Winning the China Vitamin War by Building a Strong Brand

Sales of health supplements in China had declined since 2000, but the outbreak of the SARS crisis in spring 2003 boosted the market. Among health supplements, multivitamins received much attention for theirbenefit to the human immune system. A new multivitamin brand,Goldpartner, launched in 2002 by legendary Chinese businessman Mr. Shi Yuzhu, set out to become the market leader, even though the market was dominated by various foreign brands. However, the growth path of Goldpartner was uneven. In the process of its development, Goldpartnerexperienced a number of problems and difficulties, such as strong seasonal sales fluctuations, ambiguous product concepts, and problematicadvertising.Thanks to its aggressive marketing strategy, Goldpartner achieved asecond-place position in the Chinese multivitamin market in terms of sales value in 2005. However, competition in the market was intensifying and the business environment was changing. Goldpartner’s competitors were increasing their marketing budgets, and strict governmental regulations were expected in the health supplement industry. Could Goldpartner still maintain its leading position under this new market environment? While reviewing its marketing tactics, what could Goldpartner do to overcome the insufficiency of its marketing mix?