Marketing Channel Model Of Changyu Company

In the face of the increasingly fierce commercial competition, market channels have become strategic resources which may determine whether a company could win or lose in the competition. As one of the 4PS elements, market channels usually play a decisive role for market policymaking of companies.This thesis mainly deals with the market channel models of Changyu Company in Yantai-weihai market. Changyu Company has been making constant efforts to adjust its market channel models to enlarge its range of production, better its dominating position in wine business and enter into international markets. As a matter of fact, Yantai-weihai market is comparatively mature for its abundant financial strength and rich human resources. Thus, in November 2005, Changyu Company merged Yantai Direct Marketing Company and Weihai Agency into Yantai Changyu Wine Marketing Company Ltd and cancelled all the former agencies. In 2006, twenty branch companies and ninety-eight agencies were set up and all its products were under direct marketing. In this way, Changyu Company managed to promote a rational flow of surplus personnel and maximize its profit. What's more, it is convenient to collect first hand market information for the company to adjust its marketing strategies and tactics and to control the market better.Currently, compared with 2,358 direct-furnish network in 2006, there was only 1,032 in 2008 in Yantai-weihai market. As for sales income, compared with that of 2005, the increase was limited and the gap was even wider if compared with the 26% increase of Changyu Group in recent years. The financial statement of 2008 said that the profit had amounted to more than 6.70 million, but according to this thesis, the profit owed a great deal to price advance in April,2008, advance order of whole-barrel clients and savings from advertisements.Many factors contributed to the phenomena mentioned above and among them are: insufficient market development, ineffective market management, unreasonable price; decline of loyalty of Changyu's terminal cooperators; decrease of customers'confidence in Changyu; considerable increase in operation cost in direct-furnish system which failed to live up to the expected goals. For the purpose of maximizing the profit and solving the market problems, Corresponding countermeasures are put forward in this thesis: decrease the direct-furnish system; cooperate with a third party; introduce new and suitable market channel models to Yantai-weihai market.