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Marketing Strategy Analysis Of Golf A4 Series Car

Posted on:2006-03-21Degree:MasterType:Thesis
Country:ChinaCandidate:Y T LiuFull Text:PDF
GTID:2166360155954018Subject:Business Administration
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After two years high speed development, great changes have taken place in Chinese auto market. The increment speed of the whole market is slowing down evidently by the influence of government's macro coordination. The fast growth of new automakers and great enlargement of the old automakers production capacity are changing the relation between demand and supply. After China entered WTO, the five-years protecting term is going to be concluded. More liberal polices on imported automobiles adopted by the government bring pressure on local automaker. The accumulated production capacity enlarged when the demand exceed the supply in the auto market can't be released. It is estimated that the production capacity of Chinese automakers is nearly three million units, and the number is rising sharply. But the sales of the whole auto market are around two million units only. From 2003 all automakers had enlarged its production capacity. Some of them doubled production. The two years blowout auto market stimulate the automakers to invest and increase the production volume and overestimated the demand of the market. The investment is overheated, especially the Joint Ventures invested by foreign automaker, they strived to add the investment and enlarge the production capacity. In order to increase the sales and maintain the market share, many automakers reduce the price. Compared with the same term of 2003, the average level of reduce is 10% in the first half of 2004, a model reduced 25% compared with the last year. The profit of auto industry reduced 5%-10%. Chinese auto market became the buyer's market. The era of little profit is coming. From the fourth quarter of 2003 many banks revised the loan condition. 62.3% of auto buyers paid one time. Less than 40% of auto buyers paid by consumption loan. But from 2001 to 2003 there are over 70% buyers paid by consumption loan. At the same time the Insurance Company conclude the business related to auto consumption loan. This make the sales by consumption loan reduced sharply. All these show the Chinese auto industry enter the period of contract. The increase of auto production is slow down. Central government's macro coordination adopt the tight policy continually. Frequent price reductions make the potential customer hold the money and hesitate to buy the auto. The stock of car increase accordingly and the tight of auto consumption loan make the automaker obey the market rules. The investment to auto market, production and consumption become more reasonable. All automakers face the keen competition. As a leader in auto market for a long time, FAW-VW has to face the severe challenge from the followers. Now the layout of FAW-VW product is over concentrated and the leading product is getting old, but the sales of new product is so limited that it can't make great contribution to the whole sale of FAW-VW. Golf A4 launched into the market on July, 2003 under this condition. Weather Golf A4 can achieve success in the market is crucial to the development of FAW-VW in near future. From the historical degree, Emanating charming temperament and witnessed modification of four generations and accumulated with thirty years of auto culture. Golf is acclaimed as classic of two-compartment car. It wins trust of more than 22 million users throughout the world. Though Golf is very popular in Europe, Chinese customers don't like the considerate styling design. From the product degree, the price performance of Golf A4 is leading amongthe same class cars. From the Sales degree, FAW-VW has a qualified and experienced sales team. Jetta series car has been the sales champion of single brand for three years. The market share of Audi A6 series car maintains 50% since it launched in 1999. Although with the above advantages, the performance of Golf A4 in the market is incredible, the sales volume per month and the total sales volume aren't satisfying. It look's like FAW-VW is over optimistic on the target market, prospect of market, marketing strategy and promotion skill, and face the great development and change in the auto market FAW-VW responds not very well. Maybe FAW-VW thought a good product of high price performance must be popular. This thesis makes a detailed introduction on Golf A4's market orientation, marketing strategy, and promotion skill. Simultaneously apply consumption psychology and marketing theory to make a detailed analysis. Refer to the latest investigation report, statistics and news of Golf A4, I put forward four marketing strategies and eleven specific measures on the marketing of Golf A4. I wish it can promote the sales of Golf A4. According to a report from Economic News published on Oct.22, 2004. The consumption concept is changing, the two-compartment car is becoming popular. For example, Fit two-compartment car produced by Guangzhou Honda Automobile Co.,ltd. has received an order over 16000 units during one month after it rolled off the line. Shanghai General Motors Co.,ltd is going to produce Excel two-compartment car. From 2001 to 2004 the types of Chinese two-compartment car is increased from nine to twenty one, the production volume increase from 100,000 units to 400,000 units. Experts explains that low cost, easy to park,...
Keywords/Search Tags:Marketing
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