【正文】 r for rural consumer to buy detergent power ? Price ? Stain removing Efficacy ? Foaming ? Fragrance ? Water solubility ? Whitening ? Enzymatic +++ ++ ++ + 0 ? Price is the most important factor to affect consumer behavior in rural market ? The consumer also pay considerable attention to the stain removing efficacy of detergent powder ? The rural consumer often evaluate the stain removing ability through the foaming effect of the detergent powder ? Most of the rural consumer also like the fraqrance brought by deterrent powder ? Because in general fake product can’t solubilized in water, the feature can help consumer distinguish real product with fake product ? The rural consumer seldom care for the whitening and enzymatic ability of detergent product Example: Decision factors of rural consumer The customer behavior is fit with Nirma’s low price strategy Source: Roland Berger Partners’ interview Backup Nirma\interimrpt Location of manufacturing site of Qiqiang Market share by region 1 4 . 0 %5 . 5 %2 2 . 7 %1 3 . 7 %In order to reduce the transportation cost, Qiqiang set up seven mainfacturing site national wide Source: Roland Berger Partners’ interview East South West North ?Guizhou ? Benxi ? Sichuan ?Neimeng ? Shanxi ? Anhui ? Xi’an No manufac ture site Example: Qiqiang’s manufacturing site vs. Market performance ? Qiqiang’s headquarter Back up Nirma\interimrpt ? Focus on one regional market and concentrate the marketing resources at the beginning ? Using accumulated experience to expand new market 3 A systematic expansion strategy should be applied Description Source: Roland Berger Partners’ interview and analysis A Regional peration B Low price C Front attack D Motivated dealer E Benefited customer ? Remended retail price is about ~ RMB/kg ? Higher price in the beginning to build up brand image ? Allocating strong sales team to a new market by intensive marketing and promotion ? Delegate the built up market to a qualified distributor to manage ? Development a incentive sales policy to motivate the dealers along the distribution channel ? Adopting wellacceptable approach to promote in the rural market Nirma\interimrpt Retail price of major brand in Chongqing [RMB/kg] B The target retail price for Nirma should be less than 6 RMB/kg Libai Whitecat Qiqiang Nirma Source: Roland Berger Partners’ survey and analysis Resun2) ~ 1) Libai’s headquater is in Guangzhou and it is mostly produced by Resun in Hunan 2) Local brand in Hunan province ? ()/kg is the most popular accepted price for rural market ? The suggested retail price for Nirma is ~ RMB/kg ? The whole selling price is about 80% of retail price The initial retail price should be higher for setting up brand image Price positioning Nirma\interimrpt Success factors for Qiqiang Market share of Qiqiang B Qiqiang fast expansion stems from its appropriate marketing strategy and manufacturing strategy % Sep. 97 % % % Jan. 98 May. 98 Spt. 98 ? Low cost low price The salary level in Shanxi is about half of whitecast in Shanghai rawmaterial advantage its Na2 So4 has 35% market share in China ? Retail price: 6 RMB/kg Drreet approach lowlevel wholsaler Use strong promotion to push product ? Local manufacture local sales Seven manufacturing sites national wide with headquater in shanxi ? Well financed 390 million RMB (47mio USD) was financed in stock market in April 1997 80%. Example: Success factors for Qiqiang Back up Nirma\interimrpt Example Description of approach ? Develop customers and build up sales work ? Delegate a reliable distributor to manage the work ? The team is assigned to another new market ? Build up a longterm agent relationship with the distributor Example: New market entry approach in Chongqing Front attack ? Use several qualified agents to sell product with longterm credit term (3 months) ? Send a sales team to support agent to promote as well as build up own knowhow ? Take over the sales work and directly sell to whole sellers Joint attack ? Diaopai ? Yuxiu ? Power 28 (benckiser) ? Weibai (Henkel) ? Establish own sales branch locally ? Directly sell product to wholesalers and large retailer Direct attack (sell) ? Tide (PG) ? OMO(OMO) ? Qiqiang Source: Roland Berger Partners? interview C Front attack strategy is remended for Nirma to perate new market Nirma\interimrpt ? Employ distributor and its own sales force (about 2023) to explore market