The Analysis Of The Market Expansion Strategy Of Chanlin Motor Tricycles In Jilin Province

With the economic development of the country as well as the city, motor tricycle, as a kind of convenient and economic transportation tool, is well welcomed by more and more consumers both in the country and in the city. In recent years, our country have paid more attention to developing the economy and the infrastructure construction such as railroad construction etc in the countryside in order to increase the income of the peasants and the citizens in the town and country. Those factors provide the economical support and much stronger purchase motive for the consumersSince 2001, with our country's intensified supervision to the motorcar industry, the whole trade has developed towards standardization and specialization. This provides a wider space for the development of the regular enterprises in this industry. Chanlin Corp., Ltd's production of motor tricycles has a history of more than a decade. The products are well received by the consumers for their high-quality, especially in the market in Jilin Province. To win the market in Jilin Province which is coveted by all brands of motorcar corporations, we decide to expand the market share, and thus set a goal of increasing the sales volume of 2004 (6000 motor tricycles) to two times of that of last year.In order to achieve this goad, we first make a detailed analysis of the macroscopic environment of the motor tricycle market in China. Under the circumstances of the increase of the price of materials and transportation, the consumers in the countryside are least influenced. On the contrary, due to the government's attention to "the three principal problems of the agriculture", peasants' income has increased. Motor tricycle, compared to a variety ofsubstitutes such as pedicab, four-wheeled tractor, walking tractor, mini-truck, pika truck, assistant tricycle etc in terms of the price, the loading capacity, the function, and the cost, ranks in the first place from all aspects. And it is most suitable to the consumers in the countryside. Therefore, we are optimistic to the market prospect and the sales volume goal.Secondly, we are aware of the principal counterparts to the Chanlin motor tricycle in the market of the Jilin Province-Futian, Lifan, and we have made a SWOT analysis of the sales conditions of the three brands in the market.Advantages of Changlin: As for the market in Jilin Province, the products of Chanlin have a geographical priority, thus we can keep a relatively low transportation cost. In the respect of service, it will be more convenient, much faster and more economic. Chanlin Corp., Ltd has a strong basis of fund and technology. And the high quality is also one of our advantages. Besides, Chan Lin motorcar has enjoyed a good reputation in Jilin Province for a long time, which Futian and Lifan is by no means comparable. In terms of capacity and price, the products of Chan Lin are also at advantage.Disadvantages of Chan Lin: Part of the products has entered a period of decline. The market maintenance cost is high while the capacity of bringing about profit is low. Compared to the products of Futian and Lifan, the products have less variety. The development of new products is retarded, and the propaganda of advisement and the sale-promoting activities are of low intensity.Opportunities of Chanlin: As for the competition to the high-leveled Futian products, we can take the measures of intensifying service, propaganda, sales-promotion and decrease of the price. In aspect of products, we can adjust the product's structure, abandon the production of the declining types ofmotorcars, add the well-welcomed types, and produce the interrogative types. The funds and technology can be provided by the corporation.Threats faced by Chanlin: The high-leveled products which compete with those of Futian will lose the market share if they can not get a priority in aspects of capacity, price, propaganda, and sales-promotion. The mid-leveled products of Chanlin which compete with those of Lifan will lose the market share if the prices differ too much and the propaganda...