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A price war is a modern enterprise is very important marketing tool in the operation of the market and reasonable price leverage effect , the implementation of effective competition in the market . Price war intensified , a number of business owners have been trapped in a " price war" among the cycle , dropping lower and lower prices , but the market is shrinking , corporate profits are declining . Many household electrical appliance enterprises failed to properly treat the cause of the price war occur and take the right strategy. This article is mainly for the origin of a price war , analysis of the causes of war , the price war under severe development companies how to price the product , as well as what kind of price war strategy to solve the problems .
就现代企业而言，价格战是极其重要的一个营销手段，在企业价格的市场运作过程中，合理利用价值原理中的杠杆作用，能够有效的产生竞争。价格战的拉开让一些企业卷入价格战的怪圈之中，产品的价格不断下降而市场却不断萎缩，企业的利润也随之减少。
The price war is the modern enterprise of a very important marketing means, in the market operation reasonable use price leverage, implement effective market competition. Price war intensified, some enterprise operator has fallen into the trap of "the price war", the price of a falling, but the market was continue to shrink, corporate earnings also decreased with each passing day. Many home appliance enterprise failed to properly treated the cause of the event and price to take the right strategy. This paper mainly is aims at the price of the origin, produce wars in the cause analysis, the development of price under severe pricing for how the enterprise products, and what kind of price war strategy to solve the problems.
Keywords: price war , the United States , the market economy , electrical
Literature papers , case analysis, surveys and other research methods , study discusses the following aspects :
价格战是市场经济环境中市场营销所带来的必然产物，价格战的根源就是产品的供过于求，同类产品过剩，企业之间相同的产品数量巨大，在外观和造型上也十分的相同，但是质量和性能却没有差别。
Price war is the inevitable product of the market economy is an important part of marketing. The root of the "price war" is that the current oversupply of products , similar products surplus products similar between the various manufacturers , appearance, shape . Quality and performance is not a big difference, homogeneity is serious , service companies such factors are not in place constituted . In marketing practice , companies adopt a competitive price and to initiate or participate in a price war mostly because production companies in order to expand market share, dominate the market, improve price competitiveness. A price war is a " double-edged sword " , can effectively improve market share , expand product awareness , but improper use will bring a lot of negative effects. The most mysterious of the Department of the market economy is the validity of the price adjustment mechanism , including the price war that market mechanisms play an important role in the form . Price war could eliminate a number of inferior products manufacturers and those who seek short-term interests , to stop duplication of investment is reasonable to integrate social resources and utilization .
There is a class A price war is malignant, is disordered , is a purely low -level competition , which is a thousand kills , self-harm 800 acts to a certain industry, the damage is huge. Competition both USA GE and Suning appliance chain giant , brought tangible benefits to consumers . However, the two giants of the competition , to manufacturers with tremendous pressure , to a certain extent, affected the healthy development of the household electrical appliance enterprises . Moreover, in the long run , if the power imbalance between the two giant chains , it may result in a monopoly , the monopoly of one party is likely to control pricing .
While the other price war , it is bound to experience the development of the industry , is a high level of competition , it will promote the development of enterprises and the whole industry promotion. When a market is mature industry to a certain extent , when the promotional wars, advertising campaigns , public relations war and other competitive strategies are implemented, the price war will become a large brand competition should be the last magic , there is always a business will be the first fuse to ignite a price war .
In the present stage of economic development , "affordable" is still the main starting point for our residents in the choice of consumption, so the price war is often used by enterprises , and tested. Price war intensified , a number of business owners have been trapped in a " price war" among the cycle , dropping lower and lower prices , but the market is shrinking , corporate profits are declining . Also some companies is due to launch a price war similar products , in order to consolidate their existing market and had a passive , blindly follow , involved in a price war .
Today, USA GE has become known trademarks in China , and has become China's largest home appliance retail chain enterprises. " Chongqing Commercial Daily " August 9, 2006 report on the program announced price cuts , Suning Appliance and students focus locked in wedding decoration electrical appliances, mobile phones, refrigerators, washing machines and other products: cell phones an average reduction of 30% , the maximum decrease of 50% ; refrigerators, washing maximum decrease of 30%. In addition , digital cameras, TV , etc., are within this price range. To meet the challenges of Suning , USA GE is also possible to reduce prices , the decline is likely to Bi Suning bigger .
Currently more intense price competition in the market , basically to play the " price war " which, in this case , USA GE and business strategy is to beat the competition to what ? United States : the "price war " is just competition in the market with more specific performance as a means of marketing is a need for a comprehensive means from pre-to post , the final evaluation of the consumer is the business to achieve the ultimate goal.
Several well-known appliance stores competition is particularly fierce , mainly reflected in the price war , holidays bound promotions, but they also have to find a holiday promotional reasons . The United States is not an exception, also suffered so disgusting price war. 3 • 15 party for CCTV exposure USA GE three stores on home appliances TM cheat up behavior , USA GE said in a statement , will be involved in these stores lay off cheat up sales personnel, and the United States will never be hired . Premiums for individual sales staff retention consumer phenomenon , headquarters of the United States said it would conduct self ; Meanwhile , the United States will conduct a comprehensive consumer visits , found that consumers will thus causing losses to compensate .
For businesses, the price war is a double-edged sword, a positive role , but also have a negative impact . Price wars can also eliminating a number of inferior products manufacturers and those who seek short-term interests , to stop duplication of investment , a waste of national resources, making investment more rationalized use . USA GE and Suning face price war , but can afford to ignore consumers to buy more favorable commodity . The combined size of USA GE and Yongle , though they have almost twice the number of stores of Suning 's business , however, reflected in the final price and service advantages of the United States does not seem so big , in order to be easily defeated by price Suning not seem to be so easy.
How to meet at the United States in 2003 and Fuzhou news media , consumers and suppliers as well as home appliances counterparts were in the United States two million yuan speculation promotional specials war broke out , I did not expect , east of hundreds of local businesses on behalf of week playing the price war. Fuzhou helm hongde United States has said that the United States will offer specials worth 200 million consumers , and that the United States will be the overall price of 10% -15% lower than the peer emerged . To deal with such a low price to local businesses to provoke a price war , profit will be greatly reduced, or even a guaranteed sales, there may be serious loss .
2001 appliance sales Shenyang four princes - ZTE Commercial Building , Shenyang Commercial City , Shenyang and Shenyang Tiexi department store associates to " purchase price % off " sales approach challenges the United States , and in other ways blackmail money seized in Shenyang supplier to sever contacts with the United States . Shenyang, the United States has an emergency, its purchase channels cut by local suppliers , sales staff were withdrawn. Shenyang, the United States opened the first day sales of over 400 million, and to 18 August sales of over 100 million yuan, August 17 due to the impact of heavy rain throughout the day , only 30 million.
In the price war in the homogeneous product market, if price-cutting competitors , companies must follow price cuts , otherwise most customers will shift to lower-priced competitors ; however , in the face of price competition , the companies can either follow-up , you can also let us wait and see . Price war challenger price pricing can be formulated according to the actual situation faced by the company's competitors and its own pricing strategy , a large share of its advantages , fluctuations in the value of economic laws affected greatly.
Prices unchanged , comes naturally, either with the customer with the price change, relying on customer preference and loyalty to the product offensive against competitors price , subject to market conditions change or the emergence of a favorable opportunity to do business actions . Prices unchanged , strong non- price competitiveness , such as: strengthening corporate advertising campaign to increase sales outlets , and strengthen after-sales service , improve product quality, or in terms of packaging, function , purpose, etc. to improve the product . #p#分页标题#e#Not launch low-end products , the development of low-end customers are not willing to give up the low-end customer base, in order to ensure product profitability when a company's products can be positioned in a same configuration mining high-end customers , the price is the brand implies , high prices implies high social status , others find that the product is really good, buy it felt good value for money ,
Partially or completely follow the price movements of competitors to take prudent strategy to maintain the original market structure, consolidate the market position achieved at the price of a higher low and competitors . Superior to competitors in order to follow up the price , combined with the non- price measures to fight back , bigger than the magnitude of price-cutting competitors , the magnitude of the price increase is smaller than competitors , strengthening non-price competition , the formation of product differentiation , the use of strong economic strength or superior market position , condescending , giving competitors a devastating blow.
Wisdom to deal with price wars , there is a way to deal with price wars in the fight to promote new products at the same time , the fighting category and competitors still left to direct the battle to protect the city without losing , and use of new products to open up a new battlefield. While the price war that could play a very tragic, profit or even a loss leader ; this side of the new , but retains enough profit space , to make up for the price war consumed profits.
Different customers have different sensitivity to price sensitivity and quality of the product due to the homogenization of comparability with very clear , in a price war overpriced , often at a disadvantage state. Product differentiation taken after treatment , significantly reduced price sensitivity , reduce the adverse effects of the price war brings . By the appearance of the product , packaging, material, color change , highlighting the differences between this product and other products , this approach is not sensitive to the product , the price war has played a minor role . The appearance of the product , change the packaging , materials, colors , replacing the generation of new products , new products replace old products, making a major breakthrough in social science and technology , from the technical aspects of the product promotion, product upgrading , can effectively avoid the impact of a price war caused by the product . Increase the product's features and added value , which makes the product more perfect, as far as possible to meet consumer demand , so that products exceed customer satisfaction expectations tend to attract more and more customers to buy their products.
Maintaining the original price, improve the perceived quality of the customer , and the customer can improve communication activities , emphasizing superior quality low-priced competitors . Companies will find that maintaining the original price and improve the quality of customer understanding , discounts and lower than the operating profit to be cheaper . Companies can improve the quality and raise prices , high prices for brand positioning . Higher quality can be used to justify higher prices , higher prices in turn enables enterprises to maintain a higher profit. Or companies can maintain the price of existing products , while the introduction of a higher price of the new brand positioning . Companies can establish a low price "combat brand" - to increase low -priced products in the product series, or individually to create a lower-priced brands. When are losing price-sensitive segments of the market and will not be interested in the argument for higher quality when it is necessary to do so . For example, when the price of their products were low-priced store brand and other brands for new challenges , you can put part of the brand into a fighting brand.
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