InterviewNotesInterviewDate:28/2,2000Interviewer:JianPANInterviewee:DaiMingdongCompany:FAWTradingCompanyLiaoNinBranchPosition:GeneralManagerPhone:024-24857312Background:LiaoNinBranchcompanywassetuponthebasisofFAWTradingCompanyNortheasternBranch,whichhad38employee.NowLiaoNinBranchcompanyhas5employee.In1999,totalsaleswas5500Jiefangtrucks.Quotain2000is7500trucks.Organization:Manager(1),Sales(2),Planner,On-siteserviceRep(1)SalesChannel:thereare5FAWcertifieddealersinLiaoNin,butthetop2ofthemcoverover90%ofthetotalsales:DealerNameSalesUnits(1999)LiaoNinYiQiTradingCompany2600DaLianDieselMotorEngineManufacturerTradingCompany2400NortheasternAutomotiveTradingCo.,200LiaoYangAutomotiveImport&ExportCo.,100DaLianBusManufacturerTradingCompany200Remarksoverthe5dealers:LiaoNinYiQiTradingCompanygrowverystronglyinthepast3years,andit’sveryactiveinmarketdevelopment.DaLianDieselMotorcompanyisdieselmotorenginevendortoFAW,FAWpayitwithtrucksinsteadofmoney.MajorityofthesalesbythecompanywassoldoutsideLiaoNin.NortheasternAutoTradingCo.,salesreached1000trucksseveralyearsago,butdecreasedsharplybecauseofbadmanagement.LiaoYangAutomotiveImport&ExportCo.,andDaLianBusManufacturerTradingCompanyarebothsubsidiariesofFAW’svendor.Channelmanagementplan:Mr.Daiisgoingtofocusonthetop2dealerandgivethemsomepreferentialtreatment,andhelpthemtodevelopinto“4in1”.Inthesametime,Mr.Daiplantodevelopsomeautotradingcompanyasretailer,tosetupa2-tierchannel,whichwillgettrucksfromthe2company.Channelincentive:AnnualRebateAnnualrebateiskindofmysteryrebate,whichrangesfrom1%-2%.Themeasurementfactorsaresalesrevenue,marketingdevelopmentactivitiesandwhetherobeyFAWmanagementpolicy.ServiceStationNetwork:Therearenow27servicestationsinLiaoNin,with3inShenyang.Allthestationsarelocatedaverageintheprovince,accordingtoaFAWpolicythatthemaximumdistancebetween2stationsis60km.199719981999Servicestationnumber222427Theprofitofservicestationmainlycomesfrom3parts:1.FAWpaidguaranteeservice2.Servicefortrucksoutofguarantee3.TruckpartssalesSomeservicestationsselltruckstoo.Competition:CompetitorProductStrengthWeaknessJinBeiLighttruckLocalcompany,governmentsupportDongFengMediumtruckFlexibilityinsalespolicyPoorservicestationcoverageandtruckpartsshortageSitaierHeavytruckGoodqualityHighpriceIt’ssaidthatin1999about1000DongFengtrucksweresoldinLiaoNin.Conclusion:NowinLiaoNinFAWoccupyanabsolutelyleadingpositioninthetruckmarket,withmarketshareover80%.3reasonscanaccountforthecurrentmarketsituationandresult:1.DongFeng’ssaleschannelisnotstableandstrongcomparedwithFAW2.It’sinconvenientforcustomerstofindaplacetorepairtruckandbuytruckparts3.TherearealotofFAW’spartsvendorsinLiaoNinandthistakemuchadvantageforFAWtoselltrucksthroughthesevendors.Mr.Daiplanstofocusthefollowing5areastodevelopthemarket:1.PreventlocalcustomersfrombuyingtrucksdirectlyfromChangChunviaconsumerloancooperatedwithbank.2.Developlargeaccountclients3.FindmoresalesopportunityinFAWpartsvendors4.Strengthenaftersalesservice
