Know-How Exchange : Strategy

First it sounds like you need to do some heavy PR work to dispel the myth of inferiority because of Made in China and better persuade the masses of the integrity of the engineering. Come up with service records, low-cost maintenance figures, etc. to better position your product. Pump up the warranty program - that you stand behind your product. Get it rated by major car/driver mags, consumer reports and publications of this nature.

Have you tried rental fleets as a possible outlet for product? If there's anything similar in your market, how does your pricing compare?

Here's an interesting article discussing how Honda built their American market:

https://artsci.wustl.edu/~copeland/honda.html

Bad image is a hell of a problem, but Japanese brands twenty years back had the same headache all over the place. Now it's different as we know it all of us.
I do not know precisely who your competitors are and how emminent their presence is in your market.
Following in the footsteps of the Japanese brands I think you should put yourself in your target audience's shoes. What's most important to them? If it's price, sorry you have to beat your competitors and climb the low-price bandwagon. Strip your cars of anything which is not so vital in your customers' minds and stick to the basics. Then play you major cards - better warranty terms, design.Better quality image will come along with its widespread use.
If you could make use of some local bigwigs as your brand faces it would only move you faster on the way towards your goal.

Regards

Adam

Randall,

If I may,looking foward to the answers to questions you asked, that's right what I suggest is a price war. But who on earth is better equipped and mentally ready for it if not a Chinese company. If the market is growing or about to grow, it strikes me as the first idea to both snatch a sizeable portion of the the cake off the competition and keep the doors wide open for the public.
I have my serious doubts if you can dream of successful branding a newcomer of a car from China otherwise in such a highly competitive industry.The industry where former stars keep falling down looking for a way out like GM or Ford.

Regards

Adam

I think you are right on with your idea that centers around anyone who experiences the car will show a great deal of interest. You tried to get people to come in and take a look at the car with your promotion (not a bad idea), but it sounds like it didn't work. I'm not totally surprised by this, as promotions that require "work" on behalf of the customer usually don't. It's just too much work to get into a showroom and deal with the employees, endure a sales pitch, etc. People have to somewhat passively experience your car, but also know that they are in your car. Some thoughts...

Partner with a local taxi company, give them a big break (read: almost free) on a few cars with the agreement that you can add some reasonable amount of branding to the outside AND, more importantly, the inside of the car. Without even knowing it, they've experienced your car. Want to take this one step further? Include a posting in the car to this effect: "Love this car? Say "Your brand here" to the driver and he'll take you get your own." With that, the taxi driver than drives the customer to a showroom to test the car for themselves. The taxi drivers would love it because when they get to the dealership, the dealer pays for the fare (and also pays to get the customer to wherever they wanted to go in the first place) along with a healthy tip (read: affliate deal). You'll have taxi drivers selling a trip to the dealership before you know it.

Next, a road (or off road) race. Your car versus theirs. Find a large city (where your cars are sold) that are willing to close off a several square block area and have a race. Your driver drives your car and someone with some credibility (so they know he's not going to throw the race) drives the other car. If your's is really better, esp. with EFI, you should win. Make sure you do. Include any promotions appropriate to this race and have cars available for anyone to test drive after the race.

Put a fleet of "Drive me now" cars on the road. Brand them very heavily and ensure they stand out. Basic idea is that when someone sees the car, they can flag it down and drive it wherever they want for 10 minutes. A rep from your company stays with the car at all times. Figure it like a test drive/scavenger hunt. People will be on the lookout for your cars after a while.

Last idea, get your cars in prominent places. This is obvious, but often this is done in TOO prominent of a place. If your car is positioned, for example, at a display at the World Cup Finals Match, sure, that's prominent, but the specticle going on around it will drown out your car. Take it one tier down. For Pakistan, what about a high profile (not too high) cricket match? Your cars drive one team onto the field before the first test or something. Better yet, make sure the star player from either team s seen leaving the match in your car.

For some more ideas, click on our name above this post and you can find our contact information or Google our company name "Focus Fields".

Good luck,
JMR for Focus Fields.

Again I would say that price is the biggest issue and your main problem. What is your sales target for this year? What is the ambition of your company: to beat Suzuki, rank no.2 in Pakistan or be an also-ran? What will make you happy- selling 10,000 cars or 25,000 cars this year?
What was your initial strategy when entering the market and why you chose it?
Do you have any idea how you stack up against Suzuki cost & margin-wise?
As to resale value I would think of a sort of a sales package including a reasonable buy-back option for customers who buy your car with a dealer.
How many car dealers are there in Pakistan?
What is the commission they get on 1 Suzuki sold to a customer?

Rgds

Adam

You've sold 500 vehicles - are the buyers of the vehicle happy?

If they are - why not try to use them as referral advocates for your product?

Offer them an incentive to get a friend or family member to buy. Perhaps a free service, or free fuel vouchers for every person they refer that results in a sale. Cash, even... Send them a bunch of referral cards or the like so you can track it. It will be cheap to mail 500 people to see what their reaction will be.

On your sagging resale price - why not offer a guaranteed buyback on the car?

Look at what BMW has done with their used car (Niederlassung) business. Effectively reinforced the resale value by buying cars back at a high price and selling them with a minimal margin with long guarantees. The profit comes from the new car business and they consistently get a higher price for their vehicles than other manufacturers like Ford and GM although their cost structures are relatively comparable.

Think bigger than the margin on a single new car sale.

How's the reliability of your cars? If it's not as good as Suzuki, what can you do about it?

I agree half a percent of the lading competitor's sales is a drop in the ocean and they have everything to lose and you have everything to gain. Might take a while and expect the fight to be tough - you think Suzuki will give up easily?

You need to make the fight about anything other than price. Market on design, features, reliability, resale value (which you bolster and guarantee) - Pakistan is an emerging market where consumerism may not be as strong as say India where the superior features of you product may drive more demand.

Hope this helps...

Chris B

Figure out what will happen if you offered same proce as Suzuki but enhanced resale opportunities+ more customer benefits( extended warranty).
What if you went wide and deep into dealerships with offering more value than your main competitor?
I personally do not figure that Pakistan is already at that stage when customers' demand will be driven by even significantly enhanced features against a markedly higher price.

Rgds

Adam

Good Lord, everybody wants to help sell cars...

Here is a thought. A friend of mine in the car business worked to make sure his cars were in the hands of religious teachers and preachers. When they tell their friends they like the car, everyone knows they are not lying. With the Islamic religion being so prevalent in Pakistan, why not offer a number of cars to religious leaders as a good will jesture and method of creating a buzz...

Man you people can write... I didn't feel like reading all that so here goes... sorry if it's a duplicate of what others have said.

One of the biggest challenges car dealers have is image. Notice how I said dealers and not cars. People want to trust you, they want customer service, they want their hands held, they Don't want to haggle about price, financing, etc.

Start a program that invites customers to call for a personal test drive for a limited time. Drive to their house or a convenient location and then let them drive, explore, ask questions, hem and haw, whatever. Even if they don't buy you will get their attention. Of course, combine this PR to get the word out. I bet the WOM will grow exponentially. One person that takes part in the program will win a car...again PR.

Become the most helpful dealer in the world and create the most pain free buying experience. Your sales people can use wireless laptops to investigate financing, etc. right in front of the customers in the location of their choice.

Customer Service, Follow-up, Relationships, quality repair, reliable staff, on-time - this is what people want.

Be a leader - go for it

Enough said on top. And I'm trying to be like your car in the above Suzuki market.

1. Long term: Slow and steady activity to dispel the truth about 'bad' chinese cars. let your PR engines work overtime writing about how chinese cars are taking on the world...and why cars of your specs are anyday better than the monsters on the road. And why actually your cars have a better edge: spec by spec comparisons...

2. Short term: Do testimony route from existing users, docs/attornies etc... who are still perceived to be of high face value, and high believability. The idea has worked for a Cross Compact/SUV in India after them failing to appeal in the regular ad language perspective. Reposition the car as your local city car as I believe that's where the money is with their affluent/quazi cosmo lifestyle.
'I'm a karachiite/ian, own a Karachi Car. So the car gains acceptability, and local respectability.

Also do some extensive study on Skoda's very disapponinting entry into UK...And don't forget to check out the Skoda Jokes on intenet.

I saved the best for the last: Gift 10 of your cars in each city to your city celebrities on a condition that they will use it at least 15 days. When they move around in the car, the natural friends and peers will know about it...WOM work

There's more...but only if you need it

The most i liked is the idea of giving away the keys....and asking people to check and drive away...AMAZING. Also put time and efforts into your 500 owners, make your close knit family, do something to them and let them spread the word. Refer harley owners' HOG.

KUDOS

Asad Sb,

I am a Pakistani, own a Suzuki Alto (Hate the Car, shoddyyy quality) and right now am in the process of replacing my Car. I am thinking of getting a Honda, and will probably buy it within the month.

I have no idea or information about your Car. I have seen a few Ads about Chinese Companies, but was NEVER turned on enough to follow up on them.

The issue is, I am one of the PEOPLE, you MUST inform & convince, and I am ignorant of your Company or Product.

You might want to check out the quality of your Ad Campaign.

Regards

Another thing, just last night, TWO people (a Dental Surgeon and a Marketing Professional) told me that, they NEED cars. Question is why are they not thinking about your Car.

Two, you might think about holding road shows in different Universities and asking your Company people to talk to their friends & acquaintances about your car (maybe email them). this might generate a few leads and it is LOW cost

regards

I also asked 2 Colleagues and the Office Driver, if they know about any Chinese Car and the answer from all of them was No.

The Colleagues are thinking of buying cars also, and considering Suzuki.

First, if you want to do something for the Community, spare some money from your marketing budget & pay it to Marketing Profs as advertising or donation or whatever on our behalf (all of us, who have given you inputs).

Two, which car company do you work for?

Three, I would recommend that, you target University Students. They play a major part and can influence people. e.g. a friend buys a car, all other friends pile in & go for a drive or drive it themselves. Their verdict influences elders also.

You might offer incentives to students also. If someone buys a car, whichever student has referred them, you give them a commission (1,000 or so rupees, 60 PKR = 1 US $). No sale, no commission or other renumeration. So they are working part time for you.

I would not rely too much on TV programs. All popular programs are HEAVILY sponsored, and the Ads get annoying & ignored. In addition, you dont get time to watch TV, due to committments (I am working 16 - 18 hours a day and travel frequently, so dont have time to watch TV) Just look at yourself, what free time do you have or thing you find easy to do. All other professionals would have the same or matching schedules. So figure out how to take advantage of it.

If you want to place Ads, you might want to do something with the cricket team (give them cars for man of match performance or getting to semi finals etc). Offer trips to West Indies to Car Buyers & Gifts to people watching matches etc. Think about doing this with other teams (Hockey, Squash etc).

Think about approaching different firms and asking them, if they would like to buy cars for their employees. Offer huge discounts. My firm is exploring options of arranging cars for All Employees (small firm). They would jump at the offer of saving money.

I am not interested in Global Impact, what I am interested in is local progress. To be honest about it, I have learned more relevant things about your car from this thread, than from your Ads. FIRE your Ad Company.

Regards