The Flag Canal is a world-famous water conservancy project, and the spirit of the Red Flag Canal is a symbol of the great national spirit of our Chinese nation. The establishment of the Hongqi Canal famous brand strategy started with the second start-up of Anyang Cigarette Factory. Anyang Cigarette Factory is an old factory with a glorious revolutionary history. In the late 1980s, due to the failure to adapt to market changes in time, production and operations were in trouble. By 1994, the company had accumulated losses of 110 million yuan, becoming the largest loss-maker in Anyang City and the largest loss-maker in the industry. In April 1995, the Provincial Tobacco Monopoly Bureau Party Committee made adjustments to the leadership team of Anyan. Inspired by the entrepreneurial belief of the people of Linzhou that “hard work is worse than hard work” and the great practice of building the Hongqi Canal, the new team put forward the goal of “working hard for three years and striving to be among the advanced ranks of the province” and formulated the goal of “leading a good team” The "four good" factory management policy of "leadership, building a team, creating a mechanism, and focusing on a product" was used to mobilize all employees in the factory to carry forward the spirit of the Red Flag Canal and implement the Hongqi Canal famous brand strategy. On September 13, 1995, the renovated Hongqiqu cigarettes were launched in the top ten shopping malls in Anyang City. They were sold in the five major shopping malls in Zhengzhou during the National Day. By the end of the year, they were sold to 17 cities in the province and parts of Shanxi, Hebei, and Shandong. All were collected. to a sensational effect.

We summarize the idea of ??implementing the famous brand strategy into a formula, namely: famous brand = quality + publicity + marketing. In order to stabilize product quality, the company's workers' congress has formulated a strict quality management system: if the product fails to pass the inspection by the National Bureau of Quality, the factory director in charge will resign, the middle-level cadres will be removed from their posts, and the machine operators will be terminated from their contracts. We adhere to the road of cooperation between industry, academia and research, and have established friendly cooperative relations with Zhengzhou Tobacco Research Institute, Henan Agricultural University, Tsinghua University, Peking University, Renmin University of China and other scientific research institutions and universities. In 1998, we established friendly cooperative relations with the world's largest The tobacco multinational group company - Philip Morris of the United States signed a contract to conduct technical exchanges and cooperation. In November 2000, with the approval of the Ministry of Personnel, Anyan established the third postdoctoral research station in the tobacco industry. Anyan has established a "big marketing" concept in which all employees participate in its business philosophy, and actively participates in the competition in the national cigarette market. The promotion team carries forward the "forty-four thousand" spirit of "not afraid of hardships, crossing thousands of mountains and rivers, speaking a thousand words, and making use of inextricable connections", and uses "confidence, enthusiasm, sincerity and patience" to personally and merchants to win the market. In terms of brand promotion, we select the best combination of corporate image, product image shaping and advertising, and carry out three-dimensional and cross-cut publicity activities from a high starting point, through multiple channels, and in an all-round way. In the past eight years, Anyan has published thousands of press releases in central, provincial and municipal newspapers, radio and television stations, of which nearly a million words have been compiled into a book, which truly introduces the employees' inspiring entrepreneurial journey and effectively improves the company's reputation. and brand awareness and reputation.

In 2002, through the concerted efforts of all employees in the factory, Hongqiqu's annual production and sales reached 250,000 boxes, and sales revenue from a single brand reached 1.2 billion yuan, becoming the No. 1 brand in Henan cigarettes by sales revenue from a single brand. . Driven by the Hongqiqu brand, Shiyan not only turned losses into profits in 1995, but also maintained steady growth in economic benefits for 12 consecutive years, adding an average of 100 million yuan in tax revenue to Anyang City every year. It transformed from the No. 1 loss-making enterprise in Anyang City. For the first taxpayer enterprise in Anyang City and the largest taxpayer in the province. An Yan's management experience was summarized by experts from the China Enterprise Federation as "Enterprise Dual Civilization Integrated Management". The result won the 7th National Management Innovation Modernization Achievement Award and was included in the MBA teaching case of Tsinghua University School of Economics and Management.

The 16th National Congress of the Communist Party of China proposed to "cultivate large companies and large enterprise groups with international competitiveness through market and policy guidance." A wave of corporate restructuring with brands as the link swept the entire tobacco industry. Faced with opportunities and challenges, with the promotion of the State Tobacco Monopoly Administration, the Provincial Party Committee and the Provincial Government, and with the strong support of the Municipal Party Committees and Governments of Zhengzhou, Luoyang and Anyang, the three cigarette factories in Xinzheng, Anyang and Luoyang were jointly reorganized into Henan New Tobacco Factory. Cigarette Group. After the establishment of the group company, the new team gradually clarified the development ideas with the goal of cultivating a million-box brand. Because the National Bureau requires us that the purpose of joint reorganization and enlargement of enterprises is to build a big brand. Only with a big brand can there be a big market. Only with a big brand and a big market can an enterprise create high efficiency.

Hongqiqu cigarettes grew to 250,000 boxes in the eight years of Anyan, with an increase of only 40,000 boxes every year. In the past three years after the reorganization, it has expanded to 340,000 boxes, 560,000 boxes and 950,000 boxes respectively, with an average annual growth of more than 70%.

Driven by Henan China Industrial Company, the province has jointly produced and sold products in the past two years. At present, Hongqi Canal has been processed in 7 production plants in 6 cities in the province. Hongqiqu's production and sales volume in 2006 will reach more than 1.1 million boxes, with annual tax profits of nearly 4 billion yuan, and it will continue to be the sixth largest brand of famous cigarettes in the industry.

After the brand is developed, resources are reorganized and optimized around the brand, enabling the entire group to achieve intensive operations and economies of scale. In 2005, Xinyan Group achieved a tax profit of 2.73 billion yuan and a profit of 260 million yuan. Compared with 2002, the tax profit of the entire group not only grew faster than the fastest-growing single cigarette factory before the reorganization, but also paid a cumulative increase of 1.51 billion yuan. , profits increased by 2.7 times, ranking first among the country's key cigarette companies in terms of profit growth, achieving the goal of 1+1+1>3, and was named "China's Most Promising Enterprise" by the China Enterprises Association. Xinyan Group’s reorganization exploration was summarized by experts from the Institute of Soft Science of the Institute of Management of the Chinese Academy of Sciences as "The Soul of the Red Flag Canal" has been completed and will soon be recommended to MBA majors and research institutions in colleges and universities across the country; in 2006, the group company's "Brand as a Link" "Enterprise Joint Reorganization" won the 12th National Enterprise Management Modernization Innovation Achievement Award. In the first 10 months of this year, the group achieved sales revenue of 4.86 billion yuan, a year-on-year increase of 17.4%, and tax profits of 2.76 billion yuan, an increase of 21.5%, of which profit was 370 million yuan, an increase of 51.8%. Production and operations maintained a steady development trend.

In the past 12 years, Hongqiqu has won the title of "National Famous Cigarette" for three consecutive years and was rated as "Excellent Cigarette Product". In 2005, it was recognized as a well-known trademark in China and has been awarded more than 30 honorary titles of various types. . As of the end of October 2006, Hongqi Canal had produced a total of 3.35 million boxes. Recently, a professional company assessed that the intangible assets of the "Hongqi Canal" are worth more than 8 billion yuan.

The development of famous and high-quality brands has not only greatly increased the company's tax payment to the country, but also increased the overall income of employees by more than 10% per year. The group's net assets have also increased by 120 million yuan, allowing the company to invest 800 million yuan in the group's three companies this year. This laid the foundation for enterprises to carry out large-scale technological transformation. At the same time, with the purpose of "developing without forgetting to repay the society", the company has been enthusiastic about public welfare undertakings for more than ten years, paying attention to the special poverty alleviation and development arranged by the three local governments, aiding socially disadvantaged groups, supporting the construction of new rural areas, and various large-scale projects organized by provinces and cities. Development of culture, sports, health and education. So far, the Group has donated and built four Hope Primary Schools in the province and assisted in the construction of three roads in impoverished rural areas, benefiting millions of people. In 2002, Anyang Cigarette Factory was commended by the Henan Provincial Committee of the Communist Party of China and the Henan Provincial People's Government as an "Advanced Unit for Poverty Alleviation in Henan Province"; in 2005, Xinyan Group was awarded the "Top Ten Caring Enterprises in Henan Province" by the Henan Charity Federation. ” title, and won the title of “China’s Most Socially Responsible Enterprise” in 2006.

It is worth celebrating that Hongqiqu has become a member of the million-box family, but we Henan Tobacco people know very well that her structure is still low and her competitiveness is still weak. Now we are working towards how to further refine, heighten and strengthen Hongqi Canal as it becomes bigger, so as to maintain the strong competitiveness of this brand in the market in the future. At the beginning of the year, we introduced the internationally advanced IPD (Integrated Product Research and Development) project with the purpose of improving the technological innovation system and creating an efficient R&D system. Focusing on the tobacco technology innovation proposed by the National Bureau, we have cooperated with Henan Agricultural University and Zhengzhou Tobacco Institute. With the support of provincial, municipal, county tobacco companies and local governments, we have focused on improving the quality of Henan strong-flavor tobacco leaves at an altitude of 600-800 in western Henan. A special raw material base of 100,000 acres has been established in the mountainous area of ????Midi, and a Hongqiqu brand raw material research institute has been established in Luoning County. Three doctoral students have been introduced to the Institute of Polymers of the Chinese Academy of Sciences, the Department of Chemistry of Zhengda University, and the Agricultural College of Henan Agricultural University. Under the guidance of Dr. Zhu Zunquan, academician and honorary president of Zhengzhou Tobacco Research Institute, we strive to achieve breakthroughs in core technologies by focusing on research on raw material characteristics, improving cigarette flavoring technology, and reducing coke and harm.

Practice has proved that the market economy is the economy of choice. Under the conditions of market economy, competition is not the only way to develop productivity. In certain periods and fields, it is more conducive to the development of productivity to replace competition with cooperation. As the investor of state-owned enterprises, the government has decisive power over the management methods of state-owned enterprises. Driven by the State Council's Document No. 57 in 2005, China Tobacco is following the development trajectory of international tobacco multinational companies and moving towards a more intensive management model to achieve the best economic benefits.

During the "Eleventh Five-Year Plan" period, the State Tobacco Administration decided to use famous brands as a link to cultivate "more than ten key famous brands and ten key brands with national coverage within the national annual output of 38 million boxes" "Multiple key key enterprises". This means that in the future, the production and sales volume of my country's key brands should be around 3 million boxes, and the scale of key enterprises should also be around 3 million boxes. The integrated reorganization of Henan's tobacco industry is about to be completed in the near future, driven by the National Tobacco Administration, the Provincial Party Committee and the Provincial Government. This is not only of great significance to the future position of our province's tobacco in the national tobacco industry, but will also have a decisive impact on the development of Henan's economy. We will follow the unified deployment of the National Bureau, the Provincial Party Committee, the Provincial Government, and the Provincial China Tobacco Industrial Company, and adhere to the reform and reorganization and brand development. We also hope that all friends will continue to care about the development of the Hongqi Canal brand, so that it can continue to thrive and let She strives to make new and greater contributions to the rise of Henan's cigarette industry and the rise of the Central Plains