To customers, middlemen and salesmen use different methods of sales promotion. To customers, during the festivals or yearly celebration the company often sells their products in discount price. Such as in the National holidays of this year, some new styles clothes of ‘Lucky Baby’ has 10%off. To middlemen, this company gives middlemen some free products, in order to have long-term co-operation with existing middlemen because find a good middleman is not an easy thing. To salesmen, the company host some competitions to encourage employees do their job lively. The winner of the competition can have a short-term rest or trip.
Analysis of Shanghai Pigeon Company
Shanghai Pigeon Company is specialized is engaged in the pregnant woman clothing, the baby thing monopolizes the company.
Firstly, is organization structure.
Chart Two
The organization chart is divisional structure. In divisional structure there are some independent departments. They have their own products, markets responsibilities and profits. Company use divisional structure has got advantages and disadvantages. There has five factors must consider. They are staff focus, resources, working relations and control. At staff focus area, functional staff focuses on product and customer need. Company produces baby things, so every employee considers customer need and product, at the same time, isolation from wider professional and technical developments. At resources area, dedicated facilities meet customer needs quickly. Pigeon Company should be use good facilities, but costs of duplication across the organization. For example: paper, cost of telephone. At work relations area, common customer focus supports good internal relations. In Pigeon Company every employee think is agree so internal relations is very harmonious, but potential conflict with other divisions over priorities, and no incentive to support other division. The disadvantage is not good for complete divisions’ development. At control area, Pigeon Company regional divisions use autonomy to meet local needs, but develop policies independently of wider organizational interests.
Next, is analyzing of external environment.
In political-legal factors, taxation policy should be prevented the company evades taxes. It can let company become tax payment good company on time. Tax payment not only is abides by the law, but also should be help country economy. At the same time, employment law limit company employment employee requirement. For example: manger shouldn’t be employ child labor. In political aspect, Shang Hai area stabilizing brings the benefit to the company, government stabilizing suit company production product and development company.
In economic factors, consumer confidence should be let company get fame and sales achievement increase. People living standard increase now, disposable incomes also increase. People would like giving themselves children good baby things let they grow change health and happy. Company sale achievement increase because lots of people would like buy good baby things.
In social-culture factors, the population and household numbers has brought the very tremendous influence at sales achievement. Now, every family has got a child. Parents very love their children. Parents would like to give children the best things, this think increase sales achievement.
In technological environment, in baby things area appear kinds of new technology---NEO. Company uses this NEO technology increase produce technology. NEO technology change and develop design aspect at milk bottle’s milk mouth. Use this technology at milk bottle sale have got very fast development. New technology change produce quality and produce method. Along with technology renewal and development, company uses the best technology at the environment. This behavior is attracts the customers the best way. New product potential, creating new competition give company bring pressure and threat. This pressure and threat let company give better service and quality.
Then, is the competitive environment.
Competitors are a major environmental force. Rivalry among existing firms, a lot of make pregnant woman clothing, and the baby thing monopolizes the company now. For example: Piyopiyo, Qiangsheng and Lucky baby. Other companies not only build very long, but also have got good service and quality. Only has suitable service and price should be resistance with other company. At the same time, appear lots of new entrants, this is the threat of new entrant. For example: Weiwei. Although they are new company, they have got new technology give company bring pressure. Bargaining power of suppliers and buyers let company profit down. Substitute products or services let the limited competitive market changes is narrower and smaller. For example: easy milk bottles are substitution NEO milk bottles. We must produce new suit baby things meet this competition.
Finally, is the marketing mix.
Firstly, is the product mix. Product mix includes width, brand, packaging decisions and serves.
The width of this company is 4. They are NEO Series, pigeon Series, women health Series and present Series. Product mix length is 1. Company brand is “Pigeon”. The brand founded in 1949, “Pigeon” mean is Pigeon. Pigeon stand for Peace. The company wishes the babies to grow healthy and strong, social peace, prosperity. The “Pigeon” trademark marking is by the double heart shape, which constitutes on behalf of mother's heart and baby's heart. In this marking contains “Pigeon” to hope the dissemination "Changes into visibly the compassion loves” Meaning. Our work is changes into the compassion the visible love, delivers people's side which all needs to show loving concern.
In packaging decisions, this company uses similar packaging decisions. The packaging decisions should be consumer clearly know several kind or the many kinds of product from a company. Packaging decisions should be increase lots of sale achievement. Customers could clear remembering this company’s product. At service area, use service item decision. For example: Post-sale service, telephone feedback consultation. These kinds of service let company get convenience from consumer.
Secondly, is the price policy. The price of this company is similar to other company product. The price must according to cost and demand. For example: "The mother's milk true feelings" the glass milk bottle 8oz. market price is 98 Yuan. Although the material comes from Japan, the quality is very good; the high price is very difficult to accept regarding the salaried. At the same time, the baby company initiates "the price war". Not only consideration demand and competition, but also must attentions the cost the price. Use cost orientation method, demand orientation method and competition orientation method. Policies of price adjustment include: discount policy, quantity discount, cash discount, seasonal discount and trade discount. Sale of clothes, company uses the seasonal discount and the cash discount. The counter- seasonal discount should stimulate consumer's buy desire. If the consumers buy the large-tonnages product and pay cash, the company may produce the discount or the preferential benefit.
Thirdly, is the place (distribution channel). The distribution channel is indirect. The place distribution channel has got middlemen. Factory sends product to agents. Agents sell produce to consumers.
Fourthly, is the promotion. Company uses advertising, sales promotion. At advertisement area, the choice advertisement media is a network. At present the market media uses the network, achieves the advertisement in the network, dissemination and knowing rate can be very high. Simultaneously also may develop more business agents at the network. Product sales can increase very much. At sales promotion area, company use sales promotion way to consumer. The way should attract more customers buying product.
Analysis of Dong Ling Joint-stock Company
Now,there are many different companies and inevitably exist compete or other problems.
First of all, is the organization structure.
Chart Three
There are two brands in company. The one is PIYOPIYO and another one is ABBY BEAR. They divide many small parts. The number one is advertisement department, this division is responsibility advertise. Some promotion is though this division to compete. The number two is production department; this is very important division because the company’s moving will live on this department and need to produce some kinds of different things about baby things. The third department is Human resources. This is major to manage allocate some things. The last is Purchasing, it response transport product or choose other company product. At present, more and more people care about product and price, then the company will notice the consumer require and because this company have different divisions, so company will increasingly good.
Secondly, is the analysis of external environment.
In political-legal factors, there are two laws are very necessary. The first is environment law. The concrete content is allow the market more and more requires, the general customers also requires kinds of different products. The company will must satisfy the customer also can make some kinds of products, so can involve some scraps, the company should redo these scrapes reorganization use.
The second is Employment law. The content is the company must have the staff to let business good, so before the staff in sign they must have an employment contract, this is can security staff. Avoid in the future will have the accident, so they enjoys the contract law.
In economic factors, at present there are many baby companies, for example Ai baole baby company、Baofeng baby company and Beiqin baby company. All about these company can own their products、brand and feature because has the competition existence, so the price can suitable and our company will has the highest quality service, low profit and the high quality in the market. This is very necessary.
In social-cultural factors, at present people’s living standard has a change, so about baby’s article’s requirement is very high. Every family will hope them child can use the best things, so our company will satisfy the customer’s require and the product will human nature.
In technological factors, the content is through external technology to adjustment our company’s produce, for example this company can through different technology to produce different powdered milk、baby things and baby clothes and other product. There are many external technologies to make more and more product types. Take enrich company product as the standard.
Then, is competitive environment. There has rivalry among existing firms. Now there are many different companies managing the same as product. For example the Baofeng Baby Company and Beiqin baby company. For example baby’s article, company all want through this product to earn money. Each people want the profit also is not different. The company is more and more and they must exist necessary compete. On the price of the product 、product’s quality and other things, they all have compete. Different company can accord their feature to produce product. The purpose is compare consumer like which types about product.
Next is marketing mix. Marketing mix includes four parts. They are product、price、place and promotion.
The first one is product mix. Width –number of product line. There are 8 product lines. About product, there are stationery、present、china present、nap toy、baby’s article、tableware and packet on product development and design, we hope by expend of love and mix the feeling of the product.
The consumers use their products at the same time, feeling their care about their products. Yellow duck PIYOPIYO and ABBY BEAR brand is through story’s style and bright color, lovely brand design appear will attract children’s visual line and other is product length is 2. In this part, there are two brands. The first brand is PIYOPIYO and the second brand is ABBY BEAR. About these two brands, there are two stories about it.
Number one is yellow duck (PIYOPIYO) was born in countryside in the happy family. The personality is very optimistic、active、kindness and like to help people. Duck has a best friend that the name is Chongchong. Duck has a desire that is make more and more friends and he hopes each person can happy everyday and has a happy family. The most important thing is he wants to be friends of everyone and wishes everybody living happily.
Number two is bear (ABBY BEAR) is yellow duck (PIYOPIYO)’s friend. He belongs to PIYOPIYO ‘s family. He is living in a happy countryside and he has a little shy、naughty 、he is like close to other people and he has a sweet smile on his face . He is brimming with curious to everything, like small duck、the insect, the small bee, the small fish. In the forest game the picnic, the exploration. Eating the bee, the milk and the strawberry which is he most like.
Except over, the packing decision-making belongs to the similar packing, the advantage is when everywhere people look it can know this product is our company produce.
The second one is price policy. This is according to the product’s feature give suggestions about the company. About product feature, the suggestion is the price will must rational because there are many things usual very expensive. Although there are high income’s families but many families still not rich, company needs according these families to makes the price. Other aspect is price adjustment strategy. The company has many different products,for example the ABBY BEAR modeling milk bottle brushes this product, the market price is 50 Yuan, if company according to people’s income level, this price can adjust suitable. We can reduce this price to 40 or 35 Yuan.
The third one is place about the manufacturer sell things to the wholesaler belongs to indirect.
The last one is Promotion that is which promotion we use and the analysis. If you want the product can sell very well, besides the commodity quality, also have promotion way, yellow duck (PIYOPIYO) VIP card is already complete, card use in common. Let the consumer buy things in yellow small duck special cabinet or exclusive agency, people all can use VIP card and enjoys preferential benefit of the expense discount. The Shanghai area the sixth general merchandise to August 19, 2006, on 20th two days will conduct large-scale especially sells the activity, the product is full 200 reduces 50, this activity face all customers and also has poster publicize.
Analysis of Zhu Hai Nuo Ya Liability Company
First of all is the analysis of organization structure.
Chart Four
This is a divisional structure. The company makes different jobs based on different functions of different units. With the clear way and the development of specialty, the professional work brings high level and improves the efficiency. Every division has his own work, so everyone knows his work clearly. An employee just needs to do his own job while others doing theirs. In this way the efficiency is improved and that is also the way to reduce their burden. Take an example, the marketing research division is making a research about market after that they hand the result in, then they finish their work and human resource division think about how to assign the resource, at the same the sales division is readjusting the proportion of their products then make a new sale project. So that company will make adjustment in time.
Secondly, is the external environment.
In political-legal,There are employment law,taxation policy,company low and Health safety regulations in our company. The employment law and company law can safeguard benefit for company. For example the company can get protection when an employee dispute with company for any reasons. On the other hand the employee also gets protection so they are also the protégé. The company will contract with every employee. Taxation policy is an important part of company manage, a legitimate company must pay the tax. Health safety regulations also affect the employee, company pay the insurance in this way can the employee get health insurance, this measure incarnate our attention to Health safety regulations.
In economic,There are consumer confidence,unemployment rates and disposable incomes in this company. Firstly, is the consumer confidence, it will improve the income as well as credit. Secondly unemployment rates is improved with the improvement of society, there are more people who have high education, because of this, the companies fired a lot of people who are not capable, which make many people unemployed. Finally, disposable incomes is very important to the company, take a example, government spend lot money on build the city, which lead to the improvement of the hire of workshop, so company will do their best to economize their expense.
In socio-cultural,There are demographics and values in society in this company. Firstly, China has the largest population in the world, but babies and Childs are few. So the company should develop new items point to this situation, such as develop new products for grown-ups or even elders. Now every family has only 1 child and they will give their best, so more and more people realize the importance of the products for their babies, which improve the value of this company.
In technological,There are new product potential and creating new competition in the company. Now some baby product company keep developing new products, the company should take these measures: introduce new technique and person of talent, develop more new technique, such as do more job on product, the cloth will not be dirtied easily.
In competitive environment, firstly, it is threat of new entrant. If a new entrant have good technology and idea of management, this will lead to the product of company are eliminated. So the company will make the unique product. Individual concept of company and the correct develop policy also are important for company.
Secondly, is the bargaining power of suppliers, if bargaining power of suppliers ability are strong, the company will pay high price when the company buy products. So this is bad for the company. Company needs to find out more suppliers are comparing each other and also finds out some fixed suppliers.
Then, is the bargaining power of buyers. Bargaining power of buyers will give the company a lot of troubles when the company sells the products, such as customers will give them a low price, and so the company will get low benefit. In this way, the company need to make unique product, customer just only choose our product.
Next, it is threat of substitute products. Now many product of company are the same. This situation lead to product unseal, company can change the package.
Finally, is the rivalry among existing firms. Rivalry among existing firms actually affect the company a lot, Rivalry among existing may probably related to our life, point to this situation, they should offer better service and product, aim at improve babies’ intelligence.
Thirdly, is the analysis of marketing mix; they are product, price, place and promotion in marketing mix.
Firstly, is the product line. The width of product line is four, they are study, entertainment, life products and protection product. The length of product is one, it is Lalababy.
Secondly, is the policy of price. There are discount policy and geographical pricing strategy in the price. The discount policy have two ways, they are cash discount and seasonal discount. Cash discount is very nice, company gives 10% off to customers who pay cash, in order to encourage people to use cash. Then, it is seasonal discount, there have different discount for different goods in different seasons. Such as company will give you 50% discount when you buy cloth for winter in summer, and buy for summer in winter as well. seasonal discount point to many kinds of things, especially for cloth and something about tend. In geographic policy strategy, when customers buy the goods, company will take all the cost of freightage, this is company has own channel for freightage, it will decrease the cost, and also make customers feel that’s worthy
Thirdly, is the place of company. The company has 30 retail shops in the country, company sells their products to the retailers after whole sales, and this is indirect channel.
Finally, is the promotion of company. There are advertising, refer to people in holiday's discount and gift in the promotion. The company's advertising will focus mainly on the Internet,the company has its own website, the company will play a lot of advertisements on their website, Of course there will have a lot of publicity and a lot of interesting paintings Video, make the customers happy among in the entertainment company' product, and there has a series of other websites, so more people will know about the website, and there will be more exciting to see the advertisements, this style won't spend money, also through the network to let people know the company, and understand the company. Then it is refer to people in holiday's discount and gift. In view of consumers during the festive season for discount, gifts: This style is commonly used in the company, and a festival atmosphere, Some companies will give consumers a discount, for example during the Spring Festival purchases of the company's products will enjoy a 15% off and some products will be even greater degree, a company will use to buy gift, or attach goods with a value of a way to promote consumption, so it will attract more customers and Repeat Customers.
Analysis of Shen Zhen POMEI Liability Company
Nowadays, people’s salaries have increased a lot so that change the life style and improve the level. Customers have high requirement about the quality of the products, packaging and functions. Shen Zhen Pomei Liability Company is a company that manufactures babies’ goods and related products.
First of all is the organization structure.
Chart Five
This is a divisional structure. The advantage of this kind structure is every employee has clear mind about their enterprise and can find the suitable specialized subject according to their brands, every staff has professional develop so that can bring high level and high efficiency resources to company. In every division the staff were graduated from the same subjects, choose this kind people in the same division because they have the same interests so that can focus supports good internal relations. There also have negative things of this kind structure. The employees who only work for one division just only has the knowledge about this division, so this is isolation from wider professional and technical developments, and then neglect the future development. Working with staff that have the same professional knowledge will feel pressure because they should work harder than others, otherwise they will instead by other people, it lead to unstable work.
Secondly, is the external environment.
In political-legal, government stability can push on the creativity and develop cycle economy, it implement the developed of science and construct the Shen Zhen city. So the government stability is very important that can encourage company increase fast.
About the employment law, in this part this company does everything on the basis of the employment law, and according to the facts of this company, set up some reward policy to encourage employees’ working.
In economic factor, the consumer confidence is very important because it affect the company whether have the feet in the market.
In social-cultural factor, nowadays, most mothers choose the products by fashion, comfortable, healthy, safety and environmental protection these concepts. Many companies develop their products in line with the new concepts, and then design the goods in human feelings, so that can produce the products that fit Chinese.
In technological factors, Pomei recommends natural and environmental protection material as raw and semi finished materials, their products possesses comfortable, natural characters; take care babies and mothers every time. The products of Pomei conform to national standards and their designs keep improving. They have the safeguard of technology.
Competition is also very important. Have competition means have motive force.
The threat of new entrants is an important thing. In order to avoid threat of new entrants, company can set up barriers to entry. This company has good organization system、strong service system、profit guarantee、avoid sick system, the quality of products system, renew products system and training human resources. These are the low sick safeguard of invest and attract other companies align.
The threat of substitute products of services, there has too many companies that manufacture the babies’ artic appear in the society. This company produce professional products to babies whom during the growing teeth period, instead the finger cookies. This products not only safety, but also can develop babies’ brain.
The rivalry among existing firms is also threatening this company, for example, Pigeon, PIYOPIYO, Lucky Baby and so on. If the company wants to stand in the same area, this company’s target is produce efficiency, co-operation friends, and design unique, have their own products.
The last part is marketing mix.
The first one is product mix. The width of this company’s product is elevent. Width means the number of product line. There has eleven product lines, they are souvenirs, toys, clothes, handicrafts, articles for daily use, something about acre for our health, body shampoo, and breast feed products, auxiliary products and educational articles.
The length is three. Length means number of product item. This company has three brands. They are “Xiao Jiaoya”, “Study in the play” and “Pomei”. These three brands have strong affect in the same area. And also these brands are supported by the nation.
For packaging decision, there have many styles such as similar packaging, different packaging decision, and relative product packaging decision and grading packaging decision and so on. This company use different packaging decision. Using this packaging decision because we can see from the width of the company, the number is relatively. In order to identify different kinds of products.
Second one is price. Because this company’s products full of Chinese traditional elements fashionable and colorful. Every product has a spirit, so the price is won’t low. This company use odd number policy, for example, a products cost 300 RMB, the company will sell it by 299 RMB. And also has consumed discount, such as customers can transact a card which can use in mainland, Hong Kong and Macao. If customers have this card, they can buy the goods by discount proceed.
Next one is the place. This company has middlemen. It belongs to indirect channel. Middlemen are extremely important for this company, it can reduce the frequency of trade.
Finally is the promotion. This company use build site on the Internet, hold big promotes activities and posters.
Nowadays, network has become a necessary technology that people find information, whether young people or elderly people. Because many people check information from the Internet, so people can know this company’s news from their web site. If people want to buy the products, they can buy them on the Internet. This way is very convenience that also can increase the sales volume.
Big sales activities also attract customers because that can let people buy the goods by cheap price in order to know this company.
Posters are also very efficient because people can see it everywhere in order to improve the reputation.
Analysis
First of all, is the organization structure of these five companies.
From Chart One to Chart Five show these five companies choose Divisional Structure, because many companies in this area not only have single brand and every division is independent. The advantages of choosing this kind organization structure are they have their own products, markets and profits and functional staff focus on product and customer needs increase the responsibility of staff. The disadvantage of this kind organization structure is every division is independent, they have their own brand so there will have competition between every division. Every employee will pay much attention on their own products and think out all kinds of ideas to beyond other divisions, so there has no incentive to support other divisions.
Secondly, is the analysis of external environment of these five companies.
In political-legal environment, these five companies involve employment law, health and safety regulations, taxation policy and environment legislation these four laws. In employment law, the restriction of this law can protect employers and employees’ benefits. In health and safety regulations, this law protects the staff that meet accidents during working and ask enterprises must prepare the measure of protects to employees. In taxation policy, the enterprises should pay tax every year and pay tax in time is also an honor of an enterprise. In environment legislation, due to this five companies are industry of manufacturing, during the producing there maybe make pollution. So every company should in line with the requests of environment legislation when they produce products. The stable of government can improve the development of company.
In economic environment, consumer confidence is very important for a company. The confidence of customers can increase the reputation and sales volume of a company. If companies want to build themselves brand in customers’ heart, they must have prestige.
In social-cultural environment, the demography and values in society are affecting these companies. Nowadays, every family only has a child and parents want to give their children the best things, so they will pay much attention on the babies’ articles for use, so that increase the position of this area in the market.
In technological environment, these companies in order to produce high quality and show originality goods, they recommend the latest machines so that satisfy the demands of customers.
In competitive environment, the main competitive is rivalry among existing firms. At present, more and more companies are engaged in produce babies’ articles for use and these companies don’t produce simply products, they make products more useful. If a company wants to play an important in this area, they must blaze new trails continually and have the features of their products.
At the end is the marketing mix.
The first one is product mix.
In these five companies, the number of product line is difference. The most one is more than ten and the least one is four. The main products are babies’ articles for use, clothes and gifts. In the length of these companies, some have more than one brands, such as Shan Tou Golden Hair Liability Company has four brands, Dong Ling Joint-stock Company has two brands and Shen Zhen POMEI has three brands. This means many companies in this area not only produce one kind of products, but also make products more useful and human nature so that companies can get much more profits.
In packaging decisions, most companies choose similar packaging decision. The advantage of this way is although a company has many products, their packaging are similar and customers can identify the goods belongs to one company. The disadvantage of this decision is if customers disappointed about one products of this company, it may affect other goods of this company.
The second one is policy of price.
In policy of price adjustment, every company chooses different way to adjust their price, but the most common way is seasonal discount. Because these five companies all produce clothes, in order to let more customers know their brand and attract more customers to buy their goods, they sell summer clothing in winter or winter clothing in summer by cheap price. So that can make customers feel they spend little money buying much clothes and increase the quantity of sales.
The third one is place (distribution channel).
When company finished manufactory products, they will consider the problem of selling products by direct channel or indirect channel. The distribution channel of these five companies is indirect channel. This means after manufacturers produce goods they sell products to wholesalers or retailers, they won’t touch with customers. The advantage of this way is manufacturers don’t touch with customers directly and avoid unnecessary contradictions.
The last one is Promotion
Good products also need to propagate. In these companies, they choose advertising and discount. In advertising, they choose set up Web on the Internet to propagate their products, because nowadays more and more people used to find information on the Internet and the speed of knows about the news on the Internet is fast. This means people pay much attention to search information on the Internet, so that companies achieve the purpose of propagating their products. During the festivals or holidays hold discount activities can attract more customer, because traders grip customers mentality that they want to spend litter money buy more things. Due to low price, customers will buy more things, so that can increase the quantity of sales and propagate the brand.
Conclusion
In this project, we researched babies’ articles for use this industry of manufacturing. There are five people in our group and we researched five companies, they were Shan Tou Golden Hair Liability Company, Shanghai Pigeon Company, Dong Ling Joint-stock Company, Zhu Hai Nuo Ya Liability Company and Shen Zhen POMEI Company. We analyzed these companies from organization structure, external environment and marketing mix these three aspects. In external environment, we divided it into PEST-----political-legal factors, economic factors, social-cultural factors and technological factors and competitive environment-----Porter’s five forces these two aspects to analyze. In marketing mix, we analyzed it from product mix, policy of price, place (distribution channel) and promotion these four aspects.
Through analyze these five companies’ organization structure, external environment and marketing mix these three aspects, we can see in babies’ articles for use this area, most companies have more than one brands and multi-functions products, they make their products more human nature because there only has a child in a family, so more and more people pay much attention to this area. The main promotion ways are set up Web on the Internet and discount. Because Internet is widely using and many people prefer to find information on the Internet so that can achieve the effect of let people know the new products and improve the benefits.
Reference
http://www.piyopiyo.com.tw/home.asp
http://www.a-c.com.cn/trade/brand/intro.asp?brandId=3705