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Keywords: long tail theory; niche market; SF company; "twenty-eight law"
Valve industry in the national policy under the guidance of the determination of the tremendous development, due to the wider application of the valve, for the nuclear industry, aerospace industry, shipbuilding and petrochemical industry is an important role, therefore, the state promulgated the corresponding policy To protect and encourage the further development of the valve industry, in this policy context, the valve industry in our country there has been prosperity and development of the situation, some data show that China is already the world's largest valve enterprises in the country. Under such circumstances, the valve manufacturers face increasing pressure of market competition. With the continuous development of world economic integration, China's valve enterprises not only face the competition from their domestic counterparts, but also face the pressure Valve enterprises from other countries in the world competition, companies want to get further development potential, not only need to improve the quality of production, but also need to further diversify corporate profits. Therefore, this article from the long tail theory point of view, take SF company as the research object, points out our country valve enterprise niche market development strategy suggestion.
I. Overview of Long Tail Theory and Niche Market 3.1 The Connotation of Long Tail Theory Long Tail Theory is a theory that has emerged with the arrival of the Internet era and is a confrontation to the traditional "28 law." Specifically, the long tail theory holds that as long as the products that are produced have sufficient storage and the flow channels are large enough, the market share occupied by some products with smaller demands or those that are not "hot products" is also relatively large, Even to a certain extent outweigh the market share of hot products compared to the share of those few hot products. In short, sales do not depend on the head of the traditional supply-demand curve, but on the tails of those "cool products." The traditional "twenty-eight law" pointed out that in the traditional marketing process, businesses need to pay more attention to those 20% of the products, because this part of the product or product can create about 80% of the proceeds, but for those remaining products Attention is relatively small, but long tail theory is pointed out that with the development of computer networks, the remaining 80% of the product will also create a higher return, or even more than 20% of the value created by selling products more high.
(B) Overview of Niche Market In the long tail theory, the long tail market is the so-called niche market. Niche market mainly refers to some of the more narrow market, and has a more extensive geographical market. In the formation of the niche market, it is mainly aimed at some areas where the sales volume is small or the service area is narrow. All the resources are concentrated and invested so that a strong force can be formed within a certain period of time. Not only that, in the niche market, the product has a relatively high sustainable development capability due to its relatively wide geographical market. After entering the market, the enterprise can instantly create strong barriers to avoid being imitated by other enterprises or Is the ability to replace. Therefore, for SF companies, before entering the niche market should be re-positioning of the enterprise's products, as much as possible the design of enterprise technology research and development, in order to ensure that enterprises have strong development potential.
Second, the SF industrial niche market development conditions of the valve (A) the cost of valve manufacturing provides the premise of entering the niche market For the SF valve business, the valve products, like other commodities, with a marginal cost reduction economy Law, and with the SF company's product output increases, the cost of its products will be gradually reduced. Therefore, under such circumstances, SF company's industrial special valve costs can be divided into fixed and variable costs, the fixed cost is mainly the production of enterprise valve infrastructure investment, which mainly refers to the production of industrial special valves The labor costs and raw material costs involved in the process. With the increase of sales volume of special industrial valves of SF Company, the variable cost of production also increases accordingly. The fixed cost of producing special valves is relatively stable compared with variable costs, so the economies of scale of SF Company will be gradually realized . Under the premise of enterprises entering the market of valve niche, the declining cost law of SF Company will be relatively obvious, which is of great significance to the increase of enterprises' return.
(B) the valve market demand rising valve is an important basic components, widely used in a variety of industries, the demand in the market is relatively large, and with the further development of China's industrial economy, the demand for the valve continues to increase . Not only that, due to the increase of industrial experience in consumer consumption, the valve products for the recognition and choice is also a corresponding change, therefore, the demand for innovative specialty industrial valves is also rising, in this case, SF company to enter the niche market can guarantee a broader market prospects, for the production and further development of enterprises have good conditions.
(C) the development of the Internet network to promote the innovation of sales channels SF Company With the development of the times, the Internet economy has brought tremendous impact for all walks of life. In this case, the role of long tail theory is more obvious, for the SF valve business, with the help of the long tail theory of guidance, can achieve the transformation of enterprises, for the improvement of the competitiveness of enterprises has an important role. Not only that, but also all walks of life are also undergoing personalized development, the demand for industrial special valves are also constantly rising, which for the SF company to enter the niche market provides a good foundation.
Third, the long tail theory under the SF niche market development strategy (A) market segmentation valve For companies involved in the opportunities and challenges are the same, in such circumstances, SF should be its own resources And ability to make it clear, and on this basis, clear their own product positioning in the market, in accordance with the valve sales market, business consumers demand for the market, the market will be subdivided into several sub-markets, and for industrial special valves Sub-market to conduct a comprehensive analysis, with the help of long tail theory perspective, seize the opportunities in the niche market, as far as possible to determine the knowledge of enterprises and patent property rights to ensure that enterprises enter the niche market can establish the corresponding barriers, Avoid imitation or replacement by a homogeneous enterprise.
(B) to enhance product quality Valve is a basic part of the valve for consumers, pay more attention to the quality of the valve, therefore, SF stationed in the niche market, it should be as possible to consumers and more Good consumer experience, in order to achieve sustainable development of enterprises in the market. In particular, niche market is a focus on the market, the level of product quality to a certain extent determines the success of enterprises stationed in SF company not only to focus on the production of special valves, but also to a certain extent, focus In product quality improvement, in order to achieve the expansion of target customers, a niche market, the biggest beneficiaries.
(C) with the help of the Internet to enhance exchanges with consumers Long tail theory at the beginning of the birth by the relatively low level of concern, mainly due to the high cost of long tail theory, the valve is relatively a production Low-tech industries, so if the cost of high consumption is difficult to achieve the development of enterprises. However, in the new era background, especially the formation of computer network, the bottleneck of communication between valve manufacturer and long-tail customer is realized, and the direct communication between manufacturing enterprise and consumers can be realized. With the help of information platform Technology, for the production of valve products and the needs of special valves enterprises are able to grasp in real time, to provide consumers with personalized valve production services, the formation of the scale of production efficiency, to a certain extent, reduce the production costs of enterprises, Achieved an increase in corporate profits.
IV. CONCLUSION For SF companies, the long-tail customers in the valve niche market have existed for a long time. Therefore, enterprises should, based on the market segmentation, realize that the potential market for the production of industrial specialty valves should be converted to a higher Real market for profit. The key technology to solve this conversion problem is to achieve effective communication with Chang-tao clients in order to ensure that SF can gain more competitiveness in the highly competitive valve market and ensure its success in niche markets , Get more development possibilities, which require enterprises to take reasonable and effective measures in the process of development, in order to achieve more profits in the valve market to achieve the further development of the SF company.
references:
[1] Wu Qingli, Hong Tao, Ma Jun. Summary of long tail theory [J] .Journal of Zhoukou Normal University, 2010 (1): 124-129.
[2] Hai Xiao. Internet marketing under the guidance of Long tail theory [D]. Shanghai: East China Normal University, 2014.
[3] Zhang Lu. Zhuzhou South Valve Co., Ltd. Development Strategy Research [D]. Changsha: Hunan University, 2011.
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Development Strategy of SF Specialty Industrial Valve Niche Market under the Perspective of Long Tail Theory
Abstract: With the development of the times, especially the rapid development of the internet economy, people pay more attention to the long tail theory and effectively promote the development of the niche market. Compared with the traditional "twenty-eight law" impact, long tail theory to achieve people's attention on the popular product, and achieved an increase in corporate income. Therefore, this article takes SF company as an example to study the long tail space opportunity of industrial special valve niche market under the perspective of long tail theory and to put forward the strategy to promote the development of niche market of SF company.