SN Chain Group Thirty-four Marketing Model Innovation Research

The home appliance retails began in the early1990s. It has transited from small-scale enterprises to the era of oligopolistic competition as digital home appliance chain stores. As one of the leaders, SN enterprise basically realized seamless coverage of domestic Class Ⅰ and Ⅱ market. In2010, SN enterprise formally launched international trade site, sales volume has a growth of200%each year afterwards. However, due to the poor coordination of the new online business and existing offline business, it did not reach the expected integration effect, so to speak1+1>2. Affected by macroeconomic recession, expiration of dividend policy, household appliances retail industry as a whole entity showed downward trend, in2012, SN enterprise reported negative growth for the first time and the net profit fell beyond44%. In2013, SN accelerated its business mode transition and development progress. The company made a brand new definition of developmental model, clarified" cioud business model", which is "on site store+Internet business platform+retail service providers".Sustainable development of enterprises has two basic paths:The first is to improve management efficiency to achieve endogenous growth; the second is to achieve scaled-up profits through rapid expansion. The refined management of the SN chain conglomerate, in terms of endogenous growth, is potential. But it seems in the next several years at least, the expansion of Class Ⅲ and Ⅳ markets that are on huge scales and are not taken much by the SN chain groups, is the main path to achieve sustained growth for SN chain groups.Environment of Class Ⅲ and Ⅳ markets are different from that of class Ⅰ and Ⅱ. The buyer intensity of the two types of markets and purchasing power of consumers are very different, the formers after-sales and logistics costs are also much higher than the latter, these differences determines, SN chain groups can not adopt business mode of class I, II market, which mainly relies on the formation of self management mode. Innovation on marketing model is not R&D, the key is whether you can think out of the box, find the best combination of product, price, place, promotion, marketing resources.This paper is divided into six chapters. The first chapter is an introduction to explain the background, research significance, domestic and international marketing models, chain operations, supply chain and other aspects of research results, Class Ⅲ and Ⅳ markets, commercial chain marketing model, home appliance retail chain and relevant concepts as well as the ideas and methods of the research. The second chapter is a summary of the relevant supporting theories-the theory of strategic management, supply chain management theory, mechanism design theory and SWOT analysis method. Chapter Ⅲ analyses the SN Group’s development process in multiple dimensions, especially the third degree and fourth degree marketing network expansion model and development process. Chapter Ⅳ describes the SN group opportunities and challenges in the third and fourth markets, thus demonstrating the practical background of the innovations on SN group marketing model. Chapter Ⅴ is based on the SWOT analysis of the innovation environment of the third and fourth degree marketing models in SN Group. It also brings out the basic ideas and specific strategies on actions. The final chapter concludes and outlook.