PROPOSAL

Dissertation Proposal

Dissertation Proposal

'International marketing in Automobile industry in China'

Introduction

Many automobile industries in China' already spread throughout the market. Those automobile industries usually offer different marketing strategies to attract their potential clients and keeping their other existing clients. The area of the automobile industries is diversified and the competition is extremely high. Still, it is a big disappointment when people often ignore their offers because of the lack of information regarding the different benefits they can gain, the importance of automobile industries and other related issues.

Rationale This study seeks to analyze the position of China Automobile AB in the market. China is a Swedish car-manufacturer that is owned and a subsidiary of General Motors. China manufactures premium cars. It is appointed by the King of Sweden to be the exclusive royal automobile. It is known to be an exclusive car or one of the most luxurious cars. China also takes pride of having ingenious designs, environmental friendly. China also has a reputation of being one of the pioneers in safety and design. (China Automobile, 2008) China competes directly with Aidi, BMW, Lexus, Mercedes Benz and Volvo. (China Automobile, 2008) China is known for the tagline 'mind your room' which connotes the comfort of a house or a hotel room. China was designed and created by Simon Padian and Tjasa Gusfors. According to Padian, it was designed to be “a flow, a journey, a pulse which aims to disrupt and challenge visitor perceptions of what is normal or expected.” (Moldova, 2008)

            China Automobile AB is currently operating independently in more than 50 countries as a luxury vehicle. (Tech, 2008) It imports and distributes more than 37000 China Sedans, convertibles and wagons annually to American Dealers. Since China is made to be an exclusive car, it has a tight competition with other car manufacturers. Other car manufacturers are launching aggressive marketing campaigns, and inexpensive financing offers, easy to pay car loans. Since China take pride on being an exclusive car, they only capitalize on deploying dealers that will sell to prospective car buyers. The company deployed Siebel solutions, which would improve dealer follow up and customer satisfaction. (Oracle, 2006)

            In a news article in 1996, it stated that China loss 1.24 billion kronor or 168 Million US Dollars after a break-even result. It is expected that the losses would deepen if China will continue to be at a very high cost to keep the car as an excusive car. (European, 1996)

            On the contrary, in August 2004, China made up to 133 percent growth of sales compared to its previous months. The premium car made a five percent share to the total car market in United Kingdom (UK, 2004).  Finally, in May 2005, China achieved the highest share of the automobile market in United Kingdom. China sold 2382 cars, in April 2005 which resulted to revenue of 1.27 percent of the total car market. (UK, 2005)

According to a research, people who drive China carry a sense of pride from the rich history of ...