Research On Marketing Strategy For NK, The Communication Cable Manufacturer

At present, China’s telecommunication industry is developing so fast and thecompetition has become extremely fierce. As manufacturers keep reducing their salesprices, customers have become more and more sensitive to prices; on the other hand, theprices of raw and processed materials have risen so rapidly. Against this backdrop, NK Co.,Ltd., a manufacturer of telecommunication cables faces serious challenges. Although theexterior environment is complicated and subject to changes, opportunities coexist withchallenges. NK should adapt to the new situation to get survival and well development.That’s very important and significance.This paper does a case study on NK’s marketing strategies. Based on first-hand dataand marketing management theories, the author analyses the marketing situation andproblems of NK and then gives suggestions on marketing strategies. Firstly, four majorproblems in NK’s operation are discussed. The range of products is two narrow; the salesprices in domestic market are not competitive; the marketing places are too few; and thepromotions are not effective. Secondly, a detailed analysis on external and internalenvironment of NK is made. While NK is doing well in the market aboard because of itshigh quality products, it faces very intense competition in the domestic market due to itshigh sales prices. Finally, suggestions on NK’s marketing strategies are given from fourperspectives: product, price, place and promotion. NK should introduce more newproducts to promote sales and in the mean time, provide differentiated services thatcustomers are more willing to pay for. As for price, NK should give special offerings forthe domestic market and take fluctuations in exchange rate into account when signingexport contracts. NK should also refer to accounts receivable when setting prices.Moreover, NK should take advantage of quality agencies to expand the market and qualitybanking partners to reduce financial expenses. More efforts should be made to promote themarket and to maintain a strong tie with major customers.