Bingcheng Machinery Manufacturing Group has more and more car brands, which also makes some people worried. Tian'lai novel Ww'W．『⒉
They still remember that Feng Yu said at the beginning that there were too many brands of cars in the same market, so the losses were relatively large, and it became so miserable when there was an economic crisis.
Isn't it the same with Ford Motor? When the economic situation is bad, the company can only be saved by selling car brands.
But with these counterexamples, why does Bingcheng Machinery Manufacturing Group have more and more brands
Originally there was a Songjiang brand, but later sV was listed separately and the Oriental Shenlu brand was established, which was nothing. Then we got Elf, specializing in the production of small and cheap cars.
Now it has acquired Jiebao, focusing on the mid-to-high-end market and sports car market. In this way, wouldn't it seriously weaken the originally most powerful Songjiang card
Some people also say that the Songjiang brand should be further divided and several sub-brands should be established. Those targeting the low-end market, the mid-range market and the high-end market should be separated. Separating the models alone is not enough.
These arguments finally reached Feng Yu.
Li Mingde and Li Dafu believe that there should be no more brands, but some executives think that it doesn’t matter if there are more brands. Look at the large car companies in Japan and Europe, don’t they have more than one brand
"Mr. Feng, I think we should establish a few more sub-brands and divide our market in detail. This will help us occupy the market at all levels."
"Look at the current domestic market, major car companies are investing heavily. They not only have their own brands, but also joint venture brands, which has had a serious impact on our market share. Our share is steadily declining."
"If we don't take some measures, our passenger car market share may fall below 40%, or even below 30%."
“Once we divide the brands in detail, with the strong brand advantage and appeal of our Bingcheng Machinery Manufacturing Group, it will definitely not be difficult to promote sub-brands, and we can promote different brands for different markets, which may allow Our share of the domestic passenger car market has returned to over 50%!"
"Mr. Xu, haven't you learned from the lessons of Tongyong and other car companies? When operating multiple brands, it is easy to focus on one and lose sight of the other.
What's more, we already have four brands and can't continue to add more. Li Dafu retorted.
"President, I don't think so. There are too many multi-brands using the same brand, and many of them are losing money. But our multi-brands will not lose money, our market share will increase, and our profits will also Promotion, these are two different things."
"Look at Dezhong, as well as the car companies in the island country, which are also multi-brand operators. How fast are they expanding? Maybe in two years, Fengtian and Dezhong will be the top two in the world's automobile production and sales."
"Furthermore, I have also studied other multi-brand companies. Although they are not automobile companies, as the world's top large companies, there are many things we can learn from."
"For example, Procter & Gamble, the world's largest daily chemical company, has a profit margin of over 10%. They have more than a hundred brands, and among them, there are more than a dozen brands with sales of over one billion, and even many of them It’s just a type of product.”
"They can do it, why can't we? The reason Tongyong Auto loses money is related to its multi-brand operation, but more importantly, they have not carried out effective alliances. We don't need to worry at all. Our research centers are all together. of."
Mr. Xu is now the vice president of Bingcheng Machinery Manufacturing Group. He knows that Li Mingde plans to retire next year and Li Dafu will succeed in taking over. Then the position of company president will be vacant.
There are several vice presidents in the company, among which he is in charge of the automobile business. He must show his abilities so that he can successfully take over the position of president.
The vice presidents responsible for motorcycles, electric vehicles, agricultural machinery, etc. are also eyeing this position.
He is the youngest among them, and he thinks he has the greatest hope.
Feng Yu watched everyone arguing. Some supported Li Dafu and some supported Mr. Xu. If there is an argument, it doesn't matter. Just discuss it and convince each other. If no one says anything about their ideas, and the leader's words are correct, the company will be in danger.
"Okay, everyone, please be quiet for a moment. I roughly understand what Mr. Xu means. Since Mr. Xu used Procter & Gamble as an example, let me also share my opinion."
"The cleaning company, the most successful daily chemical products company in the world, has not more than 100 brands, but more than 200, close to 300, covering ten major categories."
"Mr. Xu believes that such a multi-brand company can run very well, expand faster and faster, and profits continue to grow. It is worth learning from us. I agree with this."
"But Mr. Xu also said that Procter & Gamble is very different from our Bingcheng Machinery Manufacturing Group. They are daily chemicals and we are machinery."
"How long is the service life of the machine? Maybe it will be used up in a month or a few months? And how much does a car cost? The cheapest elf costs more than 10,000 yuan, right?"
"How much does a bottle of washing water cost? How much does a bottle of hand cream cost? How much does a bottle of cologne cost? How much does a tube of toothpaste cost? There are also washing powder, soap and other products that many rural people with low incomes also buy You can afford it, right?”
"They are daily chemical products. The core of daily chemical products are daily necessities. They are used every day and are consumed very quickly. You can buy Head and Shoulders today, Pantene tomorrow, and Rejoice the day after tomorrow. Maybe you say you can't finish one bottle in a day. , but what about one month, what about three months?”
"But cars are different. How many people can drive this one today and that one tomorrow? You can go three days without driving, but can you go three days without washing your hair, face and brushing your teeth?"
"There is really no analogy between this kind of fast-moving consumer goods and our cars. As for why they have so many brands, but have you seen that many of their brands were acquired
"
"Just like Taihua Holdings Group also has daily chemical products, there are several brands that were taken back from the world's top daily chemical companies such as Procter & Gamble and Unilever. When they first entered the Chinese market, what should they do if their brands are not recognized? ?”
"Acquire some of the most well-known daily chemical brands in this country, and then use these brands to gain a foothold, so that they can promote their own brands."
"Just like some daily chemical products that are considered famous brands in our country, but probably no one has heard of them abroad. They have their own brands."
"This method cannot be copied to the expansion of automobile companies. This is how Tongyong Auto expanded and then failed. A big automobile brand is much more expensive than a daily chemical brand."
"Mr. Xu thinks that there are many brands under the big car companies in Europe and island countries, but you haven't looked carefully. Their Dezhong brand and Fengtian's Fengtian brand also range from low-end cars to high-end cars. They all have it, they just name the car series with different names to differentiate the grades.”
"And more intuitively, whether a car is expensive or not can be seen from the appearance design. Compact cars, mostly economy cars, and those cars that look very grand, which one is cheaper?"
In the end, Feng Yu made the final decision: "Let's stick to these brands for the time being. In the domestic market, these brands are enough. In the foreign market, I am not opposed to continuing to acquire other people's brands in the future, but they must be high-quality brands. We will not accept ordinary ones for free!"
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