Analyze the environment
• • With the rapid development of Chinese economy as well as the improvement of the living standards of Chinese people,air-condition,as a kind of siganificant household appliances,is playing an increasingly important role in national ecnomy and our social life. Since the 21th century,our country’s air conditioning industry has undergone steady and fast growth.Reform and opening up drive domestic economy high speed development. Air conditioning products by the "luxury" of life also gradually transformed into daily life supplies, greatly stimulated the development of the domestic air conditioning industry. With air conditioning market maturing, consumers begin to enhance brand awareness, brand concentration is raising, Industrial upgrading speed up the pace, China airconditioning industry gradually grows. Since 2006, the air conditioning industry has been basically grow into a period of steady development. China's air conditioning enterprises’ is not only developing in quantity and scale but also walking down the path of independent innovation of the introduction of imitation on the technical. In terms of Health, energy conservation in air conditioning function and appearance design, domestic enterprises also improve the technology level and product quality through introduction, digestion, and absorption.China has grown into an important production base for research and development of air conditioning industry in the world.
• In this context,Gree relys mainly on the salesmen’s personal ing the way of making profits from sale to stimulate the enthusiasm of the staff and cooperating with the businesses through the credit.
• Problem One: the marketing is Immature.The businesses often take the style of “delivery before payment”, which brought "triangular debts" and countless lawsuits. • Solution: To avoid the "triangular debts", salesmen headed by Dong Mingzhu in Gree adhere to the principle of “payment before delivery”.
The first stage: Marketing stage
• Market Background: During this period, the consumers’ awareness of brand was very weak.For the ordinary people, air conditioning was a luxury so that the main users were social groups, agencies, the mining industry and over 70% tertiary industry, followed by the units of science and education.However,industries like finance, insurance, telecommunications and meteorology used the air conditionings a little. At the same time,the sales market was very irregular.The brand has not been established in the market and the Gree was lack of sales experience.
• revenue of nearly 70 billion yuan, more than 3 billion yuan of tax; since its listing on the Shenzhen Stock Exchange in 1996, raising a total capital of 720 million yuan, but over the years dividends to shareholders for more than 1.4 billion yuan; 2005 home air conditioning sales exceeded 10 million units (sets); since 1995, Gree air-conditioning, 11 consecutive annual sales rank first in the industry market share.
Air conditioning market reflects on the following aspects
• 1. Brand concertration and rational consumption • 2. After-sales service for the consumers still attract public attention • 3. The future market’s potential is huge • 4. Energy concervation and health have also become major purchase standards. • 5.Purchase channels are still mvelopment process of Gree marketing mode
• Before 1994 : Promotion stage • 1995-1996: Large model stage • 1996-1998: Standardize market initial stage • 1998-2000: Co-broke stage • Since 2000: Professional agency stage
The business background
• Since 1991 since the founding of the company, tightly around the core development strategy of "specialization" to the spirit of "innovation" and "boutique strategy (build quality enterprise manufacturing quality products, the creation of boutique brand) to promote business development and growth," integrity,pragmatic "business philosophy to win the market and return to the community, so that enterprises in the fierce competition in the home appliance market for many years to maintain a steady and healthy development, and achieved good economic and social benefits. More than 10 years of rapid development, Gree results are striking: from an annual output of less than 2 million units had no well-known air-conditioned small factory became today has four production bases in Zhuhai, Danyang, Chongqing, Brazil, the number of employees annual production capacity of 18,000 people, home air conditioning more than 15 million units, commercial air conditioning with an annual output value of 50 billion leading multinational companies; net assets from less than 10 million yuan in 1990, an increase of 20 billion, an increase of 200 times; since 1995 cumulative sales of air conditioning more than 4000 million units (sets), the sales