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Langjiu: A Legend of an Emerging Brand

11-24-2010 14:17 BJT

Chen Gang , Professor of Peking University

In 2001, Langjiu had a deficit of RMB150 million which contributed to a total liability of RMB1.3 billion. However, by 2008, Langjiu was ranked among the top three in Chinese liquor industry and its sales volume in 2009 ballooned by 5 times as compared to the one made in 2004, since then, Langjiu brand has been well established in the people. How did they achieve this? I think the secret of Langjiu lies in a short phrase: Brand Innovation.

Langjiu was already a well-known brand in 2001, but it was considered as a low-end brand which was marginalized by the market. There are a series of challenges standing on Lanjiu's way to emergence, such as how to integrate into the traditional Chinese liquor the freshness and liveliness of the time, creating a high-end and fashionable image without following the beaten track? How to make breakthroughs in marketing in terms of product and channels? How to establish the brand ASAP with limited capital?

Before the external effort made in building the brand, Langjiu first introduced internal reform which, bringing a new culture to the company, has laid the first stone for further development. On the production level, the efforts have been made in optimizing the production lines and building the brand power which well adapt to the developing trend in the Chinese liquor industry in the last decade. Later in 2004, Langjiu Group defined the value and image of the Langjiu brand by introducing “Chinese Lang, the Highflying Spirits”. There are still many famous brands which ring a bell to the consuming community but would never lead to any kind of imagination. But the “Chinese Lang, the Highflying Spirits” is already an established brand of our time after 6 years' cultivation. It appeals to the consumers and can reaches to a level for communication. People would talk about it and would like to do so.

How to establish the brand and add value to it is just what langjiu is good at. One of the key approaches made by Langjiu is that it has chosen to cooperate with leading platforms in full scale and with constant investment. By making good use of big events, Langjiu created its “Points, Surface and Channels” which are then adjusted and integrated into a growing brand power in different development phases of Langjiu brand.

Langjiu has chosen CCTV as its partner in advertising since the beginning and continued the investment till now. I think this is not a common case since not all the enterprises would do this. But we can observe from the statistics that 93% of the advertising investment Langjiu has made was in CCTV. Meanwhile, Langjiu put special emphasis on the preferable peak viewing hours and related itself to the important events, projects and activities. Started from a singular point, Langjiu's advertising has grown into a direct channel connecting the consuming community and finally pushed the brand to an interaction stage.

Langjiu's advertising investment in CCTV contributed a lot to its current achievement. It was determined in investing in the CCTV platform even in situations where the capital is quite limited. For example, Langjiu didn't have enough advertising budget for 2004 Athens Olympic Games period, but it still chose to invest in the 5-second advertising version and grasped the rare opportunity for the promotion of the brand.

Langjiu has many plans for the oncoming 2011. Langjiu might have fancied to earn 500 million out of its first CCTV investment made in 2004, but the actual number turned out to be 5 billion! This is why I have strong faith in Langjiu's further development as a “Highflying spirit”, and I hope more and more Chinese enterprises will fly higher in the global market from the CCTV platform!

Editor:王燕 |Source: CNTV

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