According to statistics from the China Association of Automobile Manufacturers, in 2009, China produced 13.791 million vehicles, marking a 48.3% increase over 2008. Vehicle sales reached 13.448 million, up by 46.2% compared to the previous year. These figures indicate that China has become a leading player among developed countries in vehicle production and consumption, presenting a golden opportunity for the development of Chinese car manufacturers.
As Chinese car exports rise and companies accumulate foreign business experience, the focus for Chinese car manufacturers shifted towards changing their marketing strategies abroad. These companies, which previously lacked mature marketing strategies due to trade restrictions and some objective factors, have turned their attention to global marketing.
Foton, a leading Chinese car manufacturer, successfully transformed its new strategy from just a theoretical plan to an actionable reality after periods of careful preparation. The company has never deviated from its commitment to technical, marketing, mechanical, and managerial innovation, enabling it to achieve remarkable progress and establish itself as a respected Chinese car brand. Mr. Wang Xiangyin, the global marketing executive of Foton, said the company aims “to shift from export trade to a market-driven marketing system, completing its global marketing strategy in three stages.”
The three stages are: First, the basic preparation phase, which includes completing global marketing plans and forming an initial marketing and service network before 2010; Second, the global business deployment and full launch phase, which involves the complete globalization of operations and management systems, ensuring that the company achieves more than 30% of its total sales from overseas; and Third, the global improvement and adjustment phase, focusing on refining the business structure, production areas, and evaluation chains to make Foton the best commercial vehicle brand globally and the best passenger vehicle brand in China. The first stage is the most important and urgent part of the company’s plan to achieve its global strategic goals. Mr. Wang summarized this phase in six key steps:
Market Demand Analysis
The market performance management center plays its unique role close to the markets by tracking the development trends of new vehicles. This involves analyzing customer needs, competition, and regulations in the target market, ensuring that the market dictates the direction of car production, rather than producing cars and then seeking markets or making cars just to satisfy the preferences of certain business partners.
Establishing a System for Developing New Vehicles Outside China
Through collaboration with Foton’s international trade branch, its technology center, and its engineering research institute, as well as its assembly plants outside China, a complete system is formed to develop new vehicles abroad. This system aims to enjoy shared resources from both Chinese and foreign research and development. In addition to focusing on the development of new models, the system also ensures that products comply with local regulations, certifications, and standards in the target markets.
Market Development and Expansion
Foton’s target markets are divided into two types based on their characteristics: complete unit markets and assembly markets, each requiring different development strategies. Complete unit market development focuses on establishing marketing channels and selecting agents according to the specifications of each vehicle. For example, heavy truck dealers are chosen for their ability to develop bulk customers and provide financing, while small truck and passenger car dealers are selected based on their strong marketing capabilities. In assembly markets, agents must not only have the ability to assemble and market in the local area but also have the potential for radiating development to neighboring countries.
Improving Vehicle Order Management Effectiveness
This process helps customers submit vehicle orders and complete the delivery in a way that minimizes the delivery time, thereby providing customers with greater benefit.
Brand Recognition and Promotion Abroad
Brand recognition and enhancing the Foton brand’s reputation abroad are no longer two separate activities but are integrated into a cohesive system. This requires strengthening brand recognition in the target market and standardizing environmental branding for marketing parties outside China. The company also focuses on collaborating with well-known foreign companies to benefit from their global service networks, capital, and management systems, which reduces investment risks abroad and enhances the company’s competitiveness in its global expansion efforts.
Improving After-Sales Service in Overseas Markets
The company improves services by establishing a “Total Care” service window, where spare parts banks are set up according to market structures, and the level of technical teams is strengthened. This comprehensive service network not only represents the company’s strength but also becomes a powerful motivator for customers to choose its products, thereby ensuring the company’s continued development.
Since 2010, Foton’s international marketing has transitioned from the “basic preparation” phase to the “rapid development” phase. In this crucial phase, Foton focuses on manufacturing in countries such as Russia, India, Thailand, Brazil, and Mexico, all of which have potential for economic development. Additionally, Foton aims to increase sales in advanced markets like North America, the European Union, and Japan, while also further globalizing its automobile trade. Meanwhile, Foton places great emphasis on market planning, new car development, contracted marketing services, and the training of excellent professionals. The company also takes on social responsibility and innovates business models to highlight its value. Foton is committed to achieving internal growth, restructuring its business to develop self-owned brands, fostering international cooperation, and preparing for global competitiveness. The company has also adopted a new slogan, “Technology and Beauty of the Future,” emphasizing that “technology” is the key tool and driving force behind Foton’s growth, while “beauty of the future” represents the direction and goal it aims to achieve, with the ultimate goal of benefiting humanity.
Foton has grand visions and goals for 2020: to create a leading commercial vehicle brand, develop into a global car company combining cutting-edge technology and eco-friendly concepts, become one of the top ten car companies worldwide, and establish the first internationally recognized Chinese car brand.
