Marketing Strategy Study Of YL Company

The global electronic components industry is growing strong and stable.And its market prospects are continuing to be optimistic.As one of most important consumers and manufacturers in the world,China has large-scale industrial chains and numerous enterprises.However,foreign companies with long-term brand advantages are still monopolizing the technology in this market,which urge those domestic trading companies in the electronic component market to actively introduce and act as an agent for oversea products.This becomes the most important channel for domestic electronic components trading companies,that intensifies the competition in this distribution industry.In the past 10 years,the implementation of relevant policies clearly shows that,our government has been strengthening the supports for the electronic components industry and driving the technological innovation.It has been encouraging the industry to build a system for talent cultivation and promote industrial upgrading.These governmental policies play a positive role in the development of electronic components industry and its distribution filed.YL Company is a small distributor of electronic components in Guangdong with more than 20 years of sales experiences.It is facing several challenges,such as not having a significant change on operating income and experiencing a downward trend on net profit.YL Company has several problems in their current marketing strategy and marketing method,which are not algin with the current market trend.This results in slowing down the company’s development.Therefore,it is necessary and urgent to adjust and strengthen the marketing strategy of YL Company.This paper will take YL Company’s marketing status as the starting point to study its marketing strategy by mainly using STP market positioning theory and 4P marketing strategy combination theory.First through literature research,it will define the related concepts about distributors of electronic components;outlines the STP theory and 4P theory;and discusses current operating conditions of YL Company.Then,it will use research method to carry out questionnaires and interviews with major customers and internal employees of the company.It then analyzes the statistical data to conclude that there are weak product technical support capabilities,insufficient understanding of customer needs,and inconsistent pricing methods in the current marketing management of YL Company.It also needs to improve their accounting and managerial abilities,diversifies marketing channels,and develops management control and promotion efforts.Next,it will further use PEST,Porter’s five forces model and SWOT model to analyze the marketing competition and marketing environment of YL Company.Relying on the STP theory,the target market of YL Company will be sorted out,which will be defined as the LED market,the computer motherboard market,and the frequency converter market.YL Company is able to reposition its marketing goal to form a differentiated competitive advantage and further accelerate the construction of technical support teams,improve service capabilities,and obtain a higher market share of electronic components distribution enterprises.Finally,using the 4P theory and case analysis method,YL Company will adjust and strengthen the marketing strategy suitable for its own development,by learning from the successful experience of companies in the industry such as Future Electronics and Flextronics.In terms of product strategy,there will be value-added product technical support services,optimization of product portfolio width,strict control of inventory and improvement of customer demand analysis capabilities.In terms of pricing strategy,market-oriented pricing method,competitive pricing method and account period optimization strategy are adopted.In terms of channel strategy,YL Company will strengthen the construction of internal marketing channels,accelerate the construction of external marketing channels,and improve the support system of marketing channels.In terms of sales promotion strategy,push promotion will be mainly implemented,and pull promotion will be supplemented.At the same time,it will put forward 3 guarantee measures for the implementation of marketing strategy.One will be innovating material incentives and emphasizing spiritual incentives.The other one will be optimizing financial management and broadening financing channels.Another one will be strengthen informatization construction and improve management level.This paper will have a positive influence on the business development of YL Company.First,it is beneficial for YL Company to understand its own development status,deeply analyze its own advantages and disadvantages,and choose a marketing strategy suitable for the company’s development.Second,it is good for YL Company to concentrate its superior resources and improve its core competitiveness,so as to expand its market share and develop new markets in its superior product lines.The third is to help improve the company’s sales performance and profits;it can also bring reference to similar enterprises.