Jiugui is born

In 1985, the famous painter Huang Yongyu designed the packaging of Jiugui wine for Hunan Xiangquan Liquor Industry: the bottle body is made of earthenware technology, simple, elegant and bottle-shaped It is in the shape of a zipped sack. On one side, there is a freehand painting of a drunkard carrying a drunkard, which looks full of Eastern humor. On the other side, there are four characters "Supreme Wonderful Product" written like a collection seal. This echoes the word "drunkard" in black cursive style on a red background and on the bottle label, combining movement and stillness. It is a typical heterogeneous packaging.

Jiugui Liquor has a humorous name, a lonely and strange bottle, and a portrait of a drunkard written by Huang Yongyu himself on the bottle. Coupled with an interesting "Drunkard Picture", Huang Yongyu has become one of the cultural wines. Fantastic brand. The reputation of "drunkard" spread far and wide. He became an instant hit and became a teenage hero in the 1980s.

Since then, Jiugui Liquor has experienced success and failure in the Chinese market for more than 20 years.

1. Wang Xibing: Spiritual Leader of Jiugui Liquor, the End of the Heroic Era

Wang Xibing founded the Jiugui brand in 1985, with a production volume of 500 tons that year; subsequently, using the trinity of famous wines, culture and celebrities By adopting a cultural approach and using celebrities to gain fame, Jiugui Liquor successfully entered the market. In 1993, Jiugui Liquor boldly adjusted the retail price to more than 300 yuan, which was higher than the three recognized high-end liquor brands of Moutai, Wuliangye and Jiannanchun. In 1995, the production volume was 8,000 tons, total assets were 3.5 billion yuan, and sales revenue was 3.096 billion yuan. In 1998, the company changed its channels and implemented a new sales system. Since then, Xiangjiugui has changed its past practice of being operated by agents in various provinces and set up some offices in Beijing, Shanghai and other places to distribute by itself. As a result, on one side, the dealers were dissatisfied, and on the other side, there was internal chaos, with land grabs, price competition, and even credit. The total profit and tax of Xiangquan Group in 1999 was about 400 million yuan, which was lower than in previous years. By 2000, accounts receivable reached 700 million yuan and inventory reached 300 million yuan. The company faced operating difficulties. At the end of the year, with the departure of Wang Xibing Go, the heroic era of drunkards and drunkards is over.

The failure of Jiuguijiu was that it did not have a sound sales channel, so it wanted to distribute by itself and live alone. Secondly, due to Wang's departure, the company's management was in chaos and it began to decline.

Comment and analysis:

Looking at the development of Jiuguijiu, from weak to strong, and from strong to weak, just like Wang Xibing, he led Xiangquan from childhood to adulthood. Becoming a spiritual leader and a corporate hero, and due to changes in the market environment and other reasons, to the end of the heroic era, what Wang Xibing experienced was exactly the characteristics of the development of China's alcohol marketing in the 20th century.

China’s liquor marketing started in the early 1990s. Before the 1990s, demand was still greater than production. Therefore, in terms of marketing, as long as we can go global, we must adopt innovative methods. With a little innovation, sales will quickly increase. After the 1990s, the national policy changed. In December 1993, the government issued the restrictive tax policy "Details for the Implementation of the Interim Regulations of the People's Republic of China on Consumption Tax", which stipulates that the consumption tax on alcoholic products is 25% for liquor. ; From 1998 to 1999, the "Provisional Regulations of the People's Republic of China on Enterprise Income Tax" supplemented the stipulation that advertising expenses for grain liquor (including potato liquor) shall not be deducted before tax, which greatly increased the tax rate of the liquor industry. , increasing the operating costs of liquor companies.

However, Jiugui Liquor boldly raised the retail price to more than 300 yuan in 1993. This high-price strategy became a unique high-end brand at that time. Sales achieved rapid growth and became a dark horse in the liquor industry at that time. In 1995, sales revenue reached 3.096 billion yuan. In 1998, the company carried out channel reforms in order to adapt to the market environment and national policies. There is nothing wrong with this strategy in itself, and it is also a product of China’s marketing environment. However, the Jiugui Liquor channel reform has not been successful. The fundamental reasons are as follows:

(1) The sales system is not sound and the sales system is eager for success. , in order to expand market share, credit sales were started. However, the two "own members" of Jiugui Liquor Sales Company and Xiangquan Economic and Trade Company were unclear about the sales process, causing sales revenue to shrink significantly.

Accounts receivable is as high as 700 million yuan, and inventory is as high as 300 million yuan.

(2) Brand overdraft. The group's high, medium and low-end products are in full bloom. The number of group company brands reached more than 100 at its peak. This results in a waste of resources, duplication of construction, and inconsistent focus. This makes enterprises less motivated to develop sustainably. It has had a great impact on the sales and market development of the mainstream brand Jiugui Liquor.

(3) “Cultural marketing” is not strong enough. The image of Jiuguijiu has not been further explored or promoted. As a result, under the impact of big-name brands such as Moutai, the national liquor, and Wuliangye, the king of liquor industry, the confidence has been shaken and the position has been thrown into disarray.

In short, throughout the 1990s, the policies introduced by the state were also aimed at the market environment at that time. All liquor companies had to face it. In the last ten years of Wang Xibing’s leadership, he experienced the problem of counterfeit liquor in the industry. Flooding, Biaowang incident, buyout trend, cultural marketing, etc. These events are affecting all companies in the industry. Despite this, famous wines such as Wuliangye and Moutai are still growing. Golden Liufu Liquor, which started in 1998, is not also taking advantage of the trend. And up? It is not developing very well at present, and Jiuguijiu has begun to decline from its peak, thus putting the company in trouble. Why do drunkards begin to decline? There is nothing wrong with channel reform. In the final analysis, it is because there is no systematic marketing management and market planning.

2. Tian Jiagui: Transition to modern marketing and emerge from the heroic era

At the end of 2000, Tian Jiagui, who had a government background, served as the chairman of Jiugui (former executive deputy governor of Xiangxi Autonomous Prefecture, concurrently serving as state chairman) Committee Standing Committee), at this time the market has turned from a seller's market to a buyer's market. After Tian Jiagui took office, he carried out drastic reforms: discontinuing production and eliminating 2/3 of the original 115 varieties, taking the road of "high grade, high added value, high grade"; reducing 21 offices across the country to 12, The sales team has been reduced from more than 300 people to 90 people; the direct sales system has been transformed into a general distribution agency system, with unified prices and policies across the country; all company executives have gone to the front line of the market to focus on terminal sales; and a special agency has been set up to clear debts.

As far as the 2001 annual report is concerned, Tian Jiagui handed over a pretty good report card: the annual sales were 400 million, although the financial expenses were only 190 million, which was the highest in history. , but in the context of the loss of more than half of the liquor industry that year, Xiangjiugui achieved a net profit of 100 million in 2001, an increase of 15.4% from the previous year. The cash dividend of 3 yuan (tax included) for every 10 shares really made shareholders happy Got a handful.

Commentary:

Although Tian Jiagui has stopped the downward trend of Jiuguijiu, it has not changed the ending of his dismissal. As the only listed company in Xiangxi Prefecture, Jiugui is responsible for 85% of the local financial income. The government hopes that the company can pay more taxes, but only when the company develops, or even develops in a healthy way, can it share more burdens for the government. But the drunkard at that time obviously could not meet the government's requirements. I won’t talk about the government’s intervention here, but only analyze the gains and losses of Drunkard in 2001 from a marketing perspective.

According to data provided by the China Brewing Industry Association, the national liquor production in 2001 was approximately 4.2 million tons, and 50% of the liquor products were in surplus and could only be shelved in warehouses, with output exceeding demand. The sales model of liquor has undergone a major transformation - from "terminal sales" to "cultural marketing". Liquor has gradually transitioned from traditional workshop liquor, industrial liquor, advertising liquor, and brand liquor to cultural liquor that uses culture as a means of publicity. At this time, the liquor princes have realized the huge business opportunities contained in cultural liquor.

Tian Jiagui took over Jiugui and complied with the market trend at that time. Based on cultural marketing, internal management and market development, he stopped the market decline of Jiugui through five measures:

(1) Eliminate low-end products and take the road of "high grade, high added value, and high grade". This product focus strategy was suitable for Jiugui Liquor at that time. The shortening of the product line was conducive to building a high-grade, high-end road for Jiugui Liquor. It concentrated its efforts on shaping the Jiugui brand and rebuilding the Jiugui image. Tian Jiagui seized this favorable opportunity and quickly launched the banner of "being the leader of Chinese cultural wine" with Jiugui Liquor's profound knowledge in "cultural marketing" for more than ten years.

It has successively developed "New Century Jiugui Liquor", "Treasure Jiugui Liquor" and "Jiugui Brand Three Thousand Years" with profound national cultural heritage, creating a "Hunan wine style" at home and abroad.

(2) Streamline troops and improve efficiency. The 21 offices across the country were reduced to 12, and the sales team was reduced from more than 300 people to 90 people. The most expensive thing in the market is talent. Building a marketing team that is good at recruiting and improving work efficiency is the foundation for enterprise development.

(3) Change the sales model. In the early stage, the company's direct sales and distribution coexisted, and business and dealers competed for the market, resulting in market chaos. The drunkards who were at the forefront urgently needed to stabilize the market. Therefore, after transforming into the general distribution agency model, the business risk of the company was reduced. stabilized the market.

(4) Grasp the terminal and promote sales. Company executives are required to change their mindset, focus on sales at the terminal, and fight for survival. This move brought the company closer to the market and also increased the enthusiasm of dealers.

(5) Clear accounts receivable. Since the channel reform in 1998 resulted in accounts receivable of up to 700 million yuan, if these receivables are not paid, the company will further cause operating difficulties.

During the implementation of a series of measures, Jiugui Liquor’s performance stopped declining and began to grow, becoming one of the two profitable companies among listed companies that year (the other was Wuliangye). Due to the influence of the government, Tian Jiagui resigned in 2002.

3. Liu Hong: The egg laid by capital (the main culprit of hollowing out Jiuguijiu)

In 2002, after the general election of the state capital, Peng Shanwen succeeded Tian Jiagui as chairman. But four months later, the equity was transferred to the Success Group represented by Liu Hong. The reason for the transfer was that Xiangquan Group, the original holding company of Xiangjiugui, had been losing money for many years. It occupied a large amount of funds from the listed company for a long time, causing Xiangjiugui to also lose money. Xiangquan had to sell its shares to repay the money. Liu Hong entered Xiang Jiugui smoothly in 2002, when Xiang Jiugui reported a loss for the first time. In July 2003, the equity transfer was officially approved by the State-owned Assets Supervision and Administration Commission. Since then, earnings per share have dropped from 0.86 yuan in 1997 to negative values, and it has been labeled ST.

On September 14, 2005, Xiangjiugui announced that the board of directors agreed to Liu Hong’s resignation as chairman and general manager of Jiuguijiu. On September 15, Jiuguijiu announced that all 420 million yuan in the company's capital account had been transferred by its major shareholder Chenggong Group. The Jiuguijiu incident occurred in September, and Jiuguijiu once again came to the forefront.

Commentary:

From a marketing perspective, it is actually reasonable for Liu Hong to move the sales headquarters of Jiugui Liquor to Changsha after he became the chairman. Jishou is too remote and the logistics Underdeveloped, and at the same time, there were no major changes in the personnel of Jiugui Liquor. These practices could also play a very good role in developing and stabilizing the market of Jiugui Liquor at that time. However, as a capital market player, Liu Hong's nature also determines that he cannot continue to operate. There are several main reasons: 1. The private enterprise system has advantages in decision-making and market sensitivity, but it is too flexible and ultimately the risks cannot be controlled; 2. It implements a family-style management model, which is simple and extensive; 3. Liu Hong's basic management has serious flaws, he lacks experience in industrial operations, and does not reflect collective wisdom and scientific decision-making mechanisms; fourth, the mentality of a snake swallowing an elephant is obvious. Liu Hong has some funds, but no more strength.

During the period of running Jiugui, Liu Hong did not withhold sales money and took many business measures. However, how can a person who plays capital management do a good job in industrial management? As business difficulties arise, the nature of capital appears. In September 2005, Liu Hong's true nature was finally exposed. After the drunkard injected success capital and transferred the equity, the current outcome was already doomed.

During the 3 years that Liu Hong was in charge, he also did some market work. As the earliest high-end wine in China, whether it can continue this sense of quality and whether the market work can adapt to the market environment, from the following aspects , Jiugui did not do it well:

1. Building a diversified marketing network: After optimizing and integrating the marketing network, Xiang Jiugui Company has established 15 regional offices across the country, and also established offices in Beijing, Hunan, Guangdong, Shandong and East China are five key markets with annual sales returns of more than 50 million yuan; we have cultivated 5 customers nationwide with annual sales of more than 30 million yuan, 10 customers with annual sales of 10 to 20 million yuan, and 5 to 10 million yuan of customers. There are 20 customers, 60 customers with a value of 1 to 3 million yuan; the city coverage rate in key markets reaches 100%, and the distribution network has been extended to developed towns; the city coverage rate in other markets reaches 80%; in central cities and cities across the country More than 5,000 supermarket terminals have been established in developed areas.

This kind of full-blown approach was obviously something that Jiuguijiu’s marketing capabilities at the time were not capable of. Although they devoted all their efforts to gathering talents and integrating the team, they had senior think tanks, professional planners, and newly recruited college students. , but it is not an easy task to achieve the goal. The establishment of such a diversified network has proved to be not only a trick to draw water from a bamboo basket, but also worsened the situation. In 2003, the main business income was only 350 million yuan, which was a decrease of 8.68% compared with 2002, with a loss of 94.43 million yuan.

2. Change the sales model: Jiugui Liquor originally relied on its own sales company for sales, but introduced merchant buyout management, forming three branches of Deji's Taiteng, Tianjin Yulonda and Jiugui Liquor Sales Company. Driving a carriage pattern. In September 2003, Hunan Xinxiangquan Business Development Co., Ltd., the first joint-stock terminal company controlled by Xiangjiugui Company, was established. When the time comes, Xiangjiugui will also implement the same operation model in areas with mature conditions in the form of holding shares or equity participation. This innovative system operation model has greatly stimulated the enthusiasm of marketing personnel and cooperative dealers, quickly changing the market situation.

This new model indeed injected new vitality into the marketing of Jiugui Liquor. However, some of the products developed at that time, such as "Little Jiugui", did not form a large scale. If Jiugui Liquor continues to develop high-end products, and with Jiugui's popularity and steady marketing, there is still hope for a turnaround.

3. Carry out image building projects: Focusing on the marketing concept of "expanding the market with brand", Xiang Jiugui has launched a series of brand image building projects.

(1) Deeply explore the cultural heritage of the "Jiugui" brand, and invite the art master Huang Yongyu to write the "Jiu Gui" for Jiugui Liquor, which deeply explores and authoritatively positions the "Jiugui" culture;

(2) It is to shape the core value concept of Supreme Wonderful Products. Hire a top planning team to create image advertising for the company, so as to further enhance the brand image and core value of "Jiugui" liquor and further clarify the brand positioning;

(3) Create a corporate image with a sense of responsibility. Established the Xiangxi Education Fund, donated one million yuan to support poor college students, held the 80th birthday celebration for Master Huang Yongyu, built the Huang Yongyu Museum, etc., Xiangjiuji devoted himself to the association’s public welfare activities with great enthusiasm;

(4) It is to use various distribution activities to display the corporate image. We enthusiastically build momentum at the National Food and Drinks Fair, dealer ordering fairs, "Jiugui" bottle auctions, the National Five Cities Fair, and the Boao Forum of Asia to fully display the brand image.

The brand image building project carried out by Jiugui Liquor has greatly improved Jiugui’s brand awareness and image. However, the improvement of brand image cannot directly bring sales to the enterprise. It must be through systematic marketing. to do it.

4. Brand management: Establish a specialized agency for brand management, increase the integration of brand intangible assets, and make brand development and design, market promotion, trademark and patent management systematic and standardized; at the same time, the core The brand implements a culture enhancement strategy and takes the road of high-quality products.

Taking the road of high-quality products should be the development path of Jiugui Liquor. At the same time, in the industry, taking the road of high-quality products has become common sense.

However, while Jiugui Liquor is following the high-quality route, it operates flexibly on the mid- to low-end products, adopting various methods such as “regional buyout operation”, “OEM operation”, “one region, one product, one product, one policy”, etc., to consolidate the company’s mid- to low-end products. Enlarging the sales scale does not form core competitiveness. At the same time, it also reduces the effect of the brand building project carried out by Jiugui Liquor, causing confusion in brand management. Is Jiugui a high-end wine or a low-end wine?

4. Post-Jiugui Era: Looking forward to regaining the high-end market in 2006

In September 2005, after the escape of Jiugui’s major shareholder, Yang Bo, who once served as the deputy mayor of Jishou City, In the face of crisis, he was appointed as the chairman of Jiugui Liquor Co., Ltd. The new leadership headed by him took a series of solid measures to restore the company's overall stability. Jiuguijiu began to carry out drastic reforms within the company. Sichuan Mengdingshan Liquor Co., Ltd. has invested heavily in forming a strategic alliance with Jiugui to jointly develop and launch a strategic product - "Jiugui Vintage Liquor", targeting the high-end liquor market represented by Maotai and Wuliangye. The essence of this cooperation with Sichuan Mengdingshan Liquor Co., Ltd. and the strategic joining of liquor industry legend Han Jingwei is the dual introduction of capital and talents. The development of Jiugui vintage wine marks the arrival of the post-Jiugui era. In 2006, whether Jiugui vintage wine can regain its share of the high-end market and whether it can create miracles in the next five years, Han Jingwei, general manager of vintage wine, said that in the next five years " "Jiugui Nian Liquor" will capture 20% of the market share of China's high-end liquor, we will wait and see!

Analysis:

In 2006, can Drunkard regain his brand name in the wine world and become a "dark horse". Whether it's price, culture, concept or marketing, it's just its coat. On the contrary, Jiugong's own historical depth and unique quality have become its own unchanging genes - a unique taste and flavor that makes it easy for consumers to identify. And form a strong impression, this is the fundamental difference between high-end liquor and general liquor and high-end liquor. From this point of view, Jiugui's original and fragrant fragrance is in a league of its own.

(1) Unique aroma and established status

On August 12, 2005, the Hunan Provincial Department of Science and Technology hosted the "Jiugui Liquor Fragrant Aroma Research" results appraisal in Jishou After the meeting, the appraisal committee composed of famous domestic liquor experts such as Shen Yifang and Gao Yueming, and the Hunan Provincial Institute of Science and Technology Information, it was believed that the production scale of Jiugui Liquor has been established, the consumer group is wide, the economic benefits are outstanding, the production technology is unique, and the product style is unique. Tools, the appraisal opinion was unanimously formed: Jiugui Liquor series organically combines two traditional saccharification fermentation agents of Chinese liquor, Xiaoqu and Daqu. Its production process is unique and is the first of its kind in China. It is an innovative flavor type of Chinese liquor and has been unanimously jointly determined as —Fragrant aroma.

Currently, the aroma of Chinese liquor has been developed so far. Fragrant aroma is the sixth largest aroma after sauce aroma, strong aroma, rice aroma, light aroma and mixed aroma. The determination of the sixth flavor of Jiugui Liquor has created a new situation in 2006 and even in the following years. Jiugui Liquor is the first fragrance type, unique in the market, and more competitive than other products. . From the perspective of the characteristics of liquor, the fragrant aroma has established a new status for liquor drinkers in the industry.

(2) Main product, real vintage wine

Just having a unique taste is not enough to achieve success in the market, because there are more than 30,000 Chinese wines, and many products also taste very different. Unique, therefore, we must be able to capture the current consumer hot spots.

On December 15, 2005, a press conference for the launch of Jiugui vintage wine was held at the CCTV Media Center in Beijing. When everyone in the wine industry says they have five years of aging and ten years of cellaring, how many of them are truly vintage wines?

In 1997, Jiugui's production capacity and sales reached the highest peak in history. Jiugui relied on its scale advantage to meet the sales of that year while also storing a considerable amount of top quality wine, part of which was used as Supreme Jiugui. The wine was sealed in Qiliang Cave at the end of 2001 and opened in 2008 for delivery as the Beijing Olympics opening celebration wine and commemorative wine. The remaining top-quality wine in stock has laid a solid material foundation for the launch of the current vintage wine.

Therefore, Jiugui Liquor has this advantage. It is truly stored in a real cellar and has gained advantages on the basis of its products.

(3) Marketing strategy, Tian Ji Horse Racing

Tian Ji Horse Racing is to use your own good horses to beat your opponents’ second-rate horses, and use your own second-rate horses to beat your opponents’ inferior ones. The horse ultimately wins. The market strategy of Jiugui vintage wine is to adopt the first camp to compete with the opponent’s second camp. From this point of view, Wuliangye and Moutai will be impacted by Jiugui vintage wine. Shuijingfang and Guojiao 1573 will not be the top brands of Jiugui vintage wine in the short term. Main object of concern.

To win the market, the marketing strategy must be executable. Jiugui Vintage Wine will be based on the existing market problems of famous wines, providing large space, large profits, unprecedented high returns and high operation. Dealers will enjoy greater profit margins and more support. In addition to strengthening the policy and market for dealers In addition to support, we will also strengthen services to channel dealers and consumers; in terms of market operation, Jiugui Vintage Wine will follow the market rule of "fast fish eats slow fish, slow fish eat fish" and will adopt "space for time" The core content of the market strategy of "learning to be fast and learning to eat" is to use high price differences to stimulate dealers to speed up market operations.

(4) The power of the Jiugui brand

Brand is the most important manifestation of the commercial value of an enterprise. It is intangible and built in the hearts of consumers. Jiugui Liquor was once the most expensive and best high-end cultural wine in China, serving as a milestone in the cultural wine industry of China's liquor industry. Jiugui Liquor is a symbol of identity, status and wealth, representing nobility and success, as well as taste and fashion. For alcoholics, brand is power when it comes to comprehensively revitalizing the market. Believing in the power of brand, Jiugui is bound to become the biggest growth point of China's liquor industry in 2006, because the essence of Jiugui's brand is still the greatest commercial value.

Fifth, reviving the era of Hunan Jiugui, with Xu Keqiang at the helm.

The majority shareholder has a central enterprise background. During the best period of Jiugui Liquor, with Xu Keqiang, a recognized expert in the market, at the helm, people began to pay attention to Hunan Jiugui. We had high hopes that Xiang Jiugui could once again be on an equal footing with Moutai and Wuliangye, and enter the most high-end liquor camp in China. However, after one year in charge, there was a storm of resignations. However, the storm of resignations may seem like a bad thing, but it is actually a good thing. If there is no collision, what will happen? Unification of ideas? It is expected that Xu Keqiang can lead Xiang Jiugui to break out into the world, become a hero of Xiang Jiugui, and draw a perfect end to his career.