Sodastream Executive Summary

SodaSteam is an at-home soda maker that can turn tap water into sparkling water or your

favorite soft drink in a few seconds. It’s an eco-friendly product and very easy to use, less bottles

and less price! Our target audience is moms between the ages of 25 and 54 who have an affinity

for carbonated beverages, which already comprise 40 to 50 percent of SodaStream’s Facebook

followers. Values and benefits of the product include:

a) Freshness (Homemade sparkling water and soft drink)

b) Convenience (No heavy bottles to carry)

c) Personalized (Pick a taste and make your own favorite drink)

d) Protect the environment (It’s eco-friendly, you can reuse the bottles)

e) Price (Cheaper than buying pre-packaged soda)

Since SodaStream is

such a specialty product with a specific use, the target market we

will be using in China will be similar to the one we use in the United States.

The differences

that are shown will be due to differences in family dynamics and economic status. The target

audience for China for this product goes as follows:

“Mei is a 36 year old mother of one boy. Her husband and she both work, and their

family is considered “middle class.” Mei values the cost effectiveness of making her own

soda, and since she works full time, she also appreciates the simplicity of the product

which makes it easy for her son to make his own drinks when he needs them.”

In the United States SodaStream is more likely to be marketed as a trendy and “fun”

product that has the added value of being cost effective. However, in China, cost effectiveness

would be presented in the forefront in its advertising. We decided to go with this angle from

evidence that the GDP is significantly lower in China than the US.

Bringing a new product into a foreign market can be very challenging in itself.

Especially dealing with a complex market giant like China. Even with all the presumable

challenges, there are many identifiable reasons that would make this product appealing to

our

target market. Reasons such as; a continually growing middle class, a constant increase in

disposable income as the economy grows, the Chinese preference for brands with well known

quality, lack of competition in the marketplace and finally the environmental upsides to

SodaStream. It is no secret that the Chinese economy has expanded by leaps and bounds in the

past 20 years. This growth has caused an increase in middle class with more disposable income.

It’s also no secret that Chinese people themselves have very high involvement in seeking out

new products on the market and are very involved in digital media.

By bringing Sodastream to

China, there would be a multitude of early adopters interested in checking out the product online

and doing research to see if it’s a brand of good quality. After seeing it’s success in other

countries, Chinese middle class purchasers would be inclined to give it a try and post their

thoughts online, which would create buzz. Another upside to this market is the lack of

competition. As of right now, Sodastream only has one formidable competitor with a respected

brand name, Cuisinart. This means that China is a virtually untapped marketplace in this

category. Environmental friendliness is something very important to the Chinese people. One

Sodastream cartridge can fill up to 60L of carbonated beverages. Imagine the number of plastic

bottles that will be saved from polluting the environment by using this product. It also cuts down

on taking trips to the stores to buy soda and other beverages. We would definitely have to change

the flavors to match the palate of Chinese people and introduce new products to

accommodate

their preferences. Along with drinking soda, Chinese people love drinking tea. Bringing in a line

of tea flavors would help the taste of our products in their eyes, but also show that we care about

what they like and not force foreign products on them. Sodastream seems like it could have a lot

of potential in the Chinese market.