Research On The Marketing Strategy Of Z Company’s Car Audio Business

With citizens rising income and popularization of all kinds of cars,audio modification of cars has also entered the development stage.As per the statistics from the Ministry of Public Security,the national car ownership in 2021 reached 395 million and the motor car driver quantity reached 481 million,which means China has thoroughly surpassed America,becoming the world’s biggest nation in terms of motor car ownership.The huge ownership will definitely create personalized demand as the original car audio can no longer meet the demand from consumers.Due to which,the competition of audio modification industry will also become more fierce resulting in customer churn.With this background,the car modification companies need to think how to develop more customers by new channels and how to increase the customer’s loyalty.As a minority industry,car audio modification generally lacks study of marketing strategy.In the mean time,study on marketing strategy of Z company is imminent.This thesis uses Z company as the study target and does the analysis on problems confronted during the setting up of marketing strategy.The sales revenue reached 4.1 million in 2022 with a YOY increasing rate of only 8%after 10 years operation since its founding in 2012.Z company development is slow in view of sales revenue and needs to further increase its market share with better performance.In order to solve this problem,this thesis has collected all data regarding current company marketing situation,customer clusters,product competitiveness etc,.and finds the problems in current marketing situation by we-chat,questionnaire survey,face to face interview with part of the employees and customers on the basis of the relevant theory and literature study.Then by using PEST,PORTER five force etc to further analyze the macro external environment and industry competition in details,then through STP marketing theory to streamline the target market,market positioning for Z company based on market segmentation;then use 7Ps marketing combination to judge the prominent problems in its marketing strategy and use study of examples of behavior economics to propose the marketing strategy on the basis of deep analysis of customer psychology.This thesis further segments the market for Z company and from multiple perspectives and concludes that the main customer cluster is the male customers with high income.For marketing positioning,Z company mainly positions itself as the middle to high end market for car audio modification.In parallel,Z company will differentiate itself depending on its technical capability.Price tactics must be set with a well-defined objective in mind:price needs to be low for popularized product in pursuit of bigger quantity,cost-effective for middle market,high price with quality as its priority for high end market.Z company can use on line and off line channels with short video platforms for the former and alliance stores for the latter.Finally,the paper puts forward the corresponding safeguard measures to ensure the implementation of the strategy.With the gradually increasing car ownership year by year,people’s demand on comfort is becoming higher and higher,audio industry is a new emerged industry with the rising car industry,thus,the literature on car audio marketing is rare.The marketing strategy proposed in this thesis can be directly used by Z company with a very practical reference meaning.In addition,this thesis is the first one for car audio modification and could work as a good reference for the competitors or even upstream suppliers.