Candle Feasibility Study Report

1. Bibliography and Summary of Marketing Planning

(1) Purpose: There are more than 10,000 candle companies in our country. Market competition is fierce. Our company has occupied a certain share in the domestic candle market, and the market demand in the United States is huge. For the future and development of the company, and to get a share of the big pie in the United States, our company will export our products to the United States. Sale.

(2) Summary: The planning document begins with a brief understanding of the candle market conditions in the United States, from which it can be concluded that the demand in the American market is huge. The company's products have the opportunity to enter, and then the candle products and the company's products were compared to determine that the probability of profit for us to enter the market is still very high. Through some information, we chose two strategies: direct export and licensing operation for our product entry strategy. Finally, the marketing mix and risk avoidance strategies are introduced in detail.

2. Current Marketing Situation

(1) U.S. Candle Market Situation:

① There are only more than 300 well-known commercial and religious candle manufacturers in the U.S. .

② There are 106 candle companies in China (their products are mainly made of palm oil) exporting to the United States, and about 9,000 others also export to the United States (their products are made of paraffin). host). There are more than 10,000 people in total.

③ Due to China's export tax rebate policy, an aromatic candle costing 2 yuan can be purchased for 2 US dollars in export price, and the cost in the US market is much lower than the domestic price.

④ China’s candle exports to the United States in 2002, 2003, and 2004 were US$161 million, US$165 million, and US$198 million respectively. Among them, seasonal sales account for 35% of total sales, and annual sales account for 65%.

⑤ The retail sales of candles in the U.S. market in 2001 was US$2.3 billion, excluding sales of candle-related products. Candle sales are growing at a rate of 10% to 15%, with 96% of buyers being women.

⑥ In the United States, 70% of American households use candles. Candles are mainly used in the United States for dinners, holidays, religious ceremonies, and gifts.

(2) Product status:

① There are many kinds of candles on the market, which can be divided into two types from a functional perspective - basic candles and decorative candles: basic candles refer to candles that can Candles that can be used anytime, anywhere. The second is decorative candles. This type of candle is generally used for festivals or gifts. Candles are designed into various patterns and shapes to meet the needs of different situations. Today's candles are not only diverse in appearance and colorful, but also eye-opening in the way they are made. There are more than 100 kinds of candles, including round, square and flat ones.

② The retail price of candles in the US market ranges from 50 cents for a sacrificial candle to 75 US dollars for a large cylindrical candle.

Some specially designed candles sell for as much as $200.

(3) Competition situation:

Main competitors: ①Dalian Darente Crafts Co., Ltd.: registered capital of 19.74 million yuan. The company is headquartered in Dalian City, Industrial Park Located in Pulandian City. The company is a professional manufacturer that produces and sells craft candles. It has its own registered trademark "TALENT", which has been registered in more than 100 countries around the world. At present, more than 100 series and thousands of candles have been developed. The company has introduced the most advanced German automated production lines in the world, effectively expanding its production scale. It also sells other gifts, household items, etc. The products are sold in more than 80 countries and regions in Europe, the United States, Japan, and South Korea, and have cooperated with Wal-Mart in the United States, Germany Super multinational retail chain companies such as Metro and Sweden's IKEA have established long-term and stable supply and demand relationships. The company headquarters consists of development department, business department, purchasing department, finance department, office and other departments, which cooperate with the production department of the factory to grasp the pulse of the times and continuously improve the level of corporate management. The 10 patents currently owned by the company are completely developed by the company itself. Results. The company's 1,200-square-meter exhibition hall is second to none among its domestic counterparts, with nearly 10,000 products on display in the hall. "Quality is the lifeline of an enterprise." We are the only professional manufacturer in China that uses the German Metro RAL quality standard to produce candles.

The company has won the title of "Dalian Excellent Enterprise" and is also a famous enterprise supported by Dalian's foreign trade and economic cooperation. It has been rated as the best supplier by IKEA (the world's largest home furnishings retailer)

② United States Blyth Company: It is the largest candle manufacturer in the United States. It occupies 80% of the U.S. market share, with annual sales revenue of US$1.7 billion. It specializes in producing high-end candles

(IV )Distribution status:

In the United States, there are three main sales channels for candles: department stores, supermarkets and discount malls, all of which are chain sales.

3. Macro-environment:

(1) Population environment:

The population of the United States will reach 296.5 million people. Compared with the 2.5 million people in the United States when the United States was first founded in July 1776, more than 80% of them were white people. People of color in the United States are mainly black, accounting for about 12% of the country's population. Black people first settled in the south and worked as serfs on plantations; later, large numbers of black people flocked to northern and western cities. There are nearly 1 million Chinese and overseas Chinese in the United States. Changes in the demographic structure of American society, or to put it more vividly - the arrival of the "silver wave", the population over 65 years old in the United States is growing faster and faster, and the fastest growing group of people are over 85 years old. After the war, from 1945 to 1965, a baby boom occurred in the United States, with approximately 86 million newborns added to the population in 20 years. But by the mid-1960s, Americans began using birth control, and the birth rate plummeted. Today, the population structure of the United States is aging and it has become a society with a large population of old and middle-aged people and a small number of young people. 26% of families in the United States are single-person families, while only 23.5% are two-parent families. Only 7% of them are traditional family models in which the father works outside the home and the housewife takes care of the children. The rate of American children growing up with their biological parents has dropped from 88% in 1960 to 68%. The number of unmarried American women aged 20-24 has increased from 36% to 73%, while the number of unmarried women aged 30-34 has increased from 6% to 22%, more than three times as much as in the past. ***More than 700,000 immigrants have obtained U.S. long-term residence permits; another 4.63 million immigrants have become U.S. citizens.

(2) Political and legal environment:

(1) Political environment:

The national organization of the United States is based on the separation of powers, the federal system, and the two major political Formulated with the idea that the legislative, judicial, and executive powers are independent and check and balance each other to avoid government abuse of power. According to the Constitution: the legislative body is a bicameral parliament with the Senate and the House of Representatives, and the judicial branch is headed by the Federal Supreme Court. Courts of Complaints, 95 District Courts and 4 Special Courts. The executive branch has the president, who is directly elected by the people, as its highest administrative head, and is supplemented by the vice president, with several administrative departments under it. The power of the government is divided into the federal government and state governments. Based on the principle that the government must be close to the people so as not to deprive the people of their freedom, the drafters of the Constitution reserved the autonomy of the states to the state governments. The state governments themselves have legislative, judicial, and administrative powers. The powers of the federal government are limited to those that a state government cannot exercise alone, such as taxation, finance, national defense, diplomacy, currency and banking, immigration control, foreign trade, national welfare, postal services, and development assistance for science and art.

As early as 1986, the U.S. Department of Commerce made a final decision to impose anti-dumping duties on petroleum wax candles originating in China

The tax rate was 54.21%. In 2004, it was again This tax rate was increased to 108.3%. According to the latest proposal from the U.S. Customs, "holiday candles" will be changed from "candles" under No. 3406 to "Holiday Items" under No. 9505. No.

After the change, the import tariff on "holiday candles" will be reduced to zero. Currently, the import number of "Christmas candles" is

3406.00.0000, and the import tariff is 2.3%; the tariff rate of "Christmas and Thanksgiving candles" is 1.2%. After changing

to "entertainment items for festivals and carnivals", the tariffs for both will be zero.

(2) Legal environment:

The United States is a legal society. There are 700,000 lawyers in the United States, accounting for more than two-thirds of the world.

The supreme law of the United States is the Constitution. The first U.S. Constitution was born in Philadelphia in May 1787. The principles of the Constitution are: freedom, equality, justice. The Constitution stipulates that the organizational form of government is the separation of three powers, that is, Congress is the legislative body. Composed of the House of Representatives and the Senate, all laws must be approved by Congress. The White House is a law enforcement agency, and the top executive is the president, elected by the people. The Supreme Court is the body that interprets the law and consists of nine justices. The three agencies are independent of each other and play a role of supervision and balance. To protect the founding spirit of the United States.

(3) Economic environment:

The U.S. economy is in solid shape, and the American people have every reason to be optimistic about the economic prospects. The United States has the fastest growing economy among the world's major industrialized countries; employment has grown steadily, with more than 2.4 million jobs created in the past 15 months (since August 2003); the unemployment rate has risen from its peak in June 2003 has dropped from 6.3% to the current 5.4%, which is lower than the average unemployment rate in the 1970s, 1980s and 1990s; Americans' after-tax income has increased by 10% since the end of 2000, and household income has reached an all-time high; inflation , interest rates, and home mortgage rates are at low levels; the home ownership rate has reached an all-time high; since the beginning of 2003, the stock market has developed rapidly, with DOW JONES rising by an average of 25% and NASDAQ rising by 56%.

The U.S. third-quarter GDP report was released, saying that the U.S. economy grew faster than expected. U.S. GDP grew at an annual rate of 4.3% in the third quarter (July-September), strengthening the United States' response to record energy costs. ability. The latest GDP data in the third quarter was revised to 4.3% from the initial value of 3.8%. GDP growth was supported by growth in private investment and business investment, while the GDP growth rate in the second quarter (April-June) was 3.3%, the maximum forecast value is 4%. The GDP in 2005 is expected to be US$12.07 trillion while the GDP in 2004 was US$11.66 trillion. The annual income of American families is US$35,060, and it is still growing. The United States has implemented tax cuts, and Americans' consumption has increased.

(4) Social and cultural environment:

Americans emphasize independence and individuality without being exclusive. They are adventurous, pioneering and innovative. The spirit of freedom and equality. They are advocates of materialism and pragmatism. In the United States, candles are an essential daily necessities for almost every household. They are not only a lighting substitute during power outages, but also a catalyst to enhance the joy of life. On Christmas night, Christmas candles are lit on the Christmas tree, and the festive atmosphere becomes more intense; some people are used to putting candles on cakes for their birthdays; some people light scented wax in the room, and the house is filled with fragrance; People light candles in coffee shops, which gives them a special feeling; others use artistic candles to decorate their rooms. In the United States, 96% of candle buyers are women. The number of unmarried American women aged 20-24 has increased from 36% to 73%, while the number of unmarried women aged 30-34 has increased from 6% to 22%. , because they are single and have a high income, they are the most ideal customers - compared with other classes, they have more passion and impulse to spend money. As long as the things are fashionable and interesting enough, they will spend a lot of money.

Religions in the United States are diverse, colorful, and have many characteristics, but there are three main ones: Protestant sects from Northern and Western Europe, Catholicism from Eastern and Southern Europe, and Judaism from all over Europe and the Middle East. . Because of the numerous sects and diverse religious practices, a relatively high degree of tolerance has been established among various sects in the United States. 9 out of 10 people claim to believe in God, 8 believe that religion is very important in their lives, 7 belong to a religious organization, about 6 pray every day, and more than half believe that God is the key to American democracy Of moral guidance, 4 people go to church every week, and there are more than 300,000 churches and temples. In many religious ceremonies, they use candles. At Christmas, temples hold fire worship ceremonies. In their minds, candlelight can eliminate disasters.

(5) Science and technology environment:

The United States is the most technologically developed country in the world. The development of American science and technology is partly due to the American science and technology system and the federal government’s huge investment in science and technology. Not open. The American science and technology system is characterized by pluralism and diversity.

Research and development efforts nationwide are conducted primarily by federal government laboratories, private companies, universities, and nonprofit research organizations. The U.S. federal government attaches great importance to investment in science and technology. The five years from 1994 to 2000 were the five years in which R&D expenditures grew the fastest since the United States had science and technology statistics. It surged from US$169.2 billion to 2000, which was the fastest in the United States since science and technology accounting data were available. In just five years, it surged from US$169.2 billion to US$264.2 billion in 2000 (estimated figure in November of that year). After deducting inflation factors, the average real annual growth rate is as high as 6%, which greatly exceeds the real GDP growth rate in the same period. In 1999, the national research and development funding of the United States was US$247 billion, accounting for 2.79% of the gross domestic product, of which approximately 69% or US$169 billion came from corporate investment. The federal government contributes about 27%, with the remainder coming from colleges and universities, private foundations, non-profit organizations, and state and local governments.

The United States is a world leader in basic scientific research. In 1999, American scientists published 434,272 papers in influential scientific and technological journals in the academic world, accounting for 30.72% of the total number of scientific papers in the world that year. The disciplines in which American scientists publish the most papers are clinical medicine, biomedicine, earth science, and space science.

The United States is a country where science and technology are highly valued and have achieved a high degree of development. The Second World War stimulated the development of science and technology in the United States. After the war, the U.S. government adopted a series of policies and measures to encourage the development of science and technology, which enabled U.S. science and technology to leap into a leading position in the world. Huge achievements have been made in many scientific fields. Achievements, such as atomic energy utilization, integrated circuits, lasers, electronic computers, synthetic materials, communications, satellites and aerospace, etc.

The United States is a world leader in most emerging high-tech fields, such as laser technology, advanced materials, high-temperature superconductors, bioengineering technology, etc.

IV. SWOT Problem Analysis

(1) Advantages:

The aromatic transparent jelly candle is the crystallization of high and new technology and a major milestone in the history of the development of wax products. revolution. The production scale of handmade candles in a single factory has entered the top four in the same industry in the world. We have our own R&D facility and our products are very popular in other countries. The new polymer matrix composite material independently developed to replace traditional paraffin products has been set as the quality standard for similar products in China. Our country has abundant and low-cost candle raw materials.

(2) Disadvantages:

Our economic strength is not as strong as that of Blyth, the largest candle manufacturer in the United States, and Blyth’s market share is very high. The U.S. International Trade Commission has An anti-dumping tax order was issued on paraffin wax and candles produced in China.

(3) Probability:

Candles are agricultural products in international trade. China’s candle exports to the United States in 2002, 2003 and 2004 were US$161 million, US$165 million and US$198 million respectively. There are only more than 300 well-known commercial and religious candle manufacturers in the United States. The U.S. candle market is high in demand and growing. Fragrance transparent jelly candle is a high-tech, its market has not been completely occupied, we can make profits from it. The market demand for other types of candles is increasing, so there are also opportunities to enter.

(4) Threat:.

(1) Although domestic companies in the United States cannot satisfy domestic companies, the United States will still implement protective policies for their country’s candle companies, which may further increase tariffs on Chinese wax products< /p>

(2) The American Blyth Company occupies 80% of the American wax products market.

In summary (countermeasures taken):

(1) China filed a lawsuit with relevant international organizations. Request Arbitration.

(2) In the early stage of entering the market, try to avoid head-on confrontation with the products of the American Blyth company, and make differences in product positioning.

5. Goals achieved by marketing planning

Financial goal: The company’s average annual sales revenue forecast for the next three or five years (if financing is successful): 1,000

(Unit: 10,000 US dollars)

Marketing goal: 3.5 million US dollars

6. Marketing strategy adopted in marketing planning:

(1) Objectives Market: The company's products are mainly sold to women who pursue fashion and romance.

(2) Positioning: We position our company behind the products of the American Blyth company.

(3) Product strategy:

(1) Product characteristics (safety): The company’s product production materials are made of paraffin, high molecular polymers and other production materials . The product has the following main features: non-toxic, smoke-free, and can eliminate odors. Combustion temperatures up to 85°C. It is not easy to burn after turning over. The flame is soft and not dazzling, and it can also be made by DIY. The lamp core does not produce CO when burning, and the combustion gas does not pollute the environment. The product is a natural organic substance that is easily soluble and easy to clean with soap and water.

(2) Product categories: Our company’s product categories include:

① Color flame candles: solid color flame candles and liquid color flame candles

Ingredients: Paraffin, coloring agents and other auxiliaries.

Color: Red (represents passion) Yellow (represents sincerity) Green (represents youth)

Blue (represents romance) Purple (represents mystery)

② Craft candles: scented candles, floating candles, modeling candles.

(1) Scented candle: fruit candle

Ingredients: paraffin, high molecular polymer, essence

Fragrance: strawberry, orange, lemon, green apple , grapes, and pineapples.

(2) Floating candle:

Ingredients: paraffin, high molecular polymer, colored sand.

Color: red, yellow, blue. Mainly flower types.

(3) Modeling candle:

Ingredients: paraffin, high molecular polymer.

Shape: various flower shapes, various fruits, etc.

③ Aroma jelly candle:

Ingredients: paraffin, essence, high molecular polymer.

Types: Use different utensils, colors and fragrances to form different types.

④ Christmas candles and gift candles:

Christmas candles:

Ingredients: paraffin, high molecular polymer.

Color: red, green, white

Gift candles: composed of various candle products.

⑤Lighting candle:

Ingredients: paraffin, high molecular polymer.

Types: various traditional sacrificial candles, taper candles, dinner pole candles, and column candles.

Wax hand making: $10 per purchase.

(3) Product services: If you encounter any problems, or if you have any comments or suggestions, please contact our company by phone or e-mail, and we will reply to you as soon as possible.

(4) Product trademark:

Meaning: Viewed as a whole, the trademark is like a hut with burning candles

It represents that yoyo candles will be given to every family Bring warmth

and romance. The three horizontal lines below represent: Our company's road is getting wider and wider

The quality of our products has reached a new level.

Heart shape: It means that customers will always be in our hearts.

(5) Precautions for product use:

1. It is best to burn no more than 2 hours at a time.

2. Keep the candle wick vertical and 0.5 cm in length, and clean the candle wick carbon deposits frequently.

3. If the flame is too small, please extinguish the candle first, and then carefully pour out the wax liquid.

4. Candles must be placed on a heat-insulating surface when burning.

5. Do not light candles unattended and keep away from children.

(4) Pricing:

Craft candles and lighting candles are currently in great demand in the US market.

Americans with relatively high incomes are not very price sensitive, but have relatively high requirements for product quality. Furthermore, the prices of our products are not very high. Therefore, we adopt a premium strategy of high quality and high price (relative to the US market but not the highest). This will help establish the image of high-quality products.

Pricing method: Pricing according to the current price level of the industry, that is, following the market pricing method, which will help the company have a price advantage in the early stage of entry. And be able to avoid the risks that come from our not understanding buyers' reactions to prices. The following are the prices of various products:

Colorful flame candles: $20 ($5 lower than competitors)

Scented candles: Fruit wax: regular $8, unique shape We buy it for $10.

Tea candle: US$7

Floating candle: US$5

Style candle: Depends on the specific shape (the more complex the shape, the more expensive) US$5 Prices range from $20.

Scented Jelly Candle: $15

Christmas Candle: $35

Gift Candle: $50-100

Traditional Candle: According Size pricing (length*diameter unit: cm): USD 1 (20*1) USD 2 (25*2) USD 3 (30*3.5) USD 8 (60*8.5).

Revised prices:

Due to the company's initial lack of understanding of market prices, when the company's products enter a stable period, the company will revise the products that need to be revised.

(5) Strategy for entering the US market: adopting the entry strategy of direct export and the entry strategy of licensed trade.

(6) Distribution:

In the United States, candles are daily consumer goods. And there are three very mature business models for candle sales in the United States: department stores, supermarkets and discount malls. Therefore, the company chose to set up a counter at Albertsons, the second largest supermarket chain in the United States, for sales. (In order to avoid competition with the American blthy company and Darren Dart.)

The second type of company will also cooperate with local American businessmen in the form of franchise chain stores, mainly focusing on wax hand-making. And acts as an agent for wholesale sales of various candles.

(7) Promotion:

(1) Advertising:

Because Americans now spend more time online than watching TV. So we choose to advertise online. And take two methods:

The first one: Publish a print advertisement on the largest e-commerce website in the United States - American Global Business Network. The content of the advertisement mainly focuses on introducing yoyo candle products. Attract more women to buy.

The second type: Make an animation flash about yoyo candles on Yahoo in the United States, with the theme that yoyo candles are the spokesperson of fashion. Attract those who pursue fashion to buy.

As the 2008 Olympic Games approaches and the Olympic mascots are released, we strive to obtain the domestic sales rights for the mascots in the United States. Our company will issue a set of candles in the shape of Fuwa. And strive to light a set of Fuwa dolls specially made by our company at the closing ceremony of the Olympic Games. It symbolizes the prosperity of sports industry.

(2) Personal selling: Our company’s sales personnel are mainly responsible for: introducing our products and performance in detail to the customers who purchase them, collecting information about our customers after use, and conducting door-to-door visits to major customers. visit. And use the feedback information to establish a customer management system with customers. To understand changes in customer needs.

(3) Public relations: The incidence of fires in the United States has increased in recent years, and many fires are caused by the unreasonable use of candles. We adopt the following two methods: As a candle company, we should promote the importance of fire prevention in the form of leaflets in the United States; we should make a public service advertisement on American TV: first play several sets of fire scenes (not too many), and then Several groups of children in the United States have lost their parents and homes due to fires. The yoyo candle appears at the end to remind you to pay attention to fire prevention.

American religions all maintain their ancient and traditional rituals, including the fire worship ceremony, and our company donates our products to temples. And sometimes they have to give certain funds to the church.

Christmas is coming, and Christmas in the United States needs to be decorated with candlelight. We will light our company's candles in the White House.

Candles are a symbol of warmth, peace, light, romance and happiness, so in the United States, a country with a high divorce rate, we should join forces with some local organizations in the United States that are dedicated to preventing divorce. People should Treat marriage rationally and don't divorce hastily. A short film with the theme of family love was also produced to promote it.

(8): Business promotion:

As our products become familiar to Americans, and through the information obtained through our customer management system, we take the following measures: to those who frequently purchase For customers of our products, when their quantity and amount reach a certain amount, we will give away a set of commemorative candles.

During the sales process at yoyo candle specialty counter: New Year's Day, Martin Luther King, Jr.'s Birthday

Lincoin's Brithday, Valentine's Day, President's Day, Washington's Birthday, Good Friday , Easter Sunday, Jeferson's Birthday, Mother's Day, Memorial Day, Father's Day

Independence Day, Labor Day, Halloween, Veterans Day, Thanksgiving Day, Chrismas Day, it is customary to give some small gifts during these festivals.

As the market gradually becomes saturated, we must maintain our market share and use the company's R&D institutions to develop new products and new raw materials to face changes in the consumer market.

7. Action plan

We started investing in commercial advertisements and public service advertisements in the early stages of our product, hoping to gain some visibility. Products are given to the church on the Sabbath and every quarter. Of course, not all churches, select some.

Americans have a particularly high demand for candles at Christmas, so we choose to do a promotion on Christmas: our company holds a large-scale candlelight Christmas PARTY on Christmas night.

On Veterans Day, our wax hand production chain will give out some couple gifts to couples.

8. Risk control: risk sources and control methods.

Source of risk: The U.S. Department of Commerce has made a final decision to impose anti-dumping duties on petroleum wax candles originating in China. The price of wax products in China is still very low, which has greatly affected the development of the wax industry in the United States. Perhaps the United States will further increase tariffs on Chinese wax products.

Control method: Chinese wax companies united to file a lawsuit against relevant international organizations. Request Arbitration. And develop new materials to replace paraffin wax to avoid anti-dumping duties on products.

Persuade the US government through some local businessmen, large enterprises and organizations.