On the Brand Extension Strategy of Moutai Corporation

This paper analyzes the brand extension strategies of Moutai, a geographic brand in Chinese white liquor industry. We analyze its industry environment and use a novel geography-strategy matrix model to appraise its existing brand extension strategies. As a result, we suggest that Moutai maintain its high-class image, walk off its current strategy of developing low-class products with Moutai brand, and abandon the category extension strategy of endowing its subsidiary products such as beers and wines with Moutai brand. Instead, the Moutai Corporation is better to simply hold the stocks of subsidiary companies producing those products.