Extensive Marketing Strategy of Moutai – Detailed Explanation

What’s new with Moutai?

Kweichow Moutai, recognized as the world’s premier liquor brand, persistently advances in the international market through its distinctive marketing approaches and superior product quality. The following are some of the most recent progressions:

1. Digital Expansion: Moutai has initiated a social media initiative titled “stay at home with Moutai,” which motivates global users to experiment with new recipes amidst the lockdown.
2. E-commerce Platform: Analysts interpret the development of Kweichow Moutai’s e-commerce platform, particularly the launch of its mobile application “I Moutai”, as a strategic maneuver to digitally enhance its profit margins.
3. Product Uniqueness: Moutai is made with few ingredients (sorghum, a wheat-based qū, and water from the Chishui River) and uses traditional Chinese techniques of fermentation, distillation, and aging.
4. Global Recognition: Moutai holds the distinction of being one of the three most renowned spirits globally, sharing this honor with French cognac and Scotch whisky.
5. Geographical Significance: The town of Moutai, the production site of the liquor, holds such significance that it no longer permits the passage of boats.

Buyer Persona of Moutai

Marketing Mix of Moutai

Kweichow Moutai, a renowned Chinese liquor brand, has crafted a unique marketing mix that has propelled it to global prominence. Here are the four P’s of Moutai’s marketing mix:

1. Product: Moutai, a prestigious brand in the realm of Chinese spirits, is celebrated for its precise artisanship and internationally recognized excellence. The production process involves a select number of ingredients, including sorghum, a wheat-based qū, and water from the Chishui River, and adheres to time-honored Chinese methods of fermentation, distillation, and maturation.
2. Price: Moutai utilizes a psychological pricing approach, a key aspect of the prestige pricing strategy. This strategy is shaped by Moutai’s esteemed reputation, the confidence of consumers, and its societal status. The price of a single bottle of Moutai typically ranges from 1,499 yuan ($223) to over 16,000 yuan ($2,390) for exceptional vintages.
3. Place: Moutai, originating from the town of Maotai in Guizhou province, maintains a robust offline presence. Simultaneously, it is broadening its digital footprint through its e-commerce platform and the mobile application “I Moutai”.
4. Promotion: Moutai has executed numerous triumphant promotional endeavors and partnerships. For example, it spearheaded a social media initiative titled “Stay at home with Moutai,” inspiring global users to explore new recipes amidst the lockdown. Furthermore, it has joined forces with other brands to develop products inspired by Moutai, such as Moutai Ice Cream and Moutai Latte.

Marketing Strategy of Moutai

Kweichow Moutai used 4P’s marketing mix strategically to build the successful value of the brand and impact on its customers and Brunner’s 4C’s strategy focuses on the consumer, analyzing marketing according to the needs, desires, and lifestyles of consumers.

1. Segmentation, Targeting, and Positioning

They do not have STP, I have written what they should do!!

Kweichow Moutai segments its overall market into smaller segments that have similar buying behavior, attributes, and socio-economic background to approach customers more efficiently and effectively.

 Kweichow Moutai is highly efficient in international markets because the prospective customers are segmented as having different cultural systems and preferences. 

After identifying different market segments of consumers, Kweichow Moutai must target a specific market. The selection of the target market is based on some key factors.

• Need of presence of collaborators to market successfully to the target audience.
•  Segment structural attractiveness – Provision of basic infrastructure to successfully market to the target market.
•  Competition in the target segment – How much competition is in the target segment? If competition is fierce, there is less opportunity for long-term sustainable margins.
•  The organization’s mission, vision, and consumer segment are aligned – Is the targeting aligned to the Kweichow Moutai vision, mission, ethos, values, and strategy?
• Regulations and other barriers to entry – Are there any regulatory and technology barriers that Kweichow Moutai will face should it decide to enter the market?
• Financial resources to target a particular segment – Does the organization have marketing capabilities, operational skills, and financial resources to target a particular segment of consumers?
• Organizational and technical capacity to respond to a specific consumer segment in the beverage (alcohol) industry.
• Target Market Financial Return Potential – Kweichow Moutai to decide if the target segment can be financially profitable.
• Product Life Cycle stage- Kweichow Moutai needs to find out at what stage of the product life cycle the targeted segment is.

In the recent past, it has been noted that the price of Maotai has continued to increase steadily as the number of citizens of the middle class continues to increase. 

•  As Kweichow Moutai already has various products and services, the new products and services need to fit into the strategic fit of the existing prevalent value chain delivery model. 
•  Can Kweichow Moutai defend the distinction it seeks to bring out? If Kweichow Moutai cannot defend the positioning of the new product/service, then it will be left to fend off the threats of competing new entrants.
• Since Kweichow Moutai is a -better value-for-money player in the beverage (alcohol) industry, it should position its product slightly higher than market prices.
• Kweichow Moutai must determine whether the new product fills a void in the product line or creates a new product line.

2. Marketing Campaigns 

When venturing into a new market, the marketing strategy of Moutai necessitates an effective campaign that educates consumers about the product’s presence and its distinctive advantages over competing brands.

Moutai Bulao, a Chinese baijiu alcohol brand, has initiated a worldwide marketing campaign as part of the marketing strategy of Moutai. This campaign introduces a novel concept known as the “Tasting Era”, aimed at crafting affordable and delectable baijiu experiences for new consumers in alignment with Chinese food agreements.

 Kweichow Moutai Bulao is the first liquor wallet to include longan, wolf, hawthorn, and angelica dahurica in its ingredients to give the big a sweeter taste. Specially designed for foreign markets, Moutai Bulao comes in a smaller volume of 125ml to encourage testing amongst people who are new to alcohol. It also comes in a bundle of 4 bottles, which makes an excellent present.

The launch of global “Tasting Era” campaign was launched in Singapore last month, where approximately 350 guests were welcomed to a lavish dinner.

The brand also offers a special, time-limited treat to Hong Kong consumers by distributing 8,000 shots of Moutai Bulao, This can be used in F&B and lifestyle establishments through the Chang Chang app.

CAMPAIGN I: 

Another recent launch of Moutai was the “This Is Moutai” Marketing Campaign, in April 2022.

This Campaign went viral on social media platforms including Facebook, Twitter, Instagram, and YouTube wherein the campaign enjoyed 21.16 million impressions, with over 500,000 fan interactions.

CAMPAIGN II:

The next marketing campaign for Moutai came up was the “Drinking Culture” and the “Secret of Chinese Baijiu”-themed activities with innovative criteria of adding Chinese poetry in terms of “literature” and “vessel”. 

CAMPAIGN III:

Billboard: They designed this poster to allow people to view our products on large bulletin boards. Their billboards are available in both French and English because Canada’s official languages are French and English.

Product linkage: They link with familiar games and replace certain components in the game with Moutai products.

3. Social Media Marketing 

The leader in the Chinese baijiu industry, Kweichow Moutai Group, has started a worldwide social media activity for its signature brand. 

The company can be found on its official website Kweichow Moutai

Facebook-  3.2M Followers

Instagram- 100k followers

Linkedin – 8k Followers

Twitter-  438.9k Followers

YouTube- 6.2k Followers

Kweichow Moutai is most followed and active on Twitter and Instagram wherein they promote product launches, creative content, and inspiration, and sensations.

4. SEO strategies

Kweichow Moutai has 163 keywords which eventually is bad, and web traffic is 1569 per month.

To enhance its SEO performance, the marketing strategy of Moutai should incorporate a robust SERP strategy. Given the low monthly traffic, it is evident that Moutai needs to invest significant efforts in this area to improve its online visibility and reach.

5. Influencer Marketing 

Cognac Hennessy announced recently: Chinese idol and K-pop group GOT7 member Jackson Wang. The bet paid off, and the campaign video has garnered almost a million views so far. 

The Italian house Gucci also ventured into the world of alcohol with its first pre-blended cocktail, Elisir d’ Elicriso. The first tie in China between the luxury alcohol brand Kweichow Moutai and the Mengniu dairy, Moutai ice cream. The collaboration yielded $5,891,886 (RMB 39.4 million) in media impact value according to software firm Launchmetrics.

6. E-commerce Strategies 

As part of the marketing strategy of Moutai, the company has launched an official e-commerce application, “i Moutai”. This app offers access to 12 third-party e-commerce platforms, providing consumers with shopping information about Feitian Moutai. This digital initiative aligns with Moutai’s objective to limit distributors. By necessitating online sales through distributors, the marketing strategy of Moutai aims to mitigate offline stockpiling and curb speculations related to alcohol sales.

7. Mobile apps 

The marketing strategy of Moutai is effectively demonstrated through its mobile application, which boasts over 10 million users. This application serves as a platform for online payments, e-commerce, and establishing direct connections with consumers. It incorporates features such as online registration, real-name authentication, and the facilitation of both online and offline payments, cancellations, refunds, and in-store pickups. Upon successful registration, consumers are required to present their ID cards at specified channels to collect their purchases. This strategy has allowed Moutai to maintain a strong and direct relationship with its consumer base.

8. Content Marketing strategy 

The marketing strategy of Moutai, China’s most valuable firm outside of the technology sector with a valuation of $421 billion, surpassing the likes of Nike, Toyota, and Disney, is multifaceted and effective.

Central to Moutai’s marketing strategy is the psychological pricing strategy, which is a component of the prestige pricing strategy. This strategy is influenced by Moutai’s reputation, consumer confidence, and social standing.

Moutai also employs the use of legal names in addition to individual names for its products, such as Maotai alcohol under the age of 15, Maotai alcohol under the age of 30, or Maotai alcohol under the age of 50.

A key aspect of Moutai’s marketing strategy is guiding consumers to spend, particularly during the holiday season. By increasing Moutai advertising in conjunction with the festive atmosphere, Moutai sales experience a considerable boost.

Moutai wine, known for its clear and transparent color, soft perfume, sweet taste, and lasting sweet fragrance, is world-renowned and is often referred to as the “national drink of China.” This reputation further enhances the marketing strategy of Moutai.

Top Competitors of Moutai  

Here are some of the known global competitors:

1. Top Competitors Internationally

Wuliangye

Diageo

Pernod Ricard

Shanxi Xinhuacun Fen Wine

Luzhou Laojiao

Failed Campaigns of Moutai

N/A

Conclusion

In conclusion, the marketing strategy of Moutai involves a well-structured marketing mix, which is a collection of adjustable marketing tools that the company employs to elicit the desired response from its target market. There exists a negative correlation between promotional activities and the strength of consumer loyalty. This implies that an increase in the frequency of promotional campaigns could potentially lead to a decrease in the brand’s loyalty strength.

Analysts perceive Kweichow Moutai’s e-commerce platform, particularly its mobile application “I Moutai”, as a strategic move to digitally enhance its profit margins. However, Moutai’s digital presence on social media platforms is relatively low, as the company places a greater emphasis on its offline presence.

To further improve its marketing strategy, Kweichow Moutai should consider increasing its digital footprint, connecting with people through platforms like Instagram and Facebook, and enhancing its global visibility. Collaborating with a digital marketer to expand its reach in overseas markets could be a beneficial step in this direction.

The growing importance of digital marketing is greater than that of companies seeking digital marketers. So, If you are interested, check out IIDE’s Online Digital Marketing Course  to upskill.

Since Kweichow Moutai is tackling its problems, its biggest problem is its lack of marketing efforts.  Marketing is an important function of the existence of any business and in the present scenario, the field is rapidly digitized. Kweichow Moutai needs to focus more on expanding itself on social media platforms by advertising its brand, connecting with its potential customers, and expanding its market by being world-class.

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