Study On The Marketing Price Strategy Games Of Chinese Native Independent Brand Automobile Companies

Automobile industry is one of the most important industries in the national economy. It has many essential characteristics, such as technology intensity, talent intensity, capital intensity and so on. It reveals a country’s comprehensive competitiveness. It is related to other industries with strong correlation effect and ripple effect. In2009, China automobile production and sales exceeded the USA and won the first place in the world. In2010, the automobile production and sales in China both surpassed18million, which made China the largest car market in the world. At the same time, it broke the record of17million set by America. But we have to keep an eye on the cruel reality behind the glory, which is that the most of the profit is taken away by foreign car producers who control the core technology. It is said that they use40%of the capital to get50%of the market share and70%of the profit. Our national auto industry is big, but not so strong. We make profit mainly from manufacture, while foreign auto companies by design, new materials and new technology. Few native independent brand automobile companies can squeeze into the tops.Most native independent brand automobile companies got their market shares by low price. But the competitors, both sole corporations and joint ventures, joined the price battle which once got them a good share in the market. This led to a smaller and smaller profit space for native independent brand automobile companies. So they had to seek for brand upgrade.Under the guidance of strategy management, this dissertation uses game theory to analyze native independent brand automobile companies’marketing strategy, including the initial low price and present brand upgrade. It establishes two models to analyze how to set price. And it gives some suggestions on upgrading brands. It is hoped that this paper can give some hint or guidance to the domestic independent brands.The body of the article consists of five parts. The first part introduces the present situation of the world and the domestic automobile industries, then points out the challenges and opportunities the native car producers are facing. The second part introduces the marketing strategies native independent brand automobile companies have used, like low price and brand upgrade. The third part employs games theory to establish models to analyze the price setting. The fourth part discusses the brand upgrade based on strategy management and game theory. According to the analysis above, the fifth part gives some suggestions on the marketing strategy of native independent brand automobile companies.