Study On Marketing Strategies Of Company K Light Bus K601Product

Company K, a light duty vehicle manufacturing company, is a joint venture formed byGroup A, a state-owned large scale auto group, and Company G, an international automotivegiant enterprise with the50/50share. The sales volume, market rank and product profit rateare decreasing in recent years. In order to improve the sales volume and turn around,company K is intent on introducing light bus product G601from Company G, as theprototype vehicle, to develop the localized product K601, which can fulfill the productportfolio blank and improve the company competitiveness.In order to assure the success of K601project development and present the right marketorientation and development plan, Company K studies the light bus market, which includingthe investigation of the development history and market environment. In domestic market,the light bus product has experienced three stage developments and now in the process of thesecond major development cycle, which means the products become mature gradually andthe user demand is upgrading. In the aspect of market environment, petroleum shortage is themajor problem within the automotive industry development, and the prices of rubber andsteel also influence the automotive industry. Aging of population is the problem during theprocess of social development. As the macroscopic index, GDP growth slows down, and theresidences’ purchasing power is increasing. The development of automotive industry islimited by road situation and the relative policies are stricter, especially on energy savingand emission reduction. There are advantages and disadvantages. After all the advantages forK601are the major. Furthermore, the growth rate of light bus is stable, higher than the busand overall automotive market. The main competitors within the market are five companies,which are Jinee Auto, Jangling Auto, Donna Auto, Nanjing Auto and Beijing Futon. Besides,there are external competitors, such as the substitutes MPV, minibus and light truckmanufacturers.The market investigation of G601, the prototype vehicle, is the key for right marketorientation and development plan submission. The study includes the technologicalorientation investigation by experts and the market reception investigation by potential users.The experts accept the shape and the exterior but want to improve the interior. The potentialusers think the reputation of Company K is good and they can accept G601. The marketstrategy for K601is defined after the market analysis and market investigation. So K601orientation is middle and high class light bus market with new brand of Company K, and mainly has two models, passenger priority and cargo priority with different configuration.The best price is defined between RMB132K to RMB156K after price sensitive test and thebest price is defined as RMB147K.The market approach and develop method are defined by market orientation. Themarket approach of K601is auto show promotion, nationwide dealer network building, andthe develop method is experiential marketing and proper advertisement, which shall assurethe success of the market introduction.Light bus segment is a segment with quick development and rapid changes. Even themarket orientation and development plan of K601is drafted, the continuous observation andlong-term research is necessary for market follow-up and market plan adjustment. Theoperation of the project should be conjoined with the target of quality and cost. The successof K601is based on good quality, low cost， defined marketing approach and the resourcesoptimized allocation.