By: Yuanjing Consulting Project Team

As the baijiu industry gradually enters a period of deep adjustment, competition among baijiu brands in various regional markets is intensifying. Regional baijiu brands not only face competition from other local brands but also from second- and third-tier baijiu brands. To build their own niche market barriers, regional baijiu brands must deepen their presence in niche markets and continuously push down into markets and channels. Building model township markets is crucial for thoroughly penetrating township markets.

I. Characteristics of Township Markets

1. Obvious seasonal consumption: In township and rural markets, the main consumers of baijiu are migrant workers who only return home during the two major festivals (Spring Festival and National Day). Therefore, baijiu consumption in townships is concentrated during these festivals, with Spring Festival being the golden period for baijiu sales.

2. Consumption structure is 'dumbbell-shaped': Since the main labor force works away from home, those left behind are mainly the elderly, weak, sick, disabled, and children. This group has limited income sources, so their baijiu consumption is low-end, typically around 10 yuan per bottle for simple bottled liquor. During the festivals, when migrant workers return, there is more visiting and wedding celebrations, leading to higher consumption volume and higher-end products.

3. Banquet consumption is the main driver of township baijiu consumption: Since daily consumption is low, the concentrated consumption during festivals is mainly for weddings and other events. There is a strong tendency to compare with others; if one family uses a certain baijiu brand at a banquet, relatives and friends will often choose the same brand to maintain consistency in quality and ensure safety based on previous tasting experience.

II. The '5 Ones' Project for Building Model Markets

1. The first '1' refers to selecting one core distributor in each township: Each township typically has 2-3 influential secondary wholesalers who focus on that township area. From these, choose one distributor with high brand recognition and strong market operation enthusiasm as the exclusive distributor for that area.

2. The second '1' refers to assigning one dedicated salesperson to manage the model township: Building a model township requires dedicated personnel. Assign one salesperson responsible for the operation of the model township, mainly maintaining key hotels and key retail stores.

3. The third '1' refers to having only one core retail store in each administrative village: Township retail stores generally require exclusive distribution in a small area, especially for new products. Since new products have non-transparent pricing, exclusive distribution in a small area allows for profit while avoiding the risk of high-price sales. Therefore, for village-level markets, select a retail store with strong sales capability as the exclusive retail point for that administrative village. Such exclusive dealerships often lead to higher sales enthusiasm and facilitate product cultivation in the village market.

4. The fourth '1' refers to having at least one outdoor advertisement in each sales sub-area: As a model township, creating a good market atmosphere through media is essential for product popularity. Through point-based placement of outdoor wall spray-painted ads and storefront outdoor ads, since the township area is small, it is easy to form a good market atmosphere across the area.

5. The fifth '1' refers to developing one opinion leader in each village: Opinion leaders are crucial for the early cultivation of baijiu brands. In selecting opinion leaders at the village level, mainly choose village chiefs or party secretaries, or those who have influence in organizing banquets (usually there are people in each township who specialize in arranging banquets). Through continuous public relations with opinion leaders, build their goodwill towards the brand and create a guiding effect.

Good strategies cannot be separated from a highly capable execution team. As the baijiu industry has developed to this day, it is difficult to achieve unique innovation in any single point. Only by solidifying market foundation work, and at the promotion level, through more precise marketing to target consumer groups and improving resource efficiency, can we avoid elimination in the face of new challenges.

Source: Yuanjing Consulting (ID: yjzixun)

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