Channel Strategy Research Based On Tier City Segmentation Of GV Auto Company

Chinese auto passenger market experienced two major bursts of growth from 2004 to 2010, with total market capacity tripled. However, severe growth decline followed. European debt crisis, inflation, dropping out of promotional policies and registration restriction policy will lead to leave limited room for market promotion in tier 1-2 cities, while demand for new cars will see a big increase in the tier 3-4 cities with the development of urbanization.The thesis is a channel case study of a Chinese auto company, GV Auto Company. From the perspective of sales channel, there are two major problems regarding GV's channel capacity: Firstly, GV's network coverage leaves a blank in tier 3-4 cities. Secondly, channel's service capability in tier 1-2 cities is especially far behind its industry leaders.Therefore, the thesis use the theory of market segmentation, target market selection, channel structure, channel performance evaluation and channel members selection to rsearch GV's sales channel. Chapter1 describes the development of chinese auto market. Chapter2 reviews theory of marketing channel. Chapter3 states the background of GV auto. Based on the company's channel strategy regarding city levels, Chapter4 develops channel sinking strategy for tier 3-5 cities, which combines the channel investment scale with the existing channel structure and put forward the notion that tier 3-5 cities should be covered by two new channel forms, which are rural retail stores and outlets. Meanwhile developing style of these two forms should be compatible with the existing channel structure. In the respect of channel service capability, Chapter5 develops hardware facelift and standardizing service strategy. Firstly, the thesis set out some targeted policies and measures for dealers that haven't finish facelift; secondly, standard procedure of the car delivery is formulated from the perspective of person, car, customer, stores and links. In Chapter7, the thesis makes an analysis of the strong points and weakness areas of the channel partners and concludes that total amount of dealers should also be controlled while collaborates with large-scale, multi-brand channel partners. Great support should be given to medium and small dealers and balanced channel relation model should be used when dealing with those non-formal authorized dealers, so as to lay the cooperative foundation for the channel development.