Case study: Blue Ribbon
In 1980s, Blue Ribbon landed in China, and began his far[]flung,
resplendent and tortuous journey. He once succeeded but at last
failed.
Product analysis
(1.) Blue Ribbon belonged to high[]end products.
Blue Ribbon declared itself as foreign high[]end products when it join
the Chinese beer market in 1994.
(2.) Unique quality
To serve the unique quality, Blue Ribbon introduced the American
production equipment, selected the high[]quality raw materials,
produced in the American ancient way. Its favor maintained the
standards of American Blue Ribbon which led the fashion of refreshing
style beer.
(3.) Completely localization of products
Different from other foreign beer brands which depended on import,
Blue Ribbon's production was totally localized. It established a
factory which could produce m250thousand tons of bear of different
kinds of package in Qiqing city.
Price analysis
As Blue Ribbon declared itself as the high[]end beer brand, it set
its target consumers on the class with high income and whiter[]color
workers. However, compared with other foreign beer brands, the prices
of Blue Ribbon were more suitable for the Chinese consumers. Its
market positioning was at higher than the Chinese high[]end brands but
lower than the other foreign high[]end beer brands.
Its price strategic had the following characteristics:
(1.) International brand, but local price
Although Blue Ribbon was the international brands, its local price
was suitable for the China's national conditions. People could enjoy
the charming of international brand by paying a affordable price,
which was also due to the local production.
(2.) Various price levels
The highest[]end products was 40yuan/can(355ml), and the
lowest[]end products was 3.25yuan/can(640ml)., which made fully use of
the power of product line pricing. The high[]end products promoted the
image of Blue Ribbon, and then the low[]end products met the
consumer's needs on the sale.
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