2007
DOI: 10.1007/s11002-007-9022-1
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Demand and distribution relationships in the ready-to-drink iced tea market: A graphical approach

Abstract: The relationship between distribution coverage and market share for an incumbent brand and for new entrants in the ready-to-drink iced tea market during its growth phase is explored using state space diagrams. This graphical visualization method was originally developed to disentangle lead-lag relationships between short nonstationary time series, a situation in which standard econometric methods have difficulty. In this research we show the usefulness of this method for long time series in offering complement… Show more

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Cited by 6 publications
(7 citation statements)
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“…The development of a variety of tea processed products has changed the culture of people drinking tea. In particular, the product concept of ready-to-drink tea has created a new tea culture [ 4 ]. Tea is no longer limited to freshly brewed hot tea but can also be a refreshing beverage.…”
Section: Resultsmentioning
confidence: 99%
See 1 more Smart Citation
“…The development of a variety of tea processed products has changed the culture of people drinking tea. In particular, the product concept of ready-to-drink tea has created a new tea culture [ 4 ]. Tea is no longer limited to freshly brewed hot tea but can also be a refreshing beverage.…”
Section: Resultsmentioning
confidence: 99%
“…For hundreds of years, the development of tea-related industries has played an important role in Taiwan’s economic and social growth. Today’s tea consumer market has expanded to include merchandise tea, premium tea, bottled tea, and ready-to-drink tea [ 4 ]. However, the diversification of culture and international economic activities have caused changes in eating habits that have impacted the industrial supply chain of tea leaves in Taiwan [ 5 ].…”
Section: Introductionmentioning
confidence: 99%
“…Bronnenberg et al (2008) find that the strength of the positive relationship between distribution intensity and market share for a brand varies based on the growth stage of the product category for the brand. Krider et al (2008) find that the nature of the positive relationship between distribution intensity and market share changes as a category matures, with demand leading distribution coverage in the initial stages of category development and greater distribution coverage facilitating defence of market share as a category matures. Wilbur and Farris (2014) study 37 packaged goods categories, find support for the positive and convex relationship between retail distribution intensity and market share, and identify additional moderators of this relationship (e.g., the size of revenues in a category, the extent of market share concentration in a category).…”
Section: Insert Table 1 About Herementioning
confidence: 91%
“…While distribution is identified as having better elasticity on sales, a fair question is how much more the brand can gain. In mature markets, distribution coverage is usually equalized and short-term changes (such as demand from a promotion) have little impact (Krider et al , 2008). Past evidence suggests brands generally phase out certain distribution outlets when the category starts to decline, implying that mature categories are near peak with respect to accessibility (Kotler and Keller, 2015).…”
Section: Theoretical Backgroundmentioning
confidence: 99%