The Changyu Yantai Market Sales Channel Model Study

This text mainly emphases on the sale practice Changyu Company has adopted for the local market of Yantai in the past few years. While increasingly enlarging its market share, the company has uninterruptedly optimized its market strategy. Given the relevantly mature local market, ample capital and rich human resources, Changyu Company has accordingly adjusted its strategies in sales and distribution, that is, to narrow the scope of agents'sales and cover the exited area with its own sale network in order to make maximum earnings. Moreover, the company has done its best to strengthen its footing on market by means of timely information feedback and adjustment of its strategies and tactics for marketing and sales in the light of the consumer's demand. Presently, the sale network of Changyu's Yantai Branch consists of 800-odd retailers at different levels, of which over 700 are small supermarkets and hotels. The change of outlets resulted in five million more profits in financial statement, seemingly satisfactory as predicted. But in fact, the analysis herein shows that the said five million profits made in 2004 came of the higher pricing Changyu Company set for the year. The profits made in 2004 as a result of higher pricing for part products were as much as over 6 million which Changyu Headquarter decided to invest as advertisement expenditure for new markets but local market. Changyu's financial statement in this sector shall be in red when the portion is spent. The outlets for Yantai market have changed, sale network has extended, pricing system is diversified, "gray market"is in full swing, end sellers gradually lose their confidence in Changyu Company, the operating cost of Changyu's direct supply has increased by a large margin, all of which are far away from prediction. As analyzed above, the writer proposes hereby that the current scale of direct supply be downsized, cooperation with third party in logistics and distribution be taken into account and a new sale practice to meet the development of Yantai market be established.