Study On The Brand Strategy Of Hongqi

In recent 10 years,China has witnessed a great boom on both producing and selling vehicles,even though the market is still enormous.But the rate of rise is going to slow down,in 2017,the rate has going down to almost 4%,almost 10%less than the year before,which was the first time ever.Many new companies set up and a lot of new products released,all to make the competition intenser.At the same time,with technology well-developed and products alike,the competition between brands has become more and more important.In order to keep a company's existence and development in China,a proper brand strategy is necessary.As for high-end brands,the brand strategy is more important.Hongqi was the first and the only luxury car brand in China back in the 1990s.Ever since its set up,it had become the cars for the VIPs in China,and the representative of Chinese luxury cars.But after the year that China became a member of WTO,the market had changed a lot,and competition between companies had changed into the main-theme.At this time,the product of Hongqi is out-moded and un-welcomed by the growing market,due to the wrong choice of brand strategy.Therefore,the brand strategy of Hongqi is to be promoted and corrected immediately.In this article,PEST analysis and Michael Porter's Five Forces Model are used in the first place to conclude the EFE and IFE matrix,with the support of AHP analysis.Then,SWOT analysis,SPACE,BCG,IE methods are introduced to form a proper brand strategy,in the end QSPM matrix are used to choose the most effective brand strategy among the four candidates,theories on Strategic Management and Brand Management are also quoted in this article.In order to make the brand strategy useful,key factors such as product,promotion,management.etc are all refered in the end.The new brand strategy on Hongqi is recommcnded for the future development of the producer.