Nongfushangquan marketing dilemma.doc

 PAGE \* MERGEFORMAT 3 Nongfushangquan marketing dilemma ‘Water, the profits of this industry is not done, but something out of the province. ‘Farmer, general manager of spring Liu stars of this industry, the huge costs and meager profits seem resigned look. Under repeated questioning by reporters, Liu stars very carefully with a ‘modest’ to describe the fuzzy quantifier hard for a year’s harvest. Reporter obtained a data validation Liu stars answer. A case of 24 bottles 550ML ordinary cover Nongfushangquan, bottle and cap the cost of production of around 0.5 yuan, a box of water production cost is 12 yuan. Nongfushangquan last year’s advertising, promotions, channels, costs and staff salaries add up to nearly 1 million, diluted into the water is 4 dollars per case. Coupled with the average transportation cost per case of water 3 yuan, the total cost of 19 yuan. Promotions by the end of 2001 prices, the same wholesale price of a box of water is only 19.6 yuan. Two-phase reduction, carrying a box of water, only a few cents profit of just money. If we take into account the 350 million new factory Zhejiang Chun and Northeast Jingyu 470 million investment in new plants borrowing costs, minus handed Jiande, Hangzhou, Chun, and local government revenue, profit Nongfushangquan space, is also true that only with the ‘modest’ to describe. What farmer swallowed a spring of the profits? The origin of the plight of farmers, there has been a spring of marketing as a strategic problem: the farmer is only one bottling plant in spring, while Wahaha has 15 bottling plants nationwide. Transportation radius is too long, resulting in transportation and marketing costs are much higher than the competition. Spring farmer must rely on a large number of wholesalers and dealer network, the power to distribute their own products. Farmer spring attaches great importance to product planning and retail terminal building, construction sales and distributor channels, but not the line. A