FAWGuangdongBranchINTERVIEWDATE:13March2000INTERVIEWERNAME:JaneXuIntervieweeNameMr.LiChunminPositionGeneralManagerCompanyandAddressFAWGuangdongTelephone/Fax0-13922739998BackgroundMr.Li’sexperience:JiefangShanghaiBranchfor3yearsasmanagerFAWVolkswagenfor6yearsascomponentmanagerFAWChangchunfor3yearsasGroupSales&Marketingstrategymaker(HelpMr.Anwritegroupsalesstrategy,e.g.takebackQindao’ssalesright)TotalJiefangsalesvolumein1999is3,000units,taskdelegatedbyFAWin2000is6,370unitsBestsoldproductsinGuangdong“2TonWang”,buttheproductisfacingseverecompetitionform“ChenglongWangzi”since“2TonWang”getpatentlimitationinGuangdong“Containertruck”(5ton,8ton,9ton)—Guangdonghaslongoceanboardandmanybusyport,lowpricingJiefangcontainertruckispopularthisyearswiththedevelopmentoflogisticsindustryKeyIssues:Thereare9‘Youxingmarket’dealersinGuangdongwhocouldgetturnovertrucks,buttheydonotperformwellinthefollowingaspects:Lowpaymentcredibility–Mostofthe“youxingmarket”dealerdonotpaybackforturnovertrucksontime,it’stimeandenergyconsumingforFAWtofollowthisup(Mr.Lialmostspent30%ofhistimeontracingthepaymentduringmystayinGuangdong)Lowbrandloyalty--mostofthe‘Youxingmarket’sellbothJiefangandDongfengtruck,theydonotcaretheJiefangimagebuildingatall“youxingmarket”dealersareanactivetroopinthepricecompetitioninGuangdong—theyaregoodatleveragingtheiradvantage(relativelyabundantinventory,turnovertrucks)incuttingthepricewiththeircompetitors1Allabovehasgreatlyinsulttheinitialthinkingofestablishing“youxingmarket”,togetherwithsomedealerswhoonlycareshort-terminterests,Guangdongmarketorderhasbeenseverelydisturbed.Mr.Lidecidetore-buildGuangdong’scurrentnetworkthroughrankingallthedealer/”Youxingmarket”bythreecriteira:1.Salesvolume2.Paymentcredibility3.BrandloyaltyandimagebuildingDealer/”youxingmarket”willberankedasthreedifferentlevels,FAWGuangdongwillgivesupportto1stleveldealersandstopthedealershipwith3rdleveldealers/’youxingmarket’ServiceisaweakareainFAWJiefang’snetwork(therearenomature“3in1”businessunittillsofar),Mr.LiconcernsthisshortcomingwillhaveabignegativeimpactonGuangdongJiefangtruckssustainablegrowth,Mr.Lithink“3in1”isaninevitabletruckdevelopmenttrendinthefutureyears,hewillstopthepartoftheservicestationwhichdonothavetrucksalesfunction(donothavecapabilityofsellingtrucks)andpartofthedealerswhodenytoestablishservicefunctionsOverallnetworkdevelopmentpicturein2000:RaisethenetworkefficiencyinZhujiangDeltaAreaDevelopnetworkinWestGuangdong(e.g.Zhanjiang,Yangjiang)EstablishnetworkinEastGuangdong(ThereisnodealerinYuedongnow)2