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The Channel Strategy Analysis On The Fast Consumable Industry Of China

Posted on:2010-04-10Degree:MasterType:Thesis
Country:ChinaCandidate:J ZhangFull Text:PDF
GTID:2189360302966374Subject:Business Administration
Abstract/Summary:PDF Full Text Request
The aim of this essay is through the analysis on the fast consumable market potential power of our countries, the existing market pattern and the competition condition to discuss and conduct the research on the successful cases of international fast consumable companies to obtain a general marketing strategy which suitable for the fast consumable industry. The expectation of the essay is through the above analysis and research to enlighten the Chinese native fast consumable enterprises, advanced native brands and strengthened the competitive power of the fast consumable enterprises of our country.When writing this essay, the author mainly takes our country fast consumable market's present situation as the writing background to analyze. In recent years, the fast consumable market of our country grows rapidly , along with the unceasing improvement of people's living standard, specially increasing deepened fulfillment of the policy which benefits the farmers and villagers, therefore, more than 900,000,000 farmers' income level grew unceasingly brings the giant market inevitably for the fast consumable enterprises. Our country fast consumable marketing is developing together with the reform and open policy, after more than 20 years'development and evolutions, it has some foundations, but compares with the Multinational corporation, its foundation is still insufficient. Therefore, with the intense competition nowadays, the massive native enterprises are facing the danger of elimination day by day. Based on this situation, this article using systemic viewpoint and the method to summarize and analyze the basic marketing theory and the pattern of the fast consumable industry, and through the method of illustration which quotes the Pepsi Cola Corporation's successful marketing cases, to provide some advisory opinions with a more direct way to the marketing and management of the fast consumable enterprises of our country.More than 20 years-development of China's market economy is attracts worldwide attention, and the marketing is the key of the market economy development, take some fast consumable products as representative examples like food, drink, washing product ect. Because of the huge demand of the fast consumable products, early development of the market, the lowness of the entrance of the technical threshold, the high degree of the product homogenization, and the intense market competition, thus, the fast consumable industry has became the earliest and highest degree of marketized industry in China, and its 20-year marketing development and transformation are also the miniature of China reform and the marketization advancement. However, the innumerable successful and frustrated cases of the fast consumable enterprises occurred in the Chinese 9,600,000 square kilometers markets taught us a most vivid lesson. After the analysis on the present situation and the development of the fast consumable industry, the theory elaboration which was suitable for the fast consumable marketing strategy, as well as the deep research of Pepsi Cola's successful marketing cases, I obtain the following conclusion:1,At present, the domestic market of the fast consumable industry is huge and growing rapidly. The consumers (especially countryside consumers) purchases ability is enhanced, the domestic modern retail trade styles (including shopping malls, supermarkets, small supermarket and convenience store) are expanded, followed by the vigorous development of community stores, convenience stores, theme supermarkets like mushroom growing with the development of the municipal housing industry, meanwhile, the end consumers of internet are extended to the community. These promoted the fast consumable market to a great extent. Along with the living standards enhancement and the Chinese economy development, especially the farmer living standard's unceasing enhancement in the future, the fast consumable market will rise continuously and steadily at least 20 years, which provide integrated retail sales for the residents become industry demand.2,The competition in domestic fast consumable industry is intense day by day. Along with world economic fusion and the further development of Chinese economy, more and more overseas fast consumable companies enter into China; the market competition is intense day by day. This kind of competition not only shows on the intense public activities, not also shows on the contest of channels. Mainly including:1)The foreign brands raising the investment gradually in the domestic, the existing space of the domestic brands are squeezed out.2)The share which held by modern channel grows day after day; The traditional channel has the tendency of decline.3)The competition of the city market become more and more intense between the manufacturers, meanwhile, the trend continuously extends to the villages and counties.4)Although the market shares of products which made by small retailers still small, the trend is increasing.5)The consumers have more choice spaces, and the loyalty to brand or retail shops are dropped.6)The consumers more and more influenced by the marketing activities of the retailers.7)The manufacturer and the retailers start to pay great attention on the studies of the consumers.3,Because the fast consumable has three essential features, they are the shopping request of convenience, the vision wellness, and the low consumer brand loyalty; These had decided the buying habits of consumers to the fast consumable products: Simpleness, rapidness, impulsion, geist. Therefore, the brand popularity plays an important role in the fast consumable products'sale, thus it had decided that the first key point in the fast consumable marketing strategy is the brand establishment, maintenance and development.4,The fast consumable marketing in China is the most representative outcome during the progress of economy development. The fast consumable products have become the earliest and highest degree of marketized industry in China. Looking over the fast consumable industry during the 20-year marketing development and the transformation, it has experienced three stages approximately in the developing process: The first stage was from the early 80s to the middle of 90s, it belonged to the marketing initial period, mainly depended upon the products and the advertisements to break up the market; The second stage was from the middle of 90s to 2002, it belonged to the marketing growth period, mainly depended upon the scale and the sales channel; The third stage is from 2002 until today, it belonged to the marketing mature period, mainly depended upon the marketing innovation and the brand. According to sale systems and channel pattern, it mainly formed five kind of fundamental modes: the dealer management system; the system of enter, sale and storage; sell assistant system; senior dealer management system and direct sale system.5,Taking a comprehensive survey on the entire fast consumable industry, there are four factor which affects success:1)Through retailing network with high coverage rate and many kinds of channel coexisting to approach the consumers, and to achieve high coverage rate; 2)Reasonable retailing pattern and effective channel control and management; 3)Marketing organization which take the formidable marketing function as the guidance realizes the sale and marketing effective coordination; 4)Brand popularity promotion, marketing efficiency promotion and correct market development strategy.6,Pepsi-Cola succeed in operation in the China market, including the multiplex brand management in macro scope, the fine market localization, the omni-directional on-line marketing, the channel marketing tactic in the micro scope, the end consumers'sales management as well as information control of the consumers and the competitors and so on, these give us a whole set of scientific and mature marketing plan. The article has been given an exhaustive illustration on Pepsi Mode in the main body of the essay.China market potential is huge, so the present situation is the demand can not be meet. Along with the national policy which benefits the farmers unceasing deepening, the income of farmers will accelerate to promote, with the increasing income of farmer, the power of consumption enhanced. China has 900,000,000 people in the countryside, it is very huge, and there is no doubt that it will be regarded as an excellent opportunity for the domestic fast consumable enterprises. The development of large-scale Multinational Corporations depends on their enterprise ideas, the systems and the standards. If the Chinese enterprises need to develop, the first problem which should be solved is self-surmounting and self-breakthrough, then, they must absorb the advanced Multinational corporation's successful experiences, and fully use its own superiority, like national brand superiority, price superiority, market network superiority in small and medium-sized town and rural countrysides as well as familiar with different region cultural and consumption habit differences, to carries out some target-oriented promotions and advertisements, makes use of favorable conditions and avoid unfavorable conditions, and develop and strengthen the enterprises. We do not have the capital to"defends a city", what we need is"attacks in order to defend","retreats in order to advance", and take other's advantages to make up our own shortcomings, not only learn from other's advanced experience, but also bring our own national superiority into play. Only do like this, we can be in an impregnable position day by day in the keen competition, and then the enterprises may have the possibility to maintain the sustaining development.
Keywords/Search Tags:FMCG, channel, marketing strategy, china market
PDF Full Text Request
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