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Ying Xiong
Tel. +358 440915076
MSN: xiongying_song
@hotmail.com

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Marketing Plan of EXSENSE Overseas

Ying Xiong, Marketing Specialist

Aoxin Marketing Co.,Ltd.

April 2009, Helsinki, Finland

 

1. Background:

Aoxin Marketing Company is responsible for the oversea marketing and brand building of embroidery products EXSENSE made in Lingyi Studio.

 

2. Company’s value:

u      Innovation refining art

u      Quality inheriting culture

 

3. Company’s advantages:

1)        Price: Our studio adopts a new operating business model, which means we cooperate with retailing terminators directly, skipping the international purchasers and securing the maximum profit for our distributors through saving the products’ liquidation cost.

 

2)        Quality: Our studio has been attached as an independently operating company by the Changsha Xiang Embroidery Association in Hunan, which means we base on the Chinese biggest organization of folk embroidery artists.

 

3)        Cooperation: Aoxin marketing Company, financially controlled by the studio, has been considered as a professional marketing company, primarily devoting ourselves to businesses on distributor development, distributor management, market research and marketing. At present, we have already employed 8 professional staffs responsible for designing and marketing jobs. Also, the employees in charge of our regional businesses have been already distributed across many countries in the world. Then, with the condition of our abilities, we are so confident that both of us could have a comfortable cooperation in the future.

 

4. Cooperative Clause

1)        Rights and Obligations of Agency

u      Rights: Exclusive rights of agency. Within the negotiated region, our distributors will be exclusively responsible for the sales of our products. And ”EXSENSE” will not appear at any other selling units or agree on retailing business any more. Our distributors within the negotiated region will be informed by “EXSENSE” immediately, once any business opportunities emerging in that region approach “EXSENSE” directly, skipping over distributors.

u       Obligation: Within the negotiated region, the distributors who have already had contracts with us will not be allowed to run any other brands of Chinese Embroidery Artworks and operate the businesses beyond our negotiated region.

 

2)        Logistics and Inventory

u      Initial order requirements: Non-dedicated stores have to display no less than 3 works with exquisite level of quality. For dedicated stores, requirements of sample display will be negotiated based on the research by our marketing specialists about the local markets and their stores’ size.

u      Support for solutions to backlog: In terms of our barter agreement, the embroidery product, which has stayed unsold for half a year and had no damage record, could be in exchange for another one with equivalent price.

u      Extra privilege for dedicated stores: Distributors running dedicated stores will be able to ask for refund of their backlog, with 90% of equivalent price in cash. But this case could be realized if and only if these distributors are not going to renew their distribution contracts with us and the application for refund should approach our headquarters three months before the distribution contract expires.

 

3)        Rules of the brand operation  

      EXSENSE’s obligations:

u      to provide the distributors with trademark, website, promotional materials, packaging, VI Design Manual, and other brand-building information without charging anything.                                                                                                               

u      to consider seriously and study carefully the planning of activities and requirements of advertisement, and once confirmed, Exsense should be obliged to show support sparing no efforts .

u      to provide distributors with the training for the knowledge of Xiang Embroidery, the  culture of Xiang Embroidery, and for the purchasing guidance.

      Distributors’  obligations:

u      Distributors should recognize EXSENSE as the only local brand of embroidery works from Lingyi art workshops, and accept the integrated mastermind  and arrangement for the brand image by Aoxin marketing Co.,Ltd.

u      Distributors have the obligation to support and cooperate with the marketing and promotional activities of EXSENSE.

u      Distributors have the obligation to cooperate with marketing research by headquarters staff and provide true and reliable marketing information to headquarters.

      Cost Distribution:

u      Distributors are obligated to unconditionally cooperate with headquarters in the regular or irregular advertising activities. Among them, the operation expenses generated will be undertaken with full authority by the general headquarters.

u      Planning and advertising activities put up by the distributors must be filed as an application and turn to our headquarters firstly; headquarters bear 50% of the operation expenses after review procedure. The payment can be cashed in the form of goods after the activities.

 

4)        Quality assurance

u      All of the works in Lingyi workshop of embroidery art provide the certificate of joint seal identification issued by the hierarchy from the Xiang Embroidery association of Changsha city (Hunan Province) and Xiang Embroidery museum at the town of Shaping (Changsha City, Hunan province).

u      National masters of embroidery artworks provide author introduction, certificate photos, and award-winning certificates photos.

u      If quality problems occur, the company will be responsible for unconditional return of products, bearing all of the subsequent transportation cost.

 

5. Current business objective:

The marketing specialist in charge of certain area is supposed to search for local distributors who know the markets and are willing to build long-term relationship with us.

 

6. Distributors segment

It is crucial to find the proper distributors for our products. Several segments are considered:

Potential business partners

Advantages

Disadvantages

Solutions

Art gallery

High quality sale

High Price

Different from

creative and unique artwork

Cooperation with

local artists

Poster shops

 

The same copied arts for decoration or collection; Smooth cooperation (customer-made)

Much more expensive than posters.

Customer acceptance extent is uncertain.

Markets research

 

Try

Inner decoration, furniture

Many production lines

Different style

Distributors will not pay much attention on the specific product

Integration into the production line; More promotion

Handcraft shops

The same hand made artwork

Price?

 

7. Current results:

I visited 9 shops all together, consisting of 2 art galleries, 3 poster shops, and 2 inner decoration shops.

 

Shop names

Business area

Negotiation process

Feedback

Bulevardi 7

Art gallery

Waiting

None

Bulevardi 9

Art gallery

Waiting

The pictures are not modern.

Ilves-interioori OY

Poster

Waiting

Our products are nice. But the shop is too small to invest new products.

Seven Art

Poster, Graphics

Done

Pictures are too Chinese.

Shopkeepers are not fond of them.

Inter Art

Poster

Not yet

None

Artek

 

Functional furniture

Done

Our products are hard to be integrated into the modern functional inner furniture shop.

Casuarina

 

High level furniture (both modern and old)

Done

The boss did not like our products.

 

8. Next step

1)        Collect feedback from potential final customers (foreign friends, Finns) concerning two aspects:

l        How do they feel like the products (both the handmade technique and the pictures)?

l        How much are they willing to pay?

2)        Visit potential distributors and Collect feedback:

l        How do they feel like accepting our products?

l        If not, why?