Dongfeng Chaochao's Performance Re-innovates High and Seeks Twelve-Five Transformation

Recently, Zhang Shenghong, executive deputy general manager of Chaochai Sales Co., Ltd. announced at the business annual meeting: “As of the end of October 2010, the company sold a total of 189,915 units of machines, an increase of 29.5% year-on-year, and realized sales of 2.38 billion yuan. The company sold 220,000 units and achieved sales of 2.85 billion yuan, again creating a new record for Dawnwood.

Deepening market segmentation

In 2010, Chaochao established a good cooperative relationship with 30 major automobile plants, 28 machine dealers, and 15 export companies. In the year, a total of three basic new products were launched and 185 models of new prototypes were developed. The product basically covers the 34.5~125kW power section. In particular, the continuous introduction of QD80's four series, 4A series, four valves, four valves and other products, has made a significant change in product structure, product coverage is more extensive.

According to Gao Xianwei, Minister of Marketing of Chaochai Sales Co., Ltd., in order to dig deeper into the market and provide more targeted services, Chaochao Marketing Company adopted a strategy of segmenting the market and divided the market into three sections: trucks, passenger cars and construction vehicles. The truck market is a traditional position of Chaochao. In the first 10 months of 2010, Chaochao sold 163,300 units in the truck market, an increase of 28% year-on-year, of which 102 products were sold at 83,700 units, an increase of 2% year-on-year, and sales of QD products were 18,600 units. With an increase of 21%, sales of E3 products were 26,500 units, an increase of 15% year-on-year, and sales of 4A products were 1,600 units. In Dongfeng, Jianghuai, South Weike, Futian, Jinbei and other Chaochao's main supporting car factories, in 2010, Chaochao’s proportion of truckloads in the truck market increased by 23%.

In 2010, while ensuring the traditional market and continuously improving the nationalization of products such as 102, Chaochai launched the 41024-CE4C two-valve, 4102-CE4B four-valve, QD80, NGD, 4D115, and the fourth national product, covering a wide range of domestic Light truck area.

Zhang Shenghong stated that in 2010, Dynaset Diesel also had certain deficiencies in the truck market. First, the development of small-bore products towards Chaochai was relatively late, and the low user awareness affected market share. Second, in respect of old products, the market characteristics of Chaochai’s products are not obvious. For example, products in the northern market need to focus on cold start, and products sold in the mountains need to pay attention to differences in speed and torque with other regions. The third is the brand-new follow-up of the marketing concept and service concept of the high-end product market.

In 2011, Chaochai will improve the product structure under the premise of ensuring the completion of 180,000 units, respond to the small-diameter economy light-card market with 485, 490 products, accelerate the development progress of the National IV product, and cooperate with major auto plants to achieve 102 countries. , NGD State IV, QD State IV's full sales.

As of the end of October 2010, Chaozhou Diesel Engine Co., Ltd. sold a total of 6,510 engines, which represented an increase of 4.11% over the same period of 2009, accounting for 13.33% of the total domestic sales of 6 to 8 meters of passenger cars in the first 10 months of 2010. It is estimated that the sales volume of diesel engines in DPRK Diesel will be around 8,000 in 2010.

At the same time, the DPRK-Chailand 3rd and National 4th engines added 378 buses to the entire vehicle announcement and 92 bus chassis announcements. Ensure that Chaochao has sufficient announcement resources at each bus factory and chassis plant. In addition, in 2010, Chaochai launched the “Partner 2010” marketing campaign for the passenger car market. After a period of operation, it has played a significant role in promoting diesel engine sales.

With the relaxation of control over passenger cars in some regions, a large number of passenger cars equipped with EGR engines appeared in the small and medium passenger car market in May. Up to now, the EGR engine has become more and more popular in the passenger car market, and three high-pressure common rail countries Great impact. Chaochai began to gradually release EGR engines in the passenger car market in August 2010, 2 to 3 months behind the industry.

In 2011, Chaochao shifted the focus of its work to the bus chassis factory in the passenger car market to improve the direct sales of diesel engines for the North Korea diesel passenger car; the EGR engine will be the key promotion model. Expansion of the assembly of North Korea’s four-engine passenger vehicles at each passenger car plant; strengthening the promotion of Chaochao’s economic rail engine, gas engine, and NGD3.0 engine in the passenger car market.

In 2010, the sales volume of the special products of Chaochai Diesel Engineering Co., Ltd. increased significantly year-on-year. In January-October, 7,005 vehicles have been completed and 8,000 units are expected to be completed throughout the year. It increased by 8.17% year-on-year and its market share was 4.83%. The number of non-road dedicated engines has reached 8,286, and it is expected to complete 9,800 units in the year, an increase of 62.47% year-on-year. Chaochao 6102's market share is 72.37% in the 5-7 tons forklift market.

After one year's vigorous promotion of the diesel engines for the Chaochao Diesel Engine Project, a total of 23 production models equipped with the Dongchai Engineering Power were developed in 2010. As of the end of 2010, statistics for Dongchai’s newly announced vehicles include 56 low-speed car announcements and 89 dump truck announcements, which fully cover the OEM’s adapted vehicle announcements. Non-road-specific engines have established a market for small excavators and agricultural machinery while securing a 5 to 7-ton forklift market. At the same time, they have developed special 4D and 6D non-road products for the next stage of emission standards.

Of course, Chaochai also has some deficiencies in the promotion process of engineering power. Although the sales volume of special-purpose engines for construction vehicles has increased but the market awareness is still not high, the model promotion is not targeted, making no key model highlights and key regional advantages. .

In 2010, Chaochai also made remarkable achievements in overseas sales and service system construction.

Firstly, the stationed business representatives broadly developed and maintained overseas markets, and actively participated in the exhibitions held in various countries and regions. They further expanded overseas markets in Southeast Asia, South America, West Asia, North Africa, Middle East, and CIS regions, and combined them with small ones. The share of the area is fully advanced.

Secondly, in the construction of the service network, Dongfeng Chaoyang Diesel Engine Service Center was also listed in six countries in Vietnam, Venezuela, Peru, Myanmar, Russia and Angola. It also dispatches overseas service personnel to joint service to satisfy customers and further enhance the quality and timeliness of DCD engine's overseas service.

Maintain high quality and constantly challenge yourself

Zhao Haigang, deputy general manager of Chaochai Company and general manager of marketing company, said when talking about future development: “The 50-year journey of Daw Chai tells us that continuous innovation will continue to challenge itself and surpass the existing thinking mode to realize new Daw Chai’s Soaring, and the country's "Twelfth Five-Year Plan" outlined in the plan to accelerate the strategic transformation of economic growth and enhance the relevant requirements of energy-saving emission reduction, we all require that we must continue to challenge ourselves, to achieve a breakthrough, the DPRK to adapt to this large The trend will make important adjustments during the 12th Five-Year Plan period."

Zhao Haigang disclosed the main content of the adjustment. The first is to consolidate and improve product quality, and continue to build and maintain high-quality power product image.

Based on the development of the Chinese automotive market, Zhachai must establish a product image that fosters high-quality power. Starting from the technical strength for speeding up, it must focus on ensuring product quality and reliability, establish a high-quality power product image, and satisfy China’s auto industry grouping and engine liberalization. Need for international competition.

For a long time, when it comes to technology, the engine factory likes to say that its own technology is consulted by a foreign consulting company. This just shows that the independent brand does not have the core technology, but it is self-congratulatory with the possession of others. With the infiltration of foreign brands, independent brands must establish a new concept of corporate competition, Chaochao will choose the high quality of the competitive strategy.

The second is to increase the brand power in the market segments and strengthen the profitability in the market segments.

The national "Twelfth Five-Year Plan" will promote the development of China from a large automobile industry to a strong country. To this end, Chaochao has formulated a detailed “Twelfth Five-Year Plan” strategic plan to ensure that Chaochao’s brand influence in the market segment is focused on, and to strengthen profitability in the market segments. Chaochai currently has excellent products for light trucks, quasi-medium cards, light passengers, pickups, high-end light passengers, and high-end light trucks. With the development of China’s economy, the demand for the automotive market has undergone profound changes. The consumer psychology of low price and high quality has been transformed into a demanding and inexpensive demand mode. Even in certain market segments, Wumart is the only standard. This is also the basis for Chaochai’s development to “enhance the brand in the market segment. The strategy of focusing on strengthening the profitability of market segments has enabled the implementation of the strategy.

The third is to diversify the company's operating capital, achieve the goal of listing, and strive for the development of greater capital space for enterprises, while actively promoting the modernization of corporate governance reform.

The state has clearly defined the direction of state-owned enterprise reform. It is a direct market-oriented reform under the state-owned system. It relies on the reform of the capital market as a public company, and realizes the diversification and marketization of state-owned enterprises and the capitalization of state-owned assets to strengthen the operation of the capital sector. Strengthen the ability of enterprises to adapt to the market. With the reform of the enterprise at the capital level, the management of the company will be more open and competitive. In the marketing field, it will strengthen the marketing capabilities of the terminal market and face the market with a more positive attitude.

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