Supply Chain---Tingtao Beer Essay

4701 Words Jun 8th, 2008 19 Pages

Course Code: OMGT 1021
Course Name: Supply Chain Principles
Date of Submission: 13/10/2006

Executive Summary 4
1. Introduction 6
1.1 Investigation 6
1.2 Objectives 6
1.3 Assumptions 7
1.4 Scope 7
2. Current Situation 8
2.1 Tsingtao brewery-marketing and business strategy 8
2.2 Tsingtao brewery-supply chain policy and strategy 9
2.3Tsingtao brewery-supply chain management…………………………………………….11
3. IssuesIdentified 12
3.1 Distribution network 12
3.2 Information flow 13
3.3 Inventory level 14
4. Analyses 15
4.1 SWOT Analyses---the current situation of Tsingtao beer supply chain 15
4.1.1 Strengths: 15
4.1.2 Weaknesses: 15
4.1.3 Opportunities: 16
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Today, the Tsingtao Brewery itself has grown from four breweries in 1996 to 48 around 17 provinces. The Tsingtao brand is sold in more than 50 countries worldwide and accounts for more than 50 percent of China’s total beer exports. Also Tsingtao has become the number-one branded consumer product exported from China in the world (wikipedia 2006). South China Division is one of the most successful sub-offices in Tsingtao Group. Its turnover revenue was $3.5 billon in 2004 which is one third of the total sales in Tsingtao Brewery.

Tsingtao Brewery marketing strategy focuses on middle-class customers, compared with Budweiser, Carlsberg and Asahi beer companies which are focus on the high-class customers in China. Most Chinese like Tsingtao beer because it is the traditional brand with a competitive price and they enjoy the flesh taste.

Innovative marketing strategies clearly drive a business. As such, the Tsingtao Brewery marketing program is not simply about beer. The aim is to enhance the customer’s experience, and build the real fresh beer concept for people and encourage people to choose Tsingtao beer as the first choice. According to product shelf life of beer is only six months, the most important of marketing strategy in Tsingtao Brewery is “keeping the product fresh” and “Just In Time” delivery to the ultimate customers (Tsingtao 2006).

A key business strategy for Tsingtao Brewery is using

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