Study On Channel Strategy And Pricing Policy For Industrial Instrument Products Of LY Company

The development of channel strategy and pricing strategy is the key element in making marketing decisions. In order to achieve the profit maximization, enterprise formulates the appropriate strategies according to the main factors by analyzing marketing chain, which is comprised the integral part in manufacturing enterprises to meet their competition and keep development.LY is an manufacturing enterprise that both untying and long-term monopoly, producing various industrial instrumentation electrical products, which mainly divided in two parts:standard products and customized products. Both of them have a certain market share and sales in good condition, moreover, marketing demand is relatively stable. Nevertheless, lacking quantitative analysis and scientific method in developing channel and pricing strategies, LY followed their traditional and experience-based sales model in a long term, not only failed to maximize profits, but also result in a waste of resources, the potential decline in orders and loss of customers.Thus, establishing scientific and effective models to study the channel strategy and pricing strategy according to the features of the two products mentioned above is the key of this paper. Establishing the multi-factor optimization model for standard products, the optimal solution and channel strategy is obtained by regulating the way of sales channel and the authority and discounts of agents, so as to get rid of the status that enterprise could not operate normally without agents, as well as the discounts given to agents are seriously out of control. Correspondingly, this paper also researched in the customized products. Using the multi-factor optimization model to control the relationship between competitive factor and price, we get the optimal pricing strategy eventually, which, on the one hand, could help LY company to ameliorate the situation that the loss of demand in the long run will caused by raising price in pursuit of short-term profit. It also helps LY company to avoid the low profit level due to catering to the customers.With the methods of both theoretical analysis and modeling to solve practical problems existing in the enterprise, this paper not only can find a solution to channel and pricing strategies faced by LY on the quantitative level, but also can provide the basis for pricing strategy in other similar enterprises, which reflects its exploratory value, even a certain practical significance.