A Study On Marketing Channel Strategy For Nanfang Hongyu

As China stepped into a phase of rapid development for heavy industry, the dieselengine, as a core component for commercial vehicle, construction vehicle, powergenerator and marine vehicle, entered into a trend of homogeneous competition sincetechnology brought by foreign capital no longer monopolize. Players in engine industrycompeted in areas like market exploration, production scale, service network, newtechnology and even in international market. Therefore, it is important to promote itsability in marketing channel exploration and management to meet market demand fordiversified sales channels. Taking into account the current tough trend of engine industry,the paper analyzes existing marketing channels of Nanfang Hongyu Engine Companybased on industry environment, available resources and proposes management elevationfor marketing channels, so that traditional channels will transfer to modern channelssuccessfully.Facing the opportunities and adjustments of engine industry, the paper studies currentbusiness environment and future trend for Nanfang Hongyu by using Michael Porter’sFive Forces Model, Boston Model, SWOT analysis and Market segmentation whileabsorbing data from industry associations, OEM feedback, etc. The collection of voicesfrom senior managers, front-line sellers and engine dealers provide deep understanding ofexpectations on the role of marketing channels from both inside and outside company.With multiple data analysis from inside company like sales, KPI, quality and financewhile combining Nanfang Hongyu own characteristics, the paper proposes a mid-longterm strategy for marketing channel design and management, so that a channelmanagement system will be established to guarantee feasible implementation of channelmanagement and provide a solution to fall of market share and sales volume. Thus thechannel dealers and Nanfang Hongyu will be a real strategic ally, from co-exist to developtogether.