The Cost Composition and Change Law of Carton Price (II)

Packaging Marketing Strategy

(I) Market Positioning

Marketing is not simply promoting products. The Corporate Marketing Department is different from the Sales Department. The Sales Department puts the specific marketing plans into action and puts them into action. The Marketing Department will perform its functions at three levels: product-based and strategic. At the management level, at the operational level, the market research, forecasting, planning and investment are conducted. The market strategy, price strategy, coordination and monitoring, market public relations, and peer competition are specially studied to form an overall strategy for corporate marketing. We are market-oriented, drive economic growth through market development, and promote a new round of entrepreneurship. If market competition is ruthless and the market is lost, it will lose its effectiveness and lose its "profit maximization." For this reason, the packaging company's business decisions must be subject to the market, and it can be asserted that the competition in the 21st century will be a kind of comprehensive strength competition, including all-round competition in terms of brand, quality, cost, added value, technical capabilities, market capabilities, etc. . We must follow the market competition rules of “quality, price, service, and feelings” to consolidate the existing market, expand market share, and realize the renewal of thinking and work methods. We must break the original geographical concept of a sales radius of 500-1000 km. Single product concept; Seasonal concept in off-season peak season; Filling off-season productivity vacancy with diversified and multi-category to establish a stable, sustainable, multi-level, high-efficiency, long-span, all-round packaging market. Defeated.

(II) Price positioning

When companies price products, they must have clear pricing targets. The pricing target refers to the intended purpose that the company intends to achieve with price means before pricing the product. It directly serves the enterprise's marketing goals and is the specificization of the company's marketing goals. Firms have different pricing targets, different pricing methods and different pricing strategies, and the resulting price levels are also different.

1. We must not only create first-class products and first-class economic benefits, but also shape and build a value system. To change the "cost to determine the price" concept. In order to adapt to the market competition rules, "the same quality than the price, the same price than the quality, the same quality than the price service", the Society to determine the cost to the price, from the internal management, control of material costs, reduce consumption, improve efficiency and reduce costs. The cost was seized and the benefits were captured. At the same time, according to the product sales net rate of 10%, combined with the market's ability to bear, formulate the lowest product prices and production and sales rate, capital withdrawal rate, the implementation of physical quantity, price double-track assessment, the implementation of standard price and price changes simultaneously, unified price and different regions The price coexists, and the execution price of each product is “fair, fair, and open”. If individual products are competing for contract orders, they can maintain the cost and benefit the users in order to expand market share. Thus becomes the static control of this price and the dynamic control, forming the whole process, a full range of cost and price control structure, or referred to as the "forced cost management method."

2. Maintain expanding market share. Market share, also known as market share, refers to the percentage of a company's carton sales to market sales. It is a comprehensive reflection of the status of business operations and product competitiveness. A certain market share represents the potential profitability of the company and is the basis for the survival and development of the company. Therefore, many companies prefer to sacrifice short-term profits to ensure long-term profits. To this end, it is necessary to implement low-cost strategies for all or part of the products in order to achieve the goal of increasing market share.

3. Suppress or cope with competition. In order to prevent competitors from entering their target markets, some companies deliberately set prices low. This pricing target is generally applicable to large and powerful companies. While some SMEs actively take the market-led company's price (leader's price) as the basis and adopt a follow-up strategy. Accompanying market pricing can ease competition and stabilize the market.

(III) Sales Positioning

After the product has been positioned, it is necessary to take a bite out of the market, the enterprise must occupy the market, and the occupation of the market is determined by the sales strategy. The digital management has changed from the “production and then sales” to the “sales and then production.” Pattern. It is the current direction of efforts to increase the return on investment of packaging and printing companies. At the same time, the implementation of parity procurement methods, the procurement market survey, the main raw material information macro control, so that "homogeneous buy low prices, the nearest purchase of the same price, the same quality and the same price, can use domestic without importing." It is also possible to implement tendering for suppliers, and based on the principle of price, quality, and service, assess fixed-point main supplier and supplier, and establish a comprehensive supplier evaluation system. The positioning of a product is not in production but in the market. To this end, strategically oriented carton factories often implement brand strategy: "Let famous brand companies become our customers, let our customers become brand-name companies." The market economy does not protect the laggards. Instead, it needs to establish corresponding mechanisms to adapt to the market. This is the trend of the company's development. Only by producing high-quality and inexpensive products, but also sincerely treating customers as God, the market will give us a generous return.

The marketing mix of an enterprise is an overall strategy system formed by the four strategies of product, price, sales, and marketing. Therefore, the pricing strategy cannot exist independently from other marketing mix factors. Carton companies usually set price strategies first, and then formulate other marketing mix factor strategies based on price strategies. At this time, the price has become a major factor in the carton market. The price determines the target market, competitors and design of the carton. It also determines the characteristics and production costs of the carton. And to achieve the transfer of pricing strategy.

Undoubtedly, new market concepts, new business strategies, new marketing strategies, and flexible marketing tactics will create a space for packaging marketing campaigns to achieve a large market structure from the region to the country.

Practice has proved that the packaging company's business decisions must be subject to the market, from the market to select the packaging company's behavior, all the behavior in the market to achieve, the results identified by the market.

(Author/Chen Xirong)
Source: Soft Packaging Weekly

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