Strategic Marketing Evaluation

This document provides an evaluation of strategic marketing in the context of BYD Energy. It includes a competitive analysis, critical customer analysis, and future plans. The document discusses the company's growth strategies and competitive advantages.

STRATEGIC MARKETING
EVALUATION

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................3
Competitive analysis....................................................................................................................3
Competitive analysis....................................................................................................................5
Critical Customer Analysis..........................................................................................................6
Part 2................................................................................................................................................8
BYD Energy’s Strategic Marketing with Future Plans:..............................................................8
Challenges of BYD energy in future.........................................................................................11
CONCLUSION..............................................................................................................................12

INTRODUCTION
Strategic marketing evolution refer to the process of revolution in the market and the
strategies made to overcome the market challenges according to the future evolution and trends
which can affect the market situation. BYD is one of the best automobile industries and is a
subsidiary to Chinese multinational ltd, the company was founded in 1995, the company have
become major in the automobile and as well they produce bicycle, batteries, trucks etc. The
founder of the company is Wang Chuanfu the company headquarter is in china. The company
aims to make the best use of batteries and rechargeable batteries and are utilizing the
technologies in the automobiles to make the hybrid cars and eco-friendly automobile. In the
report we will discuss about the marketing strategies of the BYD and other strategy. Report will
discuss the challenges by the company in its energy sector in future. The critical analysis of the
customer and the segmentation of the customer by BYD and the analysis of the BYD energy
with its competitive analysis. The importance of the market segmentation and the factor which
affect the market segments in the market as it can be behavioral, trends etc.
PART 1
Competitive analysis
Mission: the mission of the company is to attract more and more customers with best
technological innovation for the better life. The mission of the BYD is to decrease the population
by inventing the electronic vehicles. The main focus of the company is to connect the city with
the zero pollution and zero emissions.
Vision: the vision of the BYD company is to be the most reputed and successful company in the
country.
Growth strategies:
The company’s next green dream is the process of strong the energy for the grid operations and
renewable energy. For the operation of the grids, company is working towards the grids like,
discharging them at the time of high power and charging them at the time of low power, it helps
in improving the life of the equipments (Chernev, 2018). BYD is making efforts for building the
new platforms and also providing home energy storing system.
Competence and competitive advantages:
The competitive advantages of the BYD is, its battery supply chain, it is the most
important part for the success of the company. The company is regularly working on the battery
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backup of the cars and buses. The another competitive advantage of the BYD is the brand name,
BYD has developed the brand name in the market. The company has regularly made new
products, which attracts the maximum customers and also satisfy the expectation of the
customers through its products and services.
Company analysis through VRIO framework:
This framework refers to the value, rarity, imitability and organisation of the company
and identifies their strength and weakness.
Value: it refers to the resources and their capabilities. The BYD has a great experience of
designing, manufacturing and selling the cars and buses (Sahaf, 2019). the valuable resources for
the company is finance, it helps company to survive and growth. Another valuable resources of
the company is the employees, as the trained employees helps in increasing the productivity of
the work in the organisation.
Rare: in the BYD Company the financial resources are rare, as it is not possible for all the other
companies. The employees of the BYD are also rare, as they are highly trained and experienced
form the other companies. They also maintain the healthy working environment in the company.
Other rare resources of the company are its patents, as these are not easily available by the
competitors in the market.
Imitable: the financial resources of the BYD is difficult to imitate as it requires large number of
profit and it is not easy for the new entries to imitate it. The employees of the BYD are not easily
imitable as it requires regular training programs to improve their skills and ability, compensation,
attractive packages, healthy working environment etc.
Organisation: In BYD the financial resources has been used wisely. The resources has been
invested at the right place and right time which results in the sustainable growth and advantages
of the company. The company is not using the patents carefully and potentially, this is the reason
it is not well organised.
Therefore, VRIO analysis of the BYD is beneficial and helpful in the sustainability of the
growth of the company.
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Competitive analysis
The main competitors of the BYD is Tesla and Toyota. The strategies of these companies are to
keep the country less pollution and zero emission.
Porter’s theory:
Porter’s five force theory models is a tool to identify the performance and profitability of
the company. The five force of the BYD, tesla and Toyota are as follows:
Barriers to new entries: in this force the easiness of the new entries are measured. For BYD,
Tesla and Toyota, it is a positive aspect that, new entries cannot takes place easily because these
are already a big brand and has the image and reputation in the market. New entries required
large number of investment, which is not possible for the new entries. So new entries are not a
barrier for the company.
Threats of substitution: in this force the easiness of substituting goods and services are
measured. The threats of the substitution in the case of BYD and Toyota are more as their
products and services are easily substituted, whereas in case of Tesla the chances of substitution
are less as their products are unique and expensive.
Competitive rivalry: in this force, the level of the competition between the existing competitors
are measured. The competitive rivalries for the BYD and Toyota are high as they are not very
expensive and unique, it is easy for the competitors to compete them. On the other hand the
Teslo has the uniqueness and expensive and it is not easy to compete it as it has the large brand
name.
Bargaining power of buyers: in this force the power of the buyers for bargaining is measured.
The power of bargaining by the buyers is high for the BYD and Toyota, as customers have
substitutes (Spina and Spina, 2020). On the other hand the powers of the buyers are low for teslo
as it is the brand name and there is no substitution for the products and services of teslo.
Bargaining power of suppliers: this force directly related to the relationship with the suppliers.
The bargaining power of the suppliers are low for Toyota as there are many potential suppliers
available in the market and Toyota has many options for the suppliers whereas on the other hand
the bargaining power of the suppliers for the BYD and teslo are high as the products of these
companies are not easily available in the marke (Cui, 2017)t.
Therefore, porter’s theory plays an important role in the companies, as it helps in
measuring the opportunities and threat of the company.
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Critical Customer Analysis
Customer Analysis: -
Customer analysis is a crucial and critical business plan component in all the stages of the
growth. Customer analysis refer to define the targets and target customer in market, and
company plan the process to reach them. BYD rely on the process of analytics of customer to get
improved in the understanding of their customer. BYD focus on the best services for their
customer and for that they need to analyse the market segmentation and the target customer to
focus on and improve their working.
Customer analysis show the needs of different customer groups, BYD analysis the customer
segments to meet every customer need and try to provide solutions to every pain points.
Customer analysis is important to understand the situation for the company to target its customer
to full fill the company goals. Customer analysis divide all different customer from each other
and help the company to analyse the target easily and make efforts according to their target
market (Alt,2017).
Key target customer segmentation: -
Demographic segmentation: - Demographic segmentation refer to the most popular way of
segmentation of consumer which segment the demographic market as in age, gender, income,
location, family, annual income, education, ethnicity of consumer.
Demographic segment is a statistical information and is usually easy to uncover various market
research.
Age: - the factor of age reflect the nature and the choices of the consumer according to their age,
the younger people like to take sports car instead of vintage and the aged like a comfort car are
totally depend on the age preferences of the customer towards the company and the company
makes the deals accordingly.
Income: - income is the main factor which is totally cover the market segment as the economic
condition of the customer affect their choice and their preferences. BYD make electric and
innovative cars and that requires more cost to the prices and the prices remain high. Customer
with low income doesn’t afford the cars from BYD and those who have a good income and
financial status can be in the high-end car segment, BYD being focused in their high-end
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customers as they provide the finest service in their product and they only focus in the high-end
audience.
Behaviour segmentation: - Behaviour segmentation is different from demographic as in
demographic it focusses on who the customer is and in behaviour is focus on how the customer
act in situation. It follows as on the purchasing habits, spending habits, user status, brands,
interactions etc (Dolnicar,2018).
It requires you to know about the consumer and its actions. It relates to the interaction of
consumer to the brand and other activities of the company.
Purchasing habits: - purchasing habits reflects the purchasing power of the buyers according to
the behaviour of the customer towards the product. Purchasing habits shows th choices a
customer made on the basis of how often they purchase things.
Spending habits; - spending habits are the habits of the customer as how often they spend the
money on particular product. BYS is a automobile and energy sector industry and the spending
habits shows how often a customer spend on the automobile and the other choices in the brand
product (Liu,2018).
Brand interaction; - brand interaction refer to the interaction of brand and customer as whether
the company is well know withing the customer or the audience are aware of the company or not,
most of the customer choose to go with the brand they are aware of and have a good name in the
market. BYD as well know in its eco friendly and electric market with one of the finest products
gets benefits in this with the customer.
Geographic segmentation: - geographic segmentation is one of the simplest segmentations as it
segmentize the customer on the basis of geographic borders. Geographic market segmentation
includes zip codes, city, country, radius Ares, climate etc.
A luxury car company choose to target the customer who lives in warm climates where the
vehicle doesn’t need to be equipped in the snow weather and the marketing might focusing their
marketing efforts in in around urban areas, city areas centre where customer get likely to work
and targeted (Solomon,2017).
BYD as electrical automobile like to consider the customer of those areas where its easy for them
to locate and give the best of example in the services including the free drive facility tracks to
convert the customer and attract the customer in the best of geographic conditioning provided by
the company to audience.
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Its totally on the company choices to depend on the existing geographic condition or to change
according to time, as the company need to understand the customer and work accordingly to
meet the expectation.
Psychographic segmentation: - these factor segmentize the customer according to their
personalities and characteristics. It includes the personalities trait, values, interest, lifestyle,
motivation, priorities etc.
These factors are difficult to identify then the demographics as they are subjective, it requires
research to understand and uncover. This shows who the customer value and who the customer
to see status and quality.
These effect the company to target the segmentation of customer as its hard to understand the
psychographic segmentation of consumer and the BYD need to understand the customer to
increase the company in goals (Ernst,2018).
It includes the priorities and the motivation of the customer and which can change the preference
according to the priorities of them, BYD provide the energy and electrics automobile and the
customer who gave preference to the electric cars gave an advantage to the company and gets the
company in its priorities. Even the customer will be motivated if electric cars are the priorities
and BYD give quality in it.
Part 2
BYD Energy’s Strategic Marketing with Future Plans:
BYD Energy is one of the leading manufacturing companies in the world. Company has
invested in variety of products that include battery-powered bicycles, buses, forklifts, solar panel
etc. Organisation focus on automobile and electronic industry hence plan marketing strategies
according to it. BYD focused on various strategies for full-filling present consumer demand and
also prepare for future. It adopted number of strategies which are related to innovation, service,
relationship etc. to increase the quality, productivity and efficiency of the workplace as well as
workforce and hence helps in product and organisation’s growth. Out of two strategies discussed
below.
Innovation Strategies:
Innovation strategy is one of the best strategies for attracting large number of industry
with technological advancement as well as it support future growth of organisation. In this
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company invest large amount of money `and time in research of future test and trend and
developed product according to that. BYD Energies focus on automobile as well as electronic
industry and because without advancement and up gradation of technology effect competitive
advantage as well as growth (Müller and Däschle, 2018). Company hired talented and skilled
workforce top tech, design and innovative engineers and work according to develop product that
meet present generation demand as well as connect future generation. With the use of research,
development and innovation improve the quality and productivity of variety of product that
includes electronics, renewable energy products, automotive and rail transit. BYD energy
invested in renewable source of energy product to create a good-will of the brand and show
companies ‘responsibility for next generation sustainable future. Organisation also invested in
automation of automobile industry, it include number of features in automobile product that
helps in decreasing road accidents and ensuring safety of driver as well as passenger (Iatridis and
Schroeder, 2016). Innovation for the development is another target of the company and targeted
that in future customer travel in the vehicle without driving and by this step up for future client’s
demands. It also helps humanity by dependence on non- renewable product and hence helping
future and present generation with cleaner and greener planet (Hashmi and Biesebroeck 2016).
Energy conservation product is another approach of the company it started working with Zenobe
Energy limited in the United Kingdom for providing quick and cheap energy transmission. BYD
Energy focused on innovation and store of high energy in battery and develop product for longer
life, its help the company to become the largest energy storage owner and operator in the British
land and hence create a strong image among the UK customers. Innovation in supply and chain
management system is another advantage of the company, with the use of technological
advancement company use various online as well as fast form of service delivered workforce and
transport to meet the demand of customers. Company provides online feedback system for
customer so as to make needful changes in product and services. Large amount of money
company invested in solar energy product, developing and innovating variety of products for
different types of customer that include farm land to industry. Electric vehicles are another
impactful product of company for future as well as future generation. Innovation and
development in electric vehicle again helps in generating large amount of profit. It has a variety
of electric vehicles which includes city buses to sports cars and continue developing and
innovating other form of vehicle for future generation. Introduction of Hybrid technology in
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vehicles for example F3DM launching makes world’s first plug-in hybrid compact sedan. Hybrid
system is another powerful tool used by company to attract present customer’s taste as well as
for future innovation and development.
International Market Strategy:
BYD Energy is located in different part of world and hence a powerful international
market can help in growth of the organisation. Company has focused on electrification,
renewable and automation of the products. Zero Emissions Energy Ecosystem helps in
revolution in transport system, energy production and storage and hence create a sustainable and
health environment for future as well as present generation. It target large number of customers
which are futuristic as well as share different government in pollution control. Another benefit of
future approach is to increase the market share in different country as well as around the globe.
According to go-global strategy company is divided into five subsidiaries, namely FinDreams
Vision Co Ltd, FinDreams Technology Co Ltd, FinDreams Moduling Co Ltd, FinDreams
Battery Co Ltd, and FinDreams Powertrain Co Ltd. Dividing in sub branches gives more
flexibility and autonomy in work culture and work system in different countries hence increase
the growth of organisation (Grębosz-Krawczyk and Pointet 2017). Dividing company into sub
branches benefit company in reaching large number of domestic as well as overseas on the other
hand increase the productivity quality and efficiency of the organisation. It raised large capital
from investor all around in the world by showing futuristic approach and hence increase funds
for continues innovation and development of the products. With the advancement of technology
company use different platform for example digital marketing and media to reach customer
globally and hence increase the market share of company globally. Merging and Acquisition of
innovative company is another strategy by the company for global approach. It provides funds to
different growing company related to electric vehicle, automation and energy so as to gain more
and more innovativeness and development in the company. Company has a large number of
partner around the globe for example Zenobe Energy ltd helps the company in expansion around
different cities in UK and hence reach more and more customer. Company provides various
opportunities and development and training programs to employee so as to increase quality
efficiency and productivity of the company (Vukasović149 and Filipan 2018). Electrification of
public transport in the Europe improves the image of the company and become competitive
advantage. Company is also focusing on plans related to separation in innovation and
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development of components so as to gives more autonomy and flexibility to target large market
around the globe (Panibratov, 2017).
Challenges of BYD energy in future
The electronic vehicles and automobile are a rapid growing sector with increasing in
demand for its low emission of transport. As the demand of the electric vehicle industry increase,
all of the producers of electric automobile experience the challenges of failure and loss to meet
the market expectation of the customer. Most of the customer does not acknowledge the intensity
of the technologies and innovation in this industry. This lead to think of the failure and the
responses of limitation of the electric vehicles. BYD also faces such challenges of the
unfavourable response of the market to constraints electric bus in different markets. BYD faces
many issues like speed, distance coverage, and the frequent causing unreality. Company is doing
lot of efforts to educate the customer and telling the strength and limitations of the electric
vehicles but most consumer think the product failure as brand failure. Which impact negatively
in the BYD buses brand and in most market addition to negative publicity of company. BYD to
scare resources to enhance the innovation and technologies in R&D for product development and
improvement. As company is trying to diversify the product to increase the competitive
advantage (Krylov,2019).
The cost of the research and labour, material, technologies are increasing and company
need to think on that, BYD have accepted that the cost in the making of the normal cars is
cheaper than the coat of the electric vehicle are higher than the normal ones. Even in the
manufacturing of the trucks and the buses cost huge amount to the company and it need a lot of
finance to work. If product does not successes in the market is a huge loss of money to the
company. To minimise that the company do a lot of innovation and technologies to create the
best of the product which can help the company in getting the better result in the performance
and help them in their objectives and can change the older product image of the company. As a
improvement and the government involvement in the green energy revolution BYD gets great
opportunities to increase the productivity as the government involvement increase the gain in the
subsidiaries and free market access boost in resources and customer. All the manufacturer of the
world are coming into the electric vehicle with the aim to secure the future market with the
global campaign of low carbon emission, BYD sees the increase in competition in foreign
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market and local as well which can affect the business in its profit and share in the market. Even
the competition in the other market of the BYD product like the batteries and other product face
the same level of competition in the future market which can affect the company profit and
market share as a challenge with the competition in future. BYD is focusing in the best of the
innovation to decrease the competition and give the strength to its product and company to get
the stability in the market for longer period and the growth of competition shows the future as an
important and divers in the electric and energy resources (Lian, 2016).
CONCLUSION
The report explain the concept of evolution and innovation of marketing strategies which are
used in the process of company towards its customer and the competition which shows that the
customer need to be understand by the company as the competition in the market is so tight and
the revolution of the new technique are needed to make changes so that BYD can understand the
future market and work according in their product and services. Report further explained the
challenges BYD faced in the future as its important for the company as the green revolution will
be the main focus in the future and company need to innovate the best of the product to match
the customer satisfaction.
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