Guangdong Kelon Electrical Marketing Channel Strategy Research

GUANG DONG KELONG ELECTRICAL HOLDING CO. LTD. is the largest domestic manufacturer of refrigeration facilities and the largest exporter of whole set refrigeration facilities. However, with the increasing competition in the white household electronic appliances market, the sales network model, that is to control the market remotely through strengthening wholesale network, which was established successfully by KELONG ELECTRICAL HOLDING CO. LTD is now facing difficulties. In recent two years, China's retail trade is becoming specialized and chainlike. The high center of gravity structure is hard not only to control the order of the market, but also to manipulate the terminal. This paper aims at solving the problem of channel in the new situation through designing the distribution channels of KELONG electric appliances and meanwhile ensuring the well-balanced working of new channel model through regulating the management of channels.In this paper, the organization and present status of KELONG electronic appliances distribution channels are analyzed, as well as the present problem it is facing. Then, the author analyses in detail the strategy, market factors, products factors and middle business factors in order to redesign the marketing channels of KELONG. Last but not least, some management suggestions are brought out concerning with the present channel management of the company.The study in this paper indicates that a manufacturer should design or improve marketing channels on the basis of centering on customers and following the principle of providing excellent service under the guidance of brand and the market in order to satisfy the dealers. In this way can it decides the formation of channels of different products in different markets of different areas, decides or adapt the aim and task of the distribution assignment, differentiate the marketing channel structures of different products. Thus, on the one hand the manufacturer can sale more products to make proper benefits for the company and the dealers it serves, on the other hand it can pick out qualified channel members for its customers. On channel management, the manufacturer should increase the force of its serving and managing of the channels. Keeping a favorable marketing order, it should keep a good channel profit on the basis of emphasizing the profits for dealers, help the dealers to manage the sales and form a mutual beneficial cooperative partner relationship.Actually, there is no normal method for distribution. To be successful in the competition, companies have to design their own distribution channels according to their own characteristics and adjusted to the changing environment, and most of allthey must have customer-centered concept.