Kweichow Moutai- Building and Sustaining a Top Luxury Brand

iD Fresh Enters the Traditional Beverage Segment through its Filter Coffee Decoction
Case Code: MKTG432
Case Length: 17 Pages
Period: 2000-2020
Pub Date: 2021
Teaching Note: Available
Price: Rs.400
Organization : Kweichow Moutai Co., Ltd.
Industry :Food & Beverage
Countries : India
Themes: Brand Strategy, Brand Loyalty, Marketing Strategy,Brand Differentiation
iD Fresh Enters the Traditional Beverage Segment through its Filter Coffee Decoction
Abstract Case Intro 1 Case Intro 2 Excerpts

Abstract

This case describes the journey of Kweichow Moutai Co., Ltd. (KM) to becoming China’s biggest public companyby market capitalization and to its key product Moutai becoming the world’s top liquor brand. The case starts out by delvingbriefly into the nearly 2,000-year-old history of Moutai that was used as a tribute wine by various Chinese dynasties. By the early 1950s, the entire production of Moutai was being done only through KM and it had come to be known as China’s ‘national liquor’. ThoughMoutaihad always been renowned, the dramatic rise in its popularity in recent years wasdue 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 Moutaiand prevent it from being associated with bribery and corruption.

Issues

The case is structured to achieve the following teaching objectives:

  • Create a luxury brand image through elements of marketing mix.
  • Understand and manage brand equity.
  • Sustain a brand for the long term.
  • Scrutinize brand reinforcement activity.
  • Determine strategic thrust and direction of the brand.

Contents

Keywords

Brand Characteristics; Luxury Brands; Marketing Mix; Brand Equity; Brand Image; Brand Management Process; Brand Building; Sustaining A Brand Long-term; Brand Architecture; Brand Reputation; Brand Loyalty; and Brand Management; Brand Positioning; Potential Points-of-Difference; Points-of-Parity

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