| This paper presents a case study using modern corporation marketing theories to analyze the sale strategy of Sumitomo(SHI)Cyclo Drive China,Ltd. in China.Firstly, it reviews the history of how Sumitomo Group established its wholly-owned company in China, then briefly analyses the background of its entering to China.Next, it describes the development of Sumitomo(SHI)Cyclo Drive China. The developing process can be divided into two stages. The first stage(1994-2001) focused simply on manufacturing. In the second stage(2001 till now), the company began to devote more resources to market exploring and sales promotion. As the result of lacking a definite sales strategy to guide choosing target market, marketing channel, consumer orientation and market promotion, the company display much misfit after its entering to China. Its market share in China falls far behind the figure worldwide.In the third part, I use PEST to analyze the current political, legal, economic, cultural and technical environment in China, then to predict the future development of China's reducer industry. After that, I adopt Michael Porter's five forces model to Sumitomo(SHI)Cyclo Drive China. In the context of the background in China, together with the company's current situation, I evaluate the company's strengths, weaknesses, opportunities, and threats, according to the SWOT analysis, and draw a comprehensive comparison. It comes to the conclusion that the company is entitled with great overall competitiveness, and it has advanced technologies and varieties of products. However, due to inadequate analysis of the market demand in China, the company didn't seize the opportunity, witnessing it grabbed by other competitors.Based on the above research and findings, through Chinese reducer market segmentation, I define the target market for Sumitomo Cyclo Drive China, and designed three strategies for different markets: to continue expanding in the current industry, to devote major efforts to the heavy industry, and to exploring new industries. Then, I elaborate on the potential market demand for current chemicals, numerically controlled machines, steels, coal and wind-driven generation. Based on that, I put forward that the sales strategy for target market should be a gradual process. For each of the above industries Sumitomo could enter, Sumitomo can differentiate its treatment of a certain industry according to its contribution to the company. I suggest it should fit customers into three different levels: the first level consists of those leading companies of their industries, the second level includes medium and large companies that can generate substantial profits, the third level is make up of small and medium companies that follow the market.Finally, I adopt the 4PS sales theory to analyze Sumitomo Reducer's current sales, evaluate its strategies on products, prices, channels, promotion, personnel and recommend plans respectively. As for the product strategy, Sumitomo should bring all its core products to Chinese market, enlarge its production scale in order to lower costs, continuously launch new high-end products to Chinese market, trying their best to meet high-end consumers' need in various areas and levels. As for the price strategy, it must take into account the ongoing competitions in the target market, customers' income levels and how much they are willing to pay, the market demand&supply and the production and sale costs. The company should set up different pricing system according to different customer categories. On the channel strategy, I discuss how to choose between direct sale and distribution sale depending on different products and customers. On promotion strategy, according to the features of reducer, I suggest using the combination of several "push" strategies. If we can implement this plan, will greatly promote the sale of Sumitomo Corporation... |
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