从地区酒厂向全国品牌迈进的蓝色神话：洋河股份的异军突起

This case explores the factors contributing to the success of Yanghe Distillery, a rising star of the Chinese baijiu industry. Yanghe was a renowned state owned enterprise with a history of more than 400 years. However, the company began to decline in the middle of 1990s due to its aging products, poor management and inefficient distribution. A turning point for the company came in 2003 when Yanghe marketed a breakthrough new product: “Blue Classics”. The product, characterized by a smooth taste and a modern charm, triggered explosive growth in Yanghe during the next decade. Between 2004 and 2011, sales revenue increased from RMB 417 million to RMB 12.74 billion while net profits rose from 150 million to RMB 4.02 billion, representing a CAGR of 62% and 123% respectively. In addition, Yanghe became the third baijiu enterprise whose annual revenue surpassed RMB 10 billion, following behind industry giants Moutai and Wuliangye. The rise of Yanghe came down to its innovation capability: 1) “Blue Classics” was a breakthrough in technology and taste; 2) Yanghe introduced a modern drinking culture; 3) Yanghe utilized a new business model to set up an elaborate distribution network; 4) equity ownership greatly motivated the managers to work hard. However, Yanghe also faced problems like insufficient capacity, declining public trust, rising sales and marketing costs, and an inadequately clear strategy for further development.