Choose an organization with which you are familiar. Discuss the extent to which it has embraced the marketing concept, and critically appraise its marketing strategy.

Authors Avatar

University of Hull, Business School, MBA Apr.2003 ~ Mar.2004

Assignment:

Choose an organization with which you are familiar. Discuss the extent to which it has embraced the marketing concept, and critically appraise its marketing strategy.

Main Structure:

  1. General Introduction of Merloni Termosanitari (China) Co., Ltd.                     …………. 150 words
  2. Business mission & Goal                                                                                     ………….400 words
  1. SWOT analysis
  2. Goal formulation
  1. Marketing strategy developing                                                                            …………..600 words
  1. STP: segmentation, targeting, positioning
  2. Marketing mix
  1. Marketing strategy implementation                                                                      …………500 words
  1. Marketing channels management
  2. Sales activities management
  3. Budgeting & control
  1. Conclusion: critical analysis                                                                                 ………….350 words
  1. Non-precise information
  2. Limited marketing department function

Total counted: 2,000 words

MTS (CHINA) MARKETING STRATEGY OVERVIEW

MTS group was established in 1930. In 1950, three different product lines were created after successfully distribute its products during the 1st 10 years: water heating and storage appliances, gas storage cylinders and domestic electrical appliances. Nowadays, MTS is one of the world leaders in the manufacture of water heaters, boilers, burners, components and baths.

Since the 1970s, the MTS has expanded globally, opening new branches, production plants and acquiring established factories across the globe, specialize in and concentrate on sanitary and heating products. ‘ARISTON’ brand was launched in 1960, destined to became one of the greatest trade and consumer brands in its sector, and took an international notoriety (in Greek language: ARISTON = the best).

MTS (China) Co., Ltd was born in 1992. The production range (BU) covers small and large electric-water heaters, storage gas-water heaters and instantaneous gas-water heaters, fitness and sanitary ware products, combi-boilers and air conditioners.

Business Mission & Goal

Every organization exists for certain targets, as addressed in Peter Drucker’s classic questions: What’s our business? Who is the customer? What is of value to the customer? What will / should our business be?

In the earlier 90’s, MTS Group set-up its new strategic mission: entering China market, build -up its global largest production & export base and take the China market leadership. This mission will take place in 4 levels: corporate, division, business unit and products (Figure 2.1).

Statistic reports showed, China market was engaged in a torrential change in the earlier 90’s, national GDP keeps on raising quickly, Engel's coefficient decreases to below 50%, peoples tend to spend more money on high-standard and durable consumptions. When at its first stage of entering China market, external environment changes not only brought MTS great opportunities to grab the increasing $12 million market, but also give a signal of fierce market competition, Heier, Litter Swan, Macro, A.O.Smith, YORP, both domestic & imported brands seek to obtain market-share. Furthermore, preferential treatments from China governments, economical and political, were offered to those national brands, which make them stand in a strong competition position.

Join now!

After scanning external opportunities and threats, MTS China listed its own strength:

  1. Mature technology which had already been developed for forty years. Chinese customers are shifting their energy consumption behaviour GWH to EWH, the safety issues are essentially considered, MTS group is proud of  its previous good quality control experience
  2. Advanced products which are quite successful in Europe. The leading production developing skill enables MTS to launch new products every year
  3. World-wide famous brand, good reputation in China market. One twin-brother company of Melorni group, a refrigerator producer, had already made the brand ‘ARISTON’ well ...

This is a preview of the whole essay