When
Chinese businesspeople are successful, they want the whole world to
know about it, preferably over a large glass of Johnnie Walker.
So claims Diageo, the UK-listed drinks giant, in an interesting Financial Times article ($) on branding strategies.
China is one of the world's fastest growing whisky markets and exports to China rose from £1.5m in 2001 to £46m last year. There is a lot to play for and as China is a far from homogeneous market, Diageo developed a China strategy for Johnnie Walker whisky two years ago.
As well as the traditional market of aspirational high earners, Diageo discovered that whisky was being drunk by a much more varied group of Chinese consumers as the once-high import tariffs had been cut following China's accession to the WTO.
Diageo also found that Chinese consumers drink whisky in different ways and in a more diverse range of venues than western consumers. They even mix it with iced green tea -- a sacrilege for whisky purists who do not even allow an ice-cube to distract from the pure taste of a good glass of scotch.
Diageo splits the Chinese market into four consumer groups. The first and most important are "guanxi men" -- status-driven middle-aged businessmen for whom business entertaining plays a big role in their lives. The second group is made up of strong independent women, the third of young, upwardly mobiles, and the fourth group of twentysomethings who are eager to explore something new.
The results of all this research have helped tailor local advertising for Johnnie Walker, which is designed to reinforce the idea that Chinese consumers are much more success-driven -- and not shy about showing it.
Despite the big investment in marketing and advertising, Johnnie Walker lags Chivas Regal, owned by rival Pernod Ricard, in China's whisky market.
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