"Market positioning is based on the position of the competitors' products in the market and how much consumers value their products. This will create a deep impression of the company."
"Let me give you an example. What do you think of when you mention Elf?"
Zhang Ruiqiang replied without hesitation. "Cheap and small."
"That's right. This is the market positioning of Elf. In the future, no matter how many models Elf introduces, these two impressions will not change. "
Elf is only producing small and cheap cars. If it is slightly more high-end, it will not use the Elf brand anymore.
Zhang Ruiqiang understood what Feng Yu is trying to do. Although Zhang Ruiqiang had not studied for an MBA, he had studied economics and can understand what Feng Yu is trying to say.
"That means the other manufacturers' models should be different from yours?"
"Not necessarily. For example, Alto is also cheap and small. It is obvious that it is competing with Elf. My Weather-resistant Design had also helped them design their models, right? In terms of automobile design, no one in China can compete with my Weather-resistant Design, right? "
Feng Yu has many ways to eliminate his domestic competitors, but he is not interested in doing so.
"If the other manufacturers want to compete with us, they will have to showcase features that will impress the consumers. Be it prices, technologies, designs, or after-sales services, etc. If not, it will be better for them to position themselves differently."
Zhang Ruiqiang thought for a while. In terms of direct competition, China's automobile manufacturers do not have any advantage. Bing City Machinery Manufacturing Group has more advantages in technologies, brands, designs, after-sales service, and even pricing. Bing City Machinery Manufacturing Group is also better at controlling costs.
That means Bing City Machinery Manufacturing Group does not have an advantage in the market and let the other manufacturers focus on those markets. This is a good idea.
But Bing City Machinery Manufacturing Group is already involved in saloon cars, sports cars, SUVs, vans, etc., and the other manufacturers can only focus on minivans.
Feng Yu saw Zhang Ruiqiang frowning and reminded him. "Old Zhang, have you paid attention to our pricing range?"
Pricing range?
Zhang Ruiqiang thought for a while and realized that Feng Yu had been giving the Chinese automobile manufacturers space to survive and develop.
For example, Little Elf, the highest price didn't exceed 50,000, and the lowest was less than 20,000. Among them, the two that were sold for 20,000 were the best, and the ones that were sold for 40,000 were average. Songjiang Olympic's low-spec version was a little more than 100,000 RMB. The low-spec version of the Oriental Deer was also a little more than 100,000 RMB.
Feng Yu had left a margin of survival between 50,000 and 100,000 for the rest of the manufacturers. Even if they couldn't compete at the same price, they could sell it at a lower price. That way, they could still make money.
"You mean the price is staggered? No wonder the pricing of your cars is always so different, and you don't introduce as many models as overseas. This is to leave room for other domestic manufacturers to survive. "
Seeing that Zhang Ruiqiang understood his painstaking efforts, Feng Yu was very pleased. In the past, Bing City Machinery Manufacturing Group is a joint venture, and if they can acquire other manufacturers' factories, they can cover the whole country quickly.
At that time, joint venture cars could not even compete with Songjiang Motors in the Chinese market, let alone domestic cars. Their technologies were already lagging behind.
If Feng Yu really does this, Bing City Machinery Manufacturing Group will not only own half of the passenger car market. It will own at least 70% to 80% of the market share and can even swallow the rest of the brands.
"I'm glad you understand. I had already given in to them. If not, I would have killed the rest of the manufacturers. Do you know about India's Tata Motors? They are the biggest automobile manufacturer in India. "
"If I let Bing City Machinery Manufacturing Group do this, we will be the only automobile manufacturer left in China. Didn't we have commercial vehicle technologies in the past? Are we the most advanced in China? If our manufacturers use our cars, do you think we will not make money? "
"We had cut back on that segment of our business. Now, we are only focusing on R&D and had given up on brand development. This is to give our domestic cars a chance to survive. "
"Have you found out about other manufacturers' market research when they develop new products? Have they thought about the advantages of their products? Don't think a car will sell just because it looks good or drives well. "
"Whenever we produce a new car, it has to look great, make people want to buy it, drive it better, and make people unable to put it down. Also, we will introduce different models according to the consumers' requirements. "
"Are there any domestic manufacturers that are doing better than us? Yes, but they did not make good use of it. Let me give you an example. Will Volvo be owned by Guangzhou Motors in the end? "
"It's a pension fund that invests in Guangzhou Motors. Guangzhou Motors is near the port and is more suitable for import and export." Zhang Ruiqiang explained.
"These are not important. But you should know about Volvo's reputation in Europe, right? The safest family car. This slogan has been used for many years, and no other manufacturers have challenged it. "
"Safety is Volvo's biggest selling point. This is very important, and we are envious of it. Guangzhou Motors can focus on this as a whole. "
Of course, Volvo is now owned by Hua Xia, and it will be more convenient for them to exchange technologies. Bing City Machinery Manufacturing Group also has some of the most advanced technologies in the world. Feng Yu doesn't believe that Guangzhou Automobile will not change their technologies.
"The overseas automobile manufacturers are very clear about their positioning. For example, BMW had been focusing on the mid-to-high-end market and had never produced economical cars. Also, Benchi and those sports car brands are the same. Their products are expensive! "
"Are their products several times more expensive than our cars? No. But their sales are still doing well because they are synonymous with high-end cars, and their profits are high. At the same time, they can invest more funds into R&D to maintain their leading technologies. "
"I will not go into the details, and the management of those automobile manufacturers should know what to do. I have never thought of monopolizing any industries in China, and I had left room for our domestic brands to survive. "
"Whether they can survive will depend on their foresight, brains, etc., and not because I have excluded them. Only the fittest will survive, and there is no such thing as pity. "
"The biggest tragedy of a business is having a manager who is powerful, likes to manage things, and doesn't know much about the business at all. If not, let those state-owned enterprises' managers study at our Tai Hua Business School for a period. Not only we have professors from China and overseas, but we will also have lectures from entrepreneurs like Zong Qingxian and Liu Chuanzhi. I guarantee they will not regret it. "
After Feng Yu left, Zhang Ruiqiang thought for a while. Why does he feel that if those state-owned enterprises' managers study at Feng Yu's school, they will be helping Feng Yu attract more students?
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