MIDEA

Market strategy for the Midea brand in Romania

The distribution model

 Distribution to specialized retailers such as Altex, Flanco and eMag at their warehouse
 Distribution through IKA (Carrefour, Auchan, Kaufland )at their warehouse
 Distribution through cash and carry( Slegros and Metro)
 Distribution through DIY (Dedeman, Leroy Merlin, Brico depot, etc..)
 Distribution through independent retail(Tonis trade, Marelvi, Satan and others)
 Online marketplaces: popular online platforms like E mag, Altex, or Flanco
 Distribution partnerships: We mihgt enter into partnerships with other organizations or
distributors to reach specific markets or customer segments
 It's important for us to consider their target market, product characteristics, cost-efficiency,
and customer preferences when choosing a distribution model.
 Product price positioning
 Penetration Pricing: Penetration pricing aims to gain market share by setting prices lower than
competitors' prices. This strategy helps us to enter new markets or gain a larger customer base
quickly.
 Promotional prices.
 This strategy helps us to develop and promote a wider range of products and which brings us a
higher turnover.
 Package prices.
 This strategy helps us sell more expensive products with the help of cheaper products. We can also
use this strategy to balance the profit.
 Value Pricing: Value pricing focuses on offering good quality products at a fair price. It positions the
product as offering better value for money compared to competitors in terms of quality, features, or
benefits.
 Premium Pricing: Premium pricing involves setting prices higher than competitors. This strategy
positions the product as a superior choice, appealing to customers who associate higher prices with
higher quality or status.
 It is important to analyze consumer behavior, conduct market research, and monitor competitors
to ensure a successful price positioning strategy.
The value proposition to the customers
 A value proposition is a message that describes the benefit of our product or service offers
customers. It's a promise of value that helps convince people why they should choose you over
your competitors.
 The benefits of Midea products
It is very important to convey to customers the qualities and services of Midea products
 The quality-price ratio
Also, the quality-price ratio is a message that we can communicate to clients.
 The benefit of the warranty service.
The warranty service is an important message that influences purchase decisions.
 Brand value proposition – In this message, the brand promises the customers that the
association with the brand would benefit them.
 The product value proposition is based on the main qualities and advantages of the product
Identification of the main advantages of the products and highlighting them to the customer
Explaining to the client the technological advantages compared to the competitor's products.
 Target audience
 Target audience.
The target audience for Midea products are middle-class people who want a quality product at a fair
price.
 Homeowners:
Homeowners often have more diverse needs and may look for high-performance appliances to
fit their lifestyle. They can opt for large appliances such as washers and dryers, dishwashers, large
refrigerators/freezers with advanced features and superior energy efficiency.
 Institutions: Household appliances are also used in institutions such as schools, hospitals, hotels,
restaurants, etc.
Competition and demand
The main competitors for Midea MDA in the Romania market are:
Gorenje, Candy, Artic, Beko, Hisense, Haier, Hainner, Vortex, and others.
Demand.
There is a high demand for MDA products with high energy efficiency and smart features.
Saturation market.
At the moment, the Romanian market is saturated with regular MDA products, but there is
demand for smart products
In conclusion, the Romanian market is very competitive, but we can penetrate the Romanian
market through marketing actions and promotional prices.
 Sales channels
 Offline channels:
- Altex, Flanco, Selgros, Metro, Auchan, Carrefour, Kaufland, Cora.
 Online channels:
- Emag, Evomag, Cel, Rombiz
 DIY channels:
- Dedeman, Brico Depot, Leroy Merlin, Honbarch, Praktiker, Mr Bricolage.
 Distributors:
- Marelvi, Tonis Trade, Satan, Royal Distribution.
 My vision for the sales channels is priority for the offline and DIY channels, where we can
display the products on the shelf.
 Marketing and trade marketing plan
 Analysis of the Current Situation
- SWOT analysis (Strengths, Weaknesses, Opportunities, Threats)
- The competition's analysis
- Market analysis
 Defining Marketing Objectives
-Increasing brand awareness
- Expanding market share
- Launch of new products or services
 Marketing Strategies and the Marketing Mix (The 4Ps)
- Product: Decisions regarding features, packaging, product range, etc.
- Price: Pricing strategies, discounts, offers, etc.
- Promotion: Advertising, public relations, direct marketing, promotional sales, digital
marketing, etc.
Marketing and trade marketing plan
 Planning and Budgeting
- Allocating resources for different marketing activities
- Budget estimation for campaigns, promotion and other initiatives
 Monitoring and Evaluation
- Tracking KPIs (Key Performance Indicators)
- Analyzing the performance of campaigns
- Adjusting strategies based on feedback and results
 Trading Strategies
- Online: E-commerce, marketplaces, SEO/SEM, email marketing, social media, etc.
- Offline: Retail, partnerships with distributors, presence in physical stores, etc.