Strategic Marketing Theory and Models for BYD

This report discusses the appropriate strategies of marketing theory and models implemented by BYD, challenges faced in implementing strategic marketing models, and key modules for maintaining relationships and international operations.

PROJECT

Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Appropriate strategies of marketing theory and models to examine the sector, the market and
the company.................................................................................................................................3
Challenges that the company is facing in implementing the strategic marketing models...........4
TASK 2............................................................................................................................................7
Key modules................................................................................................................................7
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Strategic evaluation requires obtaining relevant information for gauging performance, analyzing
it, and then taking the actions to stay on track. The marketing executive is continually monitoring
performance, and often they must revise their strategies to adjust to changing conditions. BYD is
a Chinese manufacturer of automobiles, battery-powered bicycles, buses, forklifts, solar panels,
rechargeable batteries, trucks, etc. with its corporate headquarters in Shenzhen. It has two major
subsidiaries, BYD Automobile and BYD Electronic. It was founded in February 1995. This
report contains topics which gives a brief introduction of strategic marketing theory with the
models that are implemented in the company as a strategy of growth. Other than it this report has
covered different types of analysis of the company such as company analysis, customer analysis
and competitor analysis which has helped the company to form its strategies on the basis of it so
that they can achieve growth and success. In another task two strategies has been assessed which
will help the company to maintain relation with others and maintain their operations on an
international level (Sahaf, 2019).
TASK 1
Appropriate strategies of marketing theory and models to examine the sector, the market and the
company.
Strategic marketing theory helps the business to focus on their target audience. The company
will choose a specific market after the analysis through which they can divide the segments and
assess which are the most viable for them so that they can offer their services.
Literature Review-
VRIO Analysis-
According to (Lancaster and Massingham, 2017) the product that is offered by the
company adds value which is why they are able to claim the level of opportunities and there are
less amount of threats for them. The resources they use are energy efficient that is why they are
valuable through which company increases their value. This is achieved when the company is
able to make the product in an unique manner with low cost. If they are not able to achieve it
then they won’t be able to comply with the situation of competitive advantage. It is necessary

that mangers of BYD assess and review the value of the resources constantly. Resources that are
used by only few companies in the market are believed to be rare. The use of BYD of these
resources have made them gain competitive advantage in the market. There is an aspect of
competitive parity where more than 2 companies uses same resources which must be neglected
so that the aspect of rare resources can be maintained.
Energy efficient resources are costly to imitate for any other business and offering them
at a low price is another difficult task. There can be two ways in which product offered by BYD
can be imitated that is duplicacy or substituting it. It is difficult for the other companies to imitate
it as BYD has competitive advantage over them. Other than this resources took a lot of time to
develop which is why they are expensive. As per the view of (Keegan and Rowley, 2017) if the
resources are organized then the value will be captured to it. It is necessary that they assess and
keep their system of management organized with it they processes, policies, structure and culture
of the organization so that they can work up to their potential. Only this way they will be able to
achieve competitive advantage.
Ansoff Matrix-
In accordance with (Ghosh, 2017) there are four aspects to this model through which
evaluation of market is assessed and decision is taken by the company. in the penetration of
market the company will focus on selling the products they deal in into the markets they already
offer..There are four objectives of this aspect one is to increase their share in the market. BYD
can keep their prices competitive and focus more on promoting the brand. Also if this does not
work they need to restructure the market by taking out all of their competitors. In order to do that
they need to implement more aggressive strategies of marketing so that they can steal the
customer of their competitors. Also they can offer them schemes of loyalty and they deal in the
same market which states that they do not need to invest more in it. Another aspect of this model
is Market Development in which company has to sell their batteries in the market that are new so
that they can achieve growth. They can export their products to other country or use channels of
distribution that are new so that they can increase their sale. Also in order to enter into new
market they will have to keep their pricing attractive so that they can grab their attention.
Because they are entering into markets that are new this involves risk.

On the basis of (Erkollar and Oberer, 2016) another strategy of this model is product
development where BYD will have to come up with new products into markets they are already
serving in. it is necessary to increase the appeal of the brand. This is suitable for the companies
such as BYD as it demands that product sold by company must be differentiated. The last aspect
of strategy of growth is diversification which demands that company has to enter with new
products into markets that are new. This is the riskiest among all the aspects as they have to deal
with both the aspects that are new. In order to gain success it is necessary that BYD have
analyzed the market so that they can form the strategies on the basis of that.
Challenges that the company is facing in implementing the strategic marketing models
As per the view of (Enckell, 2016) there are many challenges that the business faces in
implementing the methods such as it is weak in the area of market development and
diversification and the reason behind it is that in order to bring change daily activities and
processes of business also needs to be changed. This will create difficulties as for that company
will need to make a lot of changes in their structure. Other than this the model of Ansoff does not
evaluate the activities that are undertaken by competitors of the company which creates more
risk as the managers of the company do not have the knowledge of the market and any changes
made by them in the product can be a failure if it does not meet the needs and wants of customer
and the money and time invested in the business will be turned into a loss. Another downside of
this aspect is that it plans only in the optimistic manner which is a drawback as every aspect has
a negative side which needs to be assessed. The predictions that are made with the help of this
model does not turn out be right because it has not analyzed the market. Also the objectives of
the business conflicts with that of stakeholders of the company.
Other model which can be implemented by the company is of VRIO Analysis and for that
challenges are different as for the companies that are operating their business or department on
small scale they are not able to keep up with the measures and requirements of it as they do not
have resources that will be enough in order to achieve competitive advantage. Other than this it
does not give knowledge about the external environment of the company which is a risky
measure and does not work as a efficient measure for the company.
Company Analysis-

Mission
The mission of the company is to bring technological innovation so that they can build better
life.
Vision
Vision of the company is to change the world by creating a complete, clean-energy ecosystem
that reduces the world's reliance on petroleum.
Growth Strategy
The growth strategy of the company to dominate the market is to make place in EV
market and takeover the share of other companies. They have announced that they are going to
acquire five new companies under Fudi so that they can increase the sales of electric components
and taking the shift of their lithium-ion battery from the supply that is internal. Other than this
they will introduce new generation of batteries which goes by Blade Battery. They have also
stated that they have begun the production at mass levels. For improving their future portfolio
they have improved the density of the energy and reduce the cost of the pack of LPF battery. If
they establish the Fudi battery successful then they will be able to make their sales on a large
platform through which they will be able to bring advancement in technology and achieve
competition (Leung and Mo, 2019).
Competitive Analysis
Two key competitors of BYD is Tesla and Samsung SDI. Tesla is known for their electric
vehicles and their long lasting batteries has made the car successful. Now BYD wants to enter
into the segment of electric vehicles which is in trend and future of the automotive industry.
Other than this Tesla has successful in earning the trust of the audience because of their other
activities which has helped them to raise money from the market. Other than this Samsung SDI
is known for their batteries and automotive features as Samsung is the one that brings innovation
into the market above all.
The competency of Samsung SDI is to improve and enhance the level of R & D so that they can
focus on satisfying the needs of the customer by keeping their focus on developing the

technology that are new with the help of their innovative culture so that they can obtain more
growth for their future prospects in the line they serve which is battery business (Pham and et.al.,
2019).
Competency of Tesla is to bring innovation into the techniques of manufacturing which helps
them to make the process of engineering vehicles easier and power train it. On the other hand the
distinctive level of competency of Tesla is technology of battery pack, distribution and design of
safety. It is with the help of competencies that they have been able to design the structure of their
business to be the king of the segment and gain advantage over their competitors.
Strategies
There are different and various strategies used by Samsung SDI such as sharing the
values with the stakeholders. Enforcing the safety of the products again and again so that it can
be evaluated and managed. It also complies with the principle of laws that are global and
principles that are anti corrupted. Building the safety of workplace other than this chain of supply
is managed and sustained. The most important strategy used by the company is that it reduces the
level of utilization of energy which is renewable.
On the other hand strategy of Tesla is to serve in the market that is high end so that they
can serve to only those who are ready to pay more for quality oriented products and establish
their base of customers as soon as possible to the volume of unit that is higher and keep the
prices of it lower and for that it is necessary that each model becomes successful in the market
(Schiavone and Simoni, 2019).
Customer Analysis
STP
Segmentation
This aspect is done on the basis of dividing the market on the basis of geographic,
psychographics, demographics and behavioral. This is done so that BYD can increase their value
and gain advantage in the market. The strategy used by the company makes it difficult to serve in
the markets that are small. The approach used by the company is analytic approach so that they

get the right information and form strategies on the basis of it. The key target customer segment
of the company is on the approach of psychographic segmentation.
Targeting
Targeting is considered to be the follow up on segmentation. With the help of this aspect
BYD is able to select a particular market and promote their services with the help of modern and
traditional approach such as print media, newspapers and online medium so that they can
increase the reach of their brand. The company use cookies which helps them to get information
of the potential customer such as their interests and keep poking them about the products and
services offered by the company. For instance if someone is looking for car then the company
will target them to their page so that they can get to know about their product offered. This helps
to motivate the buyer into making a purchase (Macnamara and Gregory, 2018).
Positioning-
This aspect is crucial for BYD because if they are not able to position their brand in the
right manner which sets to meet the eyes of the customer or perceive them as a brand in the
market then the company will not be able to gain advantage over others in the market. The
positional strategy used by the company is functional positioning so that they can meet with the
needs and wants of the customers. The strategy used by the company helps them to gain value
from their competitors so that they can communicate with their customers with different
strategies.
Trend Analysis-
In order to analyze the trend of the market BYD has assessed and evaluated the measures
that have changed with time. With that they have been able to understand the factors that what
drives the change in needs of customers with time and what it will be in the future. It is necessary
to assess with the resources available in the future and forces of the market are calculated so that
right decision can be made. This is the reason why BYD is shifting from batteries and entering
into new category of product that is electric cars as it is the future of automobiles because with
time gasoline will become extinct and if they establish their place with time in the market then
they will be able to cater the needs and wants of people. This way BYD will be able to match

with the trends of the market and customers because they assess it on the patterns and behavior
of the customers (Osovtsev, Przhedetskaya and Sagidullaeva, 2018).
TASK 2
Key modules
Relationship Strategies
Networking-
This is considered as a powerful medium when it comes to assisting with managing
relations and making techniques. This helps the company in many prospects such as maintaining
the awareness of the brand in the market and through that company is able to change their base
of customers.
Cherish customers-
It is necessary that company makes sure that the team of sales are trained up to the
required level so that they can make customers feel welcome and every interaction makes them
feel that they are valued. This can help and benefit BYD in the long run and the more they keep
them recognized more they will feel valued. This helps them to be the promoters of the brand. It
is necessary that company uses tools of social monitoring such as Brandwatch so that they can
assess the impact of it (Lim, Jee and De Run, 2020).
Listen to the customers-
Many businesses listen to the advice of the customers but most of them do not follow up
on it which is where they make mistake. It is necessary and important that action is taken and
they are responded on the basis of it. If action is taken on the basis of their demand then they will
remain loyal to the company. If their concerns are addressed then they will be able to notice the
level of improvement in sales (Wanjiku Ndungu and Wacuka Gikandi, 2018).
Brand Identity-

It is up to the brand that how memorable they are in the minds of customer because it will
help the company to increase the level of awareness. It is necessary that offerings of the
company are unique such as BYD so that they can attract the customer and also remember the
brand. If they resonate then it will help them to take the relationship ahead. If they have
developed the identity of the brand then they can stand for the things they believe in and then
also customer will come to them.
Free information-
It is necessary that information is provided to the customers on the basis of their interests.
If they get easy access to the information then they will stay attracted to the brand. People are
aware of idea behind generation of leads but for that if they get something for free then they will
be happy to help the company (Dogu and Albayrak, 2018).
Loyalty Rewards-
If companies such as BYD keep up with these schemes and offers then they will surely be
able to maintain the aspect of relationship marketing. it is necessary that BYD enables different
program in their cultures which are of traditional types. Schemes must be made for those who are
loyal to the company so that they can feel that they are being rewarded for every purchase. It is
necessary to design the program of loyalty in a perfect manner.
Communication Often-
The aspect of relationship is maintained with one purpose and that is communication. The
more they communicate with them more trust will be maintained of their customers. This aspect
of relationship strategy works better when company puts more of their efforts in order to be for
their customers. In order to communicate with them they can use various methods such as email,
advertising, social media etc. also with this they can send the follow up communications to their
dealers.
Special Events-
If BYD hosts a event for their loyal or prospective customers then they will be easily able
to form and develop relationships with them. It is necessary that topic of the event must be match

with the interest of the customers so that they remember it and get a better experience of their
time. This way chances are they will spread positivity about the event which will draw more
customers. These things are also done as a gesture to the buyers of the company as a thanks to
them (THIS, 2020).
Face to face time-
This aspect is also based on interactions but instead of using tools to do this manager of
the company has to maintain it face to face at the time of meeting with them. It is necessary they
create a level and feel of personalization in the strategy of their relationship so that they can
maintain it successfully.
International Marketing Strategies
This is a concern for the managers of the company to maintain the activities on an
international level and in order to do that they need to assess and implement the right strategy.
Understand the differences in culture-
When the company is on the urge of going international and maintaining their operations
in different countries this is why it is necessary that a marketing research is conducted so that
they can take decisions on the basis of that. For instance Nova car by Chevrolet failed in the
market of Spain and in the same manner many products of different line and brands fail in
different markets. Anything can lead to failure of the brand such as the name of the product or
brand itself can lead to failure and this can affect all the time and money invested in marketing
which will be hard to bare that is why it is important to understand the differences in culture and
conduct a research so that proper strategies can be formed for it and positive results can be
generated (Dimitrova, 2017).
Production, marketing, logistics-
This aspect has been possible because of the advancement in technology which has
helped companies such as BYD to open up a platform and provide better facilities for logistics.
With the help of this company can achieve economies of scale by designing the product in
headquarters and manufacture it in the emerging market which can be in different country. This

way they can reduce the cost of manufacturing and increase the level of profit earned on selling
of products (Salwa and Ramanan, 2017).
Plan global campaign-
After the BYD has launched the product then in order to make it international they need
to take help of agencies so that they can plan the further steps such as planning of media
creatively, campaigns for publicity etc. can be done with the team of marketing. It is essential
that budget must be assessed so that these activities can be carried out. The team of marketing
must be in coordination from different countries so that they can make the campaign successful.
Social Media-
This aspect is considered as the most powerful when it is considered for international
operations because it helps the company to increase their reach and target customers over the
world. There are many platforms which can be undertaken such as FaceBook, Twitter etc. other
than they can use campaigns that are paid so that they can increase the reach. Many companies
use this platform as they are aware of its benefits and cost effective services and because of it
they are able to earn more (Chernev, 2018).
Events and Promotions-
BYD can sponsor their brand into events of sports or link with the line of entertainment
as they are considered as one of the best in order to promote them. This way they can target their
audience on an international level and increase the value of the brand.
Pricing and Packaging-
In some markets prices are sensitive and in some markets people are more quality
oriented which is what BYD needs to assess while targeting the market and catering the needs of
people that if they can provide their products in less price and the same quality to emerging
markets so that they can achieve success.
Utilize local Strengths-

In countries which are still developing and markets that are still emerging it is necessary
that managers of the company sends their team so that they can obtain deals with small and local
shops as they have established their market there and their network is strong. If this is done in the
right manner it is equal to the strategy of marketing. This way they can provide the products to
the customer as per their convenience which will create value for the brand in other markets.
International marketing cannot be done alone-
It is believed to be as a myth which states that companies operating on a large scale can
be the only ones to go international alone which is wrong many of the companies has done it and
been successful from it. This is the chance for companies such as BYD to serve in niche markets
and it can be done on a scale up to the resources possessed by them (Burford and Chan, 2017).
CONCLUSION
From the above studies it has been concluded that BYD need to change their strategies of
marketing and evaluate them before implementing so that there are no chances of loss. As the
competitors of the company such as Tesla and Samsung SDI are strong which sometimes affects
the business of the company. With the help of trend analysis company has been able to figure out
that the decisions taken by them into entering the line of electric cars is right as it is the future of
the industry and many people who are concerned about the environment are shifting about now
which is an opportunity for the business to achieve growth and set their base of customers. Also
it is necessary that company maintains their relations with dealers and customers so that they can
keep them satisfied and increase the value of the brand.

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