| Pub. Date | : November, 2021 |
|---|---|
| Product Name | : The IUP Journal of Marketing Management |
| Product Type | : Article |
| Product Code | : IJMM221121 |
| Author Name | : Madhavi Garikaparthi and Vinod Babu |
| Availability | : YES |
| Subject/Domain | : Marketing |
| Download Format | : PDF Format |
| No. of Pages | : 20 |
This case describes the journey of Kweichow Moutai Co., Ltd. (KM) to becoming China's biggest public company by market capitalization and to its key product Moutai becoming the world's top liquor brand. Though Moutai had always been renowned, the dramatic rise in its popularity in recent years was due to the marketing and branding strategies undertaken by KM from the 2000s. The case then touches upon the challenges that KM faced - supply shortages, counterfeits, and corruption scandals in its management ranks - that had the potential to adversely impact its carefully crafted brand image. In the present scenario, KM's Chairman Gao Weidong was confronted with the dilemma of growing the company keeping in mind KM's Moutai production limitations. He also had to think about ways to protect the brand image of Moutai and prevent it from being associated with bribery and corruption.
I challenge you to find another company that is so predictable. Great margins, very beloved brand... people still buying it like there's no tomorrow.1
- Hao Hong, Head of Research at BOCOM International Securities Limited2, in June 2020.
Two thousand years ago, the Chinese calling card was lions, 1,000 years ago it was Chinese porcelain, 500 years ago it was tea leaves and now it's local brands with their own intellectual property. I believe Moutai is one of these.3
- Yuan Renguo, Former Chairman of China Kweichow Moutai Winery Group Co. Ltd., in January 2018.
In June 2020, Kweichow Moutai Co., Ltd. (KM), a Chinese company known for making Moutai, considered to be China's 'national drink', became the biggest public company in China by market capitalization after its share price rose by 23%. KM was valued at more than CNY41.8 tn ($259 bn), surpassing one of China's top banks, the Industrial and Commercial Bank of China Limited (IDCBF)5, which was worth just under CNY1.8 tn ($253 bn).6