Project Background

Shangpu Consulting is a company specializing in market entry consulting, with many years of industry experience and professional team to provide customers with customized market entry strategies and solutions. Shangpu Consulting's customers include small and medium-sized enterprises in various industries, involving manufacturing, service industries, consumer goods, medical and health and other fields.

Pump is a kind of conveying liquid or liquid pressurized machinery, widely used in agricultural irrigation, industrial production, municipal water supply, environmental protection treatment and other fields. The global water pump industry has been in a period of growth and development in recent years, the market scale continues to expand, and the technical level continues to improve.2018~2024In, the compound annual growth rate of the global water pump market was5.81%,2024The total size of the water pump market in665Billions of dollars. The Asia-Pacific region is the largest pump market due to its large population; in terms of growth rate, driven by infrastructure construction in emerging economies such as China and India, the Asia-Pacific market has the fastest growth rate, followed by Europe and North America.

The market size of China's water pump industry is increasing year by year, from2013of the year1419.6Billions of dollars up2020of the year1781Billion yuan, year-on-year2019Annual increase5.59%。2021In, the market size of China's water pump industry was2422Billions of dollars. China's pump manufacturers are mainly distributed in East China, Central China and North China, of which East China is the most concentrated in Wenling City, Zhejiang Province, Wenling's pump manufacturers in small submersible pumps, well submersible pumps, circulating pumps and other products occupy a large market share, market share of about60%。

Customer pain points

The customer of Shangpu Consulting Company is a medium-sized pump manufacturing enterprise located in Nanjing City, Jiangsu Province. It mainly produces and sells centrifugal pumps, sewage pumps, axial flow pumps and other products, mainly serving the industrial production and environmental protection treatment fields. Customer companies have a certain market share and brand awareness in the region, but face the following problems:

The market competition is fierce: the East China region where the customer enterprise is located is the most developed and concentrated area of China's water pump industry, with many competitors, including well-known brands at home and abroad and many small and medium-sized enterprises. Customer enterprises are facing great pressure in product quality, technological innovation, price competition and so on.

Market saturation: The industrial production and environmental protection treatment areas served by customer companies have reached a certain level of development in recent years, and the demand for water pump products has slowed down, and even a downward trend has occurred. It is difficult for customer enterprises to achieve high growth rates in the original market.

Market risk: the industrial production and environmental protection treatment areas served by customer enterprises are affected by national policies, environmental factors, market demand and other aspects, and there are large uncertainties and fluctuations. It is difficult for customer enterprises to avoid and deal with various risks in the original market.

Project Purpose

Client companies hope to find new market opportunities, expand into new market areas, and achieve business growth and risk diversification through the professional services of Shangpu Consulting. Specifically, the project objectives of the client enterprise are as follows:

Understand the development status, trends, opportunities and challenges of the water pump industry at home and abroad, evaluate their competitive advantages and disadvantages, and determine their own development direction and goals.

Analyze the demand structure, regional distribution, consumption characteristics and competition pattern of domestic and foreign pump markets, identify potential market space and growth points, and select appropriate target markets.

Develop market entry strategies for target markets, including product positioning, channel selection, pricing strategies, marketing strategies, etc., and develop feasible implementation plans and expected effect evaluations.

Research object

2023Year5In January, in order to complete the project objectives, Champu Consulting will conduct research on the following categories of objects:

Customer enterprises: through interviews, questionnaires, data collection, etc., to understand the basic situation of the customer enterprise, product situation, market situation, financial situation, etc., to evaluate the core competitiveness and development potential of the customer enterprise.

Industry experts: Through interviews, seminars, etc., invite experts and scholars, industry associations, media organizations, etc. from the pump industry at home and abroad to obtain the latest developments, development trends, policy impacts, etc. of the industry, and analyze the opportunities and challenges of the industry.

Competitors: Through data collection, mysterious customers, etc., collect information about major competitors in the pump industry at home and abroad, including product conditions, market conditions, marketing strategies, etc., and analyze the strengths and weaknesses of competitors.

Potential customers: Through data collection, telephone access and other means, collect the information of potential customers in the domestic and foreign pump market, including demand situation, purchase behavior, preference characteristics, etc., and analyze the demand characteristics and value points of potential customers.

Project Content

The following modules will be designed and implemented by Champ Consulting based on the research object and project objectives:

Industry Analysis: PassPESTELModels (political, economic, social, technical, environmental, legal) analyze the macro-environment of the pump industry, analyze the micro-environment of the pump industry through the Porter five-force model (supplier bargaining power, buyer bargaining power, new entrant threat, substitute threat, industry competition);SWOTModels (strengths, weaknesses, opportunities, threats) analyze internal and external factors in the pump industry.

Market analysis: analyze the demand structure and regional distribution of domestic and foreign pump markets through market segmentation method (geography, demographics, psychology, behavior); analyze the scale and growth rate of domestic and foreign pump markets through market size method (potential market, effective market, target market); analyze the competition pattern and leaders of domestic and foreign pump markets through market share method (relative share, absolute share).

Customer analysis: analysis of potential customer groups and characteristics of domestic and foreign pump markets through customer segmentation (geographic, demographic, psychological, behavioral); analysis of potential customer needs and preferences in domestic and foreign pump markets through customer demand (functional and emotional needs); and analysis of potential customer needs and preferences through customer value (revenue).-Cost=Value) analysis of potential customer value and satisfaction in the domestic and foreign pump markets.

Competitor analysis: identify the main competitors and types of domestic and foreign pump markets through the competitor identification method (direct competitors, indirect competitors); evaluate the capabilities and performance of the main competitors in the domestic and foreign pump markets through the competitor assessment method (objectives and strategies, strengths and weaknesses, reactions and adaptations); through the competitor prediction method (motivation and assumptions, current strategy and future strategy) to predict the behavior and changes of the main competitors in the domestic and foreign pump market.

Market entry strategy: according to industry analysis, market analysis, customer analysis and competitor analysis, select the appropriate target market, formulate market entry strategy for the target market, including product positioning (differentiation, centralization), channel selection (direct sales, agency), price strategy (penetration, high-end), marketing strategy (4PModel: product, price, place, promotion), develop feasible implementation plan and expected effect evaluation.

Project Value

Shangpu Consulting Company provides a professional market entry consultation report for customer enterprises, helps customer enterprises understand the development status and trend of water pump industry at home and abroad, identifies potential market opportunities and growth points, formulates market entry strategies and implementation plans for target markets, and provides strong support for customer enterprises to expand new market areas, realize business growth and risk dispersion. This project brings the following values to the client enterprise:

It improves the market insight of the customer enterprise, helps the customer enterprise to grasp the industry dynamics, finds new needs and opportunities, and enhances the market sensitivity and predictability of the customer enterprise.

It improves the competitive advantage of the customer enterprise, helps the customer enterprise to analyze its own advantages and disadvantages, determines its own development direction and goal, and enhances the competitiveness and core competitiveness of the customer enterprise.

It improves the market share of the customer enterprise, helps the customer enterprise to choose the appropriate target market, formulates the effective market entry strategy, and increases the market share and brand awareness of the customer enterprise.

It improves the profitability of the customer enterprise, helps the customer enterprise to formulate a reasonable price strategy, optimizes the product structure and cost structure, and increases the revenue and profit of the customer enterprise.

It improves the risk resistance of the customer enterprise, helps the customer enterprise to spread the risk of the original market, expands the new market field, and increases the stability and sustainability of the customer enterprise.