How about the alcoholic beverages?

The Birth of Ghost Liquor

In 1985, the famous painter Huang Yongyu designed the packaging of Ghost Liquor for Hunan Xiangquan Liquor: the bottle was made of earthenware, simple and elegant, and was shaped like a sack with its mouth tied. On one side, there is a painting of a drunkard carrying a drunkard, which seems to be full of Eastern humor, and on the other side, there are the words "Supreme Wonderful Product", which look like a collector's seal. This and the bottle label on the red background and black lettering wild cursive "drunkard" two words echo inside and outside, a combination of static and dynamic. It is a typical packaging of a different kind.

Juergui liquor humor in the name of the bottle and the bottle by Huang Yongyu personally wrote a picture of the liquor ghost with a full of fun "Juggernaut Figure", Huang Yongyu complete the culture of wine a wonderful brand. It made "Juggernaut" famous. A hit, become a teenage hero in the eighties.

Since then, liquor ghost wine began its more than 20 years in China's market clouds, success and failure.

I. Wang Xibing: Spiritual Leader of Reggae Liquor, the End of the Heroic Era

Wang Xibing founded the brand of Reggae Liquor in 1985, with a production volume of 500 tons in that year; then, using the trinity of famous liquor, culture and celebrities, he took the cultural route to make his name known through celebrities, so that Reggae Liquor succeeded in penetrating into the market. In 1995, the production volume was 8,000 tons, the total assets were 3.5 billion yuan, and the sales revenue was 3.096 billion yuan. 1998, the company changed the channels and implemented a new sales system, since then, Xiangjiu Ghost changed the past practice of being operated by the agents in each province, and set up some offices in Beijing and Shanghai to distribute the products by themselves. Distribution. As a result, the distributors were dissatisfied on one side, and internal confusion on the other side, grabbing territories, fighting over prices and even going out of their way to take credit. Xiangquan Group in 1999 total profits and taxes of about 400 million yuan, than in previous years has declined, to 2000, resulting in accounts receivable 700 million yuan, inventory of 300 million yuan, the company is facing operational difficulties, the end of the year, with the departure of Wang Xibing, the end of the hero era of the alcoholic beverages.

The failure of alcoholic beverages is that they do not have a sound sales channel, they want to distribute their own, eat alone, and secondly, due to the departure of Wang, the company's management is chaotic, began to go into decline.

Analysis:

Overall view of the development of alcoholic beverages, from weak to strong, and from strong to weak, like Wang Xibing, from the main Xiangquan, Xiangquan from small to big, become a spiritual leader, become a hero of the enterprise, and due to changes in the market environment, as well as other aspects of the reasons, to the end of the hero era, Wang Xibing experienced is precisely the twentieth century, China's alcoholic beverages marketing development itself. The characteristics of the 20th century Chinese liquor marketing itself.

China's liquor marketing started in the early 1990s, before the 1990s, there was still a demand for more than production, so in marketing, as long as you can go out and be a little innovative in the way you innovate, sales will improve rapidly. 90s after the state policy has changed, in December 1993, the government issued a restrictive tax policy, "the Chinese people's **** and country Provisional Regulations for the Implementation of Consumption Tax", its provisions for the collection of consumption tax on alcoholic beverages for liquor tax rate of 25%; between 1998 and 1999, the "Chinese People's *** and the State Provisional Regulations on Enterprise Income Tax" supplemented by grain liquor (including potato liquor) advertising and promotional costs are not allowed to be deducted before the tax, which have greatly increased the tax rate of the liquor industry, increasing the operating costs of liquor enterprises.

But Jugui liquor in 1993 boldly retail price to 300 yuan or more, this high-priced strategy to become a unique high-end brand at the time, sales have achieved rapid growth, become the black horse of the liquor industry at the time. 1995, sales revenue of up to 3,096,000,000 yuan. 1998, the enterprise in order to adapt to the market environment and the national policy, the channel reform. This strategy itself is not wrong, but also the product of China's marketing environment, but the liquor ghost wine channel reform did not succeed, the root causes are the following:

(a) the sales system is not sound, eager to get ahead of the game, in order to expand the market share, to engage in credit sales. And liquor liquor sales company and Xiangquan Economic and Trade Company two "own people" in the sales link on the unclear, unknown, making sales revenue shrink significantly. Accounts receivable up to 700 million yuan, inventory up to 300 million yuan.

(ii) brand overdraft. Group high, medium and low-grade products in full bloom. Group company brand peaked at more than 100. Resulting in a waste of resources, duplication of construction and different centers of gravity. This makes the enterprise sustainability development power is insufficient. It has caused a great impact on the sales and market development of the mainstream brand - Jiu Gou Liquor.

(3) Insufficient "cultural marketing". The image of alcoholic beverages has not been further explored and publicized. The impact of the national liquor Moutai, the king of the liquor industry Wuliangye and other big brands shook the confidence, disorganized.

In short, throughout the 1990s, the state introduced the policy, but also for the market environment at the time, all liquor companies have to face, in the last decade of Wang Xibing's main, experienced a flood of fake wine in the industry, the king of the label event, buyout trend, cultural marketing, etc., these events in the impact of all the industry enterprises, although so, Wuliangye, Moutai and other famous wines are still in the growth in the In 1998 the start of the Golden Six Fortune wine, not also take advantage of the trend? Currently, it is not also very good development, while the alcoholic beverages began to decline from the peak, so that the company is facing difficulties. Why did the alcoholic begin to decline, channel reform is not wrong, in the final analysis, because there is no systematic marketing management and market planning caused.

Tian Jiagui: Transition to modern marketing, out of the heroic era

The end of 2000, with the government background of Tian Jiagui as chairman of the board of directors of the alcoholic beverage (the former executive vice governor of Xiangxi Autonomous Prefecture, who also served as a member of the Standing Committee of the state party committee), at this time, the market has been transformed from a seller's market to a buyer's market. After Tian Jiagui took office, he made drastic reforms: the original 115 varieties were shut down and eliminated 2/3 of them, taking the road of "high quality, high value-added and high grade"; 21 offices across the country were cut to 12, and the sales force was reduced from more than 300 people to 90 people; the direct sales system was changed to the general distribution system, and the price and policy were unified; the company's executives and management staff were also given the opportunity to work with the company to improve the quality of the products and the quality of the products. Price, unified policy; company executives all to the market line to grasp the terminal sales; the establishment of a specialized agency to clear the outstanding accounts.

The 2001 annual report, Tian Jiagui delivered a pretty good report card: annual sales of 4 billion, although the financial costs went to 190 million, the most for the past year, but in the liquor industry loss of more than half of the background, Xiangjiu Ghost in 2001 to achieve a net profit of 100 million, compared with the previous year to improve the 15.4% per 10 shares of cash dividends of 3 yuan (including tax). Really make shareholders happy.

Analysis:

Tian Jiagui has halted the downward trend of alcoholic beverages, but it has not changed the end of his dismissal. As the only publicly traded company in western Hunan province, the company is responsible for 85 percent of local revenue. The government wants the company to pay more taxes, but only when it develops, and even only when it develops in a benign way, will it be able to share more burdens with the government, which it obviously couldn't do at the time. We will not talk about the government's intervention here, but only analyze the gains and losses of Jugui in 2001 from a marketing point of view.

According to data provided by the China Brewing Industry Association, the country produced about 4.2 million tons of liquor in 2001, with 50 percent of liquor products in surplus and having to be shelved in warehouses, with production greater than demand. Baijiu sales model has undergone a major shift - from "do terminal sales" to "cultural marketing" transition. And liquor from the traditional workshop wine, industrial wine, advertising wine, branded wine gradually transitioned to culture as a means of promotion of cultural wine, this time the liquor lords have realized that the culture of wine contains huge business opportunities.

Tian Jiagui, who took over the company, responded to the prevailing market winds, took cultural marketing as the foundation, and stopped the decline of the company's market through five moves:

(1) eliminating low-grade products and taking the road of "high grade, high value-added, and high-grade". This product focusing strategy is suitable for the time of the wine, the shortening of the product line, is conducive to the creation of the wine of the wine of the wine of the high grade, high-grade road, focus on the brand of the wine of the wine of the wine of the wine of the wine of the wine of the wine of the wine of the wine of the wine of the wine of the wine of the wine of the wine of the wine of the brand of the wine of the wine of the wine of the wine of the wine of the image. Tian Jiagui seized this favorable opportunity and quickly launched the banner of "being the leader of Chinese cultural wine" with the profound knowledge of "cultural marketing" of Ghost Spirits in more than ten years. The company has successively developed "New Century Jugui Liquor", "Precious Jugui Liquor" and "Jugui Brand 3,000 Years", etc., which have deep national cultural connotations, and have created a "Hunan Liquor Wind" at home and abroad. The "wind of Hunan wine" has been snapped up at home and abroad.

(2) The company was streamlined and made more efficient. The 21 offices across the country were cut to 12, and the sales force was reduced from more than 300 to 90 people. The most expensive thing in the market is talent, to create a marketing team capable of fighting, by improving the efficiency of the work, is the fundamental development of the enterprise.

(C) change the sales model. Due to the pre-company direct sales and distribution coexist, business and dealers to grab the market, resulting in market disruption, in the wind and waves on the wine ghosts, the urgent need is to stabilize the market, and thus the shift to the general distribution agency system model, reducing the business risk, stabilizing the market.

(4) Grasp the terminal, promote sales. Requirement of the company's executives to change the concept, to the terminal to grasp sales, for survival. This move has brought the company close to the market, while also improving the enthusiasm of dealers.

(E) Clearing accounts receivable. As a result of the channel changes in 1998, up to 700 million yuan of accounts receivable were created, which, if not cleared, would have caused the company further operational difficulties.

In the implementation of a series of measures, Jugui's performance stopped declining, began to grow, and became one of two profitable companies listed that year (the other being Wuliangye). As a result of the government's influence, Tian Jiangui left his post in 2002.

Three, Liu Hong: capital under the egg (hollowing out the culprits of the liquor ghost wine)

In 2002, the state government election, Peng Shanwen replaced Tian Jiagui as chairman of the board of directors, but four months later will be the transfer of equity to the success of the Department of Liu Hong as a representative of the system. The reason for the transfer is that the original holding company, Xiangquan Group, has been losing money for years, and the long-term occupation of a large number of listed companies has led to losses, Xiangquan had to sell its shares to pay back the money. 2002 Liu Hong entered the Xiangquan all the way to the Xiangquan that year, the first time Xiangquan reported a loss. 2003 July, the transfer of the equity formally approved by the State-owned Assets Supervision and Administration Commission (SASAC). Since then, the earnings per share from the 1997 0.86 yuan all the way down to negative, was brought ST hat.

September 14, 2005, Xiang wine ghost announcement announced that the board of directors agreed to Liu Hong resigned as chairman of the board of directors and general manager of the wine ghost wine. September 15, wine ghost wine announced that the company's capital account of 420 million yuan of funds by the major shareholders of the success of the group to transfer all of the wine ghost wine in September events, wine ghost wine once again to the tip of the storm.

Analysis:

From the marketing point of view, Liu Hong as chairman of the board of directors after the liquor ghost wine sales headquarters moved to Changsha, in fact, is also reasonable, Jishou is too remote, logistics is not developed, but also did not have a big change in the personnel of the liquor ghost wine, these practices for the development and stabilization of the market of the wine ghost at that time, but also be able to play a very good role. But Liu Hong as a capital market player, its nature also decided that he could not sustain the business. Mainly for the following reasons: First, the private enterprise system, in the decision-making and market sensitivity has the advantage, but the flexibility is too large, and ultimately the risk can not be controlled; Second, the implementation of the family management model, simple and sloppy; Third, Liu Hong's basic management has serious flaws, the lack of experience in industrial operations, does not reflect the collective wisdom and scientific decision-making mechanism; Fourth, the snake swallowed the elephant mentality is obvious, Liu Hong has some funds, but No more strength.

During the operation of the alcoholic beverage, Liu Hong did not intercept the sales of goods, but also took a lot of business measures, but how can play the capital operation of the industrial operation, with the operation of the dilemma, the nature of capital appeared in September 2005, finally exposed the nature of Liu Hong. Wine and ghost in the injection of successful system of capital, after the transfer of equity, has been doomed to the end of the present.

Liu Hong in the main 3 years, also did some market work, as China's earliest high-end wine, can continue to this boutique consciousness, market work can adapt to the market environment, from the following aspects, wine and ghosts did not do:

One of the construction of a diversified marketing network: after the optimization and integration of the marketing network, the Xiangjiu Ghost Company has set up 15 regional offices across the country, while the establishment of Beijing, Hunan, and the establishment of the marketing network. offices, and at the same time, it has established five key markets in Beijing, Hunan, Guangdong, Shandong and East China with annual sales return of more than 50 million yuan; it has cultivated five customers with annual sales of more than 30 million yuan, 10 customers with 10-20 million yuan, 20 customers with 5-10 million yuan, and 60 customers with 1-3 million yuan in the country; and the coverage rate of the key markets in the localities is up to 100%, and extend the distribution network to developed towns and villages; 80% coverage in other markets; and establish more than 5,000 supermarket terminals in central cities and developed areas of the country.

This kind of full bloom approach is obviously not available to the marketing capability of Jugui Liquor at that time, although it poured all its efforts to get together and integrate the team with senior think tanks, professional planners and newly recruited college students, but it is not an easy task to reach the goal. The establishment of this diversified network has proved to be not only a basket case, but the situation has worsened. 2003 revenue from main business was only 350 million yuan, down 8.68% from 2002, a loss of 94.43 million yuan.

Second, change the sales model: from the original liquor by their own sales company sales, the introduction of the business buyout business, the formation of Tak Kee's Taiten, Tianjin Yulongda, the liquor liquor sales company's troika pattern. in September 2003, the first joint-stock terminal held by the company's Hunan New Xiangquan Business Development Co. When the time is ripe, Xiangjiu Ghost will also implement the same mode of operation in regions where conditions are ripe in the form of holding or equity participation. This innovative system operation mode has greatly stimulated the enthusiasm of marketing personnel and cooperative dealers, and made the market situation change rapidly.

This new model has indeed injected new vitality into the marketing of alcoholic beverages, but some of the products developed at the time, such as the "Little Drunkard", have not formed a scale, and are only loud thunder but little rain. If Ghost Liquor continues to develop high-end products, with the popularity of Ghost Liquor, marketing can be steady, there is still hope for a turnaround.

Three, to carry out image shaping project: around the "brand to expand the market" marketing concept, Xiangjiu ghost to carry out a series of brand image shaping project.

(a) is the depth of excavation "ghost" brand cultural heritage, invited the master of art Huang Yongyu for the ghost of wine writing "wine scripture", "ghost" culture for the depth of excavation and authoritative positioning;

(b) is the shape of the supreme wonderful goods Core value concept. A top planning team was hired to create image advertisements for the company, which further enhanced the brand image and core value of "Ghost" wine and further clarified the brand positioning;

(c) to create a corporate image with a sense of responsibility. The establishment of Xiangxi Education Fund, donations of millions of dollars to subsidize poor college students, the 80th birthday celebration for Master Huang Yongyu, the construction of the Huang Yongyu Museum, etc., Xiangjiu Ghost with great enthusiasm into the public welfare activities;

(4) is the use of various types of distribution activities to show corporate image. In the National Sugar and Wine Fair, dealers ordering, "ghost" bottle auction, the national five cities will be, the Boao Forum in Asia on the passion to build momentum, fully demonstrate the brand image.

The brand image shaping project carried out by Ghost Spirits has greatly improved the brand awareness and image power of Ghost Spirits, but the enhancement of brand image does not directly bring sales for the company, it has to be done through systematic marketing.

Four, brand management: the establishment of brand management specialized agencies, increase the integration of intangible assets of the brand, so that the development and design of the brand, market promotion, trademarks and patents management towards systematization, standardization; at the same time, the core brand of the implementation of the cultural enhancement strategy, take the road of excellence.

Take the road of excellence, should be the development of liquor ghost wine road, at the same time, in the industry, take the road of excellence has become **** knowledge. However, while taking the high-quality goods route, Ghost Liquor is flexible in the operation of low and medium-grade, adopting a variety of ways, such as "regional buyout operation", "labeling operation", "a district of a product, a product of a policy", etc., and will be the company's sales of low and medium-grade products. The company's sales scale of low-grade products, this practice, did not form the core competitiveness, at the same time, but also the branding project carried out by the liquor ghost wine effect of discounts, resulting in brand management confusion, wine ghost is a high-grade wine or low-grade wine?

Fourth, after the era of liquor ghost: look forward to 2006, back to the high-end market

September 2005, liquor ghost major shareholders to flee the event, served as deputy mayor of Jishou City, Yang Bo in the critical situation, as the chairman of the board of directors of liquor ghost liquor Co. Within the company, Reggae began to carry out drastic reforms. Ltd. invested heavily in a strategic alliance with Jugui to develop and launch a strategic product, "Jugui Vintage Wine", aimed directly at the high-end liquor market represented by Moutai and Wuliangye. The cooperation with Sichuan Mengdingshan Liquor Industry Co., Ltd. and the strategic alliance with the legendary Han Jingwei of the liquor industry are in essence the introduction of both capital and talents. Juggernaut vintage wine development, marking the arrival of the post-Juggernaut era, 2006, Juggernaut vintage wine can regain the high-end market share, in the next five years can create a miracle, vintage wine, general manager of Han Jingwei, the next five years, "Juggernaut vintage wine," to take the 20% market share of high-end liquor in China, we'll wait and see!

Analysis:

In 2006, whether the wine ghosts in the wine "rivers and lakes" to reset the signboard, become a "dark horse". Whether it is the price, culture, concept or marketing, are but its own coat, on the contrary, the ghost of the history of its own sense of gravity and the quality of the unique personality of its own invariable genes - unique taste flavor, so that consumers can easily identify and form a strong impression, which is the difference between the high-end liquor in general as well as high-end liquor between the fundamental differences. This is the fundamental difference between high-end liquor and general liquor and high-end liquor. From this point of view, liquor ghost original fragrance type, a school of its own.

(I) Unique Aroma, Establishment of Status

On August 12, 2005, the Hunan Provincial Department of Science and Technology hosted an appraisal meeting in Jishou on the results of the "Research on the Fuzzy Aroma of Reggae", which was validated by the Appraisal Committee composed of Shen Yifang, Gao Yueming and other famous liquor experts, and by the Hunan Institute of Scientific and Technological Information, which concluded that Reggae was the only liquor that had been recognized as having the best aroma. After the appraisal by the Appraisal Committee composed of Shen Yifang, Gao Yueming and other famous liquor experts, and the validation by Hunan Provincial Institute of Science and Technology Information, the appraisal opinion was unanimously formed, which considered that the production scale of Jiu Gou Liquor had been shaped, the consumer group was decent and wide, the economic benefits were outstanding, the production process was unique and the product style was unique.

The development of the existing aroma types of Chinese liquor so far, the rich aroma type is the sixth major aroma type after the soy sauce type, strong aroma type, rice aroma type, clear aroma type, and part of the aroma type. The identification of the sixth flavor type of Jugui liquor has created a new situation for it in 2006 and even in the following years. Jugui liquor is the opening work of the Fuyu flavor type, which is unique in the market and more competitive compared with other products. In terms of the characteristics of liquor, the Fuyu aroma has established a new position for Jugui in the industry.

(2) Main products, real vintage wine

If only the taste is unique, it is not enough to achieve the market, because there are more than 30,000 Chinese wines, and many of the products also have unique taste, therefore, it is also necessary to be able to seize the current consumption hotspot.

On December 15, 2005, at the CCTV Medea Center in Beijing, a press conference was held on the listing of Jugui Vintage Wine. At a time when the wine industry is talking about its five years of aging and ten years of cellar storage, how many of them are real vintage wines?

In 1997, the production capacity and sales of alcoholic beverages reached an all-time high, and the alcoholic beverages, by virtue of its scale advantage in meeting the sales of that year, but also a considerable number of extremely high quality wine stored, part of which as the supreme alcoholic beverages at the end of 2001 sealed in the Qiliang Cave in the cellar in 2008 to start the cellar delivery for the opening of the Beijing Olympics to celebrate the success of the wine, commemorative wine, and the remaining stock of excellent quality wine is the current launch of vintage wine. The remaining stock of extremely high-quality wines has laid a solid material foundation for the launch of the current vintage wines. Therefore, liquor ghost wine has this advantage, real hidden real cellar, won the advantage in the basis of the product.

(3) Marketing strategy, Tianji horse racing

Tianji horse racing is to use one's own good horse to beat the rival's second-class horse, and use one's own second-class horse to beat the rival's last-class horse, and ultimately win the victory. Juggernaut vintage wine market strategy is to take the first camp to compete with the rival's second camp, from this point of view, Wuliangye and Maotai will be impacted by the Juggernaut vintage wine, ShuiJingFang and GuoJiao1573 in the short term will not be Juggernaut vintage wine's main object of attention.

To win the market, it must be executable in terms of marketing's market strategy. The vintage wine will start according to the existing market problems of famous wine, give big space, big profit, unprecedented high return and high operation, dealers will enjoy more profit space and more support, in addition to strengthening the dealer's policy and market support, but also to strengthen the channel dealers and consumer services; in the market operation, the vintage wine will follow the "slow fish eat slow fish, slow fish eat fish," the "slow fish eat fish" marketing strategy. Slow fish eat fish" market law, will use "space for time" market strategy to "learn to eat fast and learn to eat", the core content is to stimulate dealers to accelerate market operations with high price difference.

(D) The power of the brand

The brand is the most important embodiment of the commercial value of the enterprise, it is intangible, is built in the hearts of consumers. Jugui liquor used to be China's most expensive and best high-grade cultural wine, acting as a milestone role of cultural wine in China's liquor industry. Drinking Jugui is a symbol of identity, status and wealth, representing dignity and success, as well as taste and fashion. For Juggernaut to fully revitalize the market, brand is power. Believing in the power of the brand, Ghost is also bound to become the biggest growth point of China's liquor industry in 2006, because the brand essence of Ghost is still the biggest commercial value.

Fifth, the revival of Xiangjiu Ghost era, Xu Keqiang at the helm,

Majority shareholders of the central enterprise background, the best period of liquor ghosts, with the market recognized by the ability of Xu Keqiang at the helm, people began to Xiangjiu Ghost high hopes, looking forward to Xiangjiu Ghost can be re-moutai, Wuliangye equal to the highest end of the white wine in China camp, however, in charge of a year, the resignation of the storm, but the storm of resignation to look at the bad, actually a good thing, but also to look at the storm of resignation. But the resignation storm is a bad thing, in fact, it is also a good thing, there is no collision, that will have the unity of ideas? Expect Xu Keqiang to lead Xiangjiu Ghost to fight a world, become the hero of Xiangjiu Ghost, and draw a perfect conclusion for his career.