Comprehension
The passage below is accompanied by four questions. Based on the passage, choose the best answer for each question.
Moutai has been the global booze sensation of the decade. A bottle of its Flying Fairy which sold in the 1980s for the equivalent of a dollar now retails for $400. Moutai’s listed shares have soared by almost 600% in the past five years, outpacing the likes of Amazon. . . . It does this while disregarding every Western marketing mantra. It is not global, has meagre digital sales and does not appeal to millennials. It scores pitifully on environmental, social and governance measures. In the Boy Scout world of Western business it would leave a bad taste, in more ways than one.
Moutai owes its intoxicating success to three factors—not all of them easy to emulate. First, it profits from Chinese nationalism. Moutai is known as the “national liquor”. It was used to raise spirits and disinfect wounds in Mao’s Long March. It was Premier Zhou Enlai’s favourite tipple, shared with Richard Nixon in 1972. Its centuries-old craftsmanship—it is distilled eight times and stored for years in earthenware jars—is a source of national pride. It also claims to be hangover-proof, which would make it an invention to rival gunpowder....
Second, it chose to serve China’s super-rich rather than its middle class. Markets are littered with the corpses of firms that could not compete in the cut-throat battle for Chinese middle class wallets. And the country’s premium market is massive—at 73m-strong, bigger than the population of France, notes Euan McLeish of Bernstein, an investment firm, and still less crowded with prestige brands than advanced economies. Moutai is to these well-heeled drinkers what vintage champagne is to the rest of the world.....
Third, Moutai looks beyond affluent millennials and digital natives. The elderly and the middle aged, it found, can be just as lucrative. Its biggest market now is (male) drinkers in their mid 30s. Many have no siblings, thanks to four decades of China’s one-child policy—which also means their elderly parents can splash out on weddings and banquets. Moutai is often a guest of honour.
Moutai has succeeded thanks to nationalism, elitism and ageism, in other words—not in spite of this unholy trinity. But it faces risks. The government is its largest shareholder—and a meddlesome one. It appears to want prices to remain stable. Exorbitantly priced booze is at odds with its professed socialist ideals. Yet minority investors—including many foreign funds —lament that Moutai’s wholesale price is a third of what it sells for in shops. Raising it could boost the company’s profits further. Instead, in what some see as a travesty of corporate governance, its majority owner has plans to set up its own sales channel.....
In the long run, its biggest risk may be millennials. As they grow older, health concerns, work life balance and the desire for more wholesome pursuits than binge-drinking may curb the “Ganbei!” toasting culture [heavy drinking] on which so much of the demand for Moutai rests. For the time being, though, the party goes on.
Question: 1

The phrase “would make it an invention to rival gunpowder” has been used in the passage in a sense that is

Updated On: Nov 24, 2025
  • synonymical
  • metaphorical
  • substantive
  • literal
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The Correct Option is B

Solution and Explanation

The phrase “would make it an invention to rival gunpowder” is used **metaphorically**. It's not a literal comparison; Moutai isn't an invention like gunpowder, nor is it used in similar ways. Instead, the metaphor highlights Moutai's significant cultural and economic impact, comparing its importance to that of gunpowder historically. Metaphors are common in writing to compare dissimilar things and emphasize certain qualities or effects.
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Question: 2

Which one of the following is both a reason for Moutai’s success as well as a possible threat to that success?

Updated On: Nov 24, 2025
  • Its appeal to the rich.
  • Chinese love of liquor filled celebration.
  • Government involvement in its business
  • Its appeal to the older age group
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The Correct Option is D

Solution and Explanation

Moutai's success is driven by factors that also pose risks. One such factor, as noted, is its "appeal to the older age group." This appeal is both a strength and a potential weakness because:
  • Reason for Success: Moutai appeals to older, financially stable individuals in China, many of whom are only children with more disposable income for luxury items like Moutai for celebrations.
  • Potential Threat: Relying on an older demographic is risky as societal preferences change. Millennials, who may prioritize health over heavy drinking, could reduce demand. The passage points out that millennials are shifting towards healthier lifestyles, potentially undermining the current demand for Moutai in traditional celebratory contexts.
Therefore, "Its appeal to the older age group" accurately reflects both the advantage and the inherent risk of targeting this market.
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Question: 3

In the context of the passage we can infer that to succeed in the liquor industry in China, a marketing firm must consider all of the following factors affecting the Chinese liquor market EXCEPT that

Updated On: Nov 24, 2025
  • there are few competitors to meet the demands of high end liquor consumers.
  • there is money to be made from marketing to the middle class.
  • the government may control the pricing of products.
  • the competition for winning over the middle class is very stiff.
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The Correct Option is B

Solution and Explanation

The passage explains Moutai's success in China's liquor market, attributing it to factors like nationalism, elitism, and ageism. To identify the factor a marketing firm *doesn't* need to consider for success, let's examine each option:
  • Few competitors for high-end consumers: The passage notes the premium market is 'less crowded,' suggesting limited high-end competition. This is a relevant factor.
  • Money from marketing to the middle class: The text states Moutai targets the super-rich, not the middle class, and mentions the 'cut-throat battle' for the middle market. Thus, revenue from middle-class marketing isn't a primary success driver.
  • Government price control: The passage highlights the government's role in pricing, marking it as a key consideration.
  • Stiff competition for the middle class: The difficulty of entering the middle-class market is explicitly mentioned, making it a significant factor.
Therefore, the factor ‘money to be made from marketing to the middle class’ is the correct exception. The passage indicates that targeting the middle class is not a profitable strategy for success in the Chinese liquor market.
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Question: 4

In the context of the passage, it is most likely that the author refers to Moutai’s marketing strategy as “the unholy trinity” because

Updated On: Nov 24, 2025
  • it exposes the firm to long term risks.
  • there is nothing holy about marketing techniques for liquor.
  • it contradicts the Western strategy of marketing.
  • it profits from Chinese nationalist feelings.
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The Correct Option is C

Solution and Explanation

Based on the passage, the author calls Moutai's marketing strategy "the unholy trinity" because it directly opposes established Western marketing practices. The passage notes that Moutai's success ignores typical Western marketing rules, as it's not global, has a small digital footprint, doesn't appeal to millennials, and scores poorly on environmental, social, and governance metrics. These aspects would usually be seen as disadvantages in Western business. Thus, "the unholy trinity" highlights a significant difference from Western methods and norms, emphasizing a unique yet effective strategy.
Evaluating the provided options:
  • It exposes the firm to long term risks. While risks are mentioned, they are not the direct reason for the "unholy trinity" label.
  • There is nothing holy about marketing techniques for liquor. This option doesn't specifically address the contrast with Western marketing.
  • It contradicts the Western strategy of marketing. This option perfectly matches the passage's focus on Moutai's deviation from Western norms, explaining the term.
  • It profits from Chinese nationalist feelings. Although this is part of the strategy, it's not the primary reason for the "unholy trinity" designation.
The best explanation for the term "unholy trinity" is that **it contradicts the Western strategy of marketing.**
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