Research On Marketing Strategy For Faw Jiefang Medium And Heavy Duty Truck In Kenya

By studying the market characteristics of the medium and heavy duty truck market and checking the existing problems of the current marketing strategies of FAW Jiefang in Kenya,the author would like to put forward new marketing mix strategies and implementation plan for FAW Jiefang and its distributor,following the STP marketing theory and other analysis tools,in order to achieve more sale volume and bigger market share.The Kenyan auto market is a very typical African auto market,with unbalanced market development,diversified market demands and strong competitions from a lot of second hand vehicles and other international players.The Kenya market is also one of the most important auto markets in Eastern Africa area for FAW Jiefang medium and heavy duty truck.With the research on the Kenya auto market,the right target segments and new marketing strategy for FAW Jiefang truck are clarified accordingly.Firstly,the author evaluates the total volume size of medium and heavy duty truck market in Kenya by studying the statistical data from Kenya Manufacturers Industry Association(hereby and after as KMI),Chinese customs export data and other competitors’ information collected from distributor,named TAM.The author uses GVW as the primary standard to divide Kenya medium and heavy duty truck market into five main market segments,and then used the vehicle classifications to make them been further subdivided into 11 segments.Actually,FAW Jiefang has joined the main four segments already.The author get only five right segments are FAW’s targets,which FAW Jiefang truck could join in.After confirming the target segments,the author compares the current marketing strategies of FAW Jiefang and its distributor with the others main competitors,in these target segments.And then the author puts forward systemic suggestions for TAM and FAW’s marketing strategies and future improvement.The author proposes some suggestions to FAW’s business in Kenya in details,such as: to reduce product models and focus on key market segments,to improve product quality and production quality standards;to adjust product prices,to improve service network and reduce the price of spare parts,to redesign the products and bring in new models.In addition,the author also expounds the root causes for these proposals and the feasible implementation plan.Especially for high-end heavy duty truck market segments,the author uses SWOT analysis to clarify FAW’s Strength,Opportunities,Weakness and Threat,in order to evidence the possibility to bring a new high-end tractor model into this target segment.Secondly,this paper collated the customers’ concerns about FAW Jiefang truck’s service and quality through the questionnaire in Service Month activities,which should be considered carefully in new design models and new marketing strategies.Thirdly,with interviews to some final clients,the author found some problems as well,that should be concerned and revised properly in the new marketing mix strategies,such as the pricing of spare parts,delivery period and warranty conditions.Finally,the author also indicates that Kenya is an important place of Chinese national implementation of One Belt and One Road Initiative strategy in Africa.In this paper,the readers could know more about Kenya’s auto market and how Chinese automobile enterprises make innovation and business development to achieve more market share.