Marketing Strategy of 青岛啤酒

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I. Introduction
1.Overview of China Beer Industry
There were only a dozen of breweries in China during half a century from 1900 to 1949, in Tsingtao, Beijing, Harbin, Shenyang, Shanghai, Yantai and Guangzhou. Beer output grew slowly from 1949 to 1978. Then China’s beer industry took off in the decade after 1979 and kept growing continually at a high-speed of more than 30% per annum. After 1980’s, breweries were found all over China. Beer became an everyday commodity consumed by ordinary families along with the reform of China’s economic system and open-up in late 1980’s. Competition and M&A became increasingly heated in China’s beer industry in mid-1990’s and fast expansion of breweries was seen in almost every city. With arrival of the 21st century, market competition intensified and countless small breweries were gradually merged or acquired by large state-owned producers like Tsingtao Brewery Company Limited and Yanjing Brewery Co., Ltd. With China Resources Snow Breweries joining in during 2002-2003, competition in the beer industry came to a climax under the coverage of scale war and capital war. Now China is the country with the largest beer output and consumption in the world. Among top five beer consuming countries, China, at 48,988,000 kl, is way ahead USA, placing second by 24,000,000 kl, followed by Brazil, 14,000,000 kl, and Russia and Germany at the forth, both at 9,000,000 kl. Beer sales volume in China shows a tendency of steady growth and China is the market of the greatest growth potential in the world.

2.Profile of Tsingtao Brewery Company Limited
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Tsingtao Brewery Company Limited (Tsingtao Brewery) evolved from Teutonic Brewery Tsingtao Company, which was jointly invested by German and British merchants in Tsingtao in August, 1903. It is a brewery with a long history in China, and an official sponsor of 2008 Beijing Olympic Games. With its brand valued at RMB50,258 million, it is the largest brewery in China’s beer industry and a world top 500 brand. Tsingtao Brewery got listed in Hong Kong Stock Exchange (0168) on July 15, 1993 and became the first Chinese company listed overseas. On August 27 in the same year, Tsingtao Brewery was listed in Shanghai Stock Exchange (600600) and became the first Chinese company listed in both markets. Now Tsingtao Brewery has 56 breweries in 18 provinces, municipalities and autonomous regions across China. Tsingtao Brewery sold 7,150,000 kl beer in 2011, marking a year-on-year growth of 12.6%; and realized operating revenue of RMB23,158 million, up 16.38% year on year; net profit RMB1,738 million, up 14.3% year on year. Tsingtao Brewery boasts of the best brand premium and profitability in China’s beer industry. Tsingtao Brewery is one of the Chinese brands to enter the international market the earliest. It entered the US market in 1972 and is now still the best-selling Asian beer brand in the USA. To date, Tsingtao beer is sold to more than seventy countries and regions, to name a few, USA, Japan, Germany, France, UK, Italy, Canada, Brazil and Mexico. Tsingtao Brewery is the sixth largest brewery in the world, according to ranking by output in Barth Report, an authoritative report on the global beer industry. “To become an international corporation with global brand influence” is the vision of Tsingtao Brewery. “With our passion, we will make continual innovation, brew beer loved by consumers across the world and make life more enjoyable!”

3.Products of Tsingtao Brewery
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Tsingtao Beer—Prime (Classic) is a top-rank product Tsingtao Brewery launched lately. It is brewed in Tsingtao with Laoshan water and bottled in white transparent bottles with golden label for export. Thanks to inheritance of traditional brewing process and unique after-ripening technology, combined with modern high-tech perfectly, and fermentation period as long as sixty days (15-20 days for ordinary beers), it tastes mellower and more refreshing, with whiter and finer foam...
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