FAWQingdaoPlant,SalesDepartmentINTERVIEWDATE:March6th,2000INTERVIEWERNAME:AnneWangIntervieweeNameMr.JiangChongxinPositionDirectorCompanyandAddressFAWQingdaoPlant,SalesDepartmentNo.2LoushanRd.,LicangDistrict,Qingao260043Telephone/Fax(0532)4816713BackgroundKeyProcessesKeyIssuesConclusionBackground.SalesDepartmentofFAWQingdaoPlantwastheonlyoutletofQingdaotrucksbefore2000.NowtheFAWQingdaoBranchistakingcareofthesalesandQDsalesDepartmentonlyactslikeabigdealerunderFAWQingdaoBranch.SalesDepartmenthavemorethan150employees,with50ofthemaresalesmen.Ithas7officesallaroundChina,witheachofthemtakingcareof5provinces.In1998,SalesDepartmentsoldout15,000trucks.In1999,SalesDepartmentsoldout20,000trucks.KeymarketofQingdaotrucksisSouthChina:SalesinFujian,Guangdong,Zhejiang,JiangxiandShandongis30%oftotalsales.KeyprocessesSalesnetworkmanagementisverylooseaccordingtoMr.Zhang.Theyhave100dealersallaroundChina,butonly20-30%ofthemareveryimportantpartners.Serviceandspareparts:QingdaoPlantisusingtheFAWServiceandsparepartssupplynetworkallaroundChina.Pricing.PricingisdecidedbyFinanceDept.ofQingdaoPlantitselfandapprovedbyFAWGroupFinance.Promotion:Salesmenindifferentsalesregioncommunicateswithdealersregularlyandupdatetheirnewtruckinformation/technology.1KeyIssuesQingdaoSalesDepartmentisveryreluctantinsharingtheirowndealernetworkwithFAWQingdaoBranch.ThoughQingdaoBranchisnamelytheirsupplierandtheonlyagentofQingdaotrucks,SalesDepartmentcanstillgettrucksdirectlyfromplantandsell.Thoughfriendlyasheappears,heisveryalerttosensitivequestionsandavoidsmentioningdealer'sname.FlexibilityinTruckadaptation.Mr.ZhangwishesFAWcouldgivethemmoreflexibilityintruckadaptation.Ashementioned,FAWgroupdoesn'tallowthemtoinstallXianfanAxleonthetrucksinsteadofFAWaxles,thoughtheformerismorewelcomedinSouthChinaMarket.Mr.ZhangsaidthatSAWwillusemoreXianfanAxlesthen,andtakingadvantageinthecompetition.ConclusionsSalesDepartment'sbenefitisimpactedbyFAW'snewdecisionofsettingupFAWQingdaoBranch,andSalesDepartmentisfindingwaystoprotectthemselves.DealernetworkremainsaverysensitivetopictothemandMr.Zhangisunwillingtotellmeanynameoftheirlong-term,importantdealers.2