"Market positioning is when an enterprise creates an impressive image of the enterprise based on the position of competitors' existing products in the market and the importance consumers attach to certain features of the product."
"To give a simple example, when you think of elves, what do you think of?"
Zhang Ruiqiang said without thinking: "Cheap and compact."
"Yes, this is the market positioning of the Little Elf brand. No matter how many cars Little Elf launches in the future, these two most intuitive impressions will never change."
Elf just produces small, cheap cars. If the quality is slightly improved, then the Elf brand is no longer needed.
When Feng Yu explained this, Zhang Ruiqiang also understood. Although he has never done an MBA, he has also studied economics and so on, and he can still understand these things at a basic level.
"So, the models of other car companies should be different from yours?"
"Not necessarily. Alto, for example, also has a market positioning of cheapness and compactness, and is obviously competitive with Elf. My Fengyu Design also designed models for them, right? In terms of automotive industry design, domestic Nothing can compare to the wind and rain design, right?”
Feng Yu had too many legal means to squeeze out domestic competitors, but he didn't even bother to do so.
"If other car companies want to compete, they must come up with features that impress consumers, whether it's price, technology, design, after-sales service, etc. Otherwise, it's best to stagger their positioning. Better."
Zhang Ruiqiang thought for a while and faced it head-on. It seems that domestic car companies do not have any advantages. Bingcheng Machinery Manufacturing Group has great advantages in terms of technology, brand, design, after-sales and even price. It is said that in terms of cost control , and do better.
Then staggering the positioning is to find markets where Bingcheng Machinery Manufacturing Group has no obvious advantages, and let other car companies focus on them. This is a good way.
But Bingcheng Machinery Manufacturing Group has already been involved in cars, sports cars, SUVs, business, etc., can other car companies only make cars like minivans
Seeing Zhang Ruiqiang frowning in pain, Feng Yu reminded: "Old Zhang, have you paid attention to the pricing range of our products?"
Pricing range
Zhang Ruiqiang thought for a while and suddenly realized that Feng Yu had always left room for domestic car companies to survive and develop.
For example, the price of elves is no more than 50,000 yuan at the highest and less than 20,000 yuan at the lowest price. Among them, the two models priced at 20,000 to 30,000 yuan are the best, while the ones priced at more than 40,000 yuan are average. Then the next level up is the low-end version of Songjiang Guoao, which costs more than 100,000 yuan, and the low-end version of Oriental Shenlu, which also costs more than 100,000 yuan.
So between 50,000 yuan and 100,000 yuan is the living space Feng Yu has reserved for other car companies. There is no competition at the same price, but if you can sell it cheaper, you can still make money.
"You mean the prices are staggered? No wonder your car prices are always very different, and you don't have as many models as foreign ones. This leaves room for other domestic car companies to survive."
Feng Yu was very relieved to see Zhang Ruiqiang understand his hard work. Regarding the current situation of domestic car companies, Bingcheng Machinery Manufacturing Group is a joint venture. If it pays to acquire the factories of other car companies, it will soon be able to spread across the country, leaving no room for survival for other top car companies.
At that time, joint venture cars could not compete with the Songjiang brand in the Chinese market, let alone domestically produced cars. They were inherently lagging behind in terms of technology.
If Feng Yu really does that, in the domestic passenger car market, Bingcheng Machinery Manufacturing Group will not occupy half at its peak, but will occupy at least 70-80%, and can even gradually cannibalize other brands.
"It's good that you understand. I have already given in to them. Otherwise, I would have killed other car companies at their level. As you know, Tata Motors in India is the only one in India."
"If I let Bingcheng Machinery Manufacturing Group do that, we will be the only one left among the core automobile companies in the country. Did we have the technology for commercial vehicles before, and were we also leading the country? If we produce commercial vehicles, Do you think we won’t make any money?”
"That part of the business has been reduced by us, right? We are now only doing technology research and development and giving up brand development. This also gives domestic cars a living space."
"Have you ever known whether other car companies have done market research when developing new products? Have they seriously thought about the advantages of their products? Don't just think that the car doesn't look bad or drive bad. It will definitely sell.”
"When we produce new cars, they must look great, make people want to buy them, drive better, and make people put it down. And we launch different models according to different requirements of consumers."
"Is there anything that domestic car companies can do better than us? Yes, but they have not used it properly. For example, will Woerwo eventually be owned by Yangcheng Motors?"
"It is an industry used by pension investment funds to invest in Yangcheng Automobile. Yangcheng Automobile is close to the port and is more suitable for import and export trade." Zhang Ruiqiang explained.
"None of these are important, but you should also understand Volvo's reputation in Europe, right? The safest family car. This slogan has been called for many years and has never been challenged by other car companies."
"Safety is the biggest selling point of Woerwo. This is very important and something we envy. Yangcheng Motors can focus on this as a whole."
Of course, now that Woerwo is owned by a Chinese car company, many technical exchanges will definitely be much more convenient than before. Bingcheng Machinery Manufacturing Group also has many world-advanced technologies, but I don't believe that Yangcheng Motors can bear to not replace them.
"The positioning of foreign car companies is very clear. For example, BMW has always taken the mid-to-high-end route and never made economical cars. This is also true for Benchi and other sports car brands. Their products are in one word, expensive!"
"Do you want to say that their products must be several times better than our cars? Not at all, but their sales are still very good, because they have become synonymous with high-end cars in people's minds, which allows them to keep their profits very high, and at the same time, they have more More funds can be invested in research and development to maintain technological leadership."
"This is too detailed, so I won't go into details. The management of those car companies should also understand what to do. I have never planned to monopolize any industry in the country. I have reserved all products for domestic brands. living space.”
"Whether they can survive depends on their vision, brains, etc., not on my exclusion. Enterprises must survive and survive, and there is no such thing as pity."
"The biggest tragedy of an enterprise is to have a manager who is powerful, loves to take care of things, and doesn't know much about the business. If that doesn't work, let the managers of state-owned enterprises study for a period of time at our Taihua Business School. Not only do we have experts and professors at home and abroad, , and entrepreneurs like Zong Qingxian and Liu Chuanzhi teach, I guarantee you won’t regret coming.”
After Feng Yu left, Zhang Ruiqiang pondered for a long time, why did he feel that if entrepreneurs from state-owned enterprises went to Feng Yu's school to study, there would always be a sense of attracting students to Feng Yu
… (To be continued…)