A Study On The Market Development Strategy Of A Company In Shiyan, Hubei Province

Energy saving is called the "fifth of energy" after coal, petroleum, natural gas and electricity. The energy shortage beginning in 2003,made it become one of an important way which can improve energy efficiency to breakthrough the power bottlenecks. The scale of domestic electricity saving production market is expected to have more than 300 billion yuan, and the scale of potential electricity power-saving market is at least 80 billion yuan a year. The enormous business opportunities and huge profits of electricity power-saving market in our country has attracted many domestic and foreign manufacturers in a short time. Electricity power-saving industry of our country rised rapidly.Shiyan City, Hubei Province, is the region which lacks of energy resources, electricity power is the major energy production.Most essential energy which requirement of economic development comes from other cities,and it is prominent contradictions that the energy constraints on the economic development.Electricity power is one of the main varieties of Shiyan industrial energy consumption. Each year during the summer, the local power grid overwhelmed, and the situation repeated. In view of the electricity power-saving products of SINSUENG TRANSFORMER CO.,LTD. in Korea have many years of successful application experience,and Shiyan, Hubei as one of the well-known base of motor vehicles and ancillary product production in our country, has no a professional manufacture or saling company of electricity power-saving product, thus Saitech electricity power-Saving products wins the opportunity to enter into the region.The thesis is divided into three parts: the first part is prologue, introducts the context, purpose and significance of this paper, as well as research methods; The second part is the main body of the thesis, totally including five chapters:Chapter I is the product features and marketing specificity of the electricity power-saving, systematically expounded the characteristics of the product and the main operation mode of the domestic power-saving industry at present;Chapter II uses PEST analysis method to analysis the macro-environment of A Company; Chapter III analysis the five elements of the electricity power-saving industry and A Company's strengths and weaknesses, opportunities and threats through the five elements of industry analysis and SWOT analysis. Through the above analysis, it shows that A Company has a good opportunity of development, and has a extremely favorable conditions of survival and development;Chapter IV determines the target market and product positioning of the electricity power-saving products of A Company in Shiyan region. This article Segments the market of the electricity power-Saving products in accordance with the geographical location, voltage rating, use and industry, and combined with the characteristics of the industry, scale and the competitive advantage of the company's products of the segmentation market, target market focuses on the industrial and commercial enterprises in Shiyan City and county (city) urban, and the industry mainly focus on municipal utilities and commercial enterprises, regional market dominated in Shiyan City at first, focus on the Industrial Park and Economic Development Zone in Shiyan City.Through the external environment and industry competitive analysis, base on determined the target market, the marketing development strategies of the company in Shiyan is: to become the provider of overall energy-saving solutions, through the first-class technology, quality products and services, shaping the company image of "True energy-saving experts".It needs to adopt specific strategies to achieve the market development. This paper uses the theory 4Ps to give the market development strategy of A Company in Shiyan from four aspects: product, price, channels and promotions.A. Product strategy. Shiyan market combined with the actual situation, firstly, we should do a good selection of products. Secondly,we must do a good Product portfolio. In product selection, single-phase electricity power-saving products mainly use 6~10KVA; three-phase electricity power-saving products mainly use 30 ~1000KVA.Under the premise of clearing the demand of energy-saving for the customer, for different price-sensitive customers, in the design of energy-saving programs, through the use of different product portfolio to meet the demand of customer.B. Pricing strategies. Taking into account the power-saving products of A Company has just entered Shiyan areas, the market demand has a certain space; In addition, A Company is in the early stage of market development, upper reaches of the manufacturers does not restrict bulk purchases, it can also have a certain profit margin even adopting the purchase of small quantities; Coupled with the power-saving industry has a certain threshold of technical and financial, there have difficulties and risk in the initial stage of market development, it may not be able to attract more competitors enter the market even with high-priced products. And it is also beneficial to establish a high quality product image. Therefore, in the choice of pricing objectives, adopt the highest market skimming pricing stratege. Taking into account the actual capacity of the customer, generally control the investment recovery period of the customer within two years, and control it not more than three years in exceptional circumstances, so as to occupant the market as soon as possible.C .channel strategy.In the channel construction, A Company should grasp the following principles: to reduce the level of channels; to divide the middlemen's regional distribution reasonably; good sales support; to strengthen the staff's training. In order to facilitate management and coordination, A Company takes short-channel strategy and adopts the "more" to "less" selective distribution strategy.D. Promotion strategy. In accordance with the actual situation of A Company and characteristics of regional markets in Shiyan, promotional strategy mainly uses push-type strategy, put products into sales channels. Promotional methods uses primarily for advertising, marketing personnel, public relations and business promotion. Because the Company's financial strength is limited, the main advertisement adopts internet-based ads and newspaper ads, and then supplemented with outdoor ads; staff set up the marketing focus on sales force, according to the actual situation in the company sales force to control the structure and scale, to develop sales team objectives, as well as incentives for sales team; the construction of public relations from the soft-text ads, event marketing, public information and image recognition, and so on; business promotion mainly involves fairs, product trials and field demonstrations.Finally, in order to ensure the success of the market development strategy in Shiyan, this article give three recommendations of assurance measures: Firstly, design an attractive company website. An attractive website will help increase product sales opportunities. The company's website should be pleasing on the layout, content up to be able to highlight the company's products and renew the company's developments, and maintain to update the laws and news of power-saving and related regulations links. Designed on the scene, especially the home page layout should be reasonable, so that users can easily know the A Companynd products, meanwhile, provide with other relevant web links is necessary. Secondly, to build a strong sales force. First of all, to recruit sales staff and undertake relevant training; followed by sales personnel to assess and motivate. Sales training includes product knowledge and sales skills training for some aspects of training. Assessment of sales staff focus on market development and client management, performance indicators linked to evaluation results and award money.Thirdly, to do a good work of pre-sales support and after-sales service. Professional pre-sales support will help to obtain user trust, and establish corporate image of electricity power-saving experts; high-quality after-sales service will help company set up a good reputation in the industry, so as to further promote sales.The research provide advice and assurance measures of the market development strategy of A Company in Shiyan. The purpose is to use the theory of MBA study knowledge for specific work practices and to solve practical problems. At the same time, because the problems of market development in Shiyan are universal, therefore, it can also provide reference for agents of similar industries to explore regional markets.