Marketing Strategy Study For A.O. Smith Water Heater In Chinese Market

Since 1970s, water-heater industry became the one that increases fastest among the household appliances. In China, the investment on household appliances keeps a high developing speed, while water-heater industry keeps the strongest impetus among the household appliances. Nowadays, in our country's household appliances market, water-heater industry has more brands than any other household appliance. The statistics shows that there are 300 more brands in 1996 and 200 more in 2004. And these brands compete violently.Under such circumstances, A.O. Smith Company completely foresaw the potentiality of Chinese market and employed the resources of the company's activities to found a solid basis in 1998. The foundation of A.O. Smith Company in China is the most important part of strategy which American A.O. Smith Company seizes the market share of Chinese water-heater and develops the Chinese market.How to formulate the effective marketing strategy that accords with the features of water-heater at home according to the marketing theory, will have key significance on which China A.O. Smith Company promotes the competitive status of superior market. Further more, it affects on the survival and development of A.O. Smith Company in China.The study of this thesis is to analyze the outer surrounding and interior marketing situation of A.O. Smith water heater carefully to find out the weakness existing in marketing work, and to put forward effectively the marketing strategy to direct practice, and also to increase the sales volume of A.O Smith water-heater in China violently.Firstly, this thesis introduces the developing background of Chinese water-heater industry, describes the current situation of that industry and supplies the basis for market analysis, strategy analysis. Secondly, this thesis analyzes the water-heater market from three aspects, I.E, market needs, customers'behavior and market competition. This analysis makes clear the status of the A.O Smith water-heater among the customers and competition. Thirdly, this thesis makes market segments and puts forward A.O Smith Company's status in Chinese water-heater market. Finally, according to these analyses and the current marketing station of A.O Smith Company, this thesis makes out a series of new marketing strategies, including product strategy, price strategy, place strategy and promotion strategy.