Marketing Essay Example | Topics and Well Written Essays - 3000 words - 17

Marketing - Essay Example WD Electrical Appliances Co. Ltd. was built in 1999, locating in Cixi City, Zhejiang Province, which is called the hometown of small household appliances. It is a company of manufacturing small household appliances integrating R&D, production and marketing. The main products are electric kettles, coffee pots and electric steamers, with the annual output of 2 million units of small appliances. WD owns its self-operation export and import rights and the products passed GS/CE Authenticate of TUV and were exported to countries and districts such as Europe, Middle East and Australia. The company covers 8,500 square meters and over 170 employees, including 55 managers. It manufactures as per the order and mainly as the OEM. The annual production value and sales in 2002 was USD 3.47 million, about CNY 28.73 million. The entry barrier for the electric kettle is rather low because the universal production equipment (injection model) can be widely applied in producing kinds of household appliances with injection molding. It can be switched easily with low cost. The mold manufacturing is the main restriction. The cost of a set of mold of the kettle is about CNY 0.8 – 2 million, which is not too much for investors; the economical efficiency of scale is not obvious and can be operated on small scale; with low technique and fewer components, the technical difficulty is mainly achieving the appropriate temperature controller and connecting pieces design according to the aesthetic appeal; customers are particularly sensible to the style and quality, so if the manufacturer can design a popular style, it is not difficult for them to receive orders and marketing channels by means of product development and exhibition. Therefore, the channel is not the problem. As the competition enters a new stage, price competition is not the only