The Research On Marketing Strategy Of On Semiconductor Automotive Grade Product

According to statistics from CAAM,from 2009 to 2019,China’s automobile production and sales ranking are the No.1 in the world,with the annual sales of 25.721 million and 25.769 million respectively in 2019,both dropping by 8.3%year on year,but the production and sales continue to be the first in the world.Meanwhile,the production and sales of new energy vehicles in 2019 were 1.242 million and 1.206 million respectively.Due to the increasingly stringent emission standards of vehicles,the development of new energy vehicles has been promoted,driving the rapid development of the automotive electronics industry.Benefiting from this,ON Semiconductor’s automotive semiconductor business in China has also witnessed rapid development,doubling in 5 years from 400 million USD in 2014 to 900 million USD in 2019,ranking the second place among global power device semiconductor companies.However,the gap with the world’s first is some distance.With the trade war between China and the United States and the competition from Japan and South Korea,the development of ON Semiconductor Automotive(China)has been somewhat affected by the promotion and aggression in China’s market.The adoption rate of new designs by customers is declining and is beginning to suffer in the process of replacing competing products.The research on the marketing strategy of ON Semiconductor Automotive(China)can point out the problems and provide solutions,and also provide reference for the development of local semiconductor enterprises in China.It is hoped that it can also make some modest contributions to the development of China’s semiconductor industry.This paper firstly analyzes the external environment of the development of ON Semiconductor Automotive(China)through PEST and Porter’s five Forces model.As the entire automobile industry is a deeply globalized industry at present,China’s automobile industry is also following the development trend of the global automobile industry,and even leading the trend in the neighborhood of electric vehicles.Automotive semiconductor,as an important component of automobile,is not only affected by the change of automobile demand but also promotes the development of automobile.Therefore,the auto semiconductor market in China should not be analyzed in isolation,but the global market should also be analyzed.Here,analysis the development of the global semiconductor market and China’s semiconductor market and the status quo,and then from the country’s political,economic,social,cultural,technical development from several aspects such as macro environment is analyzed,and through porter five model analyzes the China’s semiconductor market competition pattern.Then a overview of ON Semiconductor Automotive(China)in a more favorable competitive environment is obtained.Then through the analysis of the development history of ON Semiconductor(China)organizational structure,financial status,internal environment such as ability,the core competence,and analysis strengths,weaknesses,opportunities,threats through the SWOT,got a perspective of ON semiconductor Automotive(China)challenges,opportunities,and their advantages and disadvantages,.It is found that the undifferentiated marketing strategy of ON Semiconductor Automotive(China)does not match well with the electrification development trend of automotive electronics and the company’s products.Based on STP and 4Ps combination marketing strategy theory,this paper analyzes the existing marketing strategy of ON Semiconductor Automotive(China)through market segmentation,market selection,market positioning and combination marketing strategy.Finally,the author points out that the existing marketing strategy does not take into account the company’s enhanced strength in the field of automotive electrification system brought by the acquisition of Fairchild Semiconductor,which leads to some different of market positioning,so that the company does not play its due strength and does not get the market it deserves.Then combined with STP theory,ONSemiconductor Automotive(China)will be divided into 7 markets,and then selected automotive electrification system and ADAS,intelligent driving as the target market,while making a clear positioning for automotive power semiconductor and image sensor.Finally,the combined marketing strategy "4P" is used again to formulate the new marketing strategy of ON Semiconductor Automotive(China)from the four aspects of product,price,channel and publicity,and the assessment method is given according to the evaluation standards of the automotive semiconductor marketing industry.