Marketing Strategy Of China’s BAIC In Selling Electric Cars In Malaysia

You are required to select a country of interest (CHINA) to study in the context of international marketing. Once you have chosen the country you are most interested in studying, you should begin gathering information in the following topic areas: (write appendix in APA format)

• Compile THREE (3) things about your country that the rest of us probably don't know and which affect attitudes, consumption or everyday behavior in some way (How do people shop/perceive material goods/use products/blend religion and consumption/incorporate culture – eating, dressing, etiquette, etc.)

• Provide the basics a marketer would need to know about a country before entry. For example, GDP, population breakdown (demographics), type of market structure, major trading partners, major industries and so forth.

• Give examples of regulations or customs related to selling that are different from your home country and which are relevant to marketing (advertising laws, labeling requirements, and so forth)

• Address trends in the market you are studying that are likely to affect consumption in the future (For example, in India, more young people are living outside their parents homes before marriage. In China, one child policy and cultural preference for boys has led to 'little emperors' and a severe shortage of females)

QUESTION: Take a product available in your country of interest(CHINA) and propose a strategy for generating demand in your home country(MALAYSIA) (vice versa). Consider all aspects of marketing (7Ps) in your strategic plan. A SWOT analysis would be useful here. 

Introduction

This report considers the marketing strategy adopted by the electric car manufacturer, BAIC Automotive Group based out of China with its entry into Malaysia. An analysis of the internal and external factors that drive BAIC to penetrate the Malaysian electric car market under high competition and consumer trends is conducted. A SWOT analysis is conducted to determine whether BAIC decision to enter Malaysia is a good choice. Marketing mix analysis is carried out to analyze different strategies of BAIC to reach its customers. 

Company Background

With around 58 years of experience in the automotive industry, BAIC Automotive Group Co., Ltd. (BAIC) is one of the five largest automotive companies in China (BAIC 2015). Headquartered in Beijing, China and Turin, Italy, it has production bases all over China employing around 130,000 personnel. BAIC has the most comprehensive portfolio of products which includes a complete range of passenger to commercial vehicles. In 2014, BAIC achieved revenue of 311.56 billion RMB and volume of 2,401,000 sold units ranking it as a fifth largest company in terms of sales and profit (BAIC 2015). It is ranked at third in terms of brand value. In the Forbes Global 500, BAIC is ranked 160 (BAIC 2016). To ensure its global positioning, BAIC focuses on five activities which include the export of finished automotive and individual auto components, importing technologies, equipment and finished vehicles, product development and up-gradation, foreign investments; and international cooperation. BAIC's core business activity involves the development of reliable commercial, passenger, electronic and other types of vehicles. 

Internal Environment

The primary aim of BAIC is to offer vehicles that are equipped with user-friendly features, meeting global automotive standards and satisfy customer expectations. It operates under the motto 'Faster, Leaner, Smarter' (BAIC 2015). It combines its innovative spirit and its strong research and development capabilities to achieve the leadership position in technological advancement, business development and integrating global resources. It is expanding its territory across different countries with the goal of constructing 'Global BAIC' (BAIC 2015). This has resulted in the set of BAIC's networks across different regions – the Middle East, West Asia, Central Asia, Africa, South America and several other regions. 

Setting a strategic goal has enabled BAIC to attain its strategic goals to achieve internationalization of its business functions through talent acquisition, reaching global target markets, products launch, brand recognition and management.  BAIC's strategies are based on two focal points (BAIC 2015) – strategic business imperative which deals with developing target markets and managing the entire supply chain functionality and the profitable business imperative involving the export and import of automobiles, components and remodelling in line with international trade policies.

External Environment

The external environmental factors that impact BAIC's operations are its competitive scenario in the Malaysian electric car market, infrastructure, environmental concerns, and consumer trends.