Case: Yunnan Local Market Development Of Hefei Meiling Corporation

Since 2000, with the rising of the sales volume and the market share of the foreign brands, and the increasing of the domestic brands, the refrigerator industry has already entered the era of tiny profit. The refrigerator competition in domestic market is becoming fiercer and fiercer. All refrigerator industries face to the challenges that never met before. From the feedback of market information, the degree of concentrating will be higher and higher, the brand structure of refrigerator industries has to accept the test of market. Now, the total volume of national home appliance market goes to saturation. The characteristic of high rate of family tenure, long life of home appliance, high degree of marketing concentrating, which lead to the increasing trend of the total market volume. The structure of market has no fundamental changes. How to improve market share on the basis of the share already segmented in every area, And how to obtain profits with the whole scale, which becomes a severe problem that all enterprises of the refrigerator must face to. According to the current situation of market competition, as a refrigerator manufacturing enterprises, we should pay more attention to the problem of how to face up and strengthen from the following aspects: product innovation, different price strategy, sales place and the promotion. Hefei Meiling Group (called for short as Meiling) is a state owned huge and important enterprise with diversification business including, electronics appliance, plastics, paper production, copper product, trading, hotel, Food manufacture, and R & D. on the 500 most profitable enterprise list for 9 consecutive years. It is rated No 3 out of101argest tax Contribution companies in general home appliance industry and 38th out of 500 most distinctive performance companies in Chinese industry. Meiling group gets the passport of exploiting the international market after getting the certification of ISO9001 and the ISO14001. It was given more than 400 awards such as "5.1 labor award","national distinctive quality enterprise and "Jinma National Distinctive award", issued by DNV Of Norway. In April 1997, Meiling was named the of national famous trade mark and became one of the most competitive brands in the electronic appliance market. The brand of Meiling lists in the most valuable brand in china and lists for the three position. During the 18 years development, Meiling group has come into being the strong trend of persistent development. Facing to the trend of global economy, in the period of transition of the economic structure and home appliance industry, Meiling group will be oriented by market, adjusting the working field, operating mode, product structure, making the allocation of resources and structure more reasonable, proving the ability of marketing. This case looks Meiling Corporation Yunnan branch as the background, facing to the current local market, the new manager Hu feels very worry. He realizes the company should strengthen the internal management, adopt the appropriate strategy and tactics, and get more support from the general company. First, the analysis of this case should be started from the environment, analyzing its characteristic, local consuming habit, industry competitive situation. Second, it points out problems in the branch and solve it. At the same moment, it should consider about the strategy used by the opponent. Finally, it should make sure the branch how to make use of the marketing combination to improve the market share in Yunnan. This case using the analysis way of marketing environment analysis, marketing combination and SWOT, as a regional market operator, through thedescription of the course that the Yunnan branch adjusts the selling project of the refrigerator, showing the tactics applied in regional marketing association, Summarizing the gain and loss of the prophase market operating, and planning the anaphase operating direction. Through the upwards analysis, according to the local market operating situation and self-advantages, Yunnan branch of Meiling company could strengthen the training of salesmen and terminal sales clerk, consolidate the internal management, establish reasonable task-distribution object, set down effective compensation system and prompt feedback system of market information, adjust product combination and price strategy, widen the market channel of the secondary market and the third market, reform and consummate the model of the promotion combination, so that makes the regional market state becoming better, finally achieves the goal of established market. On the aspects of managing salesmen, the branch should take every salesman's personal characteristic into account, and then carve up relevant distribution. The branch should allocate the object task soundly. It is the essential condition that the branch provides the operating way for the son-market, improving the personal diathesis, making full use of the activity of staff. On the aspects of pricing, when the branch establishes the basic price, it should think over the following aspects: relevant market segmentation, diversification of ultimate customer, action or response of the opponent's pricing, brand factor, cost factor, marketing channel strategy, product mix factor. On the aspects of marketing channel, when the branch decides to regulate the place strategy, it should take the following aspects into account: environment peculiarity, middleman, product peculiarity, organization peculiarity, competitor peculiarity, consumer peculiarity, place combined bythe retailing and wholesaling, which could strengthen the management of place effectively, reduce the place cost, increasing the sales. On the aspects of promotion mix, when the branch set down the plan, it should think of the following aspects: the market type of product, strategy of "pull "and "push ", the preparing phrase of buyers, lifetime cycle of product, market position of company. This case could be applicable for the MBA students and marketing manager of a company. During the text of the case, through the analysis of the internal and external environment, competitors, management of the internal flow, you could read the growing experience of a local market manager. During the using of the case, through the 6 thinking problems and relative analysis path, combining the management of salesmen, product mix, place construction, promotion combination, which involved in the text, as a manager of the local market, you could know how to find, analyze and solve the routine and outburst affairs.