FAW_Anhui Branch_0315.docVIP免费

FAWTradingCo.AnhuiBranchINTERVIEWDATE:March15th,2000INTERVIEWERNAME:AnneWangIntervieweeNameMr.ZhuHai-linPositionManagerCompanyandAddressFAWTradingCo.AnhuiBranchNo.170QuanjiaoRd.,Hefei230011Telephone/Fax(0551)4480844BackgroundKeyProcessesKeyIssuesConclusionBackgroundUnlikeotherBranchofficemanagers,Mr.ZhuhasbeenworkinginAnhuiforoneyearalready.Mr.Zhuisalreadyoverfiftyandmightgetretiredafterthisassignment.InAnhuiProvince,thereareonlytwobigFAWdealers:BengbuJidianGroupandNingguoGroup.Thereare18servicestationsinAnhui,amongthemonlyonestationislocatedinHefei.AnhuihasnoFAWsparepartscentres,andsomepartsaresourcedfromShanghaiSparePartsCentre.In1999,FAWMediumdutytruckssellquitewellinAnhui.1999'ssalesvolumeisaround4,000trucks.Thebestsellingtrucksarethe2-tontrucksadaptedfrom5-tonchassis.However,heavy-dutytrucksarenotwelcomedinAnhuimarket.Thisyear,FAWChangchunsetasalestargetof5,360trucksforAnhuimarket,includingthesalesofQingdaotrucks.AsAnhui'smacro-economicconditionisnotsowell,Mr.Zhuthinksthetargetforthisyearistoohightoberational.JiefangBrandiswellacceptedinAnhuimarket.Mr.Zhuestimateda70%-80%marketshareforFAWtrucks.However,FAWtrucksstillfacecompetitionsbothfromSAWandFAWsubsidiariessuchasQingdaoandLiute.Mr.ZhuthinksthatcomparedwithSAW,FAWsubsidiariessuchasQingdaoandLiutearemorecompetitivetoFAWChangchun.TheunitgrossmargininAnhuiislow.Includingrebate,dealercanget700-1000RMBpertruckaveragely.KeyprocessesNoneofthetwodealersinAnhuihasthe3in1capabilities.Mr.Zhuthinksit'sbecausethatbusinessmodelinAnhuimarketislessadvancedandmore1reserved.Besides,dealersdon'tthinktheprofittheygetintrucksalesisworthyforthemtoinvestin3in1capabilities.Everymonth,30turnovertrucksaresenttobothdealers.Inventory/salesinformationiscomputerisedinAnhuiBranchoffice,andtheformsareupdateddaily.However,Mr.Zhufeelsitveryhardtoeducateitsdealerstoacceptandusethesameformat.Inthisyear,Mr.Zhuplanstoaddtwomore1stdealersintoAnhui'sdealernetwork.OneofthemisHefeiServiceStation,anotherisadealerinasmallcityinAnhui.Mr.Zhuhopestorationalisethenetworkthroughallocationofsalesregionforeachdealer.TruckdeliverytimingfromorderingtosalesrealisationtakesalmostonemonthOrderinthebeginningofthemonthMorethanoneweekofdeliverytimeonthewayfromChangchuntoAnhuiTrucksaresenttodealersTrucksalesaresettledintheendofthemonth.KeyIssuesThisyear'ssalestargetforAnhuiis5300trucks.Mr.Zhuthinksthistargetistoohightoberational,astotaltrucksalesinAnhuiin1999isonlyaround5,000.Mr.ZhuthinkstheplannersinChangchunjustsimplyaddsomepercentageonthesalesnumberof1999,withoutanyknowledgeofthelocalmarketcondition.TrucksfromQingdaoandLiuzhouarebigtroublestoMr.Zhu.ThoughQingaotrucksareclaimedtobeMr.Zhu'ssalesnumber,Qingdao'sdealernetworkisstillseparated.Thoughthenumberoftrucksisverysmall,itgetsgreatinfluenceonFAWproducts.E.g.,lastyear,aroun1000FAWtrucksslowsdownthesalesspeedwhenthereisonly100similarQingdaotrucksinthemarket(Qingdao'spriceisseveralthousandRMBcheaper).ThoughittakesMr.Zhu6monthstogetalltheinventoryinformationonline,theplanningisstilldisorderedwithnosupportfromFAWandnounderstandingfromDealers.Bothsidesprovidehimwithinaccurateinformationandmakemistakesinnumbers.AsAnhuihasnosparepartcentrelocally,allpartsneedtobesourcedfromShanghai.ItusuallywilltakemorethanonedaytoShanghaitogetthoseparts,andthetransportationpriceisashighas2000RMBeachtime.Onlyforbigpurchaseworthmorethan200,000RMBwillthetripmakeprofit.Mr.Zhuthinksthatthepartscentreisnotwellorganised.Mr.ZhucomplainsabouttheadvertisementproviderofFAW,GuoAnCorp.Thisfirminvestalotinineffectivechannels,e.g.,makeadsinnewspaperswithbignames(AnhuiDaily)butseldomreadbytruckdrivers.Mr.Zhusaidthatifit'shetomakethedecision,he'dratherchooseAnhuiTrafficasmostdriversarerequiredtoreadthispaperwhentheyapplyfortrucklicenceinAnhui.2LocalmarketattackedbyotherprovinceslikeJiangsuandShandongLinyi.Mr.Zhuisnotagainstcompetitionfromotherprovincesaslongasthecompetitionisnotpriceoriented.Mr.ZhufeelsthatthedealersinAnhuimarketneedalotoftrainingintheirsalesskillsandideas.HethinksthebusinessmodelofAnhuidealersisreservedandout-of-date.IfFAWcaninvestsometimeandmoneyindevelopingthosedealers,astrongsalesteamcouldbeestablishedtodeveloppotentialcustomers.CapitalturnoverinAnhuiisnotwellorganised.Thereismorethan60MillionRMB'sdebtfromformerdealerstoFAW.Mr.Zhuthinksatleast40MillionRMBofthosedebtsisnotreceivableandsuggestFAWtotakequickaction,e.g.,lawsuit.ConclusionsJiefangtrucksarewellacceptedinAnhuiregionwithmarketshareashighas70-80%in1999.TheproblemisthatmarketsizeinAnhuiislimitedbyAnhui'spoormacroeconomiccondition.3