Tobacco Asia

Volume 20, Number 4

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52 tobaccoasia / Issue 4, 2016 September / October by other tobacco manufacturers, the five new products of the Jinsheng brand including Tengwangge have been quite well received at the marketplace over the past few months. While continuing to develop and present new ciga- rette products, CT Jiangxi also makes efforts to develop new series of products – mainly the Tengwangge series, the Qinghuaci series, and the Ruixiang series. All are named after well-known cultural or historical heritage of Tengwangge (which literally means the pavilion of Prince Teng -- one of the three great towers of southern China), Ruixiang (Daphne odora – a well-known local product), and the blue and white porcelain that can be attributed to Jiangxi and of which the people there are proud. Development of four major systems under guidance of leading line It was Yao Qingyan, leader of CT Jiangxi, who defined the guideline for the company's future development. "Our leading line is to strive to explore a path suitable for our development based on continuous investigation and research and practice." To meet the increasingly intense competition in the market and sharpen its competitive edge, starting in 2015 CT Jiangxi focused its energy on promoting the development of the company's four major systems of raw materials supply, research and development, manu- facturing, and marketing, in order to upgrade the defini- tion of the Jinsheng brand family, and also upgrade the products, image, and values of the brand. In terms of raw materials supply, CT Jiangxi adhered to selecting the best among high-quality raw materials, and designated new raw materials production areas. As a result, the company has four new exclusive high-quality raw materials production and supply bases one each in Jiangxi, Yunnan, Hunan, and Henen provinces. In terms of research and development, CT Jiangxi upgraded the production of its 10 existing products, supplied 3 new classic products, and presented 4 new products to the market. It is also developing a series of high-quality products. In terms of manufacturing, the company designated its affiliated Nanchang Cigarette Factory as the lead- ing manufacturer of Jinsheng with cigarette factories in Ganzhou, Jinggangshan, and Guangfeng supporting it. These four cigarette factories have made great efforts to stabilize product quality, improve production technol- ogy, cut costs, and reduce the consumption of raw mate- rials, achieving remarkable successes. Where did the company's current confidence in sharpening its competitive edge in the market come from? Actually, it originated from the development of new Jinsheng, which has gone beyond the pattern of developing new products by categories, with energy di- rectly focused on specific products rather than catego- ries of products. Whenever people talk about Jinsheng, they will naturally recall that they look good, taste good, and sell well. Strength of naming products after cultural sights or heritage In the eyes of CT Jiangxi, the cultural and historical heri- tage that inspired the names of the products are yet an- other positive attribute of the brand. The development of the Tengwangge series cigarette products was a first step taken by the group in naming its products after fa- mous cultural or historical heritage to back sales promo- tion. As one of the three great towers of southern China, Tengwangge is not only an ancient architecture, but is also part of the cultural and history of the province, with much cultural potential yet to be tapped. Therefore, when consumers smoke an aromatic and tasteful Jin- sheng Tengwangge cigarette, the cultural and historical significance of Tengwangge will come to mind. So far, the three major series of the Jinsheng product line has basically been formed. In particular, the Teng- wangge series is a large-scale series, with Ruixiang be- ing the medium-to-high-end product, and Zhisheng the high-end product. Besides the family culture represented by Tengwangge, CT Jiangxi also tapped into the cultural significance of Ruixiang and blue and white porcelain. Besides efforts to promote sales by means of asso- ciation with cultural and historical heritage, CT Jiangxi makes use of rapidly developing modern telecommuni- cation technology, namely mobile internet, by introduc- ing marketing on the WeChat app system, marketing within social circles, and with two-dimensional codes to publicize its brands and improve its corporate image, which is yet another major characteristic of the compa- ny's efforts to present new products to the market, and which means a great new change. From the company's four major systems, the systems of raw materials supply, research and development, and manufacturing are an important guarantee for turning "good formulas into good products", while the system of marketing is a crucial step in turning "good products into good commodities". It is remarkable that CT Ji- angxi has chosen association with cultural and historical heritage as a new path of development and that it has combined this with the use of modern telecommunica- tion technology to promote sales. In inspecting the tobacco industry of Jiangxi in No- vember 2014, STMA director-general Ling Chengxing proposed that the tobacco industry of Jiangxi meet the target of increasing its annual cigarette sales to 2 mil- lion cases (100 billion cigarettes), increasing its annual leaf tobacco output by 2 million dan (100,000 tons) and increasing its annual amount of taxes and profits to CNY30 billion (US$4.6 billion), which is known as the "223" development target. With the "223" development target in mind, China Tobacco Jiangxi Industrial Co Ltd is at a new starting point. By means of promoting the transformation of Jinsheng through innovation-driven development, the company has found a new path of development compat- ible with intense competition in the market.

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