The Research Of M Company For Strategy Of Sales Channel In Car Beauty And Care Products

Developing market and tense competition in the current age of business bring problems to companies: competitiveness of a product can be weakened by homogenization;price is falling down in competitions;profits of sales promotion are becoming less and less though the input is larger and larger;expectancy of the target costumers is going up… A company must keep improving its ability to maintain or increase its competitiveness.And one of the ways is to optimize and modify its distribution channels.M Company,a trading company in Germany,was established in 1945.Its branch in China was established in 1994.In China,it aims at the distribution of industrial products and car beauty & care products.In terms of the latter,the company provides a series of products for car washing,caring and other services.4 branches have been set up,whose service extends through all the regions in China.Direct selling,with the pure service between the staff and the customer,is also used in China,following the European model.In recent years,however,due to the tense competition in the prosperous car aftermarket in China,the company has encountered a bottleneck,which bothers its long-term efficiency in distribution,influencing its market share and competitiveness.Hence,it is significant to optimize and modify the company’s distribution channels,which is the main subject in this thesis.The thesis encompasses 7 chapters.Chapter 1 serves as an introduction of the significance of the study,the background information,the contents,the models and research methods.Chapter 2 provides the theoretical bases for this research.Chapter 3 analyzes the distribution channels of car beauty and care products.The characteristics of the product and its market are also touched upon.The main model and trend of those channels are summarized at the end of this chapter.Chapter 4 elaborates on the current development of M Company,problems in the distribution channels and main causes of those problems.Chapter 5 presents the suggestions for the modification of the distribution channels.Chapter 6 presents the specific optimizing strategies.Chapter 7 provides suggestions for future research.The subject of this thesis is the optimization and modification of the distribution.Through research methods such as literature research,case study and personal interview,it analyzes,concludes and evaluates the existing problems in the current distribution channels,and proposes relevant plans and strategies.According to the research,the main reason for the company’s bottleneck lies in its adhesion to the successful European business model.Without localization according to the Chinese market,it has weak power to distribute.Its share of the market is thus small and the efficiency is low.In the thesis,the author of the paper proposes,according to the company’s development plans,a strategy of diversification and optimization.The approaches and predictions are also provided.At the end of the thesis,the following strategies have been concluded for the future development of the company: Key Account Model for advantage concentration;distributor for larger market share;latest market status and new channels;channel organization and staff management lest conflicts etc.