The Strategy Of Product Lifecycle Management For Jetta In The Declining Stage

Through the research of marketing strategy for Jetta based on product lifecycle management this paper points out that the not-balanced development of Chinese auto market provides a vast market space for Jetta. The deep analysis to the marketing strategy for Jetta based on product lifecycle management is the main part. In the last part the execute strategy of market gradient transfer is expounded.In chapter one the present situation and challenges has been introduced. Accompanying the growing up of FAW-VW, Jetta has experienced a fifteen-year course in China. During the period Jetta has broken so many records. In continuous years was Jetta the sales champion of single model in China and in 2006 the sales volume of Jetta reached peak. But now Jetta has to accept the challenges of low product competence, intensive auto market and restrict of newly issued auto regulations. To support the development of FAW-VW must Jetta maintain a high market share.Under consideration of Jetta's historical mission the marketing strategy has been expounded in chapter two. Section one is mainly about product lifecycle pattern. For normal pattern the sales volume goes down rapidly in declining phase. The section two is mainly about product lifecycle management. Because of the important position in FAW-VW, the product lifecycle pattern of Jetta should be another style, that is sales volume is always stable or higher. To get a pattern like this the marketing strategy for Jetta needs adjusting. In declining phase there are four marketing strategy, concentrating, maintaining, squeezing and abandoning. Concentrating strategy request the best resource in best market, the most efficient sales channels and on the best-sold products. Maintaining strategy is to maintain low sales with old product combination and the same sub-market. According to the actual situation stop the management and let the product quit. Squeezing is to reduce management cost and retain fewer sales staff. The market perhaps turns bad, but the profit is positive. Abandoning is a decision of management abandoning for a company. The mainly target is arrange the related things, so that the company can turn to the new product management smoothly.In chapter three through the research of product, price, promotion and channel the marketing combination for Jetta is raised. Above all according to the regional market development and the regional Jetta's competence the target market of Jetta were defined.On the basis of new target market the market position of Jetta is changed from first selection of private car to the reliable taxi, close partner and police-military car. By the new arranged product line the competence is highly raised. The price strategy of Jetta is a multistrategy that is price target of profit, more sales volume, market share, image improvement and competition. The section three is mainly about channel strategy. The marketing strategy of Jetta on the basis of market gradient transfer request more exploit effort on the fast-growing two and three market. The market including big markets of Jetta with high increasing rate such as Hebei province,Henan province, Mengolia, normal markets of Jetta with high increasing rate such as Yunnan province, Jiangsu province, Tianjin, Fujian province, Jiangxi province and Xinjiang. Since the market status and characters are varied, the traditional network management does not fit the marketing for all target markets. The fixable sales networks are needed to enhance the exploit of the target markets. The section four is mainly about promotion strategy. On the whole Jetta is in its declining period, while it displays different product life stages in different markets. For example, in Guangdong market is Jetta in it's declining period, the mainly product of Jetta in such market is basis model, which only maintains a market share. In Beijing market Jetta is in it's mature period that the Jetta sales contribution is the biggest and market status is stable. In the region such as Shangdong, Hebei, Inner Mongolia, Henan and Sichuan province is Jetta in its growing period that the big market potential is releasing. Consequently the normal promotion strategy cannot fit all the regions, the promotion strategy of Jetta should be a combine promotion strategy based on the in different lifecycle stage markets.In the last chapter the executive strategy of the market gradient transfer is expounded due to it's importance to the new marketing strategy of Jetta. To implement market gradient transfer of Jetta well three adjustments are needed. First of all the good market of Jetta should put the influence on the markets below to raise the sales in these regions. Secondly, carrying out difference competition and strategy cost management to make a cost management strategy with competence. Thirdly creating the whole-firm marketing culture to support the Jetta's market gradient transfer.Through the analysis of the product lifecycle management strategy to the in declining stage product Jetta this paper has point out that the market basis for the high market share of the old car originates from the not balanced development of the Chinese auto market. The marketing strategy research based on market gradient transfer is presented. This research can also be regards as a reference for the auto joint venture to decide the replaced time for it's old model.