A STUDY ON DIFFERENCES IN MARKETING STRATEGIES

IMPLEMENTED

BY WULIANGYE AND MAOTAI

by

拼音姓名

A thesis

submitted in partial fulfillment of the requirements

for the Degree of

BACHELOR OF BUSINESS ADMINISTRATION

for

Joint Bachelor of Business Administration (BBA) Program

between

Tianjin University of Technology (TUT), Tianjin City, P. R. China

and

Thompson Rivers University (TRU), Kamloops, B. C., Canada

May 28, 2012

天津理工大学2012届本科毕业论文

摘 要

白酒在中国具有悠久的历史

关键词：白酒 竞争 营销策略

天津理工大学2012届本科毕业论文

ABSTRACT

Wine has a long history in China, and has always been famous for its superb brewing process, the unique taste and legendary culture. However, in recent years, the market share of wine has gradually declined. The competition in the wine industry is becoming increasingly intense. MAOTAI and WULIANGYE are two well-deserved giants of Chinese wine industry and have made great success doing business. Comparing their marketing approach, there are a lot of differences. Recently, the major consumers are gradually aging. In the coming decade, the after eighties and nineties will become the major force of consumption. To change the fate of wine, companies must improve marketing methods to adapt to modern society and the needs of new generation of customers.

Referring to the related theory, this thesis will focus on analyzing the differences of marketing strategy and method between MAOTAI and WULIANGYE. Recommendations for the current wine market have also been proposed for companies in this industry to learn from.

Key Words: Wine Competition Marketing Strategy

天津理工大学2012届本科毕业论文

BRIEF CONTENTS

CHAPTER 1 INTRODUCTION…………………………………………………………….1

1.1 Research Background………………………………………………………………............1

1.2 Research Contents………………………………………….. ……………………………..1

1.3 Related Concepts of Marketing Strategy……………….…………………………………..2 CHAPTER 2 COMPARISON OF MARKETING STRATEGY IMPLEMENTED

BY MAOTAI AND WULIANGYE………………………………………..3

2.1 Differences in Product Strategy ……………………………………………………………3

2.2 Differences in Price Strategy……………………………………………………………….4

2.3 Differences in Place Strategy …………………………………………… ………………...5

2.4 Differences in Promotion Strategy…………………………………………………………7 CHAPTER 3 SUGGESTIONS TO MAOTAI AND WULIANGYE……......…………9

3.1Weaknesses and Problems of Marketing Strategy to MAOTAI and WULIANGYE ………9

3.2 Suggestion to MAOTAI and WULIANGYE……………………………………………...10 CONCLUSION………………………………………………………………………………13 REFERENCES……………………………………………………..………………………….14 ACKNOWLEDGEMENTS………………………………………………………………….15

天津理工大学2012届本科毕业论文

CHAPTER 1 INTRODUCTION （每一章另起一页）

1.1 小三黑体

The importance of marketing （小四 新罗马字体 1.25行距）

Impacted （第二段往里缩进2个字母）by the wave of globalization, an increasing number of Chinese

During these years（第三段同上缩进，以此类推）

1.2 小三黑体

Based on MAOTAI and WULIANGYE’s strengths, weaknesses, opportunities and treats, this article will compare and contrast their marketing mix differences in product strategy, prices strategy, promotion strategy and distribution strategy. The problems and weaknesses will be analyzed and recommendations be made. Other companies in the wine industry can learn from their success to maintain sound development.

1.3 小三 黑体

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天津理工大学2012届本科毕业论文

CHAPTER 2 COMPARIAON OF MARKETING STRATEGY

IMPLEMENTED BY MAOTAI AND WULIANGYE

2.1 Differences in Product Strategy

2.1.1 MAOTAI （四号 新罗马 不用加黑）

During the last few years, MAOTAI has refocused its core brand and expanded sub-brands. It has strict control over its brands with a lean product family, including Yingbin Liquor, Prince Liquor and Age Liquor.

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天津理工大学2012届本科毕业论文

CONCLUSION

Generally speaking, those brand strategies of both WULIANGYE and MAOTAI are kind of successful in three ways. Firstly their marketing positions are not exactly same: WULIANGYE, from Luzhou-flavor liquor family, tries to be the king of Chinese liquor and the symbol of high-level life style based on its massive size and advantage of tradition; MAOTAI, the forefather of MAOTAI-flavor liquor, targets itself as “the healthy liquor of China” according to its historic and political background. Secondly, both launched a series of marketing activities of branding for value increasing: WULIANGYE emphasizes the corporate image to integrate the brand family; while MAOTAI boosts its publicity with the “Customers First” attitude and entered the international market with yearly vintage, adding the thickness to its premium brand. Lastly, both enriched their brand-name group through brand extension strategy in the brand-creation and brand-maintenance areas to enhance their strengths: WULIANGYE’s “First-expansion, Then contraction” increased both the corporate profitability and the brand value; MAOTAI extended cautiously first, followed gradually, learned from its opponents and went beyond with great progress. However, there were some mistakes for both of them: the expansion and contraction of WULIANGYE were too radical, which is inevitable for small frustration; and the developing ideas, public relations and marketing of MAOTAI were not suitable for its existing brand value. In the competition between MAOTAI and WULIANGYE, MAOTAI’s market awareness falls behind that of WULIANGYE and was once in a passive position. Misfortune may be an actual blessing. WULIANGYE being the leader in the economic trade, MAOTAI seems to have a more stable strategy. MAOTAI is good at drawing merits and demerits from its rival’s experience and open its mind to learn the advantage of famous international brands. Relying on its history, MAOTAI gradually turned its role from a follower to a winner. WULIANGYE is a daring company and willing to take challenge. God helps those who help themselves. WULIANGYE get generous market returns, but multi-brand is its major concern in recent years. After a period of adjustment, WULIANGYE find its way and began to enter the international market. These two brands became stronger and stronger in the competition.

Both brands should have a sense of risk during the branding operation. “Think twice” is the basis of branding operation, considering the company's brand structure, the development and market opportunity of every brand, corporate financial strength and operating experience. As for multi-brands operation, on the one hand every brand should earn its own scale; on the other hand the brand collaboration should be balanced to ensure the resources sharing and the associated effectiveness. Different brands should be merged or selected to optimize the brand structure to avoid the self-competition. WULIANG and MAOTAI should get out of the non-healthy industrial competition, such as duplication of R&D and waste of advertising spending; only through adjusting of the branding strategy according to the actual situation and developing through mutual competition could both be the hope for Chinese Liquor to be the world-famous brands.

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天津理工大学2012届本科毕业论文

REFERENCES

[1] 赵晓飞. 茅台与五粮液品牌发展模式之比较. 中国对外贸易， 20xx年03期

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[13] Sally Casswell. (2004), Alcohol brands in young peoples’ everyday lives：

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天津理工大学2012届本科毕业论文

ACKNOWLEDGEMENTS

I hereby express my sincere thanks to my tutor, Ms.Lin Xiao for her continuous support and brilliant suggestions on my thesis writing. Without her consistent support and help, I can’t accomplish my thesis successfully.

Also I want to give a big thanks to all of the professors and teachers at ICBT. I hope someday I’ll be able to repay this great kindness, and I will always remember it with feelings of greatest gratitude.

Finally, I wish my school, Tianjin University of Technology progress day by day, wish all my hard-working professors and teachers health and happiness, and wish all my dear classmates a bright future.

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