial beverage company on Shopee & Lazada. We were getting their product up to the platform with a product image design that fits the current market trend.
We also connect the store with a single click from their existing website, letting smaller B2B customers (e.g., small restaurants) buy directly from the e-marketplaces by going through the middle person (often required higher MOQ) or buying from the supermarket.
The project also worked around their existing offline marketing strategy, such as gifts and discounts for buying in bulk (they serve B2B all this time). In less than 1-month from the initial discussion, the project has been completed and ready to serve the market.
In less than a month, the company has gained more than RM300+ sales (without any spending on ads to push the product).
With the already established brand name, the company can quickly kick-start its sales through these platforms without additional spending. Of course, we should not disregard their quality product and branding activities that have been invested before this.
Right now, their B2B has another option to buy directly from them on Lazada & Shopee and also serving the broader consumer market. With the help of technology and the platform readily in the market, businesses should take advantage of the trend and expand their sales online channel.