Research On Channel Improvement Management Of Audi Authorized Dealer For FAW-volkswagen Automobile Co.Ltd

Sold units of luxury automobile increased by25%in2013, reached1.44millionin China market, much higher than the passenger car market. More and more luxuryautomobile manufactures increased investment into this huge market, enlarge theirproduction capacity, or start localization production. The competition of China luxuryautomobile market becomes more and more intense. To face the challenge and winthe competition, Audi sets up an ambitious2020strategy, reach2million sold unitsin2020, become No.1brand in global luxury automobile market and beyond BMW.Success or not in China market will determine the final result in global scale. Toreach this target, Audi continually expands its marketing channel in China market inrecent years. But we find quite a few dealers are losing money because of too intensecompetition from our survey. It is a critical problem to help dealers get more profitand reach sustainable growth. To solve this problem, Audi Sales Division ofFAW-Volkswagen Automotive Co.Ltd needs to deep research on marketing channeland channel improvement management.This thesis based on marketing channel management theory, first stage to do adeep research of current situation, second stage to define the problems in Audichannel management, third stage to define why these problems occurs, finally thisthesis will give some optimization measures, and do regularly evaluation on thesemeasures.Under this construction, this thesis will use four chapters to particular illustratehow to improve the marketing channel management. First chapter introduces the research methods of this thesis. Chapter two reviews the growth of Audi, and currentchannel management system, and current business growth situation, to illustrate aclearly situation of Audi’s sales channel. In chapter three, from the comparison ofdealer’s demands and current marketing channel management situation, we can findthe main problems of Audi’s channel management. There are decrease of profitability,losing advantage of marketing channel scale, high percentage of staff turnover andunbalanced business units. These problems occurred because of Audi Strategy, Brandimage and channel management system. From the analysis of first three chapters,Chapter four first defines the improvement target of channel management, which is toimprove dealer’s profitability simultaneously maintain Audi’s market share. Based onthis target, we made four guidelines for channel improvement management, which arealigned with Audi’s strategy; promote the growth of profitable business and etc.Under this guideline, we make some measures, such as optimization channel structure,optimization channel member selection process, strengthen dealer’s human resources,and etc.The innovation of this thesis is to boost dealer’s profitability by developing fleetbusiness, then finally to reach Audi’s2020strategy. Audi as the leading brand ofluxury automobile, the research findings of its channel improvement managementwill give other luxury automobile manufactures some indications. The managementand service system of our automobile industry still falls behind our foreigncompetitors. I hope more and more automobile manufactures do innovation researchon channel management, join hands together, to promote China’s automobile industrytowards sustainable prosperity.