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Increaseing The Brand Popularity by Improving Marketing Strategies
Introduction:
In an orderly and competitive society, the development process of an enterprise is, in a
sense, the process of brand building. Brand culture construction has two levels. One is to use
culture to build a brand, the other is to build a brand's own cultural characteristics and
connotation. There is a one-way interaction between the two, not a two-way interaction. That is
to say, the purpose of using culture to build a brand is to make the brand have its own cultural
characteristics and connotation. Through Dongting Mountain’s products and interviews with
employees, it is found that the brand popularity of Dongting Mountain is the main obstacle
affecting its sales. Marketing strategy refers to the strategy of selecting and occupying the target
market which is determined by the enterprise according to its own department conditions and
external competition. It is an important part of making strategic marketing plan, and its essence
is the overall design of marketing activities. This report will explain how to improve the brand
popularity of Dongting Mountain through marketing strategies.
SWOT model of Dongting Mountain
Strength
Weakness
What do you do well?
What could you improve?
What unique resources can you draw on?
Where do you have fewer resources than others?
What do others see as your strengths
What are other likely to see as weaknesses?
⚫
Water quality
⚫
Brand popularity
⚫
Short distance between place of
⚫
Limited consumer groups
productions and water source
⚫
Limited flexibility to increase supply
⚫
Less investment on advertisement and
marketing
Opportunities
Threats
What opportunities are open to you?
What threats could harm you?
What trends could you take advantages of?
What is your competition doing?
How can you turn your strengths into
What threats do your weaknesses expose to you?
opportunities?
⚫
Location
⚫
Matthew Effect of the market
⚫
Culture
⚫
Long refresh cycle of the water source
⚫
Transportation
⚫
Economics of scale
⚫
Consumer’s awareness of health
Strengths:
1. Water quality
The bottled water and barreled water in Dongting Mountain are natural mineral water, precious
because of its high quality and small quantity. The water source is protected in deep
underground rock crevices and is not easy to be affected by the environment. It naturally
contains rich minerals and trace elements and tastes sweet and cold.
2. Short distance between place of productions and water source
Because Dongting Mountain water source is located in Suzhou, it belongs to the plain area, so
it is not difficult to build factories. Water sources are not far from major production sites,
reducing water transport costs.
Weaknesses:
1. Brand popularity
Dongting mountain company always give consumers modest first impression, product
promotion is very little. User loyalty to the brand is low, and the brand is not widely known,
even by locals.
2. Limited consumer groups
Most of the consumers groups of Dongting Mountain are families, students in the school and
office workers in the enterprises.
3. Limited flexibility to increase supply
Since the water source of natural mineral water is scarce, so it’s very hard for the company to
suddenly increase the supply of the water.
4. Less investment on advertisement and marketing
There are few investments on advertising the products. From the business report of the
company, it’s obvious to see that there’s an increasing trend on investment of advertisement,
but the management does not take place. The advertisement is not concentrated and abundant
on the content which may not be memorized by the target audience.
Opportunities:
1. Location
Dongting Mountain is located in a plain area, making it easier to extract water and transport
it.Due to its proximity to Taihu Lake, there is great opportunity to create a local tourist hotspot
for tourism purposes in the future
2. Culture
Suzhou is famous all over China and even the world for its first impression of small Bridges
and flowing water. The water culture of Suzhou has been bred in the blood of local people in
Suzhou. For such a city with deep cultural heritage, Dongting Mountain has many
opportunities to combine products with culture and promote products with the media of
Suzhou's local traditional culture. Bottled water and barreled water have enough space to
present this characteristic city culture.
3. Transportation
Suzhou as a relatively developed city, the infrastructure is very complete, transportation
difficulty is not high, so the transportation cost is reduced.
4. Consumer’s awareness of health
Dongting Mountain Company has done a lot of ground pushing. Many communities to promote
the unified collection of tap drinking water, but this kind of water belongs to pure water, only
to meet the needs of clean drinking water. For filter criteria are high pure water, all at the same
time, the filtering process will be filtered out all the trace elements and impurities in the water
itself, (even if the water quality is not as good as natural mineral water), purified water filtration
process with chemical filtration, and natural mineral water because of the need to keep the
trace elements and minerals in the water, only physical filtration. People's awareness of the
difference between different drinking water and health awareness will lead consumers to
choose the water with the best quality.
Threats:
1. Matthew Effect of the market
The Matthew effect, a term used by sociologists and economists, is a phenomenon of social
polarization, with the rich getting richer and the poor getting poorer. For the bottled water
market, many large companies such as Nongfu Spring, Baisui Mountain, etc., occupy a stable
position in the market. Although the entire bottled water market is expanding, the market share
of low-end bottled water is declining at an annual rate of 8%, which is easy to form a monopoly
or oligopoly in the whole bottled water market, so it is difficult for Dongting Mountain's
products to have a strong competitiveness.
2. Long refresh cycle of the water source
Nongfu Spring’s water is surface water, has a refresh cycle around 10 years. However, the
refresh cycle for underground water is maximumly 1000 years. It’s hard for Dongting
Mountain to suddenly increase the supply because of the scarcity of underground water.
3. Economics of scale
With the expansion of the production scale of large companies, enterprises can make use of
more advanced technology and machinery and equipment and other production factors. With
the use of more manpower and machines, the division of production within the enterprise can
be more reasonable and specialized; Technical training with a large number of people and
production and operation management with a certain scale can also save costs.
Since the supply is limited, for Dongting Mountain, this is now the best opportunities to
increase the brand popularity by cultural brand construction. Connecting the brand with culture is
a good way to expand the consumer’s group and increase the brand core competitiveness.
PEST analysis:
Politics:
From a long-term perspective, the next five years. my country’s resource and energy problems
Increasingly intensified, higher requirements will be placed on the conservation and effective
use of energy resources. For this reason, the reform of resource product prices, including water
price reform, will be further increased.
Judging from the current situation, water price reform is only
It is far from complete. Especially in terms of water price management theory, management
thoughts and management methods, it is far from the requirements of marketization and
commercialization. Compared with developed countries in the West like the United States, it is
far behind. There are mainly the following risks
First, inadequate supervision of price policy implementation has led to price control
The effect of the system is affected. Inadequate supervision over the use of price adjustments
has led to the coexistence of corporate losses and high wages for employees, or the price
adjustments have been transferred to non-monopoly links and diversified business areas.
Second. Rising water prices have not brought about the corresponding completion of the market
mechanism
good. The water price reform and the reform of the market mechanism are not synchronized.
Many market mechanisms that should be established or improved have not been established in
the course of price increases.
Third, the composition of water prices is very unreasonable. Most cities in our country,
Especially in Dog City, the price of water supply and sewage treatment has been combined into
one water price. However, in the water price, the price of water supply accounts for the vast
majority, generally 70~80%, and the price of sewage treatment only accounts for 20~30‰.
Water resources only account for a symbolic proportion, usually less than 1‰. This is in line
with the actual market price.
The value is deviated. In fact, the cost per cubic meter of sewage treatment is roughly equivalent
to the cost per cubic meter of water supply.
Fourth, the unreasonable pricing mechanism of urban water supply leads to prices
Regulation is difficult to stimulate operators to improve efficiency. Although the government
has introduced a price decision hearing system and an expert review system in the process of
setting or adjusting water supply prices; cost constraints have also fully implemented a regular
price review system, but at present, my country's urban water supply mainly adopts a cost-plus
pricing method and government price control. The basis is mainly the cost data reported by the
water supply company. This cost is the individual cost of the company in a specific area, rather
than the reasonable social average cost or advanced cost. Moreover, due to the asymmetry of
cost information, government price control depends to a certain extent on the bargaining power
between the government and the enterprise, and it is difficult to impose necessary constraints on
the cost of water supply enterprises.
Economy:
The sustained rapid economic growth and the steady increase in the income of urban and
rural residents have laid a foundation for the growth of my country's consumer products.
Set a solid foundation. In recent years, the overall national economy of our country has
maintained a steady and healthy development trend. Accompanying with the growth of the
macroeconomy, the income level and quality of life of the majority of Chinese residents have
also been greatly improved.
Consumption activities have become more active and have become a strong demand
driver for the domestic drinking water industry. Drinking water is the basic necessity in people’s
daily life, with the improvement of the consumption level of Chinese residents, the market scale
of China’s drinking water industry is also expanding. Looking at it, not only its market size is
expanding, but the product structure of the beverage industry also follows
Constantly upgrading with changes in consumer consumption views. Consumers’ demand for
drinking water has changed from the initial thirst-quenching, delicious,
Towards differentiation, health and localization. Drinking that is closely related to people’s lives
and health. In terms of water, from the beginning of quenching thirst and necessity, it is
developing towards health care.
The development of the water industry and the company’s bottled (can) drinking water
industry is shown in the following table. It can be seen that
The development of Chinese water industry and bottled (can) drinking water industry has
maintained a steady growth trend.
Marketing Income
Year
Numerical (ten thousand yuan) increasing rate (%)
2017
47,159,217.20
10.17
2018
52,779,078.70
13.61
2019
57,848,533.30
7.47
2020 Jan-Oct
51,124,053.90
_
Since the 1970s, with the rapid development of modern industry, global environmental
pollution has become more and more serious. In developed countries and regions, the
atmosphere, soil, vegetation, surface water and groundwater are all polluted to varying degrees.
Infections have seriously affected people’s lives and endangered human health. Water quality of
urban water supply in many countries and regions.
The quoted standards have been exceeded, and people are eager to drink high-quality water.
Natural soda water is a deep-cycle high-quality water source, rich contains a variety of trace
elements that are beneficial to human health, and its harmful components and microbial content
are low, which can satisfy people's requirements for high-quality and healthy water.
With the improvement of living standards and the aggravation of water pollution, health has
attracted more and more attention from people.
The water treatment of the urban tap water system has not yet reached the level of direct
drinking from pipelines in developed countries.Families with relatively better economic
conditions began to choose bottled soda and mineral water as drinking water.
Society:
1. Population:
By the end of 2019, the permanent resident population of Suzhou was 10.749,900, an
increase of 0.3 percent over the previous year. The registered population was 7.226 million,
up 2.7 percent over the previous year. From the perspective of urban and rural structure, in
2019, the urban population of Suzhou was 8.277 million, accounting for 77.00%; The rural
population was 2.473 million, accounting for 23.00%. since water is necesery for people, the
water sales volume will grows as the population grows. Also, birth rate rise will lead to the
sales of mineral water for mother and baby grows.
2. Revenue:
In 2019, Suzhou's GDP has exceeded 1.9 trillion yuan, with per capita disposable income of
60,000 yuan and per capita consumption expenditure of 30,000 yuan. Suzhou’s per capita
income ranks first in Jiangsu Province, so they are more likely to pay attention to the good
quality water, such as Dongting Mountain.
3. Degree of education:
The shortage of educational resources in Suzhou, the rate of general high school continued
to decline. Parents pay a lot attention to their children’s health and education, some of the
parents think that good mineral water can help their children become smart. So they spend
money on Dongting Mountain mineral water.
4. National culture:
Suzhou people pay more attention to health, they like tea and classical gardens. Biluochun,
one of the top ten famous teas in the world, is abundant in Dongting Mountain, and the
propaganda idea of Dongting Mountain is: good water nourishes people, so a large number of
Suzhou people will buy the water from Dongting Mountain.
Technology:
The end product of this industry is bottled water that consumers can choose to drink at
any time. The improvement of consumers’ awareness of food safety and the enhancement of
awareness of rights and interests, this year the government has promulgated and implemented a
series of food safety laws and regulations, which further strengthened the social responsibility of
food producers. Responsibility, regulates the operating behavior of food production enterprises.
Increased supervision in the field of food safety and established
Punitive damages system. By creating new kinds of technology, current errors or product quality
problems could be reduced and also can have a significant adverse impact on the company's
reputation and the company's product sales.
Industry analysis:
1.quality of water
Nongfu Spring uses surface water, while Dongting Mountain uses groundwater from 170
meters to 230 meters underground. Groundwater is less susceptible to changes in the
environment, so the water is cleaner and safer. Of course, both brands are high-quality mineral
water.
2.Main product and logo design
From the perspective of mineral water alone, Dongting Mountain mainly produces bottled
water, followed by bottled water. Nongfu Spring produces bottled water. Bottled water has many
disadvantages. For example, it is very difficult to transport and cannot be transported to distant
areas. Bottled water is different. Bottled water is easy to transport and can be shipped to every
part of the country. Nongfu Spring’s label design is innovative, it is the image of the dripping
water drop, full of dynamics. When you see this sign, it reminds you that this is Nongfu Spring.
The symbol of Dongting Mountain is a mountain, which gives the impression that it is a tourist
attraction rather than a company. Many people cannot recognize this symbol of Dongting
Mountain. So, the design of the logo is very important for a company.
3. Consumer groups
The consumer group of Nongfu Spring is any age group, while the consumer group of
Dongting Mountain is relatively middle-aged and old. Many young people will buy brands like
Baisuishan and Nongfu Spring. Many elderly people in Suzhou are more inclined to Dongting
Mountain.
4. Culture
In terms of culture, Dongting Mountain has a profound regional culture. Many products
want to show the company’s culture, but few people really understand its culture. Nongfu Spring
is a nationwide company, and it once cooperated with the Forbidden City to produce a product
called the Forbidden City Bottle. It takes advantage of the complementary advantages of Nongfu
Spring and the Forbidden City to spread the culture of the Forbidden City with a wide range of
consumers. This not only enhanced the cultural connotation of Nongfu Spring, but also spread
the culture of the Forbidden City, making it more accessible to the people. I think Dongting
Mountain can also cooperate with some local scenic spots to promote local culture.
5. Marketing
The marketing methods of the two companies are generally similar, but there is a big gap
in many details. For example, the official website of Nongfu Spring has a very good design,
which gives people a good visual sense, and makes people feel that this is a website to promote
culture. The official website of Dongting Mountain is purely for selling products, giving people
the feeling that they must buy products, so the first impression is not very good. On the
advertising level, Nongfu Spring is good at emotional marketing. It is shot from the perspective
of employees and can resonate with us. The advertisement of Dongting Mountain is shot from
the perspective of the company, and it is very old and not innovative, which makes people feel
very confused. This is also the reason why sales of Dongting Mountain are not high.
Marketing strategy in the Internet era:
Information fragmentation led to a mass market trend "fragmentation". With the growing
of people's consumption choices, people's lifestyle, ideology also presents the trend of
diversification. The rapid development of mobile Internet gives audience great initiative in the
new period, each audience behind the screen become communicators and recipients of
information, emerging new media forms convey of the mass information, audience according to
personal preference demand for personalized information is becoming more and more obvious,
the focus of concern is no longer confined to a few people, reflected in the market marketing is
in the form of consumption demand, consumption scenarios and the fragmentation of the time.
Were similar in age, education, income consumer class, may also be due to differences in
concept of attitude differentiation for different consumer groups. Network media has the
characteristics of two-way interactive and personalized communication, in front of the audience
"broken", demographic characteristics of the area lies between force more and more weak, with
similar life forms of audience gathered themselves together, and gradually form a focus group [.
These focus groups in terms of media exposure to new media, new media and accelerated the
trend of focus. The focus of media to brand information accurately transmitted to a specific
audience, easier to meet the demand of differentiation in the market, implement accurate brand
message.
Young consumption group has a great potential, in 2018, for the node, after the last group
00 has become working-age adults, after the 90 groups from the youngest age 18 to 28 years old,
biggest 80 groups most has become a thirtysomething, married after the main force of social
development. As a digital immigrant, dynamic young props up the multicultural network system,
the young have the characteristic of consumption behavior. Professor sheng-min huang in the
article pointed out that under the new normal end there have been great changes in our demand,
personalized, diversified consumption become mainstream, the best footnote to upgrade become
consumption change, Teenagers has become mainstream.
Before the Internet into the public view, the traditional consumer behavior model under
the market environment is summarized as AIDMA model, the model from linear to describe the
consumers come into contact with the product information to eventually produce purchase
behavior, namely Attention (Attention), causing Interest (Interest), arouse the Desire (Desire),
reserved Memory (Memory)And purchase Action (Action), five stages of psychological
behavior, the model in the traditional market environment to the enterprise to carry out the
advertising provides a theoretical guidance, explains the consumers in the traditional one-way,
passive consumer behavior under the market environment, the consumer behavior depend on the
enterprise marketing information for the development of consumer initiative in the market
environment.
After the Internet into people's life, has brought with all kinds of information, consumers
have a self-service search product and brand information of the condition and ability, become the
initiative "audience" and began to communicate with merchants and other consumers in the
Internet, and to other users to share information in the Internet, a change in the past one-way,
linear mode of consumer behavior, consumer behavior in the traditional Internet environment
gradually transformed into an interactive model of online consumer behavior. In 2005, dentsu
group for the first time to stand in the user's perspective, the traditional consumer behavior under
the Internet environmentSummary for the AISAS model, the consumer behavior include note
(Attention), Interest (Interest), Search Search), to purchase (Action) and Share (Share) five links.
In traditional network economy, the consumer feedback and sharing of replaced the purchase
link, become the end of the consumption under the network environment, enterprise marketing to
the attention of consumers get higher, marketing theory research perspectives are also shifting
from businesses to consumers. But the theory model is still emphasize brand power of
advertising, no interaction based on consumer behavior and market environment, its theoretical
significance in the era of mobile Internet has certain limitations.
After entering the mobile Internet era, information transmission path, the people's
consumption scenarios, the user's brand contact points are different from the traditional Internet
times, consumer spending trajectory, user behavior is no longer a one-way transmission process,
and the evolution of a multidimensional interaction process in the user's network. Brands and
consumers can perceive each other in more convenient information network, free dialogue,
consumers can even become the main body of information distribution and transmission,
independent brand share information. Internet data center (DCCI) in 2011 based on connection
dialog SICAS consumer behavior model of consumer spending trajectory summarized as: brand
and customer perception (Sense), an Interest in each other and form Interactive (Interest &
Interactive), to set up the connection and Interactive communication (Connect & Communicate),
Action to purchase (Action), experience sharing (Share) five links. SICAS consumer behavior
model is based on the user a bird 's-eye view of the network model, interactivity of information
transmission in the mobile Internet times, disorder, the spread of information production
initiative and other characteristics of the reinforcement, the mobile Internet era brand younger
study of this article has strong theoretical significance, also can more clearly guide brand for
insight into the track of consumer behavior.
In today's information society, the consumer is surrounded by a vast amount of
information, enterprise want to shape for their products one can move the image of the consumer
mental state, must implement the accurate positioning, guide the consumer to produce the correct
understanding of the brand, to create brand preference, trigger action such as buying, sharing.
Drinks fast away industry homogeneity product emerge in endlessly, shorter product life cycle,
the product of the alternative is stronger, therefore the unique brand personality and image is
very important in the competition, younger market positioning, can make the enterprise
effectively to younger brand cognitive information passed on to consumers.
Precise positioning without insight into the enterprise to the market environment and
consumer demand, the market fragmentation, the focus of the Internet marketing environment,
the development of young consumer groups for major consumers, the brand to achieve younger,
you need to brand the in-depth insight into the thoughts of young consumers and mentality,
capture the young consumer spending, young consumers in a different way of life, clear their
consumer demand in different scenarios, which produce targeted personalized products, covering
different scenarios of all kinds of consumer demand.
Brand positioning is a process of dynamic adjustment, the consumer market is constantly
changing, the products are also constantly upgrading, consumer demand and the structure is in
constant change, also greatly expand information dissemination channels, marketing also means
also changed dramatically, beverage consumer market constantly have new products to join in
the competition, a drink in its life cycle stage are also evolving, as a result, brand positioning
need to accurately according to the change of dynamic adjustment, the brand has market
dynamics and not to be eliminated. Any static positioning ideas will guide the brand on the path
of aging, loss of brand vitality, loss of market competitiveness. Brand's growth is a process of
dynamic, timely adopt dynamic positioning strategy can guarantee the vigor and vitality of the
brand, in the brutal competition in the market with strong competitiveness.
Brand concept is the kernel of brands and consumers to communicate, and can be unique
to the brand, enhance the spiritual connotation of brand differentiation, and is an important
method of giving brand personification. Brands in the brand younger building, brand concept
itself is a certain stability, don't need enterprise often change their idea to cater to young
consumers, but on the basis of full understanding of consumer values, its own brand is to express
the value orientation of values and combine, looking for the meaning of common space, struck a
chord with consumers. In the Internet age, full of unknown consumer groups, consumer
preferences, consumption habits and is full of variables and the values of consumers pursues the
differences, if the brand to cater to young consumers painstakingly, only in the tide of time loss
of own brand characteristics, the correct treatment should be put consumers at the different
values of refining, combined with the brand appeal, create brand concentrated and stable brand
concept, in the process of brand communication and product sales brand values, for young
consumers in the recognition of the value level.
Over the years, Dongting Mountain has adhered to the brand concept of "Great Water Nourich
Great People", which conforms to the consumption psychology of contemporary consumers at
the value level, and does not deliberately cater to the interests of young consumers. The long-
term and stable brand concept is used to guide the long-term production practice of the
enterprise, and constantly conveys the value orientation of modesty to consumers. For natural
mineral water enterprises, the brand characteristics, temperament and connotation conveyed by
the brand concept are the important factors to highlight the difference of the brand and also the
soul to establish the brand positioning.
Conclusion:
To enhance brand awareness, the brand should always keep pace with The Times, and the
brand construction should keep pace with The Times. Only by grasping young consumers can
the brand grasp its future. This paper argues that enterprise brand awareness of ascension must
first based on their own for a deep insight into market environment and consumers, the Internet
age of information fragmentation, media fragmentation changed the current marketing
environment, the natural mineral water brand in our country is faced with more details and more
intense market competition, more and more homogeneity of products on the market, bottled
water, life cycles are getting shorter, at the same time, a new generation of young consumers is
becoming a main consumption of the market, they have a strong sense of self, the pursuit of
personality and pay attention to emotional experience, to a greater degree of accepting new
things, Such marketing environment and consumer changes are both opportunities and
challenges for brands. Brand party based on the change of market environment and consumer
understanding and grasp, for its own brand positioning in the new period, younger consumers
clearly positioning and product positioning. Second, the brand should pay attention to the brand
value of transmission, makes the young consumers identify with the brand concept, starting from
the needs and preferences of young consumers, in terms of product innovation, by younger and
younger face shape of product packaging design, through product convey distinctive brand
personality, set up the young brand image in the consumers' mind. Finally, brand way to
integrate a variety of marketing communications, integrated use of various means of
communication, the establishment of comprehensive three-dimensional brand communication
channels, and spread widely in the Internet, have fun and personalized brand information, around
consumers planning linkage of online brand activities, in a social network in the discourse
system of young depth of communication with consumers, struck a chord with consumers'
emotional and value identity, grasp the rhythm of the Internet era of brand information
communication, deepen the cognition and memory consumers to the brand and the brand
maintain lasting youthful energy.
There are still some shortcomings in the research on the promotion of brand awareness in
this paper.According to the relevant literature, there are few works and papers on enterprises
such as Dongting Mountain Natural Mineral Water Company at home and abroad, and theories
related to brands also have a certain number of years, so the reference value of this paper is
limited.Due to the need of corporate confidentiality, the latest market data cannot be obtained in
this paper. Therefore, the effect of brand awareness promotion studied in this paper may be
slightly different from the actual situation.In the future study and work practice, the author will
continue to pay attention to the research on brand awareness improvement and the latest
developments in the industry, and dig deeply into the problem of brand awareness improvement,
so as to make up for the deficiencies in the research of this paper.
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