Tsingtao, why they are successful

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….