FAWJiangxiBranchINTERVIEWDATE:5May2025INTERVIEWERNAME:JaneXuIntervieweeNameMr.XiMengPositionGeneralManagerCompany&AddressFAWJiangxiBranchTelephone/Fax0-13607098893BackgroundMr.Xi(28-year-old)wasassignedtothemanagerofJiangxibranchtwomonthsago,beforehecametoJiangxi,heworkedfortheLogisticsandWarehouseDept.inChangchun.Hedoesn’thavesalesexperiencebefore.TherearefourmaindealersinJiangxi,allofthemarelocatedinNanchang1.FAWJiangxiSouthSalesCo.Ltd2.JiangxiWuhuaSalesCo.Ltd3.FAWNangchangServiceStation4.FAWJiangxiLianheSalesCo.Note:JiangxiLianheowedRMB6milliontoFAWChangchun,FAWhadalreadytakebacksomeadvantagepolicy(e.g.rebatepolicy)towardthefirmSalesvolumeinJiangxiin1999is2226units.AccordingMr.Xi,DongFeng’ssalesvolumein1999is20%lowerthanthatofJieFang.RatioofservicestationnumberbetweenFAWandSAWinJiangxiisaround2:8.(FAWhas19servicestationamongwhich25%arenearbankruptcybecauseofthemanagementissues).DealershipEstablishmentThereisnoqualifiedFAWdealersoutsideofNanchang,Mr.Xiisthinkingofdeveloping3newFAWdealerswhichcouldbasicallycontrolthemarketintheareanearotherprovinces1.Jingdezhengdealer:Mr.XiwishesthedealerlocationcouldhelpFAWgraspthemajormarketintheareanearAnhuiandHubei.(Mr.Xiattributethelowmarketpenetrationtheretothelackofqualifieddealer).HedecidetochooseanoldFAWdealerinJingdezhenganddevelopitintoa“YouXingMarket”typedealer—thedealerwhoseinventoryisdirecttransportedfromChangchun/QingdaoratherthantransportedfromthetruckwarehouseinNanchangBranch.1MainlysellQindaoJieFangMainlysellChangchunJieFang2.Ganzhoudealer:Mr.XiwishesthedealerlocationcouldhelpFAWgraspthemarketintheareanearFujianandGuangdong.SouthJiangxiiscurrentlythemajorthemarketofSAW’sLiuZhouDongFeng3.Pinxiangdealer:Mr.XiwishesthedealerlocationcouldhelpFAWachievehighmarketshareinareanearHunanPriceControlMr.XihasorganizedapricingconferenceamongthefourmajordealersinJiangxi,hewishestoestablishanagreedlowestsalespricelimitation.Ifanyofthefourdealerssellthetruckwithapricelowerthanthelimitation,itwillgetpunishment.(e.g.lessrebate,stopofdealership,etc.)Mr.XistillgotnoideahowtocontrolthesalespriceofthosesmalldealerslocatedoutsideofNanchangCompetition“PinTouChe”JieFangoccupiesthemajorityshareof“PinTouChe”marketinJiangxiby“2TonWang”and“5TonWang”.Butnowitfaceintensivecompetition(competitioninbothpriceandquality)from“ChengLongWang”manufacturedbySAWLiuZhou.More,DongFeng’s“8TonShuangQiao”withimprovedqualityisnowastrongpotentialcompetitoragainstJieFang“9TonShuangQiao”product“JianTouChe”DongFengheldmajormarketshareof“JianTouChe”marketinJiangximainlybecauseofthelowprice—priceofsametypeJieFangtruckishigherthanthatofDongFengbyRMB18Kto20KCheapandlow-end“agriculturetruck”producedbysometruckmanufacturesinSouthChinahastakenawayaconsiderablemarketshareformJieFangandDongFeng,especiallyintheprovinceinJiangxiwherecustomersarehighlypricesensitive.The“agriculturetruck”isthelow-endcopyofJieFangandDongFengtruck,priceofthe“agriculturetruck”couldbeonly60%ofJieFang/DongFengproducts“3in1”Mr.Xiisanadvocatorof“3in1”conceptMr.Xithink“3in1”whichbuiltonthebasisofFAWServiceStationscouldbethebestsolutionbecauseofNoneedofhugeinitialinvestmentFAWServiceStationusuallyhasthestrongestcommitmenttowardsFAWandistheideallong-termbusinesspartner2ConclusionSincehehasnosalesexperiencebefore,Mr.XikeepstobemodestandtakeapessimisticattitudetowardsJiangximarket,hepredicttherecouldbeanobviousmarketsharelossin2000becauseofGraduallyimprovedDongFengproductsandtheirlowerpriceSAW’sstrengthinservicestationcouldstimulatethesalesandtakebackthemarketsharewhilethenumberofFAW’swellperformservicestationsinJiangxiisdecreasingSAWhasfinisheditsrenovationlastyearbutFAWjuststart,therecouldbeapainfulperiodforFAW’sbusinessthisyear3