Electrolux Small Home Appliance Co. Ltd is facing increasing competitions in China and should update its outdated marketing plan as soon as possible. This study focuses on analyzing the main marketing issues of the company, such as the target markets, the brand and the distribution channels. Furthermore, concrete counter measures are introduced in the study. The research is based on the analysis of the marketing environment, the main competitors and Electrolux‟s resources and capability. As a famous multinational company, Electrolux China Small Home Appliance has high competence in the areas of product development, brand, and capital. Accordingly, its marketing strategy should be focused on its advantages. The company aims to be the leading producer of small home appliances in China with a well-known brand in the wealthy regions of China. The company should expand its market shares with its outstanding products and rebuild its brand impression on its famous brand in the world. After having decided its target market, the company‟s main issue is how to make its products well-known among consumers. When entering a new market, the relation between the brand, the price and the product series becomes a very important issue. The marketing channels are also very important, because it is useless to have too many inefficient channels. Electrolux should pay attention to its distribution efficiency and drive for profit. In other words, the company should develop the co-operation with the distributors carefully in order to enter into selected profitable stores. At the same time, it should look for more channels to reduce the distribution risk caused by a single channel and to avoid entering into low turnover stores. In the end, Electrolux China Small Home Appliance should adjust its organization and motivate sales team better so as to implement its new marketing strategy. The paper not only draws up a new marketing strategy for Electrolux China Small Home Appliance Co. Ltd to solve its problems, but can also be used as a source of reference to study other multinational home appliances' marketing strategies that also face similar problems in Chinese markets.