Research on Diapers Project of Yinge Group
|Keywords||diapers project project feasibility investment analysis|
As urban and rural people’s living standards continue to improve and the consumers’ preferencefor Diapers increases, the demand for Diapers will grow as well. As fast-moving consumer goods, Yingetissue series are well recognized by the market and the consumers, so the follow-up diapers project andfurther extension of this project has been added to the schedule. Yinge Group, as the leading enterprise inpapermaking industry in Henan Province, has six paper production bases that produce4major kinds ofpaper including culture paper, packing paper, special paper and household paper. Yinge Group, as atraditional Chinese paper company, uses agricultural residues (wheat straw) as raw material, which wasonce an advantage of the company. But now, this advantage is challenged by the change in farming method.So the company is now facing a severe test of the production restructuring and long-term development. In2010, Yinge Group invested in an Industrial Zone Project of annual output of240,000tons of householdpaper, which is remarkable compared with the current output of30,000tons. When the first phase of theproject is completed, it will output120,000tons of household paper per year. To increase the added valueof the products, the project is equipped with advanced deep processing production line. In order to extendthe deep processing of the product, to adjust the product structure, to stretch the product chain and toincrease the sales of Yinge hygiene products both in FMCG (fast-moving consumer goods) market and rawpaper market, the company plans to extend the processing chain to construct an absorbent hygiene productproject called Diapers Project (both baby diapers and adult diapers). In this way, the company is expectedto adjust the industrial structure and thus solve the dilemma of the development of the company.In this paper, I will analyze the feasibility of the Diapers Project with the use of relevant theoriesof management and economics. After that, I will analyze the feasibility of investment in this project andthen put forward corresponding countermeasures and suggestions. The introduction part is mainly about thebackground and significance of this study, an overview of the project, relevant literature review, researchcontent and methods. The second part is the environmental analysis of the Diapers Project. Within this partare the analyses of the current situations of the diaper industry both nationwide and in Henan Province only.Through such analyses, the market positioning of Yinge Group would be very clear. The third part is the project planning and promotion of the Diapers Project including the analysis of the scale of investment,product solutions, investment estimates, sales strategy, pricing strategy and branding etc… The fourth partis the risk analysis and suggestions. This part includes the main risks of the project, the main advantagesand the development strategies and suggestions. The last part is the conclusion. It is the recommendationsgiven to Yinge Group on the Diapers Project based on all the analyses above.