Research On Marketing Strategies Of China's Economical Sedan Under The Background Of Financial Crisis

Economical sedan as a tool first went into the common family.In the most developed countries,economical sedans are dominating family car.There are many great deal of people in our country,and the resources are limited,average income is lower,so developing economical sedan is economical and perfect choice,and the choice conform to the situation of our country.Based on the characteristic of our sedan market,economical sedan can be defined as the car which engine displacement is no more than 1.6L,price is less than 100 thousand,100 Km fuel consumption reached the advanced level,and meet the nation safety and energy conservation criterion.The industry of economical sedan began to develop since 1980s.The market scale of economical sedan has great expanded.The economical sedan has dominated markets of the family car and taxi car.In 21st,our economical sedan developed very well.In 2007,2.72 million cars whose engine displacement is no more than 1.6L was sold,and their share of an annual sale volume reached 57.64%.As our car industry developed vigorously,the global financial crisis caused by the U.S. "sub-loan crisis" began to spread from the virtual economy to the real economy,and it has first affected the auto industry.The global financial crisis induced a series of economic turmoil.Auto industry of Europe,Japan and other developed countries went into a slump. Affected by the global financial crisis,the domestic car sale volume declined in the second half of 2008.But China's auto market is still the fastest-growing car markets in the world, and the car industry is still in the stage of rapid development.But the financial crisis has impacted the funds of consumer obviously;many consumers reduced the original budget of purchasing car buyers,or simply suspended consume.From another perspective,the current financial crisis may make China's economical sedan industry be in a rare period of development.The policies to revitalize the automobile industry and a series of tax reform brought about the development opportunities to the economical car.At the same time,a series of national policies and measures to boost domestic demand were introduced,and the automobile market is still a huge potential demand,which also brought about the development opportunities to economical car market. In the other hands,the development of economical sedan also faced many threats. Macro-economic growth would not be optimistic,the domestic auto firms were short of independent research ability,and marketing idea fell behind,which brought about the threat of development of economical sedan.Based on market analysis,it is high time to take a series of marketing strategies to seize the opportunity and to respond to the challenges posed by the financial crisis in economical car market.In product strategy,economic car manufacturers should focus on the performance,configuration and appearance of car.In price strategy,the price which consumer accepted most concentrated in the range of 8.5-10.5 million Yuan;the manufacture should appropriately apply price cut strategy,and focus more on the cost-effective products. In place strategy,the traditional model is based on the core brand,including the identified image and standards of services etc.Under the background of the financial crisis,the economy car manufactures should also develop more convenient and efficient internet marketing channels.In promotional strategy,economic car firms should pay more attention to practical results in promotion before going on the market,advertising,public relations, testing drive and etc.Brand strategy is an important long-term sustainable development strategy under the background of the financial crisis,well-known brand manufacturers were affected relatively less,so the manufacture should strengthen building brands in current period.Based on the above market analysis and marketing strategies design,in this article, economical sedan marketing strategies of Chery Auto Co.Ltd was studied.In the field of economy cars,Chery,as a national business leader,has become representatives of the indigenous brands.Under the current background of financial crisis,Chery can use the following marketing strategies in the economical sedan market:the product development strategy which highlights the advantages,the price adjustment strategy which reflects cost-effective,the place strategy which reflects the differences and the brand strategy which takes innovation as the soul.