FAW_Shandong Branch_0228.docVIP免费

FAWTradingCo.ShandongBranchINTERVIEWDATE:Feb29th,2000INTERVIEWERNAME:AnneWangIntervieweeNameMr.GuoYantaoPositionPlannerCompanyandAddressFAWTradingCo.ShandongBranchNo.60GongYeSouthRd.,Jinan250100Telephone/Fax(0531)8522902BackgroundKeyProcessesKeyIssuesConclusionBackgroundFAWShangdongBranchisoneofthebestperformersintrucksales.Lastyear,ShandongBranchwonanoutstandingrewardfromFAWTradingCo..OneofitsservicestationdirectorsalsowonanExcellentServiceProviderprize(onlyninepeopleareentitledtothatpriceinFAWsystem).SalestargetforthisyearissecondonlytoJilin.Therearenow61stlayerdealersinShandong,amongthemthreeareexclusivedealers:LocationExclusive(Y/N)99'salesvolumeZhonglianJinanY843ChangjiJiningY315QingzhouQingzhouY170NorvecoJinanN828LinyiLinyiN718GaomiGaomiN832UnitprofitFAWgetfromdealersarearound:Oldstyletrucks:5,000RMBForward-heading:20,000RMBDoublerearaxle:40,000RMBMaximumprofitratioone1stlayerdealercangetis1.2%oftotaltrucksales(rebate).Maximumprofitratioone2ndlayerdealercangetis0.5-0.8%oftotaltrucksales.1Thereare7servicestationsinJinanand37servicestationsinShandongprovince.Alloftheservicestationssellspareparts.OneSparepartssupplyingcentreissetupinZiboCity.ShandongusedtobeSAW'sbestmarket,butnowFAWsuccessfullyoccupiedaround80%ofthetruckmarket.Thereusedtobea3-monthbestsellingtimeforFAWtrucksinthebeginningoflastyear.FAWsoldoutallitsinventoriesandunitprofitforheavy-dutytrucksreached40,000RMB.KeyprocessesThereare3-4employeesintheBranchOffice.DailyresponsibilitiesofShandongBranchareFillininventoryreportsPlanfordeliveryManage/coordinatedealer'ssalesProvideon-siteassistancetoservicestationsFromthebeginningofthisyear,morethan140deliveryplansweremadebyMr.Guo,theplanner.Aseachdeliveryplanwillrequire4-8phonecallsforinquiry,changeorconfirmation,theplannerisbusyansweringphonecallsandactslikeareceptionist.Theplanneralsohastheresponsibilityofmarketinformationcollection,buthehasnotimeforthatjob.Heisunsatisfiedwiththeinformationqualityprovidedbydealers,however.Nordoeshehaveanytimefortrucktechnologyinformationcollection.Mostoftheorders/deliveryconfirmationsarethroughtelephone,faxandmobile.ThereisonecomputerinstalledinBranchOfficewhichisonlyusedfortyping.KeyIssuesTheFAWQingdaoAutoPlantimpactsthetrucksalesmarketinShandonggreatly.TheQingdaoPlantbuyschassisfromFAWandmakesadaptedtrucks.Itreactstomarketmorequicklyandhasmoreflexibilityintruckadaptation,e.g.,installXiangfanaxleorPerkinsengine,etc.ThusitcansellFAWbrandedtrucksinlowerpricewithhighertechnologycontent.OnlyFAWQingdaoBranchhastherighttosellQingdaoadaptedtrucks.UnitpriceforQingdaotrucksare5000RMBlowerthansimilarFAWtrucks.DealerscansellQingdao7.7tontrucksatthesamepriceofFAW7.2tontrucks,orsellQingdao8.7tontrucksatthesamepriceofFAW7.6tontrucks.QingdaolocalgovernmentdoesnotallowShandongdealersoutsideQingdaotosellQingdaoadaptedtrucks.PriceWarAmong1stlayerdealers,NorvecooncelaunchedpricewarinShandongandencounteredfierceresistancefromotherdealers.Norveco'scompetitorssentoutrumoursthatNorveoissellingunqualifiedtrucks,and2reducedtheirowntruckprices.Thepricewarresultedtohugelosstoallsixdealers.Serviceprovider'sbenefitswereimpactedbyFAW'sirrationalsettlementpolicy.FAWdoesnotpaycashtoserviceprovidersforwith-inwarrantyservices;instead,FAWreturnthemwithsparepartsofequalvalue.Servicestationcannotchoosethepartstheyneed.Thussomeofthepartsbecomeobsolescencetoservicestations.Settlementperiodislongandinefficient.Serviceprovidersgetpaidusuallymorethan6monthslater.ShandongOfficedoesnothavetechnologyresourcestoprovidetrainingsupporttodealersandserviceproviders.IncentivesystemforShandongBranchstaffisnotwelldesigned.FAWpromiseda270,000RMBbonusforbestperformers,butit'sclaimedtobecancelled.Year-endbonusperpersonisonlyaround30,000RMB.ConclusionShandongisamarketwithhugepotential.WiththeeffortofFAWShandongBranch,FAWtrucksareexpandingrapidlyinthismarket.Potentialconcernishowtostabilisethegrowthanddeveloplong-termcommitmentwithbigdealers.Besides,concerningtheworkloadforShandongBranch,workprocessesofShandongBranchOfficeneedstoberationalized.3