MG & Roewe go down independent roads

SAIC passenger car sales regions reduced and the MG and Roewe brand separation

February 7, the day before the lunar New Year. SAIC employees in the field of passenger car company has started to go home to the New Year. While we are looking forward to the arrival of the Spring Festival holiday, afternoon, Chih-Hsin Chen emergency chaired the company marketing meetings.

Chih-Hsin Chen announced at: SAIC passenger cars organizational restructuring, the establishment of two new departments, market brand Roewe and MG Operations. At the same time, the previously eight sales regions reduced into five sales regions.

After the adjustment, the Roewe and MG brand will be a different team to operate, the purpose is to widen the differentiation of the two brand positioning. Including sales targets and sales strategy, brand operations and dealer management are concentrated to the newly established market brands Operations, the future will enhance SAIC's ability to respond to the terminal market and promote the intensification of market resources.

Brand bottleneck How solution?

The adjustment to be implemented from March 1, after adjustment, the original marketing communications and public relations department will be mainly responsible for the functions of public relations; the original sales more sales with the steering rear stocking commitments to the new department, sales plan development, logistics management and dealer training and supervision duties.

Compared with Shanghai GM, Shanghai Volkswagen's multi-brand independent mode of operation, MG and Roewe only on the sales and marketing functions of integration, including planning, planning, procurement, production, research and development, the two brands are still one oriented operation.

Reached 200,000 scale SAIC faced brand sales double upgrade to the moment, at this time, is very important to select a good pattern. "SAIC insiders told reporters.

After five years of accumulation, in 2012, SAIC contrarian growth, sales of more than 200,000, an increase of more than 20%. At this point, the SAIC passenger cars and a half years a CAGR of 59.3%, much higher than the average growth rate of 21.2% of the overall passenger car market is three times the growth rate of 19.1% in its own brand.

At the same time, most of the domestic independent brand car business sales of more than 200,000, the average price of basic stay around 5,000, compared to the target market is the low-end market level, SAIC average price reached 11,200 passenger cars, compete directly with the joint venture companies.

However, the SAIC brand is still facing a bottleneck in the development.

SAIC launched new products did not fully blossom - both Roewe 350 and MG3 two cars over a 10,000 monthly sales joy, the 750 market freeze sadly. The prevailing experience indicates that, at this critical moment, it is very effective to enhance the brand power brand power products to boost the force.

The separation of the logic

After two sub-brand Roewe and MG integrated operation, SAIC passenger car sales department is also responsible for the sales of the two brands, the marketing department at the same time responsible for the marketing of two brands, the country is divided into eight regions, each region has a regional manager, responsible for this area Roewe and MG brands. On the setting of the exhibition hall, the two brands is a separate hall in a second-tier cities, is a dual-brand consolidated sales in the fourth-tier cities.

The market brand Roewe and MG Operations, equivalent to merge the functions of the original sales and marketing departments. Marketing and Sales are aimed to increase sales, previously, marketing and sales, respectively, by two separate departments responsible for communication between costs and time costs do not say, the final decision can not fully take into account. Market the Ministry difficult to launch an activity suitable for all the needs of the regional market. Combination more closely with the Operations established market brand, marketing and sales, the market activities permeate to sales, accelerate the reaction speed of the end-market demand, so that precision marketing.

Such as sales staff in the process of contact with consumers, found that a region's consumers more emphasis on fuel consumption, the region publicity'll be able to cooperate with the fuel consumption of the products of local consumer demand. This also helps channel sink implementation of differentiated marketing for regional characteristics.

The new organizational structure, the dual brand differentiation operation can play a catalytic role. The market brand Roewe and MG Operations two separately functioning departments. Below for each department, has five major areas, Rong Wei and MG respectively to operate by a different team, double-brand distinction will become more apparent. Each of its responsible for brand positioning, develop sales strategy, dealer sales management and to promote the completion of the sales target.

A template is Shanghai GM

Beginning in the second half of 2007, Shanghai GM to adjust the organizational structure, the implementation of the brand division system. Original transformation for the brand, sales, after-sales business processes classification management mode according to Cadillac, Buick, Chevrolet and SAAB (since been sold in General Headquarters) four brands management mode, each brand from sales to brand management to after-sales service are concentrated in the division inside a brand management.

Shanghai Volkswagen Skoda brand from the introduction of separate operation early on with the Volkswagen brand. Based both operate independently of the implementation of multi-brand sales of a certain size, and shape a different image of each brand brand brands operate separately.

"Like the LaCrosse, Sail, Excelle, are based on the respective products as a selling point in the market get a huge response, but there are certain limitations to the product-oriented: any automotive product has a life cycle, even if the best-selling models exit the market, while the brand forever. "Prior to the general manager of Shanghai GM, Ye Yongming Shanghai GM's management structure has explained.

Brand division system implementation, Shanghai GM three major brands of clear positioning, Cadillac identified as covering the brand of the luxury car market. Buick more formal, wear a suit and wearing a tie gentleman, while Chevrolet is more casual, sport. At the same time, Shanghai GM marketing strategies by specific product-oriented to enhance sales and profits through the sales of the product, to shift grounds brand to promote products.

Chih-Hsin Chen, shape Roewe MG brand to its next phase of development is very important. SAIC has completed only advantage from A0 to A, A + grade, B and B + level, as well as the layout of the entire department SUV, and squeeze into the mainstream in the A-class car market, Chih-Hsin Chen does not want to see SAIC keep the A-class car market , but we hope to accomplish something in the range of more market.

Chih-Hsin Chen, now is the SAIC brand upgrade the critical moment. Roewe 950 and MG6, the former being faced by high-end official car market choice, if we can take this opportunity to get a place in the official vehicles market, whether sales or brand will be faced with a new upgrade. The latter functioning well, China's exports of automotive products to the overseas market is likely to be the most high-end products, but this is all brand support.

Enhance the brand at the same time, SAIC also boost sales. Realized 200,000, Chih-Hsin Chen have set for ourselves in 2013 240,000, plus the overseas market, SAIC passenger cars this year, we will strive to achieve 250,000.

The first day of work after the Spring Festival, Chih-Hsin Chen middle-level meeting chaired SAIC Passenger Vehicle Company, Chih-Hsin Chen new sales tasks given to the new market brand Roewe MG, Director of Operations the Tao (Finance Court), and Lin Jiayu, again were given to the five major areas. Chih-Hsin Chen requirements "I hope that the various areas of the market share increase.

Roewe future will be more particular about the atmosphere, Science and Technology, highlighting the classic elements of Chinese public relations director of the SAIC passenger cars Tang Yuejin told reporters after Roewe brand prominent characteristics of its own brand. Will continue in order to adapt to market changes, and MG with prominent British personality and sportiness, the Roewe brand chosen to return completely independent.

The prevailing experience indicates that, at this critical moment, it is
very effective to enhance the brand power brand power products to boost
the force.

The brand divided SAIC marketing differentiation

On February 20, the Shanghai Automotive who told reporters, held a day after the dealer meeting, SAIC passenger cars officially announced the establishment of the the Roewe brand operations center "and" MG brand operations center "message to the dealer.

This means that after five years on South cooperation, SAIC finally its two own brand Roewe and MG points and conquer, to form two distinct brands branch.

Resume an independent state, the main ideas in the next few years will be the means to build a brand unique attributes of the Roewe and MG. Of SAIC, this division and other own brand of multi-brand strategy is clearly different from the Roewe and MG will face mature transition from the initial expansion of market share to enhance the competitiveness of the system.

At the same time, according to the SAIC-based marketing system reform ideas, the previous eight sales regions divided will be reduced to five.

SAIC said that the purpose of these two aspects of the adjustment, first, to achieve brand differences in management, market operations in the decision-making power forward. The broader market on the SAIC (600,104, stock it), you can clearly see, followed by its joint venture car prices, independent brands are also more formal integration of the concept of brand management of the Department in accordance with SAIC, and from the market The pressure determines that this integration is an urgent need for rapid results in 2013.

5 years after "independence"

"This is mainly the sale of the business were separated before the marketing team has been separated, independent operation." The source said, the adjustment is the sales of the two brands and branding business integration in with to procure two complete brand operations center officially started its operations.

This marketing system reform aimed at "independent" has been started a long time, and the separation of the lead of the marketing team to test the water, but sales of Roewe and MG has been jointly managed, do so mainly taken into account in the management of the dealer the system will take some time to re-combing and distribution of power. Currently, in a second-tier cities, Roewe and MG network channels are separate, but in the third and fourth tier cities with double brand stores.

The first brand management system combing, Chih-Hsin Chen, general manager of SAIC passenger car company the first step in the implementation of its comprehensive plan. Chih-Hsin Chen plans across the 200,000 annual sales SAIC brand next to build a high-end brand image "to open up overseas markets to participate in international competition" to the development of new energy, which all need The distinctive characteristics of the brand positioning to support.
Roewe, MG, two initial co-flowing brand of British origin, were differentiated positioning is ready to go after a series of succinct experienced on South cooperation, localization and development.

In a previous interview, Chih-Hsin Chen had frankly, on South cooperation so that the the Roewe brand's localization switching early success of five years. Roewe and MG integration, SAIC had already begun to consider the need to have two different brand name of British origin.

Chih-Hsin Chen plans Roewe will be playing "atmosphere, elegant and high-end image and increase influence in the public and commercial vehicle market, especially the Roewe 950, the impact of government procurement orders this year. 350,550,750 SUV W5 Roewe system will also be in the new brand positioning under force. In fact, in the beginning of the birth by the concept of England market segments to avoid falling into the stereotype of cheap local brand, Roewe 950 body style, to the U.S. Department of the the W5 Korean line gene Roewe has now exchange rivers satisfied.

MG positioning will further highlight the stressed "masterpiece of England, driving since 85 years", Chih-Hsin Chen's words, is "To England, for in the end. MG brand vehicle production in Thailand in accordance with the end of last year reached a joint venture of SAIC and Thailand Chia Tai Group plans to enter the market to Thailand and other ASEAN Free Trade Area.

SAIC passenger insiders, large-area system reform is imperative. This reform has been in SAIC's Shanghai GM, Shanghai Volkswagen introduced and demonstrated their effectiveness. Five regions will be located in the Roewe and MG brand market operators subordinates changed to five regions, eight sales regions, he found that a regional sales manager responsible for the two regions will be changed each region a person responsible for a single set management will be more refined.

Most importantly, through the independent market brands Operations Region reform, branding and sales activities more closely with differentiated marketing of consumer and market characteristics of the different regions at the same time, so that decision-making power forward in the market . This theory Shanghai GM brand marketing system reform has been repeatedly demonstrated.

This system to adjust Chih-Hsin Chen, is essential. After breaking the 200,000 mark in 2013, Chih-Hsin Chen target set by SAIC brand passenger car is 240,000. From the current sales momentum, this goal is not a problem. But the real pressure is that the earnings target of 50 million yuan.

By the domestic automobile market multiple risk factors, 2012, SAIC's own brand failed to achieve the scheduled beginning of the realization of the target profit of 10 million yuan. In 2013, the joint venture brand dropping, lack of the market micro growth and consumer confidence in own brand and other factors will continue to exist. In order to achieve the profit target of 50 million, Roewe, strategy and market the MG brand high-end of the marketing system reform effect must be very to the force.

SAIC data show that in January of this year, the SAIC brand passenger car sales of 21,007, 11,001 increas compared with the same period last year, an increase of 90.96%.

snifferdog1 wrote:I dont understand any of that! Can someone please explain it to me in laymans terms!