Strategies Used by Yili Groups
The Yili Group----how it functions and strategizes in the Chinese Dairy Marketplace
5.0 Introduction
This chapter critically reviews the findings and analyses of the data collected from the company’ report, secondary data and interviewer opinions towards the strategy adopted by the company. Unstructured telephone interviews and face-to-face interviews with the company’s marketing director – Mr. Wang, revealed what the company implements and the problems faced by the company.
5.1 Findings and Analysis
From the data collected, the Yili has implemented a number of strategies to improve their market share and profitability. The Yili’s marketing strategy is based on the innovation. Innovation is the successful exploitation of new ideas.
In China’s dairy industry, innovation is an important issue that considered a major driver of the company towards success. It linked to performance and growth through improvements in efficiency, productivity, quality, competitive positioning, market share and so on. For the moment, China dairy’s companies are mostly aiming in the first line of market; targeted markets are still putting towards the well-developed cities, for instances, Beijing, Shanghai, Guangzhou. Sadly, companies have left out the wider market in the outskirt of China. The main reason for it is the cities sales points are not centered; investment of exploitation for new market and promotion is higher. Besides, one of the risky of the investment is the effect of the responses and return is slow compare in the well-developed cities. A creative marketing strategy is needed to enter into a new market.
The Yili has realized that being a leader in the industry, they need to be creative in thinking in order to survive in the competitive market. The opportunity that gained by the Yili was the first company who entered to less developed cities, which provide wider market and profit return to the company. For instance, in 2005, the company has targeted the
5.0 Introduction
This chapter critically reviews the findings and analyses of the data collected from the company’ report, secondary data and interviewer opinions towards the strategy adopted by the company. Unstructured telephone interviews and face-to-face interviews with the company’s marketing director – Mr. Wang, revealed what the company implements and the problems faced by the company.
5.1 Findings and Analysis
From the data collected, the Yili has implemented a number of strategies to improve their market share and profitability. The Yili’s marketing strategy is based on the innovation. Innovation is the successful exploitation of new ideas.
In China’s dairy industry, innovation is an important issue that considered a major driver of the company towards success. It linked to performance and growth through improvements in efficiency, productivity, quality, competitive positioning, market share and so on. For the moment, China dairy’s companies are mostly aiming in the first line of market; targeted markets are still putting towards the well-developed cities, for instances, Beijing, Shanghai, Guangzhou. Sadly, companies have left out the wider market in the outskirt of China. The main reason for it is the cities sales points are not centered; investment of exploitation for new market and promotion is higher. Besides, one of the risky of the investment is the effect of the responses and return is slow compare in the well-developed cities. A creative marketing strategy is needed to enter into a new market.
The Yili has realized that being a leader in the industry, they need to be creative in thinking in order to survive in the competitive market. The opportunity that gained by the Yili was the first company who entered to less developed cities, which provide wider market and profit return to the company. For instance, in 2005, the company has targeted the