FAW_BrandMgt_0224.docVIP免费

BrandManagementDepartmentINTERVIEWDATE:Feb24th,2000INTERVIEWERNAME:BillHe,AnneWangIntervieweeNameMr.DongHaiyang,Ms.HeFuruiPositionDirectorofBrandManagementDepartmentCompanyandAddressFAWTradingCompanyTelephone/Fax13904327903(0431)5909775ext.360BackgroundKeyIssuesConclusionBackgroundBrandManagementDepartmentisanewlyestablisheddepartment.EventhoughitisonedepartmentwithinFAWTradingCompany,thisdepartmenthasbrandmanagementresponsibilitynotonlyforFAW’sJieFangbrand,butalsootherbrandslikeRedFlag,Jetta,andAudiMajorresponsibilitiesforBrandManagementDepartmentincludeFAWbrandmanagement.AllFAWbrandsaretakenintoconsiderationforalongterm,integratedgroupimage,including:Trucks:JiefangPCsAudiJettaRedFlagDistributionchannelrationalisation.Currently,FAWhasaround1,000dealersalloverChina.Sincethenetworkisnotwellorganised,dealermarginisdilutedthroughmultiplelayersofmiddlemen.Inordertoimprovethissituation,dealers'salesbehaviourneedstoberegulated,andalotofunqualifieddealersshouldbeeliminated.FAWhastogainsignificantpowerinthesupplychain.ThecurrentsituationisFAWisveryweakinthesupplychain.Itcannotcontroldealerpricesandcannotpreventpricewarfromhappening.AstreamlineddistributionchannelwillenableFAWtogainthemuch-neededpowertoensureabettercontrolledpriceandmoreconsistentservicetotheendusers.Annualdistributionnetworkplanning.BrandManagementDepartmentpresentsannualdistributionreportstotheFAWGroupmanagementanditsaffiliatesbasedonfieldresearchresults.Amongotherthings,thisreportincludeslocation,volume,andcredibilityofdistributors/dealers.Ifthereisaredflaginanyoftheseitems,FAWgroupanditsaffiliatesshouldknow.1Thus,theycanmakeawell-informeddecisionaboutwhethertheyshouldkeepacertaindistributor/dealerornot.BrandManagementDepartmentalsobuildsquantitativemarketmodelandanalyticaltools.Mr.DongexpressesstronginterestinsendingsomeonetojoinA.T.Kearney'sfieldinterviews.SinceMr.DonghasjusttransferredtoFAWTradingCo.,detailarrangementneedstobediscussedlater.KeyIssuesDistributionNetworkBuildingMr.Dongthinksitimpracticaltopushallthedealersinto4in1formsinshorttermbecause:Dealer'sReturnonInvestment(ROI)willbedroppedheavilyasthe"4in1"requiresgreatinvestmentupfront.Thiswillimpactdealer'sbusinessdeeplyandweakentheirconfidencetoFAWproducts.FAWwillhaveadditionaleconomicburdensuchasfinancialsupport,renovationcost,higherrebateratiothannone-4-in-1dealers,etc.It'squiteobviousthatFAWcannotaffordtoprovidesuchsupporttoalldealers.FAWshouldhavelongtermcommitmenttothosedealerswith4in1functions,e.g.,newproductoffering,promotionactivities,etc.Thislong-termcommitmentneedstobeconsideredprudently.Exclusivedealershipisconsideredasanidealwayforbuildingupbrandloyaltyamongdealers,butitalsorequireslong-termeffort.DealersmayshifttoSAWorothercompetitorsifFAW’strucksalonecannotgenerateenoughsalesvolumeforthem.FAWshouldalsoletdistributors/dealersmakeprofitonpartsandservicesincome.WTOOnemajorconcernisFAW'sconditionafterWTO.AccordingtoMr.Dong,manyforeignautomanufacturershavealreadystartedtoexploreChina'struckmarket.AstheFIEshavesuccessfulexperiencesinoverseasmarket,theycansoonpenetrateintoChinamarketaswell.Thus,Mr.DongthinksitisveryurgentforFAWtostreamlineitsdistributionnetworkinthenext3-5years.BrandManagementDepartmentfoundthatmanyoftheirideasandplanscannotbeacceptedduetonon-businessfactors,e.g.,benefitstolaid-off/retiredemployees.BrandManagementDepartmenthopeA.T.KearneycanprovideaobjectiveviewtotheFAWgroupmanagement.Conclusion2ThoughtheDirectorofBrandManagementDepartmentexpressedastrongwishofdistributionnetworkrationalisation,healsoanticipatedconsiderableresistancefromdistributors/dealers.Thus,adetailandprudentplanshouldbesetupforlong-term,gradualimprovementofFAWdistributionnetwork.3