Cheetah Motor Vehicle Distribution Channel Model Discussed

The automobile market of China is growing at a rate of 15-20% per year. The reduction of import tariffs after China entered WTO presented a window of opportunity for imported off-road vehicles. Liebao now faces severe competition between national brands and imported brands. The competition in automobile industries has shifted from technology and quality to customer services. Distribution Channels modes is becoming an important factor in competition. The relationship between the manufacturers and the distributors and the clients has become inseparable. This relationship becomes an invisible asset to a company in winning the customers.Liebao is one of the biggest manufacturers of light off-road automobiles in China, and top the national sales for 3 years consecutively. Liebao vehicle acquire its technology from Mitsubishi and localize the production process. Over the years, Liebao has created series of cars with a wide range of specifications and price range to meet the requirement of different customers. All along, Liebao has targeted government and corporate clients. The fast economic growth of coastal cities has increased Liebao's personal buyers to over 50%. Liebao is reorganizing its strategy to shift the focus from group buying to individual user.This thesis focus on Liebao motors current distribution modes and analyses the problems that lies within. A new distribution model is proposed detailing the factors and characteristics of the model. A "subsidiary+franchise" program is proposed incorporating information management. By combining the experience of international automobile marketing experience, Liebao will develop a more viable distribution model. Finally, the thesis presented Liebao's current practice detailing its actual work and results.