Tsingtao Can other Chinese brand create so strong image outside china? Agenda I. Tsingtao and its success A. Market and brand road map B. Tsingtao, why they are successful II. Chinese brand, issue and solution III. Practice case: Ginsber in France I. Tsingtao and its success A. Market and brand road map 2009: turnover of 17.76 billion $ Company Name: Tsingtao Brewery Company Limited Profession: Brewer and Bottler of beer Mission: Passion, Dreams & Business Brand portfolio: Principal brand: Tsingtao Secondary brand: Tsingtao Shanshui,Tsingtao Hans, laoshan Clients: Restaurant, bars Retailers End Consumer = You & Me Concentrated Market http://french.china.org.cn/business A. Direct competitors Tsingtao Annual Report: 2006 (page 43) A. Competitors in Asia Asiatic brands A. Competitors in Europe European brands A. Competitors in North America North American brands A.Tsingtao‘s suppliers Source: Tsingtao statement 2008 A. Beer market KFS Low degree of alcohol Symbol: Conviviality Ready to consume A. International: Chinese brands KFS Differentiation: Chinese legacy Strong image R&D PRC government support Communication Foreign shareholders company A. Key Factor of Success KFS Tsingtao Snow Differentiation 5/5 3/5 Strong image 5/5 5/5 Chinese legacy Chinese image European oriented R&D 5/5 5/5 PRC government support 3.5/5 5/5 Communication 4/5 3/5 Foreign shareholders company 5/5 5/5 B. Tsingtao, why they are successful Tsingtao differentiation = Chinese legacy + German know how Strong identity = Knowledgeable + Ambassador of chinese culture+ Tradition-Heritage/Stylish Distinguish B. Tsingtao, why they are successful International dimension Sponsor on important Qingtao Tsingtao events Recognition for quality Beer museum Strong Communication campaign B. Tsingtao, why they are successful II. Chinese brand, issue and solution A. Issues Missing international experience Insufficient knowledge of foreign markets Weak brands with limited international marketing experience and few distribution channels Weak international management skills Limited R&D capabilities "Bad" reputation B. Solutions 1. Continuously improve manufacturing productivity and quality 2. Increase spending and systematically invest in R&D 3. Enhance brand awareness 4. Develop excellent HR skills and ensure access to talent 5. Engage the help of external consultants 6. Build a strong distribution network III. Practice case: Ginsber in France French Market Market turnover €1.6 billion in 2009 Consumption Ranked 14 in Europe in 2006 Consumption 39 L/per year/per inhabitant Source: - http://fr.wikipedia.org/wiki/Bi%C3%A8re - Etudes Xerfi sur la bière French Consumer Consumption Habits: - Casual Meal - Party - Guys night - Thirst-quenching - Sport events (games) Consumption place: EVERYWHERE!! Ginsber – Target consumer Ginsber: Who is our target consumer? Active women, urban, upper class Why? New trend: 1/3 woman drinks beer She adheres to the glamorous,thirst-quenching concept and low-alcohol product She likes to do ladies night Ginsber: the first alcohol brand which appeals to the women Ginsber - Launch in France Differentiation: Shanghai & Glamourous Ginsber – Sales arguments Light You can keep fit! Ginsber Quality Certification You can trust our brand… Low degree of alcohol Only 3% of alcohol Sweet taste A moment of pleasure… Ginsber - Launch in France Sponsorship events: Ladies’ night Women sports competition (surfing) Ginsber - Launch in France Build a strong distribution network Chaînes/Hôtel/Restaurant Source:http://www.journaldunet.com/management/0602/0602120biere.shtml Can make it outside China? Yes…. Brand rebuilt No…. No real identity (copy) Successfull partnership (Shaquille O'Neal ) Can make it!!!!! Weak distribution network compare to the competition Joint venture (Aigle) Weak international brand image Sponsorship: Chinese team at the asiatic games (2010) Just a « sport brand » Strong R&D investment Competitive environment: Adidas, Nike Clever brand acquisition (Kason) Sources http://www.usinenouvelle.com/article/tsingtao-la-biere-qui-fait-le-tour-dumonde.N63329 Tsingtao Annual Report: 2006,2007,2008,2009 http://www.marketing-professionnel.fr/parole-expert/marques-chinoises-recherchentreconnaissance-internationale-strategie-valorisation.html http://www.tsingtaobeer.com/brewery/brewery.htm http://stock.tsingtao.com.cn/ http://www.01men.com/editorial/344245/mode-tendance/ http://fr.radio86.com/culture-chinoise/un-marche-en-devenir-la-biere-chinoise http://en.ginsber.com.cn/newEbiz1/EbizPortalFG/portal/html/GeneralContentShow.htm l?GeneralContentShow_DocID=c373e9099c972e188f6fc92b6369b920 http://www.journaldunet.com/management/0602/ www.wikipedia.com Time for question….