An Empirical Analysis Of The Influence On Liquor Companies' Performance Due To The Market Concentration,the Density Of Advertising

The development of liquor industry can not only alleviate employment pressure,also can drive the development of related industries,such as agriculture,machinery manufacturing,and promote the development of the national economy.Therefore,the development of liquor industry is taken seriously by the national government.Liquor industry attracted a lot of companies to involve in due to its great profits.Financial and technical barriers to entry is not high,leading to numerous industry enterprises,the quality of products is intermingled and market order confusion.Countries put forward the order of integration of liquor market,by improving market concentration of reasonable limit to improve the market structure.The government also has carried on the strict control to liquor product price which leads to non-priced strategies competition between enterprises increased.The liquor enterprises attach great importance to advertising behavior.Liquor enterprises faced with the situation of market structure adjustment and advertising competition intensely.In this complex and competitive market environment,the government implement scientific control measures and the enterprises choose the appropriate promotion strategy to make the liquor market to maintain the benign competition,enterprises to obtain sustainable competitive advantage.Therefore,it is a realistic significance to make studies on Chinese liquor enterprise performance due to the market concentration,advertising.Market concentration is the reflection of liquor enterprise competition environment,which is an important factor determining the performance of the enterprise,the government usually make use of policy means to build a scientific and reasonable competitive environment as much as possible.Companies need to choose a suitable competition strategy to improve corporate performance,in liquor industry,advertising strategy is the most common means of competition.Accordingly,liquor enterprise performance affected by the market concentration and advertising behaviors under two aspects of external and internal environment.This article chooses the relevant data of liquor industry and the listed companies from 2008 to2015 to do the empirical analysis,.Using Eviews6.0 software for data analysis to do the study.In order to provide theoretical reference for relevant structure adjustment policy and to provide guidance for the liquor enterprise competitive advertising strategy.Through the empirical analysis results showed that liquor market competition situation belongs to the monopoly competitive,the level of market concentration is low,the product has the differences,the barriers to entry the industry is low.Liquor-making enterprises spending on advertising expenses amount is huge in recent years,which brought certain pressure to the enterprise development,so the enterprise comprehensive performance declined.The regression analysis seems that liquor market concentration has positive promoting effect to the enterprise performance,so the policy to encourage mergers and reorganization and moderate increase concentration can increase profits;Advertising density had a negative correlation with enterprise performance,even if the advertising can promote the brand image,but at the same time also can make negative impact on performance;Liquor enterprises should pay attention to a reasonable grasp the advertising expenses and the proportion of sales,take serious on the guiding role of the optimal advertising density,and adjust the level of advertising reasonably.