Study On The Price Strategy Of JETTA And JETTA FLIII

JETTA is a very popular A Class car from FAW-VW, and it's very suitable for the general consumer of China, because JETTA has relatively lower price, moderate performance, and acceptable safety for passenger and lower after sale cost. The price strategy and lifecycle of JETTA is very important for the global strategy of FAW-VW. In the high competition of vehicle market, the price strategy of JETTA FLU and FLIII is an important issue to decide if JETTA can maintain the high sales volume and profit. And JETTA FLIII will also undertake the big task of extending the lifecycle of JETTA.The following elements are very important for the price strategy of car: equipment, cost control of whole car, profit target, control of sale process, lifecycle management, etc. Currently, the research tasks for product price always pay more attention to the theory research and derivation of theoretical model, and the focal points are always consumer goods and public facilities. The research on the complicated price strategy of vehicle always places emphasis on the mentality and preference of consumer or market demand frequently.The general price strategy and method of vehicle is discussed in this paper firstly. And then JETTA is set up as the research target, and the special discussion is entirely performed on the price strategy of JETTA. And JETTA is just in the most acute A-Class vehicle market, and in this market, the most attention from consumers is put in, the construction of price strategy is the most difficult.The equipment, cost and profit of whole car, lifecycle, sales strategy and consumers group are the most important elements for price strategy of JETTA. And the cost of whole car includes: material cost, additional cost, tax and cost of sales process. In this paper, the material cost, additional cost, tax and cost of sales process are calculated by detail. In the questionnaire investigation by author and the colleague of FAW-VW Sales Department, the group, characteristic and preference of JETTA consumers are summarized.According to the analysis of the above elements of price strategy for JETTA, the theoretical prices of JETTA FLII series are constructed, and these theoretical prices will be the important reference for the construction of JETTA FLII price strategy, and also be the limit of reducing price based on maintaining the profit target. The theoretical prices, guide prices from FAW-VW and distributor prices are also be researched by comparison. The region sale stragety and sale price are also discussed in this paper.In order to perform an overall analysis for the rationality of JETTA price, the price curve and price exponent is calculated. There are two kinds of price exponents; one is price exponent under the situation of pure price difference, the other is the price exponent under the situation of same equipment level. The first price exponent is for the preliminary price analysis between JETTA and competitors; and the other is for the accurate price analysis. The Price exponent can be used for the rationality appraisal for the price strategy of JETTA.According to the important project FLIII of FAW-VW, firstly, the necessity of the improvement on FLIII is discussed in this paper, including side crash regulation and Euro IV emission standard. On the basis of this analysis, the cost of primary improvement is counted; and the addition on entire cost is calculated; and then the price strategy of JETTA FLII is expanded for FLIII; at the end, the price strategy and market representation is forecasted in this paper. By the support of FLIII, the lifecycle of JETTA series will be sure extended, and the high sales volume and profit can be maintained.Statistic analysis, questionnaire investigation and some technical analysis method is applied for the quantitative research of price strategy in this paper.