TaiyuanWilliamIndustrialGroupINTERVIEWDATE:March16,2000INTERVIEWERNAME:BillHeIntervieweeNameMr.WuWendong,ChairmanMr.WuWenbing,DeputyGeneralManagerCompanyandAddressTaiyuan,ShanxiTelephonenumber0351-3053333BackgroundWesoldcloseto400trucksin1999.TherevenuewasaboutRMB50million.GrossprofitwasRMB210,000.ThegrossprofitwasfromFAW’syear-endrebate.Thebestsellersegmentwasthemediumweighttruck.ThemainusageoftruckinShanxiiscoaltransportation.ThemarketsituationisverysimilartowhatwesawinYimeng:JieFangtruckusedtobethemarketleaderfrom1995to1998.However,DongFengtookoverfromlate1999becausetheyhaveaverypopularproduct:“FiveTonKing”.TherearetwomajordealersinTaiyuan.TheWilliamGroupistheonlyonehas“Four-in-One”capability.DongFengtruckisthemarketleaderinTaiyuanandShanxi.However,westilldecidedtosellFAWbrandsexclusivelybecausewebelieveFAW’spotentialishugesinceitisthebiggestautomotivemanufacturerinChina.WehaveverygoodrelationshipwithFAW’smanagement.WhenFAWdesignsitsmarketingstrategy,itshouldcategorisedifferentmarketsintodifferentgroups.MarketA:Beijing,Shanghai,Guangzhou,etc.(nationalbigcities)MarketB:Qingdao,Dalian,Taiyuan,etc.(Provincecapital)MarketC:SmallercitiesinprovincesMarketD:TerritorywhereFAWmarketisvirtuallynon-existingForthefourmarkettypes,FAWshouldapplydifferentsalesstrategy.MarketAisveryimportanttoFAW.However,sinceitisdevelopedmarket,itspotentialislimited.Anyway,FAWcannotaffordtolossmarketA.Therefore,FAWshouldsustainthecurrentmarketshareinMarketA.FAWmanagementshouldmakeadecisioniftheywanttopenetrateintoMarketDimmediatelyornot.SinceMarketD’spotentialissosmall,itmakessenseforFAWtoworryaboutitatalatertime.WethinkFAWshouldfocustheireffortsonMarketBandC.Thesemarketshavehugepotentialandthedemandisalreadythere.IfFAWdoesnotcomein,SAWwill.Therefore,wesuggestFAWTradingCompanytogivethebestpolicytodealersinmarketBandCtopenetratethemarket.Inter-territorysalesisalwaysabigproblem.TheincreaseofJieFangtrucksinShanxiwas2,500in1999.However,onlylessthanhalfofthosetrucksweresoldbydealersinShanxi.Thereisnocoordinationamongdealerscurrently.WethinkFAWTradingCompanyshouldberesponsibleforthecoordination.1Wehave5trucksalesmen.Wehavesecond-tierdealers.Weplantosell1,000JieFangtrucksin2000.2