Channel Purchase Incentives The main purpose is to quickly recoup capital, occupy the channel's funds and warehouse space (leaving them with no cash to buy competing products, and even if they have money, no place to store them), thereby suppressing competitors, increasing market share, leveraging funds, and creating market momentum. Common forms include: buy several cases and get one free, or receive items of corresponding value, or cumulative sales rebates. The downside is that if not managed well, it can damage brand value, and once the promotion ends, sales may drop significantly.
Integrated and Bundled Marketing Distributors typically represent several products, and resources across brands can complement each other. Distributors must learn to leverage their brand resources, manage off-season marketing, and use in-season products to drive sales of off-season ones. This approach allows for complementary integration of channel and market resources. For example, beer has strong control in the foodservice channel, and the off-seasons for beer and baijiu complement each other. When beer enters its off-season, baijiu can be promoted through the same strong terminal network. During a market survey in a county in Luoyang, a shop owner told me about a distributor: "We don't want to sell his baijiu, but he represents Luoyang Gong beer, which is nearly monopolistic in the Luoyang area, so we don't dare offend him. We usually accept his deliveries." This illustrates the importance of integrated and bundled marketing.
Display Rewards (Visual Merchandising) This is the most common promotional method for baijiu companies. Common forms include shelf display rewards and carton display rewards, with peak-season stack displays. Display rewards are usually redeemed with the product itself. According to my research, if the display is in a position visible to consumers upon entering the store, easy to see and touch, and occupies a large area, it significantly boosts sales. A good visual display makes the product "speak" and stimulates strong purchase desire. Terminal visual merchandising includes in-store and out-of-store promotional materials such as store signs, light boxes, X-stands, roll-up banners, posters, and product displays.
Gifts with Purchase (Consumer-Focused) When consumers buy alcohol, they receive attractive gifts or rewards. The most common are lighters, playing cards, and cigarettes (since these are closely associated with men). Although not innovative, they are effective! Some companies even put US dollars or Hong Kong dollars inside the packaging. I once used a very effective method that I'd like to share: placing lottery tickets or self-made scratch cards inside the box, with jokes related to alcohol printed on the cards. This adds fun to drinking and deepens consumer impression of the brand. For wedding banquets, buying a certain amount of alcohol could include free wedding cars, sedan chairs, refrigerators, or TVs.
Free Tasting This is commonly used in new markets where brand influence is weak and consumer awareness is low. Companies aim to quickly build brand influence and stimulate trial purchases, so they produce small sample bottles (usually 125ml) for free tasting. Specific tasting activities vary; some even hire song-and-dance troupes to boost influence. I must remind you that the quality and taste must suit local consumers, or it will backfire!
Restaurant Promotions For example, in restaurants, order alcohol and get free dishes, or order dishes and get free alcohol, or give one free bottle per table (from my understanding, a full table of guests usually won't drink just one bottle, and they won't feel comfortable switching brands for the second bottle, as that would seem stingy in front of friends). Additionally, some baijiu companies set up table displays and display rewards in restaurants, and in large hotels, they hire dedicated promoters to recommend products to guests. Many consumers fall for the charm of these female promoters.
Cap Rewards and Sales Competitions Cap rewards are a common promotional tactic for mid-to-high-end baijiu, targeting restaurant waitstaff. It's the most effective way to encourage waitstaff to recommend products. Typically, waitstaff bring the caps from consumed bottles to the distributor and exchange them for cash. I've heard that a capable waiter can earn more from cap rewards than their regular salary. I won't elaborate on sales competitions; companies can design them based on their own situations, but be careful not to favor some and offend many!
Discounts or Buy-One-Get-One Consumers receive a partial cash refund or coupons after purchase, or through buy-one-get-one-free, direct discounts, or price reductions to stimulate purchases and build preference.
Cultural Promotion As the saying goes, "Consumers buy the feeling; companies sell value." Consumers will only pay if they feel the product has value. Low-end alcohol is food; high-end alcohol is a craft product, sometimes even collected as art or toys. So high-end alcohol may not inherently be worth that much, but it satisfies consumers' psychological needs through added value. Mid-to-high-end baijiu has special value attributes as a tool for business and government interpersonal relations. We can see baijiu companies exploiting Chinese drinking culture to the fullest, such as family culture and fortune culture. Some mid-to-high-end baijiu companies heavily use cultural, artistic, and historical themes in promotions. But what about companies with no cultural heritage to draw on? I once conducted a cultural promotion for a new, small brand in its first market. Since the company had no resources to leverage, I decided to find resources in society. I chose to cooperate with Henan TV's famous program "Pear Garden Spring" and invited them to perform locally. We ran a promotion where buying a certain amount of alcohol got you tickets, and consumers could also get tickets with purchases. The slogan was: "Brand X grandly launches in Location Y, Pang Xiaoge and artists come to perform; seeing the show live is a different experience." Through this theatrical cultural promotion, we successfully completed product launch publicity, channel stocking, and consumer pull within a month, even surpassing the annual sales of some small brands that had launched earlier. Cultural activities reflect the psychological value of baijiu brands and effectively enhance brand image.
Corporate Tourism Promotion Companies can invite key clients and consumers to visit production lines or distinctive business venues, allowing them to experience the product's features and value through a tour. This lets them feel the company's profound corporate culture and the importance the company places on them, bridging the distance. This experiential promotion will strengthen consumer loyalty and positive perception of the baijiu brand, and they will become our living advertisements, gradually building the brand's overall image.
Government Relations PR Examples include the "plate-in-plate" model of Dianxiaoer and the "trunk" model of Laobaifen. Government officials are opinion leaders; sponsoring government meeting alcohol can influence government consumers.
Human Wave Tactics This tests a company's strength and management capability. Some well-funded baijiu companies deploy numerous promoters and sales guides in KA stores and A/B-class restaurants during peak seasons to expand brand influence among target consumers, improve sales performance, and increase market share. However, attention must be paid to the image and quality of the personnel!
VIP Membership Marketing According to the 80/20 rule, I believe 20% of loyal customers influence 80% of sales, so using membership programs to cultivate loyal consumers is crucial. The specific implementation varies by individual.
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