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Research On The Marketing Strategy Of Red Flag HQ3 Car

Posted on:2008-03-20Degree:MasterType:Thesis
Country:ChinaCandidate:X M ChengFull Text:PDF
GTID:2189360242959772Subject:Business Administration
Abstract/Summary:PDF Full Text Request
Red Flag car has been attracting Chinese people's attention since its naissance in 1958. In the memory of Chinese, the Red Flag car is the symbol of stateliness, power and security, at the same time, it is the only sovereign car in china. However, the visible achievement belongs to the past. During the competition situation evolvement of automobile industry of china, the car of our independence brands mainly holds the low-end automobile market, and the joint venture enterprises occupy gradually the high-end market owing to the advantages of product R&D and technology innovation. Aiming at the situation, new vehicle models of Red Flag car such as Red Flag flagship, Red Flag century star, Red Flag FAWous official and Red Flag HQ3 were exploitated and came into the high-end market, but the selling performance is just so-so, especially the Red Flag HQ3 car, its selling kept recession from coming into market on November, 2006, which brought bad effect to the rebuilding high-end image of Red Flag car.This paper analyses the marketing circumstance of the Red Flag HQ3 car at the base of detailed research of selling status of the Red Flag HQ3 car. Because the government procurement market is the main selling market of Red Flag car, the government procurement deed is studied. The marketing pattern of AudiA6, which is the main competitor of Red Flag car, is analyzed, and the key factors harmed for the selling of Red Flag HQ3 car are found out. Then the market segments of Red Flag HQ3 car is redone. Through above studies, innovations for marketing'4P'of Red Flag HQ3 car is done, and pertinency marketing strategies are presented.This paper is made up of four parts, which makes a study of marketing strategies of Red Flag HQ3 car. The first part of this paper mainly expatiates on the selling status of the Red Flag HQ3 car. First of all, the Red Flag HQ3 car is developed from the platform of Toyota's crown and belongs to luxury public-affairs car. Initially, three styles of vehicle model came into market on November 16th, 2006,the cost of which ranged from 499.8 to 688.8 thousand Yuan. The government official edition car came into the market in 2007, its price was 399.8 thousand Yuan. The marketing channel of Red Flag HQ3 car changed from direct selling to distribution. After coming into market, the method of direct selling was adopted until July, 2007. Yet, the selling status is always not good. Thirteen'4S'stores signed a contract to sell Red Flag HQ3 car on July 15th, 2007.The main market of Red Flag car is government public-affairs vehicle-using, however, the media communications and public-spirited activities are less, and the brand positioning is not outstanding. The selling performance of Red Flag HQ3 car kept recession at all times. Although the staff adjustment and change of marketing channel were done, the effect is not obvious.The second part of this paper studied mainly the marketing circumstance of the Red Flag HQ3 car, which ranges from macroscopically industry policies and economy environment to microcosmic market competition. At first,The production of luxury car is not encouraged by the national industry policies. Although the government encourages the independence R&D, only the small discharge car is encouraged for the reinforced consciousness of saving energy and protecting environment, which is harm for the selling of luxury car. In the last few years, automobile industry develops quickly with the boom of macroeconomic. The C-grade car market included Red Flag HQ3 car raises placidly. The appreciation of RMB plays a crucial part in cost fall of Red Flag car.The second, the independence brand cars mainly occupy the low-end market. The highest price of Chery and Geely is less than 300 thousand Yuan. At present, only Red Flag car has relevant vehicle model of independence brand in the high-end market, its main competitor is joint brand cars. The domestic market of high-end car is occupied mainly by Audi, especially the government public vehicle-using, the occupancy rate is as high as 70 to 80 percent that is almost same as the target market of Red Flag HQ3 car. The product program of Audi A6L is as many as 12, its price ranges from 347.2 to 856.3 thousand Yuan, there is no doubt that the Audi car is the maximal competitor of Red Flag car. Although the selling gross of government public vehicle-using is just 10 to 20 percent of all, the consumption market of Audi business and personal car is impelled by the success in government public market. So it is obvious that the effect of'government official car'is great.Therefore, the Red Flag HQ3 car has to face the new competition came from DaimlerChrysler AG300 and Park Avenue etc besides Audi and Crown. The market competition becomes stiffer because new car products come into market ceaselessly.In the third part, aiming to stiff market competition, the market positioning of Red Flag HQ3 car is done. Market segmentation that has relatively advantages is found for the selling of Red Flag HQ3 car. At first, there are three grades of the government stock criterion:450,350 and 250 thousand Yuan. At present, only one kind vehicle model of Red Flag belongs to the government stock range, which costs 399.8 thousand Yuan. The market overall gross of the first grade car is relatively less because of less the first government officer. So the selling performance of this kind vehicle model of Red Flag can't be enhanced highly.The second, the State Environmental Protection Administration of China presents'green bill', which confirms nine brands car as the public vehicle-using. All of the nine brand cars are joint brand, and the Red Flag is not included. The third, through analysis of consumptive behaviors of high-end car, it is found out that the high-end consumer is insensitive to the price but has high desire of brand awareness, which conforms to the Chinese cultural meaning.The end, the official public-affair vehicle-using for government vice-ministry and higher level is fixed as the main market of Red Flag HQ3 car. Using the government vehicle-using to impel the second aim market: business elite vehicle-using.According to the above analysis,the marketing strategies of Red Flag HQ3 car are expatiated in the fourth part. The advice on the selling of Red Flag car is proposed as follows. At first of all, increasing the number of product-line items from 4 to 6. Canceling the government public-affair vehicle-using edition and adding government luxury edition, government comfort edition and business elite edition. Matching the price strategies with product items. In order to cater for the government stock standard, enlarging the price interval to 350 to 750 thousand Yuan. The government comfort edition, which costs 350 thousand Yuan, is the leading car. The selling of high-end business elite edition is impelled mostly relying on the selling quantity of government comfort edition, and obtaining much more profit. Secondly, many kinds of marketing channels should be taken synchronously. Using the quondam marketing channel of Pentium car of FAW Car Co.,Ltd to filtration and train, mainly aiming at business elites. Preserving direct selling companies and mostly replying the government procurement programs. The Red Flag brand should be brought into the'green bill'of government procurement. Otherwise, strengthening media communication of Red Flag HQ3 car, mainly emphasizing the inoculating of Red Flag culture. Begging for peoples sensibility: independence brand and independence R&D. Taking part in more public-spirited activities, for instance, sponsoring the 2008 Olympic Games hosted in BeiJing.The end, the logos of service marketing is put forward. Offering'majordomo pattern'service.Establishing management system of client data and upgrading brand image, then using service wins consumers and obtains much more profits.
Keywords/Search Tags:Marketing
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