The Channel Strategy Study Of L China Company

Since China’s reform and opening up,China’s economy maintain a sustained and rapid growth.Especially in the early of 1990 s,more and more multinational companies look to further increase for China’s huge market capacity and cheap labor resources,they sell products to China via some agents initially,then open a sales office or branch in China,until establish wholly-owned production facility and technical R&D center in China.China has already become one of the most important single market in the world.L Company is a world famous multinational chemical company,one of the world’s top50 chemical enterprises.The global employees more than 9000 people,sales revenue reach nearly $7 billion in 2015.Currently,L company has two wholly owned production facilities,one regional R&D center and three sales subsidiaries in China.L Company is one of the world’s largest manufacturer of thermoplastic polyurethane elastomer in the world,L Company achieve rapid performance increase and expand market share via all kinds of distribution channels in China.It can meet the sales target in the first few years,those foreign investors also are optimistic about the huge potential in China market,thereby they’re increasing investment in China.However,since the global financial crisis in 2008,the sales performance of L Company has seen a slowdown in China.On the one hand,due to the gradual market demand shrinking and more and more competition from international and domestic competitors.On the other hand,the lagging of channel management also caused the contradiction and discontent between L company and distributors.When the contradictions accumulated,it’ll bring a negative impact to the end customers inevitably,it will have big influence on the good reputation which is established in the market in past few years,it also will provide an opportunity to competitors to grab market share.This thesis mainly focus on L China Company’s position and its problems in the marketing channel management,through the marketing channel management theory and methods of research both at local and international,combined with the actual situation of L China company,put forward the optimization strategy for L China company channel management,including establish a standardized channel daily management system,optimize channel performance evaluation system,perfect the reported for the end users and information gather&publishing platform,formulate reasonable channel price system and so on.It can further standardize channel management,so as to reduce channels friction and improvemarket share.