Promotions play an important role in
Chinese outlets.
Guangzhou
The office in Guangzhou in
Southern China was opened in mid-
November last year in the traditional
Chinese manner. After the customary
ribbon had been cut, Export Director
Frank van der Minne, Regional
Export Director Jack van Herpen, and
Regional Manager Southern China
S.K. Chan, who heads the new office,
officially opened the office by painting
the eyes, nose and mouth of a dragon.
The dragon then came to life and per
formed a dance, as a result of which
prosperity was as it were 'won by
force' for the new office.
In the South of China Heineken's
position is significantly stronger than
in the Shanghai region. Compared
with Shanghai, the positioning of the
brand is at an advanced stage thanks -
yet again - to many promotions. The
promotions team was set up and
works under the inspirational
leadership of S.K. Chan. "On average
we hold ten promotions each evening,
seven nights a week in the A-class
and B-class outlets. Every Sunday
night, for example, we hold a promo
tion at JJ's. Especially popular with
consumers are the scratch card and
the Black Jack card game. The first
prize may be a Heineken cooler, the
second prize a money belt, and then
there are smaller items like pens and
lighters. Articles like that are very
much sought after amongst the
public. But we do make sure that the
prizes we offer are regularly changed
so that we retain the public's inter
est", explains S.K. Chan.
Another factor that helps to gener
ate more favourable sales figures for
Heineken in Guangzhou compared to
Shanghai is the local climate. Shang
hai, situated more to the north, is
clearly more prone to seasonal in
fluences. In the summer beer con
sumption is significantly higher than
in the winter season. These climate-
related differences do not apply to
Guangzhou.
One of the reasons why Heineken
is doing well in Guangzhou is the
local spending power. China's Gross
National Product amounts on average
to some 400 US dollars per capita. For
Guangzhou this GNP is already as
high as 1,200 dollars. The greater part
of this income can be spent on food,
drink and luxury goods, since there is
no need to set aside money for hous
ing, medical care or schooling. Most
of these costs are borne by the
government.
Anyone who wants to do business
in China must devote a lot of time and
energy to maintaining relationships -
just as in other Asian countries. You
cannot seal a business deal in five
minutes; first there is a long period of
getting to know each other's views.
Good contacts with the govern
ment are of pre-eminent importance.
This is due to the national culture but
also to the absence of watertight legal
rules in the business area. The laws
in China are currently still open to
various interpretations and this can
sometimes give rise to confusion.
Securing the right positioning for
Heineken in China will involve many
years of hard work; a lot of time,
energy and money will have to be
invested in communicating to the
consumer what Heineken Beer really
is. Or, as Philip Chung, Manager for
Shenzhen, puts it: "We have to edu
cate the people about Heineken."
25
The ribbon-cutting ceremony. Extreme left, S.K. Chan, manager of the Guangzhou office.
Area export manager Eric Nelissen paints
the mouth of the dragon during the opening
of the Heineken office in Guangzhou. This
symbolic act 'wins' prosperity for the new
office.
THE WORLD OF HEINEKEN
