DK Company Chinese Marketing Channels Management Strategy

China is one of the countries to produce carbon black earliest in the world. With the development of the era and technological innovation, carbon black production began to develop from manual operation into a large-scale industrial production era and the amount of the carbon black began to expand year by year. However, since the global financial crisis, the market demand for carbon black has slowed, the carbon black production capacity of domestic producers has not been better controlled and the products are mainly concentrated in low value-added rubber carbon black, while in the high value-added production of carbon black pigment relative shortage of technical inputs. Excess capacity, redundant construction not only led to an imbalance between production and consumption, but also triggered a series of vicious price competition, seriously affected the carbon black industry profitability. Chinese carbon black industry market conditions give a chance for foreign companies to settle in China to develop high value-added products. Many international companies have taken a fancy to expand in China's low-cost markets. With the foreign investment gradually increased, carbon black pigment industry is increasingly in fierce market competition. Enterprises and investors can fully and accurately understand their own and their own marketing channels environment in which to rapid control of the market developments and to develop an effective channel management strategy is becoming the key to success for the carbon black production and sales companies and policy makers. DK Corporation is the Chinese agent of a well-known overseas manufacturer of carbon black pigment. In such a fierce market competition environment, DK's policy-makers hope to develop effective channel strategies, to successfully expand its market and to achieve fruitful results through in-depth analysis of channel strategies.In this paper, we analysis the DK company's channel management environment based on the background of DK company's channel management practices and we analysis the DK company's channel management strategy based on a lot of marketing channels management theory. It's especially important for the company's marketing strategy and also very important to learn for the other carbon black manufacturers who lived in "Red Sea".