QF Group's Own Brand Strategy Research In The North American Market

Power tool industry in China is one of the important fields among traditional manufacture industry.During the past 20 years,Chinese manufacture industry has stayed on a fast growing path,and Power tools has been with no exception on this trend.Nowadays,Power tool industry has become a mature industry with intense competition,furthermore,it has formed a sizeable industry clusters in Yangtze River Delta area as well as in Pearl River Delta region.However,the comprehensive strength of Chinese Power Tools industry are limited on vast production and exportation only,while it's not up to the competitively strong level largely due to lack of innovation and awareness on brand development.In the era trend of lifting the capability of innovation and upgrading the industry,Chinese Power tool companies are looking for new opportunities and breakthrough,quite a few of them start to try branding business mode,which could enhance the management over pricing,delivery,channel and so on.QF Company Ltd is one of those private enterprises in Power tool industry,who are on the way to create their own brands.The manufacturing base and major supply chain of QF locate in Jiangsu and Zhejiang Province.Its products are distributed into global market,and North America is its core target market,of which the revenue generated is over 40%of the company's total.In year 2014,QF developed its own brand of EAG and HHD.The former one was positioned as high-end targeting consumer with high income.The latter one was positioned as entry level.Both brands were launched in QF's major market,North America.The branding strategy came through in the testing water phase,which made the company be more determined to continue with the branding way.High-end brand(EAG)plus the entry level one(HHD)is not a complete brand picture as it leaves the middle-end products untouched.QF would need another brand to fill the hole and maximally cover the opportunities.To complete the branding picture,which way should take,create a new brand,or acquire an existing strong brand?How to secure the branding development to be fast and solid?Those questions are what QF facing at this moment.This paper firstly studied the relevant theories of Global Value Chain,Smiling Curve,Brand Strategy,then referenced the related theories and analyzed the current status and existing problems of the OBM business of QF in North America market.And furthermore,studied the external environment and internal conditions of QF's business in North America market,then implemented the SWOT analysis of its branding business accordingly.Based on that,the paper raised the strategic principles and general thought process of QF's strategy of branding in North America Market,including branding synergizing,effective utilization of brands assets,brand harmonization and brand profit maximization.The conclusion is that QF should acquire an existing strong brand as next step of its branding development and brands portfolio perfection.Finally,the paper raised the implementation scheme and measurements of QF's strategy of brand development.