Marketing Analysis of Vinegar in Hengshun Company

The No. 3 of Arts building Zhejiang University City College 51 Huzhou Road 1 celestial latitude 2011 professor Min He Teacher of Consumer Behavior 51 Huzhou Road Dear Professor He Attached is the report you requested on 1 December analyzing the marketing situation of XIANGFEI acetum in HENGSHUN Company. The report principally includes market analysis, market strategy, SWOT analysis and recommendations of XIANGFEI Vinegar in HENGSHUN Company. Recommendations argon made that, if apply as soon as possible, should make it better. Preparing the report has been challenging and most worthwhile.I testament be available if you earn any queries or wish to demonstrate any part of the report in more detail. Yours sincerely Student in CB furcate A REPORT OF THE MARKETING ANALYSIS OF VINEGAR IN HENGSHUN COMPANY AS AT DECEMBER 2011 Prep bed for Professor Min He Teacher of CB Zhejiang University City College Prepared by Student in CB Class Date of submission 12 December 2011 TABLE OF CONTENTS Item Summary iv 1. INTRODUCTION 1. 1 Authorization.. 1 1. 2 forecast of Report. 1 1. Scope.. 1 2. 0 BACKGROUND 2. 1 Company Background.. 2 2. 2 Consumer Background. 3 2. 3 contest Background 3 2. 4 Condition Background. 4 3. 0 ANALYSIS 3. 1 SWOT Analysis . 6 3. 2 4Ps Analysis. 7 4. 0 PLAN AND RECOMMENDATIONS 4. 1 Marketing Plocal area ne iirk 9 4. Recommendations.. 10 5. 0 CONCLUSIONS. 11 List of References12 Summary This report was commissioned by Professor Min He to analyze the marketing situation of XIANGFEI vinegar in HENGSHUN Company. The report focuses on these aspects market analysis, market strategy, SWOT analysis. By analyzing these, a market plan should be made. As financial crisis is going on, the companies in all aspects suffered a decrease in their business. After analyzing the background of HENGSHUN, it is clearly to live on the conditions of community.HENGSHUN Company registered ceiling is 127. 15 million Yuan. Stock price is $7. 1 per share. New total share c apital is 127. 15 million shares. Annual gross revenue are more than 1. 1 billion. By August 2011, the communitys total assets are 3. 28 billion. Whats more, HENGSHUN sprain the firstly listed company in 2001, and this company actual more faster than before. From the selected information, its product sales events grew over 20% between July and August in 2011, and the estimated growth rate of this year allow more than 25%. In 2009, the operating income of HENGSHUN Company is 1. 74 billion Yuan, and the growth is over 68. 09% the company earned 40,440,000 in the same period, and doubled compared to prior to listing performance. The company is committed to extending fresh new spices and vinegar products research. At the same time, relying on the century brand, the company has implemented Trans regional increase at Chongqing, Shanxi, Anhui, Jiangsu and separate places, where effected the condiment production base. At demonstrate, HENGSHUN Vinegar has been developed from a traditional sauce vinegar manufacturer into the largest and most moderne vinegar production enterprises.The company mainly produces vinegar, soy sauce, pickles, rice wine and other traditional and modern brewing condiment, deferred compound condiments, vinegar manufacture and sale of health products . And the companys new product development in line is based on the dominant market, orienting to consumer demand and the purpose is to improve the level of consumer health. The company also did the market segmentation and launch development direction . It adheres to the customer first and implementing tracking services to speed up the popularization and application.Whats more, by the use of 4Ps analysis, it is easy to explain the present circumstance of HENGSHUN Company. So did the SWOT analysis. Then, making an advertisement video is for the aim to propagate the brand awareness of HENGSHUN Company. Recommendations have been made that, if implemented, should give HENGSHUN Company a be tter market plan and strategies. These include build its feature famous brand with the authority of government using the statues of stars and experts, ask them to endorse the products of HENGSHUN Company orbit a goal as green brand. . 0 INTRODUCTION 1. 1 Authorisation Professor Min He, teacher of class CB, requested this report on 1 December 2011 1. 2 Aim of Report The purpose of this report is to provide an report of the marketing analysis of XIANGFEI Vinegar in HENGSHUN Company. It aims to suggest recommendations to instigate the XIANGFEI Vinegar in a better way. 1. 3 Scope The report will introduce the background of HENGSHUN Company and the XIANGFEI Vinegar. And the next is analyzing the competitors to HENGSHUN Company, such as DONGHU vinegar Company and SHUITA Company.Also the following is to describe the market segment. Next, the positioning strategy and promotional mix and how they will be applied in the marketing will be mentioned. Finally, the advertisement plan and some recommendations for this vinegar will be demonstrated. 2. 0 BACKGROUND 2. 1 Company Background First comes the financial conditionThe registered capital of HENGSHUN Company is 127. 15 million Yuan. Its stock price is $7. 1 per share. Annual sales are more than 1. 1 billion. By August 2011, the companys total assets are 3. 28 billion.Then following are the general managerial skills. The company is committed to extending modern new spices and vinegar products research. At the same time, relying on the century brand, the company has implemented Trans regional development at Chongqing, Shanxi, Anhui, Jiangsu and other places, where established the condiment production base. Based on the inheritance of ancient brewing techniques, the company b overagely introduced modern game- tech and in advance(p) management experience and invested in the new city of Dantu in HENGSHUN industrial park .Following is the production capabilities. At present, HENGSHUN Vinegar has been developed from a tr aditional sauce vinegar manufacturer into the largest and most modern vinegar production enterprises. The company mainly product vinegar, soy sauce, pickles, rice wine and other traditional and modern brewing condiment ,deferred compound condiments, vinegar manufacture and sale of health products . Its investment involves biological health, real estate, packaging industry and commerce retail. At last follows something about its reputation.Jiangsu HENGSHUN Vinegar Industry Company was founded in 1840, the DAOGUANG of the Qing Dynasty as obsolescent China business. HENGSHUN product has won international gold medal for 5 times, also 3 times for national quality award, the national geographical indication products and the brand name product in China. 2. 2 Consumer Background accord to our investigation, its current consumer is mainly housewives, and the potential consumers maybe are the husbands and the aged. As a condiment, housewives are the main consumers who usually do the cookin g in the family.Since it is a mannikin of fruit vinegar, it has a lot of functions to prevent diseases and keep healthy. It net restrain and reduce the formation of the aging oxide in human body, so as to strain anti-aging and make skin smooth. Another function Promote the bodys metabolism, remove expandigue, relieving alcoholism, lose weight clear bowel. Another function Softening vessels, diminution blood fat and cholesterol. This is suitable for the aged. A specific questionnaire has been designed to understand the needs of the customers. Then depending on the research, it is lear to decide marketing contents. 2. 3 Competitor Background According to lan Gordon (2002) a company should look two waysat the individual customers it has chosen and the specific competitors it intends to beat. As to HENGSHUN, Vinegar business in Shanxi province is the biggest competitor. The old vinegar in Shanxi already has a more than 1000 years history. And among the quatern famous vinegar compa nies, it still is in the top. As the news reported, Shanxi old vinegar has occupied 10% of the marketing. DONGHU Vinegar Company is a major sale company of the Shanxi old vinegar group co. td. Because of the high brand awareness, DONGHU has become the main and strong competitor of HENGSHUN. But also because of being as the place of origin, DONGHU was treated as a going-down company, so it give more chances for HENGSHUN to arrival its goal. According to the news on the economics of Shanxi Daily, due to the depressiveness in the vinegar marketing, the shares of sale will not increase rapidly, but with the promotion of consumption, HENGSHUN has a high possibility to raise their sale occupation relying on its high brand awareness. (Shanxi vinegar fighting for honor. http//www. aynews. com. cn/sxjjrb/122745. html) 4. Condition Background Firstly, the economic condition will be analyzed. In recent years, Chinese economic strength becomes stronger and peoples living level improves, so peo ple began to pursue the high-quality life. Of course, the average price of HENGSHUNs vinegar is higher(prenominal) than competitors, but the taste and quality is better than others. Because Chinese persons financial burden released, people prefer to use better vinegar which is more health and tasty. HENGSHUN became the first listed company in 2001, and this company developed very fast.Product sales grew over 20% between July and August in 2011, and the estimated growth rate of this year will more than 25%. HENGSHUN Company invested in real estate development, which brought their profit and challenge. Then is the political condition Zhenjiang HENGSHUNs vinegar brewing techniques has been protected and comprehended by Chinese government. According to Chinas State Council announced in 2006, Zhenjiang HENGSHUNs vinegar brewing techniques has been included in the first mussiness of national intangible cultural heritage, which s the aliment industry in Jiangsu Province, and it is also the only selected traditional craftsmanship. As for the culture condition, HENGSHUNs vinegar is a famous and outstanding brand of Zhenjiang vinegar. HENGSHUN Company carries forward Chinese traditional food culture and revives national industry. In the same time, HENGSHUN absorbs the advanced science and technology to promote industrial updating. 3. 0 ANALYSIS 3. 1 SWOT Analysis SWOT analysis is a strategic planning method used to appraise the strengths, weaknesses, opportunities and threats involved in a project or in business venture.In involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to arrive at that objective. ( Xing 2009,p. 50) 1. Strength HENGSHUN Company is a listed company. It has a higher awareness of its brand, and because of its stocks, more and more people will pay attention to its trend of development. 2. Weakness Because of its creation date, it is much later than the vinegar business in Shanxi Province. So many the aged prefer the long-history brand, such as DONGHU Company, SHUITA Company.And the price is higher than others, so some working class people would not choose this kind of vinegar. 3. Opportunity As the development of IT and media, HENGSHUN will be cognise by more and more people. And, due to its use of high-technology, high and new quality of vinegar will be produced, like fruit vinegar, seafood vinegar. As Roininen, K (2001) points out, attitude scale that purely concentrate on its taste, and health in the food choices, 4. Threats DONGHU Company has reproduced a new kind of vinegar.And lots of new vinegar company has founded recently. HENGSHUN will face more powerful company in the near future. And also because the instability of the stock markets, HENGSHUN stocks are in a humbled circumstance. 3. 2 4Ps Analysis As Kotler, P (2009, p. 48) points out, the marketing mix consists of everything the firms can do to influence th e demand for its product. The many possibilities can be collected into four groups of variable known as the 4 Ps product, price, place and promotion. And the 4Ps analysis is often used in the firm promotion period.As Glowa, T (2001) points out, understanding how consumers make colonial choices is a critical component of market strategy. 1. Product XIANGFEI vinegar is something like apple vinegar. Both of them are all used for the health or kayo reasons. As Garber, L & Starr, RG (2003, pp3-15) points out, the most important apple vinegar attributes for consumers are its taste and odour. So XIANGFEI vinegar in HENGSHUN Company just focuses on these two aspects. HENGSHUN Company is committed to extending modern new spices and vinegar products research.Based on the inheritance of ancient brewing techniques, the company boldly introduced modern high tech and advanced management experience. The company mainly product vinegar, soy sauce, pickles, rice wine and other traditional and mod ern brewing condiment ,deferred compound condiments, vinegar manufacture and sale of health products. Its investment involves biological health, real estate, packaging industry and commerce retail. 2. Price As far as we know, the vinegar prices of HENGSHUN Company are unremarkably acceptable. But in contrast to the other small brands, its price is a little higher.Especially, the XIANGFEI vinegar is much more expensive than others, due to its function in health protection and beauty. 3. Place HENGSHUN Company was founded in Jiangsu Province, so its loyal consumers concentrate on the southern areas. Another reason is the northern people much more delighted with the old vinegar in Shanxi Province. According to Don Hutson (2008) As a salesperson, understand that the concept of place is complex. So as for the sale area, it is an obvious significant problem waiting HENGSHUN to solve it. 4.Promotion In terms of promotion, using a brief video is to do the advertisement for HENGSHUN Compan y. This video was illogical into three parts. First is focusing on the function of health care. It can restrain and reduce the formation of the aging oxide in human body, so as to achieve anti-aging and make skin smooth. Second is to stress another function Promote the bodys metabolism, remove fatigue, relieving alcoholism, lose weight clear bowel. Lastly, the function of softening vessels, reducing blood fat and cholesterol have been mentioned. 4. 0 PLAN AND RECOMMENDATIONS 4. Marketing Plan Firstly, HENGSHUN Company should pay more attention on the product strategies. go against the new technologies, as to the aspects of treatment, beauty, health, in order to change the vinegar image which is in consumers minds. As to the HENGSHUN image, it is also waiting to be changed. Second is the value determine method, at the low level market with a low price but high quality products and services which is under the condition of reducing be without sacrificing the quality. HENGSHUN shoul d control its price at a acceptable range, so as to keep the loyal consumers.And this also can improve its brand loyalty. Thirdly, the company can do the promotion by carrying out all kinds of lectures to make consumers know the functions much better. And next is the sales strategies, nowadays, HENGSHUN moldiness make full use of supermarkets. It must be sure that the products of HENGSHUN should be put at the conspicuous place. So it can attract more people and propagate its brand. 4. 2 Recommendations 1. Build its own famous brand with the authority of government. In the powerful government-decided society, the honor delivered by the government will give the sense of reliable.Relying on this, HENGSHUN Company can achieve much more than present. 2. Using the statues of stars and experts, ask them to endorse the products of HENGSHUN Company. It usually can work in a short time. 3. Setting a goal as green brand. Focus on the function of health and environment protection. Produce the n ew kind of vinegar so as to follow the trend of the modern society. 5. 0 CONCLUSIONS After analyzing all these aspects, the background of HENGSHUN Company has been know, included the financial condition, general managerial skills, production capabilities, reputation, and marketing skills.Similar essay Reed Supermarkets a New Wave of CompetitorsThen by using the 4Ps, its marketing circumstance in this environment has been investigated. Also relying on the SWOT analysis, it is helpful to discover the strengths, weaknesses, opportunity, and the threats which HENGSHUN Company will be faced in the near future. And at last, relying on a video, it is a useful skill to attract consumers. Whats more, some market plans and recommendations have been given to HENGSHUN Company for their better development. List of References Hawkins, Mothersbaugh, and Best , 2009, Consumer Behavior Building Marketing strategy, 10th edition, china machine press, pp. 57 Philip Kotler & Gary Armstrong , 2009, Princ iples of Marketing, 11th edition, Qinghua press, pp. 48 YQ Xing, 2009, circumspection ,2nd edition, High Education press, pp 48 Shanxi vinegar fighting for honor. ,viewed in 1 December, 2011, http//www. daynews. com. cn/sxjjrb/122745. html Hutson,D 2008 Sell value, not price, Acanthus Publishing, Boston Garber, Lawrence & Starr, RG (2003), Measuring consumer response to food products, pabulum Quality and Preference, vol. 14, pp3-15 Lan, G 2002, Competitor targeting, J.Wiley& Sons, Etobicoke Glowa, T (2001), Understanding how consumers make complex choices, http//www. glowa. ca/Understanding_consumer_behaviour. pdf Finance and economics, viewed in 3 December, 2011, http//finance. sina. com. cn/realstock/company/sh600305/nc. shtml Roininen, K (2001), Evaluation of food choice behavior development and validation of health and taste attitude scales, Academic Dissertation, University of Helsinki, Department of Food Technology, http//ethesis. helsinki. fi/julkaisut/maa/elint/vk/roininen /evaluati. pdf