| For the moment, competition in the line of home insecticidal hygiene is very fierce, while the homogenies of products are similar severely. All kinds of brand, which have got their local marketing advantage, come forth massively and construct a situation same as the Era of War Country. Many multinational company and domestic famous brand, which have great capability of financial fund and modern marketing concept, are focusing on the business of home insecticidal hygiene product and compete with each other fiercely all over the country.As a leading manufacturer in the sector of home insecticidal hygiene, Chengdu Rainbow has enjoyed very high market share and good reputation. But since 5 years ago, its market share of insecticidal product has declined steadily year by year and its foundational market has been lost greatly. What contributed to the fact is as followed:1. Local market not defined clearly and foundational market lost greatly2. Product coverage rate declined gradually and new product promoted inactively.3. Local first-degree dealer (large sale agent) grasped the channel net and controlled the reform of channel system.4. Medium channel dealer disordered the price system and sale by low price out of authorized scope. As one fall, another rises.5. Incapability of arranging a channel promotion aiming at its competitors.Facing the above, how can we re-integrate the channel system to embrace the new competition? Rainbow's channel essential is its channel system, which was contributed to by the following 3 aspects: dealer relations, positioning and assignment of its target market, positioning of medium dealer.Emphasizing on the above 3 aspects and aiming at the adjustment of marketing channel system, this thesis will research primarily the Rainbow's channel structure and bring forth a thought of local distribution and its application, winning a competitive advantage on the condition of the modern marketing. The thesis can be divided into 6 parts as below:Part I. The channel dilemma that Rainbow faced up to. First of all, the part will describe a basic background of home insecticidal hygiene sector and the profile of Chengdu Rainbow. Then I will come forth the problems that the thesis will analyze: 5 problems of channel system and its contributions that Rainbow facing up to.Part II. Systemic analysis of Rainbow marketing channel. The aforesaid 5 problems'essential are about channel system while exterior characters are different. The part describes the existing condition of Rainbow's channel system, then deduces the essence of the 5 problems, which will provide a foundation for resolving problem in later parts.Part III. Marketing environmental analysis of Rainbow. To resolve the problem of channel system will involve wholly structural adjustments. The total market scale in the sector of mosquito repellence is developing rapidly. Competitors in the sector struggled for the foundational market at great speed and with all kind of methods. All these requires that we should adapt to the market, break down the traditional channel structure and build a new channel system.Part IV. A summary of home insecticidal hygiene STP strategy of Rainbow. The part emphasizes on the analysis of market segment variables, targeting market, positioning, making STP and dealer's responsibilities clear, bringing forth primarily effective coverage of the target store, as well as finding the direction of next step. Part V. Applicable research of Local Distribution. The part is the core content of the thesis. After a review and discussion of the channel change of Fast Moving Consuming Goods (FMCG), the part puts forward systemically how to resolve the above mentioned problems: To adopt a rational channel flat structure----Local Distribution ( L/D). Firstly, L/D needs to re-build dealer's relations, i.e. to build a relational distributor based on a nonzero-sum game relation. Secondly, L/D requires establishing market area boundaries, inside which is regarded as a prison. Thirdly, in a local market, L/D require planning and executing well, effective coverage, dialectic thought about improving coverage rate---flat and second distribution. A combination of Terminal and Channel is the core and result of the L/D thought.Part VI. A summarization of channel re-organization of Rainbow. The part describes summarily an application of L/D in Chengdu Rainbow. After the practice in 2006, the 5 problems have been resolved effectively and a new channel system has been formed primarily.In the sector of FMCG, all kinds of brand are very complicated and their channels are different from each other."Channel wins all"or"Terminal decides everything"? There is not a standard answer. Foundational market is groundwork of all marketing. Facing up to the environment that there are many populations and the market diversified in our country, L/D puts forward a thought on how to build our competitive advantages. |
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