Case Study On Marketing Channel Of Dalian Tobacco Company

On November 11,2016,the State Council issued "Opinions about the promotion of entity retail innovation and transformation ",that has been clear about the guiding ideology and basic principles of Chinese entity retail innovation and transformation.The document emphasizes on promoting the fusion of online and offline including "establishing standards,norms,the competition rules that suits the integration and guiding retail enterprises to gradually improve the level of informatization;to integrate the offline logistics,service,experience and other advantages and online business flow,capital flow,information flow line;to develop intelligent and network channel layout." It also indicates that along with the development of Internet economy,the retail industry has entered the era of O2 O,which is the new retail era that fully integrated the online and offline business after experiencing entity competition,wars among electricity suppliers and fight between online and offline business.Tmall,Jingdong and other big electricity providers have joined in the race to control retail channels.Whoever seizes the terminal will have competitive advantage in the future.The marketing channel is attracting more and more attention from business enterprises.Tobacco commercial enterprises have a unique advantage in marketing channels.Because of the particularity of monopolization in tobacco industry,cigarette retail still takes license system,and retail terminals can only be purchased from local tobacco business enterprise,which means that tobacco business enterprises have strong channel influence on retail customers.But at the same time,the cigarette with dense distribution and regional monopoly,results in retail price confusion,rampant cigarette from illegal channels,disorderly competition,customer profitability decline,thereby reducing the retail customers’ dependence and trust,which blocked the implementation of channel strategies.Taking Dalian Tobacco Company as an example,this paper puts forward three questions: the unreasonable channel structure,low selection criteria for channel members,and poor management of channel members.Using marketing channel function,marketing channel structure,marketing channel strategy and marketing channel management theory,we try to find solutions,to purify market order,optimize retail layout,strengthen channel management,and enhance company’s channel control.