"price War" Is Not A Way Out Of Liugong - Pneumatic Butterfly Valve - Butterfly Valve

September 2005 20 to 22, the China Construction Machinery Industry shovel transport

machinery branch held an annual meeting, Guangxi Liugong Machinery Co., Ltd. closed Haidong, vice president of sales profit margin for the loader industry for several years wandering, and was decline enabled the industry calls the value of marketing to combat the price war. Closed Haidong said loader market demand from the past into the frenzy grew steadily in the future period is no longer "gone up", but "get to the bottom", enter zero sum game stage, enterprises Should the stubbornly low prices, in competition will be vulnerable to withstand risk. Over the past five years, the loader industry maintained a rapid growth. Period of market demand, production will become the core competitiveness. Enterprises to expand production capacity to become the first choice, the main business productivity jumped substantially in 2004, production of over 4 million units, becoming the world's truly loader producer. But so far, most companies seeking market share in the most direct and effective means is still the price.

The one hand, substantial growth in production, on the other hand the industry to lower profits. Closed Haidong think this is a terrible signal to the harmful effects of a price war, combined with the huge growth in raw material prices, which greatly weakened the industry's profitability. In his view, the domestic construction machinery market has entered a non-border competition, the Chinese construction machinery market has become the domestic and foreign construction machinery manufacturers contend, and bring new companies into the competitive domestic and foreign threats, is bound to blindly Price worked hard to rely on the enterprise market, a fatal blow. The participating companies agreed loader, the increasingly fierce competition, capacity oversupply, high prices of raw materials have squeezed profit margins loader industry was very small, while users will pay more attention to products of the total cost, poor quality, not high-tech products can not meet the growing demand for the user, if the competition at only a low level of competition at the primary level, the enterprise market will be ruthlessly eliminated.

Liugong deal is worth the price war, weapon sales, the product value, service value and brand value as a triple. The company introduced advanced technology development strategy, always emphasized technical innovation and product development strategy in the company's top priority. By product differentiation innovation, restructuring of value, out of product homogeneity caused by price competition in recent years, an average 5 to 6 loaders development of new products. Liugong for the first time in the industry in 2002 launched the "dedication to customer service" for the purpose of Liugong service brand, identify a service brand identity, service personnel wear uniforms, standard tools and test equipment configured to provide users with sales, service, information, spare parts, training, comprehensive and timely services to increase value to their products through the service.

Closed Haidong that, in today's market competition situation, in addition to product quality, reliability, service etc. Competition, the contest is another intangible invisible war. Liugong brand after years of honing the market, enjoy a high reputation in the customers mind. Liugong attaches great importance to this wealth, time shift the marketing focus from products to brands by integrating brand Liugong resources, highlighting the role of the brand, and promote marketing. Beginning in 2004, has embarked on implementing a brand Liugong overall planning project, and further refine the content Liugong brands.

by: gaga

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