商务谈判negotiationplan模拟谈判事例

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1、 NEGOTIATION PLAN WITH COSTCO WHOLESALE CORPORATION FOR CEILING FANReport prepared for: Costco Wholesale Corporation 999 Lake Drive Issaquah,WA 98027Seattle, the United StatedReport prepared by: Jessica Sales ManagerAir Breeze Co. Ltd.Address: No.44, Tongxing West Road Zhongshan, Guangdong, ChinaTel

2、ephone: (86)Fax: (86)E-mail: /5/201. Background32. The introduction of Costco Wholesale Corporation32.1 Profile32.2 Major products42.3 Financial position42.4 Market share42.5 Enterprise blueprint43. Negotiation objective44. Negotiation subject45. Negotiation team55. Feasibility summary65.1 Market sc

3、ale65.2 Competitors65.3 The needs and wants of Costco66. Negotiation goals77. Key issues77.1 Quantity guarantee77.1.1 FoShan Shunde YuShengJia Electrical Co.,Ltd77.1.2 Zhongshan MOUNTAINAIR Industrial Co., Ltd.97.1.3 Zhongshan OupaiSi Electrical Applicance Co., Ltd.98. Material supply128.1 Motor128.

4、2 Blade texture138.3 Lampshade138.4 Package149. Negotiation strategies and tactics149.1 Negotiation strategies149.1.1 The strategies149.1.2 Risk of the negotiation149.1.3 Division of work159.2 Negotiation tactics159.2.1 Start stage（开局）159.2.2 The intermediate stage（中期阶段）159.2.3 Bureau of stage(休局阶段)

5、159.2.4 The last stage of negotiations（最终谈判阶段）1510. Agenda1611. Contingency plan181. BackgroundOur company (Air Breeze Co., Ltd.) learns from Chinas Ministry of Commerce that Costco Wholesale Corporation is planning to find a fixed supplier of ceiling fan in Guangdong which can offer an annual produ

6、ction of 8 million ceiling fans. The supply time is tentatively fixed at 5 years. Costco Wholesale Corporation is interested in the type of VictoriaCA05-AB or similar products and prefers to be delivered 2 million per season to Oakland Port, U.S. 90 days in advance.After the several communications w

7、ith each other, we are going to negotiate all details of this project.2. The introduction of Costco Wholesale Corporation2.1 ProfileThe companys first location, opened in 1976 under the Price Club name, was in a converted airplane hangar on Morena Boulevard in San Diego. Originally serving only smal

8、l businesses, the company found it could achieve far greater buying clout by also serving a selected audience of non-business members. With that change, the growth of the warehouse club industry was off and running. In 1983, the first Costco warehouse location was opened in Seattle. Costco became th

9、e first company ever to grow from zero to $3 billion in sales in less than six years. When Costco and Price Club merged in 1993, the combined company, operating under the name PriceCostco, had 206 locations generating $16 billion in annual sales.Since resuming the Costco name in 1997, the company ha

10、s grown worldwide with total sales in recent fiscal years exceeding $64 billion. Today,COSTCO owns 649 areas of operation in 8 countries.649 areas of operation in 8 countries:Areas of operation:462 locations in 43 U.S. States & Puerto Rico;87 locations in nine Canadian provinces;25 locations in the

11、United Kingdom;10 locations in Taiwan;9 locations in Korea;18 locations in Japan;5 locations in Australia;33 locations in 18 Mexican states2.2 Major productsCostcos warehouses present one of the largest and most exclusive product category selections to be found under a single roof. Categories includ

12、e groceries, candy, appliances, television and media, automotive supplies, tires, toys, hardware, sporting goods, jewelry, watches, cameras, books, housewares, apparel, health and beauty aids, tobacco, furniture, office supplies and office equipment.2.3 Financial position77,946 million operation rev

13、enue per year (according to FORTUNE )2.4 Market share2.5 Enterprise blueprintTo become the worlds most pleasurable and biggest membership warehouse club3. Negotiation objectiveTo establish the long-term cooperative relationship with Costco, and become the regular supplier of ceiling fan for Costco b

14、ased on the win-win outcome.4. Negotiation subjectVictoriaCA05-AB Model Number: VictoriaCA05-ABFinish: Antique BrassSize:52 /1320mm Quantity of Blade : 5 Plywood Oak/walnut finishMotor: 153*17mm Light kit: 5*25w*E27 socket with clear glassPower: 70w Speed:3 speed Material: Stainless Steel Voltage:22

15、0v Rotation:160degree Certificate: ISO9001: standard /UL standard5. Negotiation teamCounterparts negotiation teamThrough the early communication with our counterpart, we got the information of their team members:Chief negotiator: Liuyanxian, sales managerShe is experienced in negotiation, is good at

16、 searching and using data, and because of her negotiation experiences, she has a clear mind in organization and technical negotiation skills.It demands our chief negotiator must be well knowledgeable, and our team have to do a lot of information collecting.Financial manager: ZhoucanShe has rich expe

17、rience in negotiation, she is quite aggressive, is not easy to make concession on their budget.It demands that we must try to provide several package prices for them to choose, they will not be satisfied easily.Engineer: XueguimingHe has worked for Costco as engineer for many years. He is quite fast

18、idious in product design and production process.We will choose our best engineer to show our bargaining power in technology.Legal adviser: ZhengshaoyanShe was involved in a lot of business negotiation, quite experienced.Their perceived team style would be consensus.Our team members arranged as follo

19、w:ATTRIBUTECHIEF NEGOTIATORMEMBERSCompany titleSales managerFinance manager Engineer Legal adviserLanguage Chinese, EnglishChinese, EnglishChineseChinese, EnglishTravel experienceHighHighMinimal High Negotiation experienceHighHigh Minimal High Years with company108125Technical knowledgeHigh Adequate

20、 High Adequate Team positionHost-SellerPerceived potential personal stylesImpassiveDeceptive Technical FinancialExploitiveSocial TechnicalComplaintLegalisticPerceived team styleCowboy5. Feasibility summary5.1 Market scaleThe United States is going to be a big market of ceiling fan. On the one hand,

21、millions of people want to buy house in this year which will stimulate the demand of decorative products. (=) On the other hand, as the improvement of environmental awareness among Americans, they are tended to buy ceiling fan rather than air-conditioner.According to the website:(Mother Nature Netwo

22、rk)A new survey reveals that overall, nearly 70 percent of U.S. consumers purchase green products or services. The study was based on surveys of more than U.S. consumers over the age of 18()5.2 CompetitorsThere are a lot of competitors in domestic and oversea market, such as Emerson Ceiling Fans, Ca

23、sablanca Ceiling Fans, Harbor Breeze Ceiling Fan, they remain in the forefront of innovative designs and manufacturing techniques. But their costs are high, and price is not competitive.Compared with the competitors in domestic market, we passed the certifications of ISO 9001: and UL, so we can assu

24、re that our quality, service and technology are the best by virtue of our 60 years production experience in ceiling fan and lighting and good technical teams in Taiwan and Thailand.5.3 The needs and wants of CostcoIn short-term, Costco needs a supplier to expand its market share and establish its re

25、putation in the field of ceiling fan, so they are going to find a supplier who can provides qualified product with favorable price.In long-term, Costco wants to be a leader in wholesaling ceiling fan and gain more profits. To become the worlds most pleasurable and biggest membership warehouse club i

26、s its “big picture”. By analyzing its needs and wants, we can turn them as a weapon to negotiate with them, to persuade them making concession. We provide them high-quality product, help them to set a good reputation, and they consensus with us on other issues, this is win-win strategy.6. Negotiatio

27、n goalsOptimal goal: 7-year contract, VictoriaCA05-AB at US $60 per set FOB, Huangpu Port, 8 million sets per year (2 million per season)For the second and third year, VictoriaCA05-AB at US $58 per set FOB, Huangpu Port, 12 million sets per year (3 million per season). If the concluded price in the

28、market is higher and lower than the contract price (both parties signed at the first time), both parties will negotiate to adjust the contract price for the quantity of the contract.For the forth and fifth year, all terms will negotiate according to the market situation 3 months before the end of th

29、ird year.Moderate goal: 5-year contract, VictoriaCA05-AB at US $60 per set FOB, Huangpu Port, 8 million sets per year (2 million per season)For the second and third year, VictoriaCA05-AB at US $58 per set FOB, Huangpu Port, 12 million sets per year (3 million per season). If the concluded price in t

30、he market is higher and lower than the contract price (both parties signed at the first time), both parties will negotiate to adjust the contract price for the quantity of the contract.Minimal goal: 2-year contract, VictoriaCA05-AB at US $58 per set FOB, Huangpu Port, 8 million sets per year (2 mill

31、ion per season)For the second year, the quantity is expected stay 8 million or up to 12 million.7. Key issues7.1 Quantity guaranteeThe annual output in our company is about 300,0000sets, considering the request of supplying 8 00,0000 ceiling fan annual year, we need to outsource the rest to other co

32、mpanies.We hereby list three companies that could help us guarantee the supply of the products.7.1.1 FoShan Shunde YuShengJia Electrical Co.,LtdCompany profileFoShan Shunde YuShengJia Electrical Co.,Ltd.Company Address: Junan town, shunde district, foshan city, chang xingpark industrial into the roa

33、d no. 3 .E-mail:The service hotline: 4008-309-339FoShan Shunde YuShengJia Electrical Co.,Ltd is located at the Kingdom of rich electrical products city -ShunDe,Foshan city, which is a manufacturer of high quality decorative ceiling fans with a wide range, good quality, reasonable prices and stylish

34、designs .Its factory has a modern standard workshop, advanced professional production equipment. They introduce into the manufacturing technology from Taiwan, and learn the perfect combination of classic and modern design from Europe and the United States, also conform to ISO9001 Quality Quality Man

35、agement System Certification. They have got CCC, CE, CB and RoHS certificates to meet the International requirements and standards.Its ceiling fans are extensively used for Housings, Hotels, Marketplaces, lighting industry and other industries. The product quality is widely recognized and trusted by

36、 users and can meet continuously developing economic and social needs.Honors From the above certifications and honors, we value this company as a qualified outsourcing company. Whats more, its products from design to production to sales, are embodied in the concept of green environmental protection,

37、 constantly testing, functional use more health products, use more environmental protection ingredients of materials.7.1.2 Zhongshan MOUNTAINAIR Industrial Co., Ltd.Company profileZhongshan MOUNTAINAIR Industrial Co., Ltd.Address: 1 Dongheng Road, Chuangjian 1st Road, West District, Xiaolan Town, Zh

38、ongshan, GuangdongBusiness Tel: +86-Fax: +86-Code: 528415National Customer Service Hotline: 400 -830-1133Zhongshan MOUNTAINAIR Industrial Co., Ltd. was founded in and is located in Xiaolan Chinas Key Hardware Town, adjacent to Chinas light capital Guzhen Town. This company is a Sino-foreign joint-ve

39、nture integrating R&D and production and a leading enterprise in Chinas decorative ceiling fan light field. Since , they have constantly introduced advanced technology and equipment in the world to produce and sell high-grade lighting fans which are not available in China before, making Chinese peop

40、le enjoy fans with the same quality as that in European and American countries. Their registered trademark is MOUNTAINAIR. Thanks to the high quality, pragmatism, elegant style and novelty, their products are favored by consumers.They always regard product quality and after-sales service as their li

41、feline, and undertake orders with individualized styles, so as to meet requirements of consumers who pursue individuality. CertificationThey have passed the certification of ISO9001 and also got the certificates of CCC, CE, CB, ETL, SAA, etc. In addition, they offer five-year warranty and lifetime p

42、rotection for their ceiling fan light motors and one-year warranty for their parts. All loss caused by quality problems within the warranty period will be underwritten by PICC. 7.1.3 Zhongshan OupaiSi Electrical Applicance Co., Ltd.Company profileZhongshan Weide Lighting Factory Salesroom Add: Besid

43、e the Salesroom of the Pacific Lighting, Xinxing Middle Road, Guzhen Town, Zhongshan City, China. Website: www. E-mail: Contact Person: Mr. Lin Tel: 0086- Fax: 0086-Zhongshan Weide Lighting Factory, founded in 1988, is located in the Lighting Capital of China-Guzhen town in Zhongshan city. It is con

44、venient in transportation and communication. It is a professional manufacturer of luxurious fan lamps of Sansi brand. Occupying an area of 20,000 square meters, Weide has lathes, milling machines, injection machines, spraying machines and other electrical parts as its production equipment. Its produ

45、cts are special and modern. Combining with the functions of lighting, temperature-adjustment and decoration, Weides products are environmental protection.Products of Weide has got the certificates of CCC, CE and ISO9001：. They are successfully exported to Europe, Middle East and Southeast Asia.Sales

46、 network Certifications All those honors and certifications prove that those companies are qualified to produce the quality products for Costcos needs. At the same time, we are going to send our three professional engineers to monitor the quality standard strictly. AttributeEngineer AEngineer BEngin

47、eer CAge454043Years with company251820Job-change experienceNonNonNonGender Male Male Male Technical skillsHigh High High The three engineers have worked for our company for a long time. They are loyal to our company, so their personalities and experiences prove that they will strictly monitor the pr

48、oduction process and follow the faith of our company.8. Material supplyTo satisfy the different demands of our customers, we provide several kinds of material for them to choose. They could choose the material as their needs.8.1 MotorCeiling mounted fans with powerful, fine-tuned motors are better b

49、ecause the motor is what powers up the fan as it moves air. The more powerful the motor is, the more capable the fan is of achieving its best speed and its highest air movement.However, the size and power of the motor significantly affects the price of ceiling mounted fans. More of the powerful and

50、best ceiling fans are generally more expensive, but you will see and feel the difference in how much more cool and comfortable you will be when you turn the fan on. And if a fan has enough motor power to move its blades, the motor will not experience strain when moving the blades so it will not succ

51、umb easily to wear and tear.BrandjinyangjinyangjinyanglanfangCategory single-phase induction motorModel number188x16188x12172x1856Temperature rise of motor (degree)60606565TextureAll copper coilAll copper coilAll copper coilRated voltage (V)22078220220Voltage (V)220/110110-240110-240220Rated power (

52、KW)812208365RPM250 /custom-made230250/custom-made1400Pole number(极数)2224Price (per set)120rmb100rmb90rmb50rmb(1000 sets)Production certification ccccccccccccSince this is a large amount order, so the cost of motor can be controlled around 100rmb.8.2 Lampshade Model 113小白菜Picture Color Transparent Mi

53、lky whiteSize 113高100（mm）（mm）112（mm）Thickness (mm)53Price (unit)2.5rmb2.4rmbMore model of lampshade can be customized according to customers needs, and the price is around 2.5rmb per unit.8.3 PackageCeiling fan is a kind of commodity which can not be pressed by heavy thing. So we are going to use ca

54、rton to pack the ceiling fans, and each carton will be lined with foam plastics in order to protect the goods against press.CartonThickness (cm)0.35 (three-layer)Texture Corrugated boardWeight (g)110Price 0.31rmb/ per unitFoam plasticTexture PE foam plasticColor White Thickness (mm)600Length (m)6Pri

55、ce 118rmb/m38.4 Blade textureAccording market demand, the textures of blade are plywood and stainless steel, the details and price are as follow:TeakwoodSpecification 2440*1220*9-28（mm）Moisture 8%Grade OriginShandong Price 968rmb/pieceCertificate JASThe diameter of the ceiling fan is 1320mm, and the

56、 diameter of the motor is 120mm, so the length of each blade is almost 600mm, width is 60mm. One piece wood: 1220mm*2440mmOne blade: 600mm*60mm122024406006082 So one piece can make 82 blades, each ceiling fan has 5 blades.One piece wood can make 16 units ceiling fans.For each ceiling fan the cost of

57、 wood blade material is around 60rmb, but plus our workmanship, the cost on blade is 100rmb.Fix costOther components and expenses100rmbMotor cost 100rmbBlade cost100rmbProfit Optimal:80rmbModerate:70rmbMinimal:60rmbTotal Optimal:380rmb (60.3$)Moderate:370rmb (58$)Minimal:360rmb(57$)According to the

58、above chart, only the cost of blade is variable, I will analysis the price with different materials.Name Plywood （poplar）Density(kg/ m3)580-560Specification 1220*2440*（240）mm1220*2440*（240）mm1220X2440X5mm1820*910*9-28,2440*1220*9-28（mm）Moisture 14%8%18%8%Grade OriginGuangdong Jiangsu Shandong Shando

59、ng Price 80rmb/piece 55rmb/piece30rmb/piece100rmb/pieceCertificate CARB P1/P2RoHS-JASQuoted priceOptimal:325rmb (51.5$)Moderate:305rmb(48$)Minimal:290rmb(46$)Optimal:51$Moderate:47$Minimal:45$45$Optimal:52$Moderate:49$Minimal:47$Comment The three levels price is adjusted by changing our profit, cutt

60、ing our profit to lower the price.The moisture of this one is 18%, it might not meet the need of Costco and the requirement of American market, it is offered to the customer in other countries.Name Stainless steelModel 201316Origin Shandong Guangdong Specification 0.6*1219*C（mm）0.6*1219*CmmRolling o

61、peration Cold rollingHot rollingPrice (ton) 26800rmb40000rmbQuoted priceOptimal:57$Moderate:56$Minimal:54$Optimal:60$Moderate:57$Minimal:55$Comment Changing the ratio of profit to adjust the price.8.5 PaymentThe payment for the goods will be paid through L/C because it is the first time we cooperate and we need to protect ourselves during the transaction. To protect both sides benefits, and safety, we are going to choose US dollar as our currency transaction.9. Negotiation strategies and tactics9.1 Negotiation strategiesAfter every members in our negotiation team know exactly what we want to