Research On Chinese Marketing Strategy Optimization Of PA Air Conditioners

On the eve of May 1st 2015, the State Development and Reform Commission(below as SDRC) arranged talks with several big air-conditioner enterprises aiming to require them not to revolve in price war and to keep healthy competition. To trace the origins of the meeting, we have to go back to the air-conditioner tycoon Gree appliances located in Zhuhai suddenly announced it would use its cost advantage to start a price war to sweep lots of low-quality low-price enterprises away from the market. At one moment, sudden changed happened in air-conditioner market. Midea, Haier, Aux,Chigo and Hisense accepted the battle one after another. The rice war of air-conditioner started.May 1st has always been one of the most important festival in air conditioner sale. Before 2015 May 1st, all the brands were eager for a fight by reducing their product price competitively. In this context, SDRC finally talked with main brands and raised the theme of avoiding price war. However, with low industry growth and high dealer inventory, all the brands need reshuffled to get rid of the dilemma. The problem is should the price war stopped or what should the brands do?As one of the earliest well-known foreign brands, after 20 years’development in China market, PA air conditioner plays not as good as before. The market occupancy declined from the peak 11 percent to now 2.2 percent, so as the gross profit rate, on the edge of loss. Will it survive? If yes, how?On the basis of introducing details of the development, enterprise culture, product R.&D., sales mode etc., the article continues to analyze general environment of China air conditioner industry, including politics &. Laws, economics, society &. Culture, technology and population and use Porter’s Five Forces Model to analyze the competition of China air conditioner industry. In the end, by using 4P theory, STP theory, SWOT analysis, it focuses on analyzing the product, sale channel, price, sales promotion of marketing and fractionizing the market to find out target market and locate PA conditioner’s market place. Also, it aims to find out the right marketing strategies of PA air conditioner in China market, including strategies for product, price, sales and promotion and ultimately help PA air conditioner finds its way survive and develop in China.