The Marketing Strategy Analysis of the BYD Auto
|Keywords||BYD Auto marketing marketing strategy PEST analysis SWOT analysis STP strategy service marketing|
Beginning in 1999, with gross national product of China’s rapid growth, China’s automobile and peripheral accessory products industries have entered the corresponding period of rapid growth, from the previous car is a luxury family car now has become a part of life, car Marketing has also been corresponding changes and different marketing strategies in different periods of gradually evolving process. BYD Company Limited (hereinafter referred to as "BYD") was founded in 1995, is a Hong Kong-listed high-tech private enterprises. BYD in Guangdong, Beijing, Shanghai, Changsha and Xi’an and other regions built ten production bases, with a total area of nearly 1,000 million square meters, and in the United States, Europe, Japan, Korea, India, Taiwan, Hong Kong and other places with sub - companies or offices, employees now exceeds 1.3 million people. In 2003, the formal acquisition of Shaanxi Qinchuan BYD Auto Co., Ltd, established BYD Auto to enter the field of automobile manufacturing and sales began the development of national self-brand vehicles journey. This sub-divided into four chapters, from different angles, using marketing theory tools to an analysis of China’s auto market, and future marketing direction of BYD were thinking and theoretical exploration.The first chapter introduces the BYD Group, BYD Auto to China’s current status of the automotive industry, BYD Auto’s current market situation and future outlook for the automotive market.Chapter II, mainly through the analysis of the social environment and the competitive environment of the industry to find the future market opportunities and threats that exist. China’s automotive market, the continuous rapid growth and continuous expansion of the total size, so that the international status of China’s auto market significantly improve China’s auto market has become the world auto market an important part of an integral. The rapid development of automobile industry in 2009, making China the world’s No. 1 auto producer and consumer. Statistics show that in 2009, domestic car sales 13.791 million, and 13.6448 million, an increase of 48.30% and 46.15%. Passenger car sales 10.3838 million and 10.3313 million, an increase of 54.11% and 52.93%; commercial sales 3.4072 million and 3.3135 million, an increase of 33.02% and 28.39%. China has become the global automotive market growth to promote a major force. The first is the use of PEST analysis to analyze the entire market, the largest external environment, PEST analysis is mainly through the analysis of the current political (Political), the economy (Economic), social (Social) and technology (Technological) which affect the business development in four major categories of external environmental factors, for enterprises in the development of the market planning, product, pricing strategy and business development strategies to provide some help. Companies in operation with the international convergence, due to complexity of China’s consumer groups, market capacity and market has great potential to develop product strategies, pricing strategies and marketing strategies must be fully taken into account regional differences, income and consumption levels and other factors. The imbalance between imports and exports of China’s automobile industry, even though China has a huge market capacity, but compared with developed countries, China’s auto consumption of less than rational, and therefore learn from the developed multi-market strategy, vision not only should be placed on the domestic market, but also To take into account the foreign market demand. The factors that affect the development of automobile industry, technical factors are most important. Technically, it is necessary to strengthen technological innovation in the automotive industry, improve the capacity of independent R & D and management level. Secondly, the use of Porter’s five forces model to analyze the industry’s competitive environment, Michael ? Porter (Michael Porter) in the early 80s made for the analysis of five forces competitive environment for business analysis model. Porter’s Five Forces model belongs to the external environment analysis of the micro-environmental analysis is mainly used to analyze the pattern of competition among enterprises of the industry as well as industry and other sectors relations. According to Porter (M. E. Porter) view of competition in an industry, not only carried out in the original competition, but there are five basic competitive forces affecting the development of enterprises. 5 kinds of forces include: the bargaining power of suppliers, the buyer’s bargaining power, the threat of new entrants, the threat of substitutes and industry competitors, the level of competition. These five basic competitive forces of the status and comprehensive strength, determines the intensity of competition in the industry, which determines the ultimate profit potential of the industry, as well as the flow of capital to the industry level, all this ultimately determines the capacity of enterprises to maintain their earnings. A viable strategy to make the first should be included to identify and evaluate the five kinds of power, the characteristics and importance of different forces due to the different industries and companies change, Porter’s competitiveness model significance is that the five competitive forces of resistance in the contains the three types of successful strategic thinking: overall cost leadership strategy, differentiation strategy, specific strategy. Finally, a SWOT analysis concluded that the marketing strategy direction. SWOT comprehensive analysis concluded that: The conditions for China’s current low-cost strategy. Make full use of China’s current human resources of the inherent advantages of low cost and increase the products in the price competitive advantage, mainly in the target market to the local context, developing foreign markets to international competition.1, using appropriate low-cost strategy for China’s current conditions. Make full use of China’s current human resources of the inherent advantages of low cost and increase the products in the price competitive advantage, mainly in the target market to the local context, developing foreign markets to international competition.2, with the increasing requirements of environmental protection, in product design will BYD in battery research and development, production and manufacturing strengths to make good use of new energy vehicle development, in environmental protection and low emissions occupy the market opportunities.3, with the current rising oil prices, 1.6L displacement following models as the market is still the main model, and therefore should increase R & D research and development of low-power vehicles.4, continue to strengthen the autonomy of automotive R & D strategy, technical build BYD Auto’s core competitiveness.5, in marketing to continue the previous successful experience in the domestic large and medium cities occupy certain market share of consumers, after the occupation as soon as possible to put a certain energy to second-tier cities and rural markets.6, due to China’s current level of consumer demand for services increasing, while conducting marketing to introduce more services marketing elements, to build customer satisfaction and also to create a good market reputation.7, for the management of marketing channels and training need to continue to strengthen and continuously improve the BYD Auto sales team overall quality.8, the media and propaganda continue to increase ad spending, combined with word of mouth industry, BYD, BYD Auto to create brand awareness and brand core competitiveness.Chapter III of the STP strategy primarily through the analysis of a clear BYD auto market segmentation, market selection and market positioning. Auto STP marketing the automobile market segmentation (Segmentation), select auto target market (Targeting), automotive products Positioning (Positioning). Car competitive in today’s society, consumer demand vary widely, enterprises can not be on the entire market for all customers. Market segmentation based on the choice of the company’s most attractive and effective occupation of that part of the market in mind, and develop the appropriate product plans and marketing plans for their services, so that enterprises can with limited resources, both human and financial resources available be able to produce the maximum benefit to the local level, determine the target market for enterprises and products in target markets to establish certain characteristics, to select those with the corporate mission, objectives, resources, conditions, and so has the market space, create a predetermined image, in order to gain a competitive advantage.Chapter IV discussed the main analytical BYD Auto sales and service system construction. First of all, through the 4P theory to analyze BYD Auto’s current product strategy, pricing strategy, channel strategy and marketing strategies, followed by analysis to find the current relevant strategies for the market once again is the analysis of the current auto market in the services marketing related areas the content, finally, on the brand and relationship marketing and services a simple discussion.Through the text we have reached a business wants long term development of brand building is essential and most major strategic level; products are the basis of marketing strategy, there is no good product is nothing to speak; marketing strategy should be fully taken into account the market environment and the social environment and in accordance with the enterprise’s own situation to develop.