Zhengzhou beer market survey

Zhengzhou is the largest railway transportation hub in China with a population of about 7 million. In 2005, the per capita disposable income of Zhengzhou was 10639.8 yuan. There are 27 beer enterprises in Henan province, among which Zhengzhou has Jinxing Beer Co., Ltd. and Aoke Beer Co., Ltd., the fourth largest beer enterprise in China. At the same time, some powerful brands have also entered the Zhengzhou market, such as Tsingtao Beer, China Resources Snow Beer, Harbin Beer, and foreign blue ribbon beer and Heineken beer, which makes the competition in Zhengzhou beer market extremely fierce.

Low-end consumption dominates.

The fierce competition in Henan market makes Henan one of the provinces with the lowest beer prices in China. According to Xiong, executive vice president of Henan Liquor Industry Association, the average profit of beer in Henan Province is 8 cents per bottle. It is this low profit that leads to the low price of beer market in Henan Province. At present, the mainstream of beer consumption in Zhengzhou is mainly low-end beer.

Earlier this year, it was reported that Venus Beer would stop producing all products below 2 yuan. Jing Li, deputy general manager of Venus Beer Group, told the reporter that Venus only stopped producing products with low price competition in the regional market, and the price was below 2 yuan, but it did not include the Venus series products currently on the market. In this regard, Jing Li explained that when an enterprise pursues economic benefits, it should also consider social responsibility. Venus beer will allow consumers to enjoy high-quality beer at low prices. At the same time, Jing Li said that Venus currently occupies about 60% of Zhengzhou's market share, which shows that the current situation of Zhengzhou's low-priced beer consumption will continue.

At the same time, price competition is still the main means of beer competition in Henan. At the beginning of 2002, the bosses of more than 20 beer production enterprises in Henan Province sat together at the initiative of Venus, Oak and other big manufacturers and signed the "Henan Beer Industry Price Resolution", which fixed the ex-factory price of beer at a level below which all enterprises could not ship. However, in just a few days, someone broke the agreement and price alliance, a Henan beer company, declared bankruptcy. At present, all manufacturers have not given up the means of low-price competition. Xiong, vice president of Henan Liquor Industry Association, said that the competition in Henan market is fierce, consumers are sensitive to prices, and no one dares to raise prices rashly, which makes the overall level of beer prices in Henan Province low.

At present, the low-priced beer in Zhengzhou market mainly comes from two local enterprises, Venus Beer and Oak Beer. Terminal price 1.5 yuan's Venus ale, pineapple beer, Venus cool beer, as well as Oak King ale, pineapple beer and bitter gourd beer. The prices of these products are mostly below that of 2 yuan, occupying a considerable share in Zhengzhou beer market.

High-end competition is fierce.

Due to the low profit of low-end beer and the long-term operation of Venus and Oak, a relatively stable customer base has been formed, so many enterprises that want to enter Zhengzhou have chosen high-end markets, such as Tsingtao Beer and Harbin Beer. At the same time, the local Venus and Oak also actively launched their own high-end products for their own strategic needs, which made the competition in the high-end market change from the "two-person turn" of low-end beer into a "big battle".

At present, the output of Venus beer has reached the fourth place in China. However, due to factors such as choosing rural market in the early stage of expansion, the price of its products is low and the brand value is not as fast as the market growth. To this end, Venus launched a "new generation" this year, with the terminal price in 2.5 yuan. In the words of Jing Li, deputy general manager of Jinxing Beer Group, 2.5 yuan is a line in Zhengzhou market, and beyond this price is the price of high-end beer. At the same time, Venus also held a lucky draw before the World Cup to win a lottery ticket with a bottle cap. The winner will take part in an 8-day tour of five European countries during the World Cup. Venus takes advantage of its activities and strong publicity offensive to gradually expand the high-end market.

At the same time, other brands in Henan Province have gradually entered the Zhengzhou market. By sponsoring the "New Vocal Cord" activity in Henan, Wei Xue Beer quickly increased its popularity and promoted its products to Zhengzhou. The terminal price of Wei Xue beer is about 3.5 yuan. It is understood that Wei Xue has been committed to the high-end beer market. This time, in addition to looking at the profits of the high-end market, it is also to establish its own brand image. If you want to be a brand in the province, it must be Zhengzhou market.

Most of the products that other domestic brands enter Zhengzhou market are metal cans, and only a few brands such as Qingdao and Harbin have prices around 3 yuan. For example, the price of Harbin wheat beer of Yichu Lotus is 3. 1 yuan. Prices higher than those in 5 yuan are mostly foreign products, such as Heineken and Blue Ribbon.

Future development trend

With the rising cost of raw materials, the cost of beer will also increase gradually. At the same time, Zhengzhou also has a large number of beers with the selling price of 1.5 yuan, and the profits of these beers are extremely low. It is for these reasons that the market competition in Zhengzhou will gradually turn to the competition of high-end beer in the future.

At present, the market share of the three domestic giants in Zhengzhou is not high, but Zhengzhou has a population of 7 million and huge consumption potential. Although there are strong local brands, the three brands will definitely enter Zhengzhou in a big way in the future. Just as the Beijing market has always been the sphere of influence of Yanjing Beer, it has not affected the determination of Qingdao and Snowflake to enter.

The industrial upgrading of local enterprises such as Venus and Oak will also promote the high-end development of Zhengzhou market. Whether it is Venus or Oak, Zhengzhou is not only profitable, but also spiritual. If the local market is bad, how to develop other markets? At the same time, other brands in Henan province have entered Zhengzhou market, which has also brought new variables to market competition. At present, Wei Xue beer has entered Zhengzhou, and new brands will enter Zhengzhou market in the future.

The following is a survey of beer markets in 20 cities across the country;

With the arrival of summer, another round of beer war is about to break out. Analyzing the market in previous years, we can see that the price is the main reason for the beer war. But in the past year or two, with the improvement of consumption level, price is no longer the primary factor for consumers to buy beer, and people pay more attention to the brand and fashion of beer when buying.

Beer wars are inevitable.

According to the relevant data of China Market and Media Research 1999, the per capita beer consumption of 20 cities in China is 2.96 cans/week, 3. 19 bottles/week and 2.44 draft beers/week respectively (see table 1). It can be seen from this data that the demand for beer by urban residents is huge. With the increasing demand of urban residents for beer, beer enterprises will expand their production scale, and the rapid growth of beer production will trigger fluctuations in the industry and even the consumer market. In this way, the beer market will be saturated, the driving force of consumer demand will gradually weaken or even disappear, and beer enterprises will also slow down the growth rate of beer production through sales and fixed production. In this way, the competition between beer industries will become more and more fierce, and the result of the competition will inevitably lead to a beer war. (Table 2)

Table 1 20 Weekly Beer Consumption of Urban Residents

can

Proportion of drinking%

10 cans or more

6.8

5-9 cans

8.6

3-4 cans

19.9

1-2 cans

28.3

1 below the tank

34.7

Average weekly consumption of canned beer (cans)

2.96

bottled

Proportion of drinking%

10 bottles or more

6.8

5-9 bottles

1 1. 1

3-4 bottles

2 1.7

1-2 bottles

27.0

1 bottle or less

3 1.5

Average weekly consumption of bottled beer (bottles)

3. 19

draft beer

Proportion of drinking%

More than 7 liters

7.0

5-6 liters

7.5

3-4 liters

17.2

1-2 liters

25.9

1 l or less

40.4

Average consumption of draft beer in the first week (liter)

2.44

Table 2 Top three national and local beer brands

20 cities

Beijing

Qingdao

Budweiser

Beijing

five stars

Qingdao

Shanghai

Libo

Suntory

Budweiser

Guangzhou

Zhujianghe

win

Qingdao

Chengdu

blue sword

five stars

Red sword

Tianjin

Rich and powerful families

Lidu

Leger

Shenyang

snowflake

green card―permanent residence permit issued by some countries to foreign residents

Huangpai

Jinan

Baotu Spring

Qingdao

Arctic Ocean

Nanjing

Budweiser

lake

Wuhan

Yin Hang Pavilion

Budweiser

Jinlongquan

The old name of China

Hui Quan

Sezin

Rongcheng

Xi'an

Baoji

Nicknames for Germans or Dutch.

Qingdao

Kunming

Dali

Qingdao

Lancang River

Chongqing

mountain city

Chongqing

blue sword

Xiamen

Sezin

Hui Quan

Wang Yincheng

Shenzhen

Jinwei

win

Qingdao

Hangzhou

West Lake

Budweiser

China

Zhengzhou

oak

Venus

Qingdao

Laoshan Mountain

Budweiser

Dalian

Bangchui island

Black lion

Khyron

Harbin

Orion belt

blue ribbon

Low price-not the magic weapon to win

Price is not the magic weapon for enterprises to win. The new generation 1999 data on beer brand loyalty show that people have high loyalty to the brand, not because of its low price, but because of the value of the brand itself. Truly powerful beer enterprises have high brand loyalty. In addition, the survey of the new generation also shows that beer consumers with different incomes have great differences in brand preferences. (Table 3)

Table 3 Brand Preference of Consumers with Different Income

Below 999 yuan

Qingdao 1 1.6%

Yanjing 10. 1%

Budweiser beer 6.5%

1000- 1999 yuan

Yanjing 17.7%

Qingdao 13.7%

Budweiser

2000-2999 yuan

Budweiser

Yanjing 15.7%

Qingdao 12.2%

More than 3000 yuan

Budweiser beer 20.8%

Baker 13.6%

Qingdao 13.2%

Therefore, enterprises should get rid of the misunderstanding of traditional low price in price positioning decision, because low price can occupy the market for a while, but it cannot consolidate or occupy the whole market. That kind of malicious and disorderly price competition will lead to the destruction of the market.

Brand awareness should be cultivated by enterprises.

The investigation of the new generation shows that beer enterprises should not only have keen sense of competition, but also have sensitive brand awareness if they want to be invincible in the competition. At the same time, they must understand the position of themselves and other brands in the minds of consumers and understand the brand concept of consumers.

Figure 1. Loyalty of National Beer Brands in 20 Cities

Figure 20 Brand View of Urban Beer Consumers

I will always use my favorite brand.

I am willing to spend more money on high-quality goods.

three

I prefer to buy domestic brands.

four

I like to try new brands.

five

The quality of joint venture products is not as good as that of original imports.

six

I don't pay much attention to the brand when shopping.

seven

Using famous brands can improve a person's status.

eight

Although the price is a little expensive, I still like to buy foreign products

nine

Brands recommended by celebrities are usually infallible.

The quality of counterfeit brands is similar to that of real brands.

There are few national brands.

In the survey data of the new generation, there are 2 1 national beer brands. However, there are only a handful of national and even global beer brands with real strength and high market share, and most domestic beer can only be regarded as China famous brands or regional famous brands.

According to the relevant data of the Commercial Information Center of the Domestic Trade Bureau, among the top 10 beer brands with the highest market share, "foreign-funded" enterprises account for more than half, which fully shows the fierce competition in the beer industry. According to the latest data, at present, the output of foreign joint ventures accounts for 28% of the beer market in China, and experts predict that this proportion will continue to rise. From the survey data of beer brand penetration rate in 20 cities in the new generation (Table 4), it can be seen that foreign beer brands are marching into the beer market in China.

Enterprise collectivization and product individualization are the trends.

From 65438 to 0999, the beer output of Tsingtao Brewery Group and Beijing Yanjing Brewery Group both exceeded one million tons, ranking among the largest beer producers in the world, and the beer output of Guangzhou Zhujiang Brewery Group and Sichuan Lan Jian Group also reached more than 400,000 tons respectively. The above four enterprises have formed a competitive situation with the top four in China beer market. According to the survey data on the proportion of new generation drinking beer brands (Table 5), Qingdao, Yanjing, Zhujiang and Lan Jian are the cities with the highest proportion of drinking among residents in big cities.

Table 4 20 penetration rate of urban beer brands

Brand penetration rate%

Qingdao

18.3

Carlsberg

7.7

Budweiser

14.6

win

6.8

blue ribbon

1 1.8