Analysis of Strategic Marketing Context and Challenges to Successful Strategic Marketing

This report provides an analysis of the strategic marketing context and critical evaluation of challenges to successful strategic marketing. It includes a situational analysis, company analysis of BYD Energy, competitor analysis, customer analysis, and strategic marketing options for BYD Energy. The report also discusses the challenges facing BYD Energy in the future.

Analysis of strategic
marketing context and
critical evaluation of
challenges to successful
strategic marketing

Table of Contents
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
Analysis of strategic marketing context and critical evaluation of challenges to successful
Strategic Marketing..........................................................................................................................4
Situational Analysis....................................................................................................................4
Critical company analysis of BYD Energy .....................................................................................5
company’s mission/vision...........................................................................................................5
Directional and Growth strategies:..............................................................................................6
Competences and competitive advantages..................................................................................6
Resource Based...........................................................................................................................6
Critical Competitive Analysis .........................................................................................................6
competitor profiling....................................................................................................................6
Strategies.....................................................................................................................................7
competences and competitive positioning..................................................................................7
Critical Customer Analysis .............................................................................................................8
Key target customer segments, behaviours and value sought.....................................................8
Customer behaviours and trends analysis...................................................................................9
Critical Strategic Collaboration & Contextual factors/issues..........................................................9
key market structure....................................................................................................................9
Trends........................................................................................................................................10
Analyse BYD Energy’s strategic marketing options and planning in future.................................10
Module's key topics...................................................................................................................10
Consideration of the challenges facing BYD Energy in future.................................................13
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Strategic marketing is a methods through which an business differentiate itself from
competitors in market by focussing on industry's strength to offer better good and services and
effective values to consumers. The process of strategic marketing involve in planning to setting
target objectives and goals, analysing external and internal factors, planning of product,
implementation and progress tracking of business. This report based on BYD Co. Ltd, it is public
company based in Shenzhen in China and founded in 1995. basically they manufacture auto-
mobiles, buses, solar panels, battery powered bicycles, trucks and etc. they provide their services
and products in different countries. The below report includes the situational analysis, critically
analysis the BYD company and competitors in market. Analyse the customers which includes
their behaviours and their trends, key market structure and market trends. Analyse BYD energy's
strategic marketing options which includes the module's key topic and challenges facing by BYD
in further (Zhang, 2019).
MAIN BODY
Analysis of strategic marketing context and critical evaluation of challenges to
successful Strategic Marketing
Situational Analysis
This is based on market situation and company situation which is describe as below:
Examination of company
BYD Co. Ltd is a public industry and they manufacture Chinese auto-mobiles, buses,
bicycles, solar panels and etc. they has two main subsidiaries one is BYD Electronics and
another is BYD auto-mobile. BYD industry is high tech devotes to innovations in technologies
for better life. They has played important role in electronics industries, rail transit, new energy
and etc. from the generation of energy and storage to its applications, this industry dedicated to
offer solutions which are zero emission energy. In 2019 they generate 64.9 billions (Zhai and Li,
2019).
Competition
In market there are two main competitors one is CHERY Auto-mobile Co. Ltd and
another is FAW Group. CHERY is a manufacturer company dealing in Auto mobile and

Engines. Company founded in 1997 and they provide their services and products in various
countries. CHERY focus on developing international and domestic markets. They cover 80 plus
countries for their sales and network. In 2019 they generate 2.2 trillions revenue US dollar in
total market. FAW Group is Chinese state owned auto-mobile manufacturing industry based in
Changchun in China, this founded in 1953. they provide buses, trucks, Automotive Components
and etc. they serve their products and services in china, Eastern Europe, US and Myanmar. In
2019 they generate 25.7 billions yuan. But in current scenario Tesla cover more market and this
industry is biggest competitor of every auto-mobiles industries, company based in US but they
give tough competition in different country (Wu, Yang, Hu, Wang and Huang, 2018).
Customer
BYD company mostly target various business who deals in Auto-mobile sectors and
potential customers in market. BYD have loyal customers and their reaching rate is high in
market. Mostly they target audience on the basis of age groups like young age group more
attracted towards the auto mobile industry.
Collaboration and context.
BYD company and Hino Motors, Ltd signed a agreement of strategic business alliance
both focusing on collaborating in battery electric vehicles development which is commercial.
Both focus on quality of products so they can provide beat fit goods to customers in specific time
frame. With collaborating both companies utilizing their experience and knowledge. Two
industries will cooperate in retail and in similar business which will promote the BEV( battery
electric vehicle) adoption. Chinese and Japanese companies cooperation will give advantage the
commercial vehicle electrification development by introducing technology which is leading and
provide rich experience (Wang, 2020).
Critical company analysis of BYD Energy
company’s mission/vision
Vision: BYD industry's vision is to lead technological developments and innovations in China
Automotive business at BYD dreams gala. They also become most valued automotive industry in
world (Shang and Choi, 2020).
Mission: BYD mission is to modify the world by building a clean and complete energy
ecosystem that helps in reduce the reliance on petroleum in world. The innovative products of

BYD are leaders in various sectors, including buses, auto mobiles, forklifts, electric battery and
etc.
Directional and Growth strategies:
Directional in BYD industry is to discharging and charging technology, the first of its
benign in the world. Allows the through connections between the vehicles and power grid, also
in between appliances and vehicles. In non peak time,people use grid to charge vehicles and
outlet the energy in batteries. Their growth strategies are to focus on innovations in products as
per market trends and requirements of customers. BYD company have lots of competitors in
market so they focus on quality of products and also conduct survey in market or through digital
platforms so they get to know customers needs and wants. In Auto mobile sector modification
must for regular growth of company (Schmid, 2020).
Competences and competitive advantages
The abilities of BYD industry is manufacture automation products in good quality and
they introduce new or innovated goods as per market trends and customer's needs. BYD
develops its competitive benefits on less price R&D strategy, 10% of their workforce are
engineers who are completed graduation from Chinese top level universities. Imitation strategy
based combined with less R&D price strategy and innovation cycle in the business of cars for
BYD is previous three years.
Resource Based
The main resources BYD industry have is BEV( battery Electric Vehicle), BEV refers to
the fully electric base vehicle with batteries rechargeable and no gasoline engines in that. BEV
store their electricity onboard with high level capacity packs of battery. Battery electricity
vehicle charged with the support of electricity which is from external source.
Critical Competitive Analysis
competitor profiling
There are basically three competitors of BYD industry in market that is describe as
below:
CHERY Auto-mobile: This company deals in engines and auto-mobiles based in Wuhu
china. They always adhering to new technology driven strategy, building a vehicle brand image
with competitiveness on international base and also influence its vision of corporate. Chery has

become first public passenger vehicle industry in china to master the new technology of gearbox,
chassis, platforms, engines and new energy and also the first one who export their vehicles and
their equipments parts to other areas in world. They carry out various social contribution
activities such as green development social welfare(Quan, Loon and Sanderson, 2018).
FAW Group: This company is based on automotive founded in China and they serve
products in different countries such as US, Myanmar and etc. they serve variety of products like
buses, trucks and etc. this industry is oldest and largest auto-mobile manufacturers in china. They
established a global R&D layout and organised a team of R&D with 5000 plus technologies
which is on top level.
Tesla Inc: This company is an American electric vehicle and clean energy industry based
in Palo Alto in US. They serve their services and products in different countries and they have
various types products such as electric cars, battery energy storage from the home grid scale,
solar roof tiles, solar panels and etc. this organisation founded in 2003 and company have good
brand image in market. They explore more market on regular basis and in market their reaching
rate is very high, company cover potential customer's market.
Strategies
CHERY Auto-mobile: This company have development in products strategy which
includes in increasing the sales by improving current goods or new products developing as per
current scenario in market. Their Micro car model has been achieve success on high rate in
market by its less cost, less use of fuel consumption and also fashionable design.
FAW group: This industry use different strategies to develop their services and products
in effectual manner and they have different competitors in market as per other;s strategies they
modify their marketing and other strategies in effective manner.
Tesla Inc: This organisation is to enter at high level end of the marketplace where people
are prepared to pay the amount of premium and drive down the market as soon as possible to
maximum unit volume and lesser cost with every successive model. Tesla's broad strategy id
differentiation is a play for long term with a focusing on electric auto-mobile based on
automation, technology in batteries and products which is eco friendly like solar roof tiles.
competences and competitive positioning
The abilities of above companies some how are similar, CHERY Auto-mobile introduce
first passengers car in market and this company is on 10th level in largest auto-maker in china.

Company has various vehicle assembly and elements manufacturing facilities in mainland based
in china (Quan, Loon and Sanderson, 2018). FAW group is on 4th level in auto-maker and
industry ranked at third in output terms. Organisation has three publicly traded subsidiaries such
as FAW car Co and etc. Tesla have various abilities in hardware terms, company's autopilot
provide advancement in driver assistance system features and facilities which is offered by Tesla,
that has way centring, self parking, automatic lane changes, semi autonomous navigation on
small-scale access free-ways,traffic aware control and they have capability to summon the car
from parking and garage spot. Competitive positioning as per their growth rate and brand value
in market Tesla Inc ranked on first because in current scenario this company give tough
competition to every business and they cover market in maximum number. Tesla's reaching rate
is high in market. On second rank FAW group because this company achieve 4th rank in market
by providing good quality products and services, also they have trade subsidiaries. On third
ranked CHERY company, because this organisation achieve 10th level in market, company
popular among the people the reason behind is first passenger car but this is not give tough
competition to BYD company.
Critical Customer Analysis
Key target customer segments, behaviours and value sought
STP Approach:
This approach refers to the marketing which divided in three aspects such as
segmentation, targeting and positioning. This model assists the craft of marketers their messages
and improved and deliver plain and relevant outcomes that engage segmented, target customers.
This approach also helps in digital strategy developing for content marketing.
Segmentation: In market business wants to identify the potential peoples and convince
them to purchase. BYD company focus on analysing the market trends and observe customers
who are perfect for this organisation. As er customer's needs company develop their strategies
and products also(Pereirinha, González, Carrilero, Anseán, Alonso and Viera, 2018) .
 Demographic segmentation: In this segmentation, marketplace will be divided on the
basis of demographics that involve in gender, age group lifestyle, income and with the
consideration of this the organisation will utilize the all type of age as their potential
consumers to sell their goods and raise the sale in the marketplace. Lifestyle of the

individual people will be depend on their individual income that should be $ 7,000 to $
15,000. This will assists in increasing their living in an better way. BYD company's
energy is producing storage for renewable strength and this will needs huge capital
investment so it is essential for an individualist to have effective income level to make
the buy of these goods. It also assists in creating the best use of different these appliances
and utilize of renewable origin of energy.
 Psycho-graphic segmentation- In this segment the people will be divided on the basis of
their beliefs and behaviour, also shared values of an individualist. It is the major
consideration of the people on which they react and respond. industry is manufacturing
renewable sources of energy and reaching the values of people of protecting the
environment by utilizing renewable energy.
Targeting: This part focus on size of market, segment need to identifiable and distinct. In
context of BYD company, they target different types of people in market as per their age group
and their expectations.
Positioning: This helps in map the variables discuses in the targeting and segmentation
stages and explain the space where your providing resides relative to the various competitors in
the potential customers point of view.
Customer behaviours and trends analysis
In current scenario customer's needs and expectations are changes on regular basis, so
business provide according to the market trends and people's wants. People have more
expectation towards from BYD industry, they modify the automation products as per different
trends in market. Company target various age groups for their goods and services. Their reaching
rate is very high in china because if their quality and their brand values. Customers are more
attracted towards the automation products because these are eco friendly in nature and also zero
fuel consumption. Current trends in market is every one wants automation goods and their
services because it become more popular day by day and environment friendly. Mostly youth are
targeted in this business(Mayyas, Steward and Mann, 2019).

Critical Strategic Collaboration & Contextual factors/issues
key market structure
There are basically four types of market structures such as perfect competition, oligopoly,
imperfect competition and monopoly. BYD industry is based on perfect market competition
because they competitors in large numbers in market, and oligopoly because in this market
structure is dominated by only a small numbers of industries in marketplace. This company
announced to separate its automation electronic division fro rest of the operations to reach
challenges in market for their AEV business. Largest alternative energy vehicle and power
storage battery manufacturer in china (Kunamaneni, 2018) .
Trends
In current scenario every people wants automation products and their services because
these type of goods are easy in use and also environment friendly so each customers prefer
automation cars, buses, trucks and other products also. Expanded utilize of machine vision, new
applications for auto-mobile sector, grasping advancement and continued success of
collaborating with another companies.
Analyse BYD Energy’s strategic marketing options and planning in future
Module's key topics
Strategic marketing refers to the all the strategies that company use in order to
differentiate its business from the competition in the industry. Organisations use their strength to
provide better services to their customers. Strategic marketing is an long term planning for the
growth and better profitability in the future. The fundamental goal of strategic marketing is to
provide achievement of sustainable competitive advantages by the understanding of needs and
wants of customers. Below are some strategic marketing models that could helps BYD Energy’s
in better understanding of strategic marketing and its importance for better growth(Ji, Z. and
Huang, 2018) .
International marketing strategies:
Global strategies refers to the adjusting the marketing strategies of business to adopt the
conditions of other countries. International marketing is just not about selling products and
services in other countries but it also explain the various strategies that company made for the
competitive advantages in the global market. International marketing strategies helps business to

gain more benefits and growth by increasing the market at international level. In the context of
BYD Energy’s company could make various strategies for its international growth and
expanding the business in other countries. International marketing strategies assist company in
the better future growth so that they can increase the level of profitability. Below are some
strategies that company can use for the international marketing strategies in order to gain better
profitability and future growth.
 Effectiveness of product and services: Better product and services of the company can
help in future growth and increasing the sell of product. In international marketing
strategies BYD Energy’s can use this factor for the effective future of the firm in
international market. Providing effective product and services of BYD Energy’s can
increase its sell in global market. Company is truly dedicated to provide an actual zero-
emission ecosystem technology for the solar electric generation, also energy storage to
reduce the use of electronics and batter electronics vehicles powered by clean energy. Fir
the better growth in global market company can introduce new electric automated
vehicles so that it can attract more customers. This products and services of the company
can make huge impact on its global business strategies. New innovation in the services of
the company helps in better achievement of goals and objectives and increase the level of
effectiveness in global market(Enyedi, 2018).
 Strong competitive advantages: International marketing strategies helps in creating
strong competitive advantages for the business and its future growth. BYD Energy’s can
use their innovative and sustainable products company can gain better competitive
advantages in the global market. Effective product and services helps the company in
better achievement of its strategic goals. BYD Energy’s can effectively use global
marketing strategies for the better growth and achievement of competition advantages.
Company should understand the global competitive environment in order to have better
understanding about its and how can they make an most effective marketing strategies at
global level. This analysis helps an organisations in better understanding of global market
and effective strategies assist company to make an appropriate international marketing of
the product and services of the company.
 Increasing customers awareness: In international marketing of product and services it
is very essential that company must make sure that their target customers are well aware

about all the product and services they offering to them. Customer awareness is
important aspect of how company can deal with its current and future profitability rate.
BYD Energy’s can make an advertising program that increase awareness about all the
products and services of the company. BYD Energy’s can make strategies according to
the international market of the countries, it assist the company about all the factors and
aspect of the global market that can increase the level of global services.
Thus, international marketing strategies helps the company to grow and make better
future growth in the market. BYD Energy’s is an international organisations that serves its
product and services worldwide and it is very essential for the company to make international
marketing strategies so that they can understand about the various aspect that can helps in future
growth and accomplishment of determined objectives of the company.
Social & Ethical Strategies:
This strategies helps an business operation to make an positive impact on the mind of
customers and society, the main of social and ethical strategies is to make an responsible
business environment. This ethics and strategies helps in better achievement of organisations
goals and objectives in order to make better impact by the various strategies. In the context of
BYD Energy’s company is concern about the all environmental and social factors so that they
can build better future for young generation. They are focused on making more sustainable
environment for the country so that it can improve the future of the company. Below are some
ethical and social strategies that company use for better future growth (Du, Meng, Li, J., Wu,
Song and Ouyang, 2018) .
 Ethical sourcing: Business that are concern about ethical sourcing and social welfare can
often focus on sourcing and supply chain so that they can provide better social welfare.
BYD Energy’s company is focused on management of social and environmental
protection so that they can improve level of productivity in the business and provide
better achievement of goals and objectives. Company use ecosystem technology that
increase the level of productivity and better environment of the company. Ethical
sourcing in business improve quality of products and services that increase the level of
profitability. Use of sustainable business production helps company in growth of future
and current market.

 CSR: In this companies are focused on social and environment concern, so that they can
helps in better protection and care of environment and society. BYD Energy’s is also
focused on make an positive impact on society and environment, they work on practices
and policies that undertakes in order to make better environment. The objective of
company is to provide sustainable business environment to the country, they analyse the
needs and wants of customers and society so that it can increase the level of sustainability
in their business and increase the level of profitability. Corporate social responsibility
refers to the all the practices and policies that company make in order to fulfil all the
responsibilities towards the society and environment(Choon, 2020) .
 Environmental impact: Social and ethics strategies are also refers to the all the aspect of
business that provide better protection to the environment. The environment concern of
BYD Energy’s is one of the major factor that enhance its strategy and capabilities in
order to maximise sustainable business. Organisations is making environment friendly
products and increase the level of sustainability in their business. The solar energy plants
reduce the level of electronics uses so that it can help in better environment protection
and growth.
Thus, all the factors of ethics and social strategies could assist company's future growth
and sustainability. This aspect company can use to enhance its national and global market. It
could increase the level of profitability and increase level of customers base.
Consideration of the challenges facing BYD Energy in future.
The company is well established and and growing in the technical market but there are
various challenges that company could face in order to increase its growth and sustainability.
BYD Energy can face huge challenges by policies and rules of china's government, the
government support high energy density per unite battery uses in its domestic market. The
battery of respective company is not able to meet those requirements and demands of
government. But to deal with this challenges company innovate new batteries with high level of
energy ternary li-ion batteries. But the company could face high level of competition in future in
global and international market. Competition in the market can reduce the effectiveness of
company, so to deal with this challenge company should make better innovative product so that
they can attract more customers towards the brand. Company can enhance the quality of product
and services that can provide better competitive advantages.

Maintaining innovativeness in the company can also be huge challenges because in future
company have to make more innovative product and services so that they can attract more
customers and increase its growth. Changing nature of customers buying behaviour could be an
future threat for the company. In future target customers of the company could have different
needs and wants from its product and services, so BYD Energy should focus on more creative
and sustainable products so that it can assist in better future growth in national and international
market(Chinese, 2019) .
Thus, from the above information it can be understand that company has various
challenges in the future that can impact its business and profitability. To deal with those
challenges BYD Energy can make better innovative product and services and can provide
customer better quality products so that they can increase the level of loyal customers in the
organisations. Company can use this for better growth and innovation in the market that can
helps in better growth.

CONCLUSION
It is concluded the above report, as per analysed case study they have various abilities
and their products and services quality is also good. For more developing their services and
products company need to analyse various aspects which is important for future growth.
Collaborating with other company helps in providing resources which is effective for
manufacture process and production. It is essential to meet the customer needs and their
expectations through this company can hold customers for long period of time and also build a
loyal relationship with them. Analysing the competitors in market assists in providing extra
benefits in growth and manufacture. Company target focus on targeting different age group
people to improve their sales. To over overcome from challenges industry needs effectual
strategies which is suitable for marketing and production process so they reduce barriers in
business.

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