3.2.1 Huge demand    12
3.2.2 Strong bargaining power    13
3.3 Analysis of substitutes    13
3.4 Analysis of potential entrants    14
3.5 Analysis of Suppliers    15
Chapter Four  Research Design    16
4. 1 Hypotheses    16
4.2 Structure of the questionnaire    16
4.3 The process of conducting the questionnaire    16
Chapter Five  Data Analysis and Results    18
5.1 Consumption structure of milk    18
5.2 Factors affecting purchasing decision    18
5.2.1 Quality and safety    19
5.2.2 Formula and function    19
5.2.3 Taste and flavor    20
5.2.4 Price    22
5.2.5 Package    22
5.3 Channels to get information    23
Chapter Six  Conclusion and Suggestions    24
6.1 Conclusion    24
6.2 Suggestions    25
6.2.1 Product differentiation strategies    25
6.2.2 Construction of milk source bases    27
6.2.3 Brand image establishment    27
References    29
Appendix    31
On the Competitive Strategies of Yili QQ Star in Kid’s Milk Market
Chapter One   Introduction
1.1 Research Background
With the development of economy in our country and continual rising of people’s living standard, milk has now been playing an increasingly important role in our diet and people’s demand for milk has keeping on growing. People now pay much more attention to health than before and they not only just care about the basic nutrition but also the added functions of milk. This is especially true when it comes to kid’s milk. Since there are only 1 or 2 kids in most Chinese families, parents care so much about the health growth of their kids. Parents buy milk for their kids to help their intellectual and physical development.
In 2008, The Mengniu Dairy Group firstly recognized that although kids in our country had basically formed the habit of drinking milk, more than 70 percent of them were drinking ordinary pure milk and high-end milk for adult. These kinds of milk can only provide basic nutrition and have little effect on intellectual development, bone growth and immunity strengthening, which are important in kid’s growth and highly valued by parents. Driven by the great market demand, Mengniu launched a new product called Future Star, filling the gap in the market. Before long, Yili launched QQ Star. This became an emerging market in domestic dairy industry. In the last few years, the consumption of kid’s milk has been keeping on increasing at a high speed. Owning to the first-mover advantage, Mengniu and Yili became the two leaders in this market and got huge benefits.
However, other domestic dairy enterprises like Bright, Wangzai, Sanyuan, Shengmu and Weigang have also launched their own sub-brand for kid. In addition, famous foreign brands like Anchor and Milkana have brought their kid’s milk products into Chinese market, attempting to share the big market. The market is gonging to maturity now and the products of different brands lack of differentiation. These all makes competition in this market get more and more fierce. Under this circumstances, it’s much harder for Yili QQ Star to stay ahead in this market.
1.2 Significance and purpose
1.2.1 Theoretical significance
Porter’s competitive strategies had been widely applied in many different industry. Five forces model had been widely used to analyze the overall environment and competition in various markets. Many company formula their strategies according to the three generic strategies. However, kid’s milk market is a comparatively new market and there is currently no study about competitive strategies in this special market. It is meaningful to apply this theory in this new market and complete Porter’s competitive strategies by putting them into practice. 伊利QQ星在儿童奶粉市场中的竞争策略五力模型(2):http://www.youerw.com/yingyu/lunwen_27374.html