LIDU LIQUOR CO. LTD.: IMMERSIVE EXPERIENTIAL MARKETING
CASE STUDY SOLUTION
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SYNOPSIS
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Liquor was one of the most familiar traditional products for Chinese consumers. However, with the rise of
the middle class and the arrival of the Internet, igniting consumer passion for traditional products became
an arduous challenge for liquor distillers.
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Under the leadership of Tang Xiangyang, general manager of Lidu Liquor Co. Ltd. (Lidu), Lidu had
gradually won consumers’ attention and even generated industry news through its immersive liquor
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marketing strategy, which had been in place since 2014. Tang once summed up his company’s approach to
immersive experiential marketing in the following way: “Marketing relies on the scene, consumption
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So
The Case Solution Starts From page 6
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ASSIGNMENT QUESTIONS
1. What factors drove Lidu to choose an immersive experiential marketing strategy?
2. What are the key characteristics of Lidu’s immersive experiential marketing strategy?
3. How does Lidu’s immersive experiential marketing respond to the consumer becoming more
important?
The Case Solution Starts From page 6
,4. How does Lidu’s immersive experiential marketing achieve the goals of integrating off-line experience
and online communication?
5. Review Lidu’s experiential marketing through the lens of strategic or marketing theories.
6. Should Lidu’s immersive experiential marketing expand from off-line to online? Why? How?
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ANALYSIS
1. What factors drove Lidu to choose an immersive experiential marketing strategy?
The Case Solution Starts From page 6
,3. How does Lidu’s immersive experiential marketing respond to the consumer becoming more
important?
In response to the arrival of the era of consumer sovereignty, Lidu has taken a series of measures to pull
consumers in closer, strengthen communication, and meet consumers’ needs.
Using the group structure created under Assignment Question 2, the instructor can invite each group to
describe to the class one initiative from Lidu’s immersive experiential marketing process. The instructor
can then emphasize how Lidu responds to the new era of consumer sovereignty in China.
e
Liquor is a traditional product in China, and every significant brand has its own history and story. However,
consumers already know the culture, brands, and stories commonly used to promote liquor and have begun
pl
to ignore overt marketing messages. With the shift in buying power as well as the importance consumers
place on brands, companies need to find ways to differentiate themselves. Even for Lidu, extensive
m
historical heritage alone is not, by itself, sufficient to guarantee the brand’s success.
As a “small but beautiful” enterprise, Lidu must first start by convincing a small number of influential
Sa
consumer groups. For this reason, Lidu has cultivated a group of loyal consumers through a series of
innovative experiences in liquor culture.
In recent years, China has given rise to a new middle class. This population is between the ages of 25 and
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tio
lu
So
The Case Solution Starts From page 6
, EXHIBIT TN-1: REASONS FOR LIDU’S CHOICE OF IMMERSIVE EXPERIENTIAL MARKETING
The distillery workshop site from the Yuan dynasty period
Historical and Cultural Factors
Liquor history and culture
The DBP plasticizer scandal
Political and Legal Factors
The ban on “three public expenses”
Competitive Factors
e
pl
m
Sa
n
tio
lu
So
The Case Solution Starts From page 6
CASE STUDY SOLUTION
e
pl
m
SYNOPSIS
Sa
Liquor was one of the most familiar traditional products for Chinese consumers. However, with the rise of
the middle class and the arrival of the Internet, igniting consumer passion for traditional products became
an arduous challenge for liquor distillers.
n
Under the leadership of Tang Xiangyang, general manager of Lidu Liquor Co. Ltd. (Lidu), Lidu had
gradually won consumers’ attention and even generated industry news through its immersive liquor
tio
marketing strategy, which had been in place since 2014. Tang once summed up his company’s approach to
immersive experiential marketing in the following way: “Marketing relies on the scene, consumption
lu
So
The Case Solution Starts From page 6
, e
pl
m
Sa
n
tio
lu
So
ASSIGNMENT QUESTIONS
1. What factors drove Lidu to choose an immersive experiential marketing strategy?
2. What are the key characteristics of Lidu’s immersive experiential marketing strategy?
3. How does Lidu’s immersive experiential marketing respond to the consumer becoming more
important?
The Case Solution Starts From page 6
,4. How does Lidu’s immersive experiential marketing achieve the goals of integrating off-line experience
and online communication?
5. Review Lidu’s experiential marketing through the lens of strategic or marketing theories.
6. Should Lidu’s immersive experiential marketing expand from off-line to online? Why? How?
e
pl
m
Sa
n
tio
lu
So
ANALYSIS
1. What factors drove Lidu to choose an immersive experiential marketing strategy?
The Case Solution Starts From page 6
,3. How does Lidu’s immersive experiential marketing respond to the consumer becoming more
important?
In response to the arrival of the era of consumer sovereignty, Lidu has taken a series of measures to pull
consumers in closer, strengthen communication, and meet consumers’ needs.
Using the group structure created under Assignment Question 2, the instructor can invite each group to
describe to the class one initiative from Lidu’s immersive experiential marketing process. The instructor
can then emphasize how Lidu responds to the new era of consumer sovereignty in China.
e
Liquor is a traditional product in China, and every significant brand has its own history and story. However,
consumers already know the culture, brands, and stories commonly used to promote liquor and have begun
pl
to ignore overt marketing messages. With the shift in buying power as well as the importance consumers
place on brands, companies need to find ways to differentiate themselves. Even for Lidu, extensive
m
historical heritage alone is not, by itself, sufficient to guarantee the brand’s success.
As a “small but beautiful” enterprise, Lidu must first start by convincing a small number of influential
Sa
consumer groups. For this reason, Lidu has cultivated a group of loyal consumers through a series of
innovative experiences in liquor culture.
In recent years, China has given rise to a new middle class. This population is between the ages of 25 and
n
tio
lu
So
The Case Solution Starts From page 6
, EXHIBIT TN-1: REASONS FOR LIDU’S CHOICE OF IMMERSIVE EXPERIENTIAL MARKETING
The distillery workshop site from the Yuan dynasty period
Historical and Cultural Factors
Liquor history and culture
The DBP plasticizer scandal
Political and Legal Factors
The ban on “three public expenses”
Competitive Factors
e
pl
m
Sa
n
tio
lu
So
The Case Solution Starts From page 6
