The Study Of Marketing Strategy On Baling Company's Caprolactam Product

Caprolatam is one of the three most important chemical fiber raw materials in the world which is extensively used in wool spinning, knitting, mechanical knitting, fishing and tire production and it plays a leading role in national economy. Though we started to produce it in our country from the early 50's, up to the year 1990 the domestic capacity was only more than 10,000 tons and due to the backward process the actual capacity was less than 10,000 tons. The import quantity was up to 90 percent of the total domestic demand .in order to relax the tension of short supply, in the 90's of the last centaury our country imported in succession advanced foreign technology and invested in the construction of three large scale caprolactam plants and now the domestic production capacity per year has reached 170,000 tons and Sinopec Baling company is the biggest caprolactam production base in the country.Despite the rapid growth of caprolactam industry in our country, the demand for caprolactam is increasing at the speed of about 10% due to the even fast growth of its downstream industries, while we can only supply about 30% domestically. On the other side the great quantity of imported caprolactam leads to extremely strong competitions in the domestic market and the factories at home were totally at loss under such impact .In the recent years foreign caprolactam poured in with low price and by this means the foreign companies seized massive market shares and caused the domestic caprolactam price fell down continuously. And as a result the domestic factories were suffering heavy losses year after year. Thus the newly developed caprolactam industry was facing threat of shutdown. With Baling company in the lead the domestic companies jointly started the work of anti-dumping and after 4 years of appeal and investigation the domestic companies finally won the case in June 2003 .At the same time as affected by the increase of oil and other factors the caprolactam price is rising and it gives new opportunity for the development of the caprolactam industry in our country.It is necessary to accelerate the development of domestic caprolactam industry, but as the productrion itself contains high technical know-how and the investment cost is rather high we must be cautious in planning, and this is also an important reason why there are very few constructions in recent years. After many years of research and development and absorbing and digesting of foreign advanced technology onecomplete package of new technology for caprolactam production has entered into a commercial phase and it is a joint work of some famous scientific research and design institutes and universities with Baling caprolatam plant as a main basic body. And it is estimated that the construction of this caprolactam plant based on our own intelligence property technology and designed and developed on our own will be completed and started in the year of 2005. With this plant we don't have to depend on a complete import of resources and we have also filled the domestic blankness of the production process and it has build a solid foundation for increasing of our country's international competitive power in the caprolactam industry.Now the market of caprolactam is going an up way and it provides excellent opportunity for the caprolactam enterprises at home to extend their business and to make themselves bigger and stronger. And Baling caprolactam plant with its advanced technology has the most powerful competitive advantage in developing its business, but it has to make more affords in the work of marketing and to bring forth original ideas in marketing strategies. It must study both the domestic and international market distribution and characteristics and get to know more of its competitors study their marketing strategies especially that of big foreign enterprises, strengthen communication with its clients attach importance on the relationship with the government, trade association and other organizations and departments and to apply the theory. Of 4P, 4C, 4R reason...