Problems in the marketing of FISHER control valve reports
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1. Too many product lines
In order to increase sales, FISHER is involved in competition in various industries. Because different industries require different products, some need high-end products, some require low-end products, and different processes in different industries require different types of valves. FISHER used to produce almost all high-end products, but as competition intensifies and sales pressures increase, FISHER always wants to compete in all industries, so it has gradually developed some low-end products, but its valves and other In comparison with valves that have an advantage in a particular industry, quality, variety, and price are likely to be weak. At present, the biggest problem facing the product line is how to meet the needs of different processes, but also to streamline the product line, so that the sales volume of single products rises, in order to reduce production costs and achieve greater competitive advantage.
Too many product lines, although giving customers more choices, but also a lot of problems. In a bidding project of a power plant, a total of 50 valves, competitors generally choose a locator, and FISHER in order to reduce the bid price as much as possible, according to different needs selected three locators, customers think too many varieties They have increased the cost of operation and maintenance. At the same time, due to the excessive product line, it is more difficult for customers and internal employees to become familiar with the products.
2. The product price is higher
FISHER is the first brand of control valve, and the main target market is in the middle and high-end market, so the price positioning is higher, which is also determined by the market, because if FISHER lowers the price, other competitors must follow the price cut, the whole industry will enter a vicious price competition.
Take the 1 inch ordinary cast steel control valve as an example, compare the price of FISHER with the main competitors.
Unit: US Dollar
Comparison of brand 1 inch ordinary cast steel control valve and FISHER price
FISHER 30201 1
KOSO 1900 63%
MASONEILAN 2400 79%
SAMSON 2600 86%
For the current Chinese market, the price factor is becoming more and more important in the bidding process of large projects, especially for some general contracted projects, which are often the lowest bids on the premise of technical feasibility. Therefore, FISHER encountered great difficulties and challenges in the bidding process. In the Yangtze BASF project, FISHER products have obvious technical advantages, but the results are still not all purchase FISHER products, in addition to a small number of high-end products, most of the products still choose the relatively cheap KOSO valve. 3. Sales channel confusion
Many customers believe that FISHER's sales channels are confusing. Since the agent is divided according to the location of the user who is ultimately used, and the same customer, such as an engineering company, sometimes works in Shanghai, the agent in Shanghai will contact with him or her; sometimes in Dalian, the project is done in Dalian. The agent to contact them brings a lot of inconvenience to the work of the engineering company. The biggest problem is the design institute. For design engineers, they are not willing to deal with different sales people of the same brand, but are willing to cooperate with more fixed personnel. For competitors, there is no problem, and for FISHER, this problem is more prominent. For this reason, FISHER has failed in many projects. In the Daqing Fertilizer Project, the end user is in Daqing. The project is handled by the agent located in Daqing. The Daqing agent also maintains a good relationship with the customer. However, the design institute is in Chengdu. Since the agent of Daqing and the Chengdu Design Institute have not cooperated before, the SAMSON Chengdu office has always had a good relationship with the design institute. Therefore, the design institute chose the valve of SAMSON in the design selection. The design institute is responsible for the products designed. Due to the insistence of the design institute, the SAMSON valve was finally purchased. In fact, FISHER's agent in Chengdu has a long-term relationship with the design institute. However, since the project is handled by the Daqing agent, the Chengdu agent will not receive any benefits from it, and therefore will not assist it in cooperating with the design institute. Because competitors use direct sales channels, the same company has offices in different places. Because it is the same company, the interests are basically the same, and there will be specialized technicians responsible for the specific design institutes. The project, regardless of the end user, is responsible for this particular person, and because of the clear division of responsibilities, it can maintain a long-term good relationship with the design institute.
The sales channel of the regional agency system also generates some vicious competition behaviors. For example, when a user purchases spare parts, he sometimes gets the price from different agents. In order to get more orders, the agents sell at different prices, resulting in vicious competition. Will affect the profit of FISHER.
4. The localization process is slow
FISHER established its factory in Tianjin, China as early as 1992. It was originally a joint venture with Tianjin Instrument Seven Factory. It was the first control valve manufacturer to build a factory in China, but the sales of domestic valves in 2004 were only about 10% of total sales. In the domestic valve sales of imported brands did not reach the first.
At present, FISHER's domestic valve sales are far lower than its competitor KOSO. From a development perspective, with the globalization of production worldwide, the globalization of procurement and the promotion of consumer concepts, low-cost products have advantages, and the market for imported valves in China will become smaller and smaller. Domestically produced valves of world-renowned brands will become mainstream products, so FISHER must accelerate the pace of localization in order to cope with future competition.