---
title: "How Laocunzhang Achieved 6 Billion in Sales with a Bare-Bones Bottle of Baijiu"
description: "Laocunzhang, another industry anomaly in the era of mass-market liquor besides Niulanshan, is not a listed company, making it less likely to be noticed and exploited by the keen-eyed capital market early on. Its selling price is even lower than Niulanshan, and it is regarded as an un-copyable outlier by most mainstream enterprises in this industry that pay taxes in a standardized manner. However, after multiple verifications, Weijiu speculates that its actual sales might be astronomical. Considering factors such as reasonable avoidance of low-end liquor tax burdens, authorized remote bottling, and sales discounts, several industry experts speculate that actual shipment sales might be close to 6 billion yuan, a figure not confirmed by the manufacturer."
author: "New Distribution"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
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published: "2015-10-01"
language: "en"
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original_source: "https://mp.weixin.qq.com/s/X_-K7Z8ykWRfELwzep-7lw"
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---

# How Laocunzhang Achieved 6 Billion in Sales with a Bare-Bones Bottle of Baijiu

> Laocunzhang, another industry anomaly in the era of mass-market liquor besides Niulanshan, is not a listed company, making it less likely to be noticed and exploited by the keen-eyed capital market early on. Its selling price is even lower than Niulanshan, and it is regarded as an un-copyable outlier by most mainstream enterprises in this industry that pay taxes in a standardized manner. However, after multiple verifications, Weijiu speculates that its actual sales might be astronomical. Considering factors such as reasonable avoidance of low-end liquor tax burdens, authorized remote bottling, and sales discounts, several industry experts speculate that actual shipment sales might be close to 6 billion yuan, a figure not confirmed by the manufacturer.

Laocunzhang, another industry anomaly in the era of mass-market liquor besides Niulanshan, is not a listed company, making it less likely to be noticed and exploited by the keen-eyed capital market early on. Its selling price is even lower than Niulanshan, and it is regarded as an un-copyable outlier by most mainstream enterprises in this industry that pay taxes in a standardized manner. However, after multiple verifications, Weijiu speculates that its actual sales might be astronomical. Considering factors such as reasonable avoidance of low-end liquor tax burdens, authorized remote bottling, and sales discounts, several industry experts speculate that actual shipment sales might be close to 6 billion yuan, a figure not confirmed by the manufacturer.
It achieved sales of 6 billion yuan in 2013; the company focusing on bare-bones liquor made a profit of over 600 million yuan; it is the number one bare-bones liquor brand in Hebei, Henan, Shandong, Tianjin, northern Anhui, and northern Jiangsu, and is developing strongly in Zhejiang, Guangdong, Guangxi, Hubei, and Hunan; it has been imitated but never surpassed. It is the low-key, people-friendly, and substantive Laocunzhang. What made it the leading brand in the bare-bones liquor market? What made it firmly occupy the minds of China's working masses? And what made it invincible in competition with local white liquor brands across the country?
**Brand Positioning: "Mass-Market Liquor, People's Liquor" Route**
In terms of brand positioning, Laocunzhang does not aim for the high-end, but consistently adheres to the "mass-market liquor, people's liquor" route, targeting migrant workers and low-end working classes, and insists on making low-end products its core strategy. Based on this brand positioning, it focuses on the three-level main markets of counties, townships, and villages, steadily and thoroughly developing them. Most importantly, it aims to be a national brand and never regards itself as a local northeastern brand.
**Low-Cost Main Product Concentration**
**Price System Ensuring Profit**
**Implementation of the "1+1+1+3" Strategy**
In terms of operational strategy, Laocunzhang has long adhered to the "1+1+1+3" strategy. What is the "1+1+1+3" strategy? 1 core competitiveness, 1 high-altitude media support, 1 reasonable layout of excellent distributors, and 3 represents high distribution rate, high flexibility in promotions, and high-quality service.
The core competitiveness that Laocunzhang insists on is "high profit created by low cost." In the past golden decade, high-end liquor flourished under the support of the government system, and cost awareness was almost forgotten by the industry. However, what Laocunzhang meticulously cultivated was precisely this "low-cost" high-profit soil that the industry had forgotten.
The profit advantage brought by "low cost" is very obvious and direct: with price difference plus product policies, each 11-yuan bottle can give terminals a profit of 2-3 yuan, and distributors can have a profit of 20-30 yuan per box; each 6-yuan bottle can give a profit of 0.8-1 yuan, and distributors can have a profit of 10-15 yuan per box. Laocunzhang's low-cost advantage mainly comes from the following four points: 1) Integrating small distilleries for "remote bottling"; 2) Alcohol blending and simple packaging materials; 3) Scale effect, making raw materials and promotional items cheap. 4) Recruiting strong distributors, allowing market development and maintenance to leverage distributor resources.
In terms of media placement, Laocunzhang focuses resources on high-altitude media. From the full product placement in Rural Love 1-7, which became popular across the country from CCTV to local satellite TV, it brought Laocunzhang liquor to every consumer who loved the drama. This is like another interpretation of the close relationship between The Voice of China and JDB, but the difference is that Laocunzhang achieved brand upgrading in its communication:
Phase 1: Fan Wei endorsement, celebrity effect, playing the emotional card, taking the people-friendly route. "Don't treat the village chief as a non-cadre."
Phase 2: Creating word-of-mouth effect, spreading product quality "good taste, comfortable to drink."
Phase 3: Brand upgrade, advocating positivity, "live well, improve every day."
In terms of distributor layout, Laocunzhang integrates excellent distributor resources and achieves high efficiency in regional markets through the high cooperation of one excellent distributor.
Laocunzhang generally selects large-scale distributors in various regions as agents. The selection criteria prioritize excellent distributors with good market foundation, strong influence, experience in liquor or food and beverages, and strong channel networks and delivery capabilities. Its customer layout generally has two methods: 1) Direct distribution model for prefecture-level city customers, directly selling to the urban market of the prefecture-level city, and selecting distributors in core counties for operation. 2) Direct distribution model for county-level customers, directly selling in the county urban area, and selecting distributors in key townships for operation.
On the basis of the three "1"s, it achieves absolute market occupation through high distribution rate, high flexibility in promotions, and high-quality service.
Achieving channel occupation with high distribution rate:
Ø Deep cultivation of county, township, and village strategic orientation. Most mid-to-low-end white liquor enterprises' operations in rural markets are merely habitual behavior without a true strategic orientation, just to sell products. However, Laocunzhang has a clear three-connectivity grid project for county, township, and village markets: building the three-connectivity project of "everyone connects, every road connects, every village connects," focusing on terminal coverage in county towns, network distribution capability in townships and villages, effective terminal control capability, main push capability, and self-order rate. Especially in the village connectivity project, the manufacturer requires and assists county-level distributors to enter every natural village in every township regularly, conducting product promotion, distribution, prize redemption, and follow-up visits, and regularly communicating with village-level retail outlets.
Ø Assault team assistance. Periodically adopt concentrated assault actions, generally divided into two types of concentrated assault support: one is purely promotional brand promotion, organizing a large number of vehicles (all with promotional advertisements) for convoy tours and broadcasts. The other is channel product promotion, concentrated distribution, with the manufacturer dispatching business assault teams to provide supportive personnel promotion. Assault team members earn a monthly salary of 8,000-10,000 yuan, are very effective, and generally complete 80% of terminal network construction and atmosphere stirring in county markets within half a month. Resources are invested vertically from the manufacturer to terminals by the assault team, which can strengthen distributor confidence in the short term, then hand over to the distributor team for market maintenance, and then the assault team moves to other markets for rolling development.
Ø Monthly distribution normalization. Distribution is carried out almost every month, whether in the off-season of summer or the cold winter. For example, in a county market, it fully covers the county urban area and terminal outlets in every natural village of more than 10 townships.
Achieving sell-through with high flexibility in promotions:
Ø Prizes are set according to the distributor's region and product introduction timing. Promotional item suppliers are selected by the regional manager, and product prize coupons are made by the regional manager with the distributor and sent to the manufacturer, then placed inside bottle caps during production.
Ø Whether targeting terminals or consumers, Laocunzhang's promotional activities are flexible and varied, with many gifts. Through tiered promotions, they are all daily necessities for the people, highly attractive. The pull of prizes increases terminal customers' selling power and consumers' purchasing power. Common promotional practices can be summarized in the following five aspects:
1) There is a prize redemption note inside the bottle cap. The most common prize is a lighter, and others include electric bicycles, color TVs, refrigerators, rice cookers, electric baking pans, and other daily necessities close to consumers. With the overall improvement of people's living standards in recent years, the quality and grade of these promotional items have also been upgraded.
2) Buying a whole box of Laocunzhang liquor gives a free wine glass.
3) Collect bottle caps to redeem gifts. The more caps collected, the better the prize.
4) Cash in the bottle cap: sometimes RMB, sometimes US dollars.
5) Promotions during major festivals, such as giving away towels, socks, stainless steel bowls, rice cookers, belts, etc., all daily necessities for the people.
Stabilizing the market with standardized organizational management to achieve high-quality service:
Ø FMCG-style management. Establish terminal work maps, plan visit routes and follow-up routes, implement standardized visit operations for terminals, with operational standards for product orders, display, visualization, atmosphere creation, customer relationship maintenance, and promotion execution, and have supervision, evaluation, and assessment mechanisms to ensure terminal work quality. Management is table-based and institutionalized: manage business personnel's work processes through a series of forms, such as customer sales plans, terminal follow-up forms, terminal visit information forms, terminal development forms, inventory management, and promotion forms; check and improve work execution through a series of work systems, such as morning and evening meetings, weekly meetings, and monthly meetings.
Ø Work standardization. Terminal visualization "six have": have customer registration, have business contact cards, have POP, have explosive stickers marking prices, have product samples, and have display momentum. In addition, the salesperson's work manual includes detailed terminal distribution techniques, including interest attraction, promotional policies (buy gifts, discounts, practical promotional items), competition stimulation: creating scarcity (limited quantity, limited time, limited participants, limited conditions). Prize sales (lotteries, box-opening prizes, batch number lotteries), etc.
Ø Considerable income guarantee. Distributor business personnel earn a monthly income of 2,000-5,000 yuan, far exceeding peers, with high enthusiasm and low turnover.
After looking at Laocunzhang's野蛮 growth path, we will find that its core success model is "low cost + high efficiency."
Low cost has barriers, and its replication is difficult. But the awareness of "low cost" must be present. The trend of mass-market liquor has become an inevitable industry adjustment period, and it is difficult to achieve profit growth through the "excessive profits" of high-priced products. Therefore, liquor enterprises must first confirm the development strategy centered on mass-market liquor, and then establish a strong "low cost" awareness.
High efficiency is more instructive for us. What is high efficiency? In the final analysis, it is organization. In today's homogeneous marketing methods in the white liquor industry, it is difficult to achieve long-term high growth through innovative marketing actions. Only by making improving operational efficiency the strategic core of the company's development, like Laocunzhang, through clear division of labor, applying effective actions to the extreme at specific points, and summarizing them into models for promotion on a broader scale. The author believes this is the greatest value and profound thinking that Laocunzhang brings to our white liquor industry.
The following is Laocunzhang's terminal visit process manual, which is professional and detailed, and worth learning for everyone in the industry:
1: Preparation before entering the store
What needs to be prepared:
Contact cards, posters, price tags, hanging tags, towels, transparent tape, markers, double-sided tape, customer information, and sample wine!
Before entering the store:
1. Put the prepared small materials into a tool bag, carry promotional materials, and observe the location for pasting promotional posters in the store.
2. Tidy up your appearance and prepare to enter the store.
3: After entering the store
Greet with a smile and confidence, briefly introduce yourself, communicate with the boss in a relaxed, pleasant, and natural manner, and politely understand the sell-through status of our products and competitors.
4: Organize the shelves
While the boss prepares the prize tickets, we organize the display:
1. First, choose the best position (adopt the principle of high rather than low).
2. Wipe the dust off the shelves and bottles.
3. Maximize the display area, 1-2 facings more than competitors.
4. Paste price tags, mark prices, and use double-sided tape and transparent tape for pasting.
5: Redeem prizes for customers
6: Suggest orders
Terminal order formula:
Off-season order = (previous inventory + previous purchase - current inventory) * 1.5
Peak season order = (previous inventory + previous purchase - current inventory) * 2
Replenish customers in time to ensure safe inventory during the visit cycle.
7: Leaving the store
1. When leaving, say to the boss: "Wish you a prosperous business, I will visit you again next week."
2. Paste promotional posters: seal the edges with transparent tape and paste firmly.
8: Register customer information
Register the store's information in a timely manner.
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