Research On Electric Bicycle Marketing Channel Strategy Of YD Company

Marketing channel is one of the most important elements in the marketing mix4P, and plays more and more important roles in the market, which attracts many enterprises’ much more attention in recent years. As the serious homogenization of products is easily imitated by rivals and the market price tends to be very close, it becomes very difficult to have advantages of the market competition through the price under such a large-scale and highly industrialized production. Today, it can see a daily promotion of everywhere, but all of them are nearly the same and lack of creation, to which consumers turn their blind eyes, therefore, it is very difficult for the producers to have the sustainable competitive advantages through price promotion in market competition. Compared with other three elements of4P, channel strategy has obvious advantages over others and is likely to win in close competitive market, as it is not easily copied or imitated by their rivals in a short time.YD Company is mainly engaged in research and development, production and sales of electric bicycles. By virtue of the specialized strategies and industry leading sales policy of the marketing channels, YD Company has been developing quickly and held a safe leading position of its product sales in the electric bicycle industry for consecutive five-years. The sales of its products were over2million in2011, overtaking the sales of "XR", YD becomes a leader of electric bicycle industry.The industry of electric bicycles is spontaneously developed and has not drawn much more attention from other industries. And there are not many marketing research literature. Lots of brands of electric bicycle companies have not created their own unique competitiveness. From industrious characteristics, electric bicycle has not its own characteristics, either like a motorcycle from its appearance and value in use, or a car from the use of its function. From its life cycle as fast consumer goods home appliances, Most of companies of electric bicycle followed the channel modes of cars|, home appliances, motorcycles and fast moving consumer goods to sell their own products. According to the trend of marketing channels, sales channels for electric bicycles can be classified into three types and four levels.Channel levels at different times are in different market channels category. In recent years, electric bicycle enterprises are in disorderly competition and unhealthy development as to cause an enormous waste of resources. According to the present situation of electric bicycle industry, this paper will analyze the successful case of YD Company and explore the effects of marketing channel strategy, The paper provides not only a new countermeasure to increase their efficiency of marketing channel, but also a new idea for electric bicycle industry.Firstly, this paper defines the concept and expounds the basic theory of marketing channels, reviewing domestic and abroad related theories and literature, providing theoretical support for specific studies below.Secondly, the paper explains the electric bicycle development history and analyses the marketing channel environment from macroscopic standpoint,’Michael Porter’s Five Forces Model’, carrying on the SWOT analysis,With above analyses, this paper draws conclusions that marketing environment changes the effect on marketing channel strategy theoretically and practically and it should be able adapt to market changing, Then this paper mainly focuses on YD company marketing channel strategies of electric bicycle, for example, how to design channels, choose channel members, operate channels,with its own competitive advantages and rivals’differences, how to manage and control channels to keep these channels going smoothly. In other words, they are choice, operation and management of marketing channel strategies. Meanwhile, it points out the existing problems of marketing channel strategies in YD Company.Finally,the paper puts forward feasible proposals and conclusion for YD company channel strategy, which will provide references for YD company to improve its market.Channel strategies also give suggestions for other companies in the same industry in the future. YD,as a leading brand, should take the responsibilities and obligations to lead the industry to a sustainable and sound development way.