A Study On The International Brand Building Of Liuyang Fireworks

With the rapid development of economic globalization and market economy, the enterprises in China are now facing an increasingly complicated and fierce competition environment, especially for the enterprises struggling to enter the international market and developing national brands. What Chinese companies are facing now is a more changeable and distinctive consumer markets. Therefore, branding has become an ever important issue for the survival and growth of Chinese companies.Brand has long been a major topic to any businesses, and all industries have been required to develop and build strong brands when their products have been accepted by markets, because popular brands can accelerate the industry development, increase the market shares and enhance the image of the companies and their products as well.Brand, either as an economic phenomenon or as a scientific subject, has far exceeded the product quality and service. It’s standing for social status and fortune. It has already been an intangible property and power in promoting the economic development. No matter to the enterprises or industry or to the country, the brand is an important mark to measure the economic developmental level.Since the industrialization reform of Liuyang fireworks industry, with the accumulation of the fireworks industry and the enlargement of the competitors, it’s crucial for Liuyang fireworks industry to build powerful international brand to seek leading position in the world.China is the biggest producing and exporting center of fireworks in the world. It’s estimated that in2011, Chinese fireworks amount took up90%of the global output with$657million of export value, which accounts for86.4%of the global one. As the biggest production and sales base of fireworks in the world, Liuyang’s market share in domestic and abroad markets is55.4%and50%respectively. Liuyang has the most advanced production facility, high-end technical personnel and rich production experience in fireworks industry. However, what Liuyang fireworks industry lacks now is the reputable brand and long-term branding strategy. Based on this concern, this thesis sets out to make a thorough study on Liuyang fireworks branding strategy in global markets. It is believed that the study could be of great significance for the development of China’s fireworks industry and may contribute to the establishment of the industry standards.Luckily, Liuyang fireworks industry has already started brand building a few years ago, and now is on the way towards the global brand building. It is making efforts to transit from region brand to corporate brand. In order to keep its leading position in the new circle of dramatic development, Liuyang fireworks must implement brand strategy and strengthen its brand operation, improving its competitiveness worldwide.This thesis focuses on the Liuyang fireworks enterprises that are engaged in the importing and exporting business of fireworks, because these small and medium-sized enterprises lack of technology and capital support to build global brands. Based on the fact that the brand of Liuyang fireworks is still in the transitional period with weak brand awareness, non-standardized brand building, confused fireworks market and unreasonable brand protection etc. in Liuyang fireworks, the paper conducts systematic analysis and research on the international brand building of Liuyang fireworks.The thesis is divided into six parts. The Introduction explains the research background, research significance, research methods and so on. Most importantly, the Introduction illustrates the present research categories on Liuyang fireworks. Some researches focus on the study of Liuyang fireworks industry cluster including its formation, development, significance and the constructive solutions of the industry cluster on the basis of the analysis of Liuyang fireworks industry status quo and problems. Other scholars emphasize the international competitiveness of Liuyang fireworks including the study of enterprises core competitiveness and development strategies. All of these research achievements pave a good way for this thesis; however, these studies don’t focus on the international brand build of Liuyang fireworks. This paper lays stress on the global brand building and corresponding protective measures of Liuyang fireworks, illustrating that Liuyang fireworks should create excellent brands to obtain sustainable development, avoid the vicious price competition, increase the technology content of brand and establish a good brand image in the world.Afterward, it explains the basic theory of the brand including the definition and the importance of brand from the angles of the consumer, enterprise, industry and country. It’s strategically important for Liuyang fireworks to build international brand, which is the requirement for Green Consumption to produce smokeless, nontoxic, pollution-free, low-noise, non-combustible fireworks that will be both safe and entertaining and can help enhance the overall competitiveness, break the technical barriers to trade and enjoy high popularity and recognition in global markets. It also states the Marketing Theory of4Ps and the differences between regional brand and corporate brand later. Liuyang fireworks are in a unique position both the regional brand building and corporate brand building are equally important for the development of Liuyang fireworks. The success of a brand is subject to the successful marketing strategy, since product, price, place and promotion are the key components to building an international brand. Liuyang fireworks enterprises should take a scientific, comprehensive and effective marketing strategy to build international brands. Otherwise, we will get half the results with twice efforts.In the third part, the paper gives a detailed overview of the Liuyang fireworks including its features and contributions to the Liuyang County, China and even to the world. With high market share and extensive sales, the fireworks that Liuyang has produced and distributed cover a wide range with more than a variety of6000products under14categories. Liuyang fireworks industry has developed into an industry cluster which integrated with the local culture. But compared with modern industry with powerful competitiveness, Liuyang fireworks should pay more attention to the brand building to further improve fireworks production technology, information technology, safety supervision mechanism and international marketing.In the end of this chapter, it analyzes the strengths, weaknesses, opportunities and threatens of building fireworks brand globally by using the SWOT Analysis. Although Liuyang fireworks industry still faces a number of challenges, such as poor management, small-scale production, substandard technology, deficient training mechanism, and weak pollution control, there are more opportunities than challenges. On one hand, it has the unique strengths in the long history and culture of fireworks, perfect geography, fireworks staff and technology, etc.; on the other hand, it benefits from the peculiar opportunities from strong local government support favorable change in international trade policy and emphasis on traditional culture, etc.. However, challenges and opportunities co-exist, it can’t be ignored such challenges as restriction of rules and standards from fireworks importing countries, powerful competitors, the slowdown of the current international economy, the rise of production costs, the development of substitute products and so on. The Liuyang fireworks industry presents a mixed picture; nevertheless, Liuyang fireworks are in relatively good conditions and the environment of Liuyang fireworks industry is getting better and better.The fourth chapter gives us a comprehensive analysis of Liuyang fireworks’ international brand building. Brand positioning and selecting are set forth in this part. Fireworks market demand consists of high, middle and low levels. But the products have no clear differentiated positioning based on the different demand level. As the competitors are becoming stronger, the differentiated brand positioning of Liuyang fireworks is strategically crucial to keep the leading position. Being consumers-oriented and competitive, fireworks enterprises must continue to strengthen the high-end products, enlarge the scale of middle-level products and gradually phase out the low-end products market, which can make sure enterprises offer different fireworks with different effect to the different consumers.Liuyang fireworks industry is in a unique position that it should create some independent brands of large fireworks corporations and enhance its regional brand as a whole. For one thing, the enhancement of regional brand building promote the development of the corporate brands; for another, the development of well-known corporate brands plays a leading role in the development of regional brand. Large enterprises in Liuyang should make use of the local resources and cooperate with the small and middle-sized enterprises to improve the competitiveness of fireworks and to build global brands.Following the previously analysis in former chapters, the author next states brand is an intangible asset for the corporation, and then the brand management protection and enhancement are an indispensable part in international brand building, what Liuyang fireworks enterprises should do is to be market-oriented, change the management philosophy from the competition to cooperation and so on to protect the brand image. Meanwhile, based on the significance of marketing in international brand building of Liuyang fireworks, this chapter illustrates how to enhance an international brand by employing the Marketing Theory of4Ps.In the product, Liuyang fireworks should follow the idea to mainly struggle for new products, new workmanship, new materials, new machinery and new packing, and to develop new particular excellent products by extending the fireworks products, offering professional guidance to set off fireworks and conducting products’packing innovation, etc. to promote the international brand build.As to the price, the related enterprises of Liuyang fireworks should change their management idea from competition to co-competition. They should maintain the market jointly to prevent vicious price war and keep a good brand image of Liuyang fireworks, which will lead to win-win achievements for the enterprises. Besides, they should adopt different pricing strategies for the common products, oligopolistic products and new products respectively. For example, for the common products, under the efficient control of cost, low-price strategy is the most favorable choice to do market expanding. In the place, Liuyang fireworks should innovate the channels, reduce the length of marketing channel, implement e-commerce and achieve effective management of international marketing channel.In the promotion, Liuyang fireworks should make use of the fireworks festivals/celebrations at home and abroad to promote its cultural brand; furthermore, it can take advantage of E-commerce and various fireworks trade fair to explore new markets.The final part of this thesis also briefly sums up the protective and practical measures Liuyang fireworks enterprises have taken to build the international brand.To end the thesis, the author put forward some workable proposals for the brand building of Liuyang fireworks. With the development and enlargement of the fireworks industry, more and more fireworks enterprises take participate in the international brand building in Liuyang and they make progress under the leadership of local governments, Liuyang Fireworks Industry Association and other responsible organizations. Indeed, the brand building worldwide is a progressive and gradual process which required the joint efforts by the enterprises, local governments, Liuyang Fireworks Industry Association and other responsible units.The government should also do something to enhance the industrial upgrading and brand protection and serve as a platform for the propaganda of the Liuyang fireworks. It should be realized that both government and industry association can play important roles in the international brand building including the perfection of the fireworks standards and promotion of the fireworks enterprise self-discipline, which in turn could contribute to the formulation and implementation of the related industrial policies; Another way to increase brand reputation is to propagate the fireworks culture by establishing the Fireworks Culture Research and Development Centre, releasing related books, newspapers and magazines and integrating cultural elements into fireworks. Finally, the fireworks enterprises themselves should do much to lift up their own brand image, for instance, they must seek valuable innovative talents to improve the products, design and add new features to the existing products, so that gradually improve their international competitiveness. However, owing to high risk nature of fireworks, the implementation of operation standard and safety control in fireworks production, distribution, transporting, exporting, display and consuming have to be strengthened and supervised. All in all, it is hoped that these solutions and proposals can work to widen the awareness of Liuyang fireworks brand in the world.