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did a lot of ‘soul-search<strong>in</strong>g’, concerned that<br />

Blue Girl’s customers would react adversely<br />

to chang<strong>in</strong>g the character and taste of<br />

the beer.<br />

YET YOU WENT AHEAD AND BASICALLY<br />

NEVER LOOKED BACK.<br />

The move to Korea allowed us to change how<br />

we did th<strong>in</strong>gs <strong>in</strong> the past. We felt that mak<strong>in</strong>g<br />

this change wasn’t a big risk for us. Up to<br />

that time, it was a m<strong>in</strong>ute bus<strong>in</strong>ess. So, we<br />

decided to go ahead.<br />

Almost immediately, there were three<br />

benefits:<br />

• Our cost of goods improved<br />

• The beer was fresher<br />

• We took the opportunity to optimize the taste<br />

to better suit the local Ch<strong>in</strong>ese consumer. It<br />

was stilled brewed <strong>in</strong> the German tradition<br />

but was adjusted to be slightly milder <strong>in</strong><br />

taste<br />

critical market<strong>in</strong>g elements, such as<br />

choos<strong>in</strong>g the popular hit ballad “Wait<strong>in</strong>g for<br />

a Girl Like You” by Foreigner to accompany<br />

Blue Girl Beer ads.<br />

The results were that we grew to 5%, 10%<br />

and then 20% of the market – which took<br />

about 20 years<br />

YOU SELL BLUE GIRL ALMOST<br />

EXCLUSIVELY IN GREATER CHINA. HOW<br />

DO OTHER MARKETS COMPARE WITH<br />

HONG KONG?<br />

We’ve been <strong>in</strong> Taiwan for about 10 years.<br />

It’s similar <strong>in</strong> some ways to Hong Kong <strong>in</strong><br />

past, dom<strong>in</strong>ated by one brand – Taiwan<br />

Beer – and one import, He<strong>in</strong>eken. While<br />

the market is grow<strong>in</strong>g, it’s not been<br />

exponential.<br />

Blue Girl also has moved <strong>in</strong>to southern<br />

Ch<strong>in</strong>a, but took a conscious decision<br />

not to be a national brand – compet<strong>in</strong>g<br />

“We had to ask ourselves whether this was a bus<strong>in</strong>ess we were serious about<br />

or whether it would just go down <strong>in</strong> the annals of someth<strong>in</strong>g we did for a while.<br />

THE DECISION WAS MADE TO BE MORE<br />

SERIOUS ABOUT IT,” says Hennig.<br />

FOLLOWING THAT MOVE, BLUE GIRL, WHICH<br />

WAS VIRTUALLY UNKNOWN PREVIOUSLY,<br />

GREW RAPIDLY IN HONG KONG. HOW DID<br />

THAT HAPPEN?<br />

San Miguel, with about 60%, and Carlsberg<br />

(10-15%) dom<strong>in</strong>ated the market <strong>in</strong> the 1990s<br />

and fought ‘hammer and tong for market<br />

share.’<br />

We took a ‘slow and steady’ approach,<br />

focus<strong>in</strong>g on local, not expat, Hong Kong<br />

consumers. It was mostly sold <strong>in</strong> Ch<strong>in</strong>ese<br />

restaurants and <strong>in</strong> big bottles, and was<br />

popular at wedd<strong>in</strong>gs. It’s only <strong>in</strong> recent years<br />

that we’ve started to market more extensively<br />

to Western-style restaurants, pubs and<br />

karaoke bars.<br />

The brand was managed by an highly effective<br />

Jebsen executive, who had patience and<br />

good <strong>in</strong>st<strong>in</strong>cts. He and his team added some<br />

with the Ts<strong>in</strong>gdao’s, Snow’s, Harb<strong>in</strong>’s,<br />

etc. At the same time, Jebsen has<br />

noticed the development of ‘pockets’ of<br />

premiumisation <strong>in</strong> Ch<strong>in</strong>a; appreciation of<br />

quality beer, as well as w<strong>in</strong>e, that helps<br />

brands like Blue Girl. This means that<br />

Blue Girl has done well <strong>in</strong> Fujian prov<strong>in</strong>ce,<br />

especially <strong>in</strong> and around Xiamen, and<br />

Guangdong, where Jebsen focuses its<br />

attention.<br />

Throughout Greater Ch<strong>in</strong>a, Blue Girl now<br />

sells around 7 million cases a year, which<br />

represents progress but only a drop <strong>in</strong> the<br />

bucket <strong>in</strong> the Ch<strong>in</strong>a market.<br />

Go<strong>in</strong>g forward, we will cont<strong>in</strong>ue to<br />

concentrate on Greater Ch<strong>in</strong>a – and are<br />

quite happy with that. We’re better off<br />

be<strong>in</strong>g <strong>in</strong> three markets and do<strong>in</strong>g them<br />

well. n<br />

IMA ASIA CEO DIALOGUES<br />

AUTUMN 2015<br />

14

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