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The Research of H Company’s Marketing Channel Integration

Author: LiuXingXi
Tutor: HeWei
School: University of Electronic Science and Technology
Course: Business Administration
Keywords: FMCG(Fast Moving Consumer Goods) Channel alliance Cost ofmarketing channel Improvement of distribution channel KA
CLC: F274
Type: Master's thesis
Year: 2012
Downloads: 160
Quote: 0
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Abstract


Among four marketing tools, people always focus their attention on products, price and promotion rather than marketing channels in the past. In fact, the marketing channel is becoming more and more important and it is the key point for a company to remain competitive and successful. Especially for FMCG (Fast Moving Consumer Goods) producer, it is nearly impossible to deliver products to the consumers without advanced marketing channels.From December2004, China has removed the restrictions on foreign invested enterprises in respect of investment area, equity and quantity in accordance with China’s commitment to WTO. The foreign retailers accelerated their entries into the China market. Due to their huge scale, such retailers’ bargaining powers in the distribution channels continue to grow. The traditional pattern where the manufacturers hold the preferential position has changed. Manufacturers have to re-adjust their strategies to cope with the new circumstances. How to adjust the cooperation model, optimize the combination of distribution channels, and achieve the win-win situation of both the retailer and manufacturer become the key factors to success.Company H, as a well-known manufacturer of oral health products. It produces toothpaste, which owns the biggest market share in the Chinese domestic market since June2012. Due to the rapid changes of market structure and other factors, company H must update the channel strategies to meet the future challenge. In the recent years, company H’s sales volume and market share keep increasing. As such, it has the imminent needs to reform its management of distribution channels. This article takes H as a research subject. It analyzes Company H’s existing marketing channels and classification management, and studies in depth the internal and external factors that affect the development of H, identifies the connection between different elements such as structure of marketing channels, contribution, revenue, profits of different members on the chain of channel and discovers the basis reasons of the issue. Through the analysis above, this article tries to achieve a way to improve the integrity of Company H’s distribution channels.

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