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【正文】 ffered by traditional retail store A B D E G H I Purchasing power Exist client pool Short Term Target Zone Long Term Target high low high Retail store density C F Seizing the Future: Mail Order Market Potential in China 43 Target customer group potential evaluation: Area 2020 2020 2020Average Order Value A 350 370 400B 200 250 280E 180 210 250C 220 250 300Responsible Rate A 8% 10% 15%B 4% 6% 7%E 2% % 5%C 5% % 7%Contribution to Sales A % % %B % % %E % % %C % % %A: limited area with lots of demand, easily for peration C: Develop loyal customer, petition tough B and E: Decisive for long run success, not easy to develop Seizing the Future: Mail Order Market Potential in China 44 Developed loyal customer group in area C: Build good customer relationship and cultivate the mail order habits, so Quelle can get return earlier from this target segment. 2020 2020 2020Marketing 500,000 200,000 200,000DM 1,000,000 1,280,000 1,500,000Orders 50,000 80,640 105,000Sales Demand 11,000,000 20,160,000 31,500,000Net Sales 7,700,000 14,313,600 22,680,000DM Cost 3,700,000 4,736,000 5,550,000Contribution 3 350,000 1,934,528 4,456,000Contribution to sale % % %Name List 400,000 600,000 800,000?Limited promotion budget is needed for direct munication with customer . ?Purpose: Inspire faithful customer, diffuse useful information, reward the loyalty. ?Launch emotional promotion activity ?Discount with a given quantity of order ?Use BBS to build user group Seizing the Future: Mail Order Market Potential in China 45 Use concentrate resource to develop area A, this customer group can quickly be small cash cow. 2020 2020 2020Marketing 800,000 600,000 600,000DM 65,000 160,000 180,000Orders 5,200 16,000 27,000Sales Demand 1,820,000 5,920,000 10,800,000Net Sales 1,274,000 4,203,200 6,633,814DM Cost 240,500 592,000 666,000Contribution 3 403,500 825,536 2,233,200tribution to sale % % %Name List 65,000 85,000 100,000Developing step: In 2020 develop first 35 cities In 2020 explore 1015 new targets In 2020 develop 510 cities Marketing management: ?Exhibition amp。 Presentation ?Cooperating with local institution (labor union, bank, post office, etc) ?Establishing show room/ service center ?Flexible payment mode ?Employ order collector heavily ?Special delivery service Seizing the Future: Mail Order Market Potential in China 46 Develop qualified mail order customer in area B and E by suitable media. This group, rather depressive, has the potential to bear the lion share of total turnover 2020 2020 2020Marketing 1,200,000 1,200,000 1,200,000DM 1,000,000 1,500,000 1,650,000Orders 27,500 76,800 102,500Sales Demand 5,300,000 18,288,000 27,725,000Net Sales 3,710,000 12,984,480 19,962,000DM Cost 3,700,000 5,550,000 6,105,000Contribution 3(B) 1,225,000 670,800 2,050,400Contribution 3(E) 1,820,000 1,188,250 372,500Contribution to sale(B) % % %Contribution to Sale(E) % % %Name List (B) 550,000 700,000 1,000,000Name List (E) 550,000 700,000 1,000,000?Distribute introduction material and simple catalog through renting mailing lists for test ?Establish work for supplying free catalog ?Establish multiple distribution channel ?Selected media: ?Reader ?Shanghai Style ?Overseas digest ?Youth digest, etc. Constant marketing investment Seizing the Future: Mail Order Market Potential in China 47 Move decisively to cut operation cost, and so free more resource to be invested into customer satisfaction Office Rent Editing/ Printing DM Cost Shipping cost Cost of Goods Admin. cost 35% 30% 10% 30% 35% 10% Seizing the Future: Mail Order Market Potential in China 48 Investment in customer satisfaction has many ways Improve order handling process ?Modify MIS System, optimize customer interface ?Setup Call center ?Training a professional customer service team ?Seek quick delivering logistics partner Set up a Website ?Easy to search more and detail information ?Place order online ?Broadcast promotion message Develop order collector ?Promote new product ?Execute collected order Develop agent / service center / show room ?Convenient for touch sample ?Support and manage order collector Localization of product ?Suitable style for Chinese people’s figure ?Suitable style for Chinese custom More Convenience with Mail Order Seizing the Future: Mail Order Market Potential in China 49 According to this action plan, annual revenue have to increase dramatically in 2020 0 10,000,000 20,000,000 30,000,000 40,000,000 50,000,000 60,000,000 70,000,000 80,000,000 2020 2020 2020 Sales Demand Seizing the Future: Mail Order Market Potential in China 50 Financial Forecast/Budget (RMB) 2020 2020 2020Orders 82,700 173,440 234,500Sales Demand (1000) 18,120 44,368 70,025Net Sales (1000) 12,684 31,501 49,718DM Cost (1000) 7,641 10,878 12,321Contribution 3 (1000) 3,799 2,243 8,367Net Profit (1000) 12,500 8,000 0Investment (1000) 35,000 10,000 0Seizing the Future: Mail Order Market Potential in China 51 Content A. Development of Chinese Retail Market B. Mail Order Market Analysis in China C. Quelle Shanghai SWOT Analysis D. Action Plan and Sales Forecast E. Conclusion Seizing the Future: Mail Order Market Potential in China 52 Following conclusions can be draw out of our study (I) ? The China retail market will continue its trend in growth and restructuring, and open interesting opportunities for foreign retail giant. ? The China urban citizens have shown positive attitude and open mind toward all forms of direct marketing, especially mail order ? We expect a much more favorable climate for mail order business, especially as the China Post has been