---
title: "In Two Years, This Bottled Liquor Snatched 33 Million Yuan in a Market of Less Than 600,000 People!"
description: "In Bazhou City, a county-level city in Hebei Province with a population of less than 600,000, the battle for bottled liquor is fierce. The 'iron triangle' of Laocunzhang, Niulanshan, and Longjiang Jiayuan once dominated, but in 2014-2015, a brand called Xiaodao broke through and became a leading brand. Xiaodao's success is attributed to a simple strategy: focus."
author: "New Distribution"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2016-07-20"
language: "en"
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original_source: "https://mp.weixin.qq.com/s/LMIM0pnJQf37cKjhTXWc9A"
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---

# In Two Years, This Bottled Liquor Snatched 33 Million Yuan in a Market of Less Than 600,000 People!

> In Bazhou City, a county-level city in Hebei Province with a population of less than 600,000, the battle for bottled liquor is fierce. The 'iron triangle' of Laocunzhang, Niulanshan, and Longjiang Jiayuan once dominated, but in 2014-2015, a brand called Xiaodao broke through and became a leading brand. Xiaodao's success is attributed to a simple strategy: focus.

Bazhou City is located in the eastern part of the Central Hebei Plain in Hebei Province. In this county-level city with a population of less than 600,000, the battle for bottled liquor is played out every day with intense competition. The 'iron triangle' of Laocunzhang, Niulanshan, and Longjiang Jiayuan, through years of operation, gradually emerged victorious and once became the leading brands in the local bottled liquor market.

However, this seemingly unbreakable triangle was forcibly pried open by a bottled liquor called 'Xiaodao' in 2014-2015, which even overtook them to become a dominant brand in the local market.

According to a person in charge of Xiaodao Liquor Company, Xiaodao liquor achieved nearly 33 million yuan in sales in Bazhou market last year alone, and this figure is still expanding. Through field research, the reporter found that **the secret behind Xiaodao's rapid success in the market is simply one tactic: focus!**

**Market Focus**

According to the company's market manager, the reason they chose Bazhou as a key market was **mainly because it is surrounded by core demonstration markets such as Baoding, Beijing, and Tianjin. After years of operation, these markets have established a very good market atmosphere.** In this context, making Bazhou a key market is highly likely to succeed.

Looking at the entire liquor industry, whether it's Niulanshan radiating from Beijing to the surrounding areas, Laobaigan expanding from Shijiazhuang as its key market, or Gujing spreading from Hefei as its base, these companies that steadily build a demonstration market and then expand outward tend to succeed easily. Conversely, companies that indiscriminately recruit distributors nationwide without regional focus rarely achieve success.

**Product Focus**

According to local distributors, Xiaodao liquor had actually been operating in Bazhou market for a long time, but due to the mixed quality of bottled liquors in the market, with competitors like Niulanshan and Laocunzhang above and Longjiang Jiayuan and Yidanliang below, blindly following was unlikely to succeed.

********▲****** Various bottled liquors sold in the local market**

To gain a share in the market competition, the most important thing is to create a unique and highly competitive product. To this end, the company began to focus its product line in 2013.

According to the market manager, after adopting the focus strategy, the company started to streamline its product line, making an 18-yuan Xiaodao Yuanjiang liquor the core single product.

In addition to a comprehensive upgrade of packaging and quality, all resources were also focused on market development. Whether it was shelf display or atmosphere, everything centered on Xiaodao Yuanjiang.

Furthermore, the company signed display agreements with some core terminals to ensure the success of this strategy. From the display agreements, we can see that the company has strict specifications for display categories and standards.

********▲**********Attachment: Terminal Display Agreement**

**Regional Focus**

In the early stages of market promotion, the company focused its efforts on several influential townships around the city. By creating demonstration markets, they formed a strategic layout of 'encircling the city from the countryside.'

Zhu Zhiming, chairman of Anhui Zhizhuo Marketing Consulting Company, said in an interview: 'The reason for adopting the strategy of encircling the city from the countryside is, first, to effectively avoid direct competition with established local brands like Laocunzhang and Niulanshan. Second, by steadily building a presence in townships and making progress step by step, when the surrounding townships have a certain sales volume and influence, it is very easy to break into the urban area.'

To ensure the success of this strategy, **the company adopted a 1+1 refined operation model. For each cooperating secondary distributor, a salesperson is assigned to provide close service.**

The salesperson works with the secondary distributor to develop and maintain the market daily according to the company's tasks. This mutual supervision and joint promotion method improves market execution to a certain extent, achieving a 1+1>2 effect.

To ensure the enthusiasm of terminal sales, the company also reserved relatively high profit margins for terminals in product pricing.

| Brand | Niulanshan | Laocunzhang | Longjiang Jiayuan | Xiaodao |
|-------|------------|-------------|-------------------|---------|
| Retail Price | 13 | 12 | 12 | 18 |
| Purchase Price | 110 yuan/case | 108 yuan/case | 102 yuan/case | 165 yuan/case |
| Profit per Bottle | 3.8 | 3 | 3.5 | 4.3 |
| Alcohol Content | 42 | 38 | 42 | 38 |

From the above data, we can see that Xiaodao's retail price and terminal profit margin are much higher than those of competitors. It is worth noting that Xiaodao's retail price is also higher than competitors. In this regard, the market manager told reporters that the main reasons are to enhance the brand image and to cater to consumption upgrades.

**Consumer Focus**

Unlike FMCG products, bottled liquor does not have a high self-order rate. So after improving market fundamentals, the company conducted a series of buy-give and free-tasting activities targeting consumers.

Interestingly, in the early stages of promotion, Laocunzhang and Longjiang Jiayuan were also conducting consumer buy-give activities, but the company found that Laocunzhang offered TVs as prizes for drinking, and Longjiang Jiayuan offered mountain bikes. The gifts seemed attractive, but due to the low winning rate, consumer enthusiasm waned over time.

In response, the company launched a series of high-frequency, low-price promotions such as 'Drink Xiaodao and win Swiss Army knives or lighters' to drive sales, and the results were very obvious.

However, competitors have also noticed this drawback and have made timely adjustments. Laocunzhang has now launched small promotions like winning laundry detergent or cups for drinking, with prizes on every bottle. The trading company will directly deliver gifts and liquor to terminals.

In addition, whether bottled liquor needs to cultivate consumer leaders has been a hot topic in the industry. Some believe that the consumption level of bottled liquor is limited, so it is not necessary to cultivate consumer leaders. They argue that you hear of leaders who love Moutai or Wuliangye, but not leaders who love bottled liquor.

Surprisingly, **during market promotion, Xiaodao began to vigorously cultivate source-point consumer groups through the catering channel.** By identifying frequent core consumers through terminals, they used free tasting and gift drinks to gradually change consumer habits, slowly getting these consumers to start consuming their product. The current growing sales momentum is not unrelated to this.

Finally, when the market began to heat up, the company did not forget to add fuel to the fire. They chose influential local events to sponsor, including folk activities and government-led performances.

At the same time, the company organized large-scale public welfare events and other small consumer interaction activities to continuously strengthen the brand power of Xiaodao Yuanjiang, keeping the brand heat high in the market.

Text by Wei Jiu reporter Yuan Huiwen, Li Wei | Edited by Han Ying

Source: Wei Jiu (ID: zgweijiu)

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