Research On The Design Of Distribution Channel Of National Paint Company

In market economy, enterprises marketing activities must aim to satisfy requests of target market, afford excellent and rapid service and maximize customer delivered value. With the change of market environment,competition in paint industry trends to be international, more and more imported brand occupies high-level paint market owing to its high-quality products and good market operation. On this occasion, competition in paint industry depends on the competition on market channel, brand and service, not on products, technology and price any more. Therefore, our national brands should upgrade channel value and competitive ability through good brand and service.The market possession rate of national paint brand continues to reduce since Valsper merged Huarun brand in 2006, so national paint brand faces a grim situation how to survive and develop in drastic market environment. This paper analyzes advantage, disadvantage, opportunity and threat in national paint industry by means of SWOT and five-power model by Michael Porter.The imported paint brand precedes in its reliable brand and advanced distribution channel, especially Nippon paint already becomes leading brand in Chinese paint market because of its channel strategy. This paper analyzes the distribution channel requirements in paint industry and gives an example case of Nippon paint, then puts forwards the factors on designing channels in paint industry. In the following, this paper reviews the means of designing channel structure from the four aspects of market, products, dealers and enterprises, then chooses the best structure and channel members through scientific methods. Finally, this paper gives a narration on how to manage distribution channel effectively.