Sustainable Development Of Interational Beverage Company In China’s General Trade Channle

In the times of20thcentury, the first multi-national enterprises that entered China’smarket got good growth because of their developed marketing and operation experiences.Company K is one of these first companies. By learning multi-national companies’ goodexperiences, local companies are well under way. In the beverage industry, there are fivekey companies competing in two key camps: Company K and Company B in SparklingCamp, Company KS and Company T in non-Sparkling Camp, and the rest one, CompanyH does not exactly belong to Sparkling Camp or non-Sparkling Camp, it is amulti-category company. Along with the increasingly fiercer competition, it’s hard to gethigh growth easily and simply, all companies in this market start to expand their productline, so the two camps are combined into one camp—multi-categories camp. In thissituation, companies must have right strategies and operate intensively to keep their goodgrowth.Traditional channel is the key volume and profit contributor for these beveragecompanies, though the future trend of this channel is not very bright because of theextrusion by other members of retail channel, traditional channel will still be alive for along time in China’s market land as China’s local environment. Company K had goodperformance in this channel in the early years, but the growth was obviously slowing downin recent years. And different kinds of problems occurred. The worst problems are lowvolume growth, low investment efficiency and low ROI of market investment.This thesis uses the tools of BCG matrix, SWOT analysis method and questionnairesurvey, finds out the root reason of Company K’s traditional channel–heavy wastingresources and growing investment year after year, low execution of the customers,problematic sales assessment mechanism, etc. Through the method of data analysis, anddecision tree, two possible solutions are found out: allocate the investment according to thevolume contribution of different months, and check execution mechanism of third-partychecking. After testing these two solutions in Shenyang and Wuhan markets, the resultsprove that these solutions are feasible. Moreover, these solutions are not only for Shenyangand Wuhan markets, Company K can use the approach of the analysis, use the tools in the thesis to identify the problem and the features of other markets, these two solutions in thisthesis are still suitable for other markets as they can be divided to two kinds of marketwhich are similar to Shenyang and Wuhan. The result of this study can not only directCompany K, but also can be referred to by other beverage companies in China, whetherthey are global companies or local companies.