Research On The Product Distribution Channel Optimization Strategy Of Hunan Valin Steel Co.,Ltd

Since the financial crisis, the world economy is on the reviving stage, and still faces many uncertain factors. With the steel production’s growth spurt over the past ten years, iron and steel industry is in the high cost, low profit, demand growth slowdown situation, and the enterprise are facing greater stress of competition and subsistence. The distribution channel can bring about the superiority in the competition through the different channel strategy, it will also become an important way of decreasing the sales cost, increasing the profit and expend the market share. Research has shown that the value created by distribution channel account for15%to20%of the total value created by goods and services. So it is of great significance to optimize the existing distribution channel strategy for iron and steel enterprises.The thesis begins with the modern distribution channel management theory, and elaborates the history and current situation about the distribution channel of iron and steel enterprises. According to the market environment, the thesis puts stress upon analyzing of the problems of the distribution channel of Hunan Valin Steel Co., Ltd. For instance, the channel strategies is outdated, the channel loyalty is low, the direct supply ration is at a low level, the distribution channel is conflicting and lacking of information and communication. The main reasons of these problems are the deviation of market strategies, the poor market serves ablility, imperfect channel management and other reasons. On the basis of the12th five-year strategic plan of Hunan Valin Steel, and with the problems mentioned above, the thesis redesigns the channel structure. Facing the new distribution channel model, the thesis also puts forward corresponding channel management strategies, for example, optimizing the selection criteria of channel members,improving performance evaluation indices system of channel members, encouraging the channel members, providing training support and strengthening channel conflict management.Finally, the thesis introduces the guarantee measures after optimizing the distribution channel strategies of Hunan Valin Steel Co., Ltd. such as improving the organizational structure of distribution channel, establishing an information sharing mechanism, improving the Customer Relation Management and strengthening the culture construction of distribution channel. Through the guarantee measures, the distribution channel strategies of Hunan Valin Steel Co., Ltd. can operate efficiently and Hunan Valin Steel Co., Ltd. can increase the profit.The problems mentioned in the thesis are universal in iron and steel industry, and I wish it will be a reference value to the channels construction of iron and steel industry.