Middle_Kingdom_Motors marketing

Middle Kingdom MotorsVictoria Park, Perth, Western Australia Middle Kingdom MotorsMiddle Kingdom Motors (MKM) ()∙ MKM sells a range of 4Wheel Drive vehicles (4WDs) and Utilities (utes) in Perth, Western Australia.∙ The Perth business opened in 2008 with the first range of Chinese motor vehicles in the Australian market. ∙M KM‟s Perth dealership is in a major area for new car yards in Western Australia‟s capital city.Vehicle Range:∙ MKM only sells vehicles fully assembled in China and imported directly from the plant in Shanghai. ∙ …Ute‟ (utility vehicle) is the Australian word for a …half truck / half car‟ [see the M240 below] ∙4WD is the Australian term for a vehicle like the Z250 pictures below.Pre-sale Checking – After Sales Servicing and Maintenance:∙One of the strengths of the MKM dealership in Perth is the new, state of the art service facilities.o All pre-sale checks and fitting of accessories o All after sales service and maintenanceStaff Profile:∙The management and staff of MKM Perth are all highly experienced in the 4WD / Ute industry.o The Perth Agency Manager has worked in 4WD sales businesses in Australia for 15 years o All sales staff have extensive experience in the Australian 4WD / Ute marketsCurrent sales staff: 17∙ The Head of the Service Department trained at MKM, Shanghai ∙All maintenance and service staff:o Fully qualified vehicle mechanics with at least 10 years of experience. o Current maintenance staff: 15.oThere has been minimal staff turnover among both sales and service staff.The Dream …The Place …Victoria Park MapThe Showroom …Link: /maps?hl=en&tab=wl…where dreams cancome trueMain Competitors:Major4wd car yards in Perth WA, Australia1. Range Ford .au (08) 9459 53332. Midland Toyota .au (08) 9464 10003. Brian Gardner Motors .au (08) 9356 9000Middle Kingdom Motors – Models – Features - PricesM240 Single Cab Ute 2.4L 4 Cyl 4 x 2 Manual $17,990M240 4 x 4 Manual $20,990M240 Dual Cab Ute 2.4L 4 Cyl 4 x 2 Manual $23,990M240 4 x 4 Manual $26,990Z 250 4WD Wagon 2.4L 4 Cyl 4 x 4 Manual $23,990Z 250 With Sunroof 2.4L 4 Cyl 4 x 4 Manual $24,990Major Advertising Programmes:∙MKM uses a strong, integrated advertising campaign based around:o Frequent TV advertising during major sporting telecastso Regular advertising on ‘drive time’ radio (7 – 9am and 4 -6 pm)o Promotions at trade fairs, agricultural shows, etc. - aimed to interest tradesmen and farmers in the MKM utes. o Frequent advertising in motoring and SUV focussed magazineso The Z250 is advertised regularly in magazines favoured by young mothers – emphasising the vehicle as a small,affordable 4WD vehicle suitable for families.Test Drive & Information SessionsYou can enjoy a test drive in any of the Middle Kingdom models any Saturday or Sunday!∙ Experienced drivers can take you and your family on a special trip into the hills in your chosen model.Service Department mechanics provide FREE practical workshops on 4WD and Ute maintenance on Wednesday and Friday evenings: 6:30 – 7:30pmSpecial Promotions1. MKM off-road weekends Why not join an MKM weekend safari and see just what you could do in your next vehicle?UNIQUE OFFER: Try Before You buy!No other car company offers you this opportunity:∙ For a small fee, you and your family can get a taste ofoff-road adventure with an experienced driver on one of MKM‟s monthly 1 or 2 day Starter Safaris2. MKM Rally Australia 2010 Sponsorship& PromotionsRally Australia announcement: Middle Kingdom Motors has signed on as the naming sponsor for the 2010 Rally Australia. ∙ In addition to providing all major signposting for the rally, MKM will run two special promotions during the 5 days ofthe rally:∙ Z250 vehicles will run shuttle services between the MKM showrooms in Victoria Parkand key viewing points for the rally - departing every 30 minutes.∙ All people using the shuttle service will have the chance of winning an MKM Z2504WD vehicle.New Releases, Reviews and Comparative Data June 24th, 2008Middle Kingdom Motors releases two models in AustraliaMiddle Kingdom Motors is the first Chinese manufacturer to release a vehicle in Australia. Its vehicles are completely new models. They are unavailable in China, as they have been specially designed to handle the ruggedness of the Australian outback. The base model MK 220 (available only as 4 x 2):∙ 2.2-litre four cylinder petrol engine∙Fuel economy: 10.8 litres per 100km∙Recommended Retail Price: $19,990The Z250 (available in 2WD or 4WD):∙ 2.4 litre motor∙Fuel economy: 10.7 litres per 100km∙Recommended Retail Price: $23,990 / 26,990All models will feature alloy wheels, AM/FM radio, single CD system, electric windows, leather trim seats, disc/drum brakes and air-conditioning as standard. All will be backed by a 3 year/100,000km warranty.MKM Background:∙MKM (one of the most popular makes of commercial vehicles in China) has been manufacturing vehicles since 1976 at its plant near Shanghai.∙MKM is a former State Owned Enterprise (SOE) and still has strong support from the Chinese Government. It has the almost unlimited financial backing of the Chinese Government.∙This is the company’s first entr y into the international market before tackling the major American market.∙The roughness of Australian off-road conditions provides MKM with a tough testing ground for its vehicles.∙In the 1960s and 1980s respectively, Japanese and Korean companies succeeded in the physically difficult Australian market despite not initially being physically strong enough for the Australian climate and motoring conditions. Rapid development of stronger vehicles enabled them to learn quickly and overcome the bad perceptions of their early models.Western Perceptions of Chinese Products:∙MKM also faces the problem of the general perception in Australia (and elsewhere) that Chinese products often are cheap, but poorly made.Marketing Strategies:∙MKM is entering the Australian market in two ways – through multi-company dealerships in the eastern states (two in NSW and one each in Queensland and Victoria) and through dedicated dealerships in Perth and Darwin.∙He Shiquan, who will personally manage the Perth dealership, stated that this would give MKM a good mix of marketing approaches from which to gauge different approaches to the Australian market.∙Later, MKM will open more dealerships in order to establish a strong presence in the Australian market.*****EXTRACTS FROM REVIEWS:Middle Kingdom MK220 and M240 Utes By Garry Jones, Perth Weekend News, 17 July 2008∙If you want a ute forweekend fun as well as forwork, but can’t afford aToyota or Nissan, then trythe Middle Kingdom utes!∙MKM is using the samestrategy to introduce theirutes into Australia as Kiadid in the 1980s.Pricing & Features:∙The MKM models are cheap,but don’t have theprotection of full safetyairbags or ABS antilockbraking.Driving the MK220 and the M240:∙The MK220 is not powerful but may be suitable for the average workman or tradesman.∙The M240 is more powerful and has more features.∙MKM hopes to have a diesel powered model on the market before the end of the year*****Vehicle Review – An Update 2 Years on: Roger Brandis: Carguide Australia, 22 May, 2010 Middle Kingdom range still lacks standard safety featuresTwo years after MKM entered the Australianmarket, it is reasonable to look again and seehow the vehicles compare with their maincompetitors:∙The original MKM models had oldtechnology and lacked basic safetyfeatures widely expected in all vehiclessold in Australia.∙Those original models still remainunchanged .∙In 2010, the MK220 is now the onlyvehicle on sale in Australia without asingle airbag.Safety Testing:∙In 2008, neither of the Chinese modelshad been tested for an ANCAP safety rating.∙MKM vehicles were finally tested by ANCAP in 2009, but received poor results and the company was issued with an improvement order.∙Further tests on the Z250 in 2010 have resulted in a similar low rating and the company now faces the possibility that the vehicle may be banned from sale in Australia.Marketing Plan:∙MKM has not yet increased its original number of dealerships.∙Potential buyers have shown concern at the lack of safety features, the lack of safety testing and the relative lack of power of the MKM vehicles.External Economic Pressure (The value of the Yuan)In 2010, China has faced massive pressure to revalue the yuan. It is doubtful if this matter will be resolved quickly, but it is likely that the value of the yuan will gradually rise against all other major currencies. If that happens, some of the price advantages currently enjoyed by all Chinese exports – including MKM vehicles - will be reduced.Conclusion:The Middle Kingdom still has some way to go if it intends to make a significant impact on the Australian 4WD / SUV and ute markets.Comparative Assessment: A recent review of the MKM vehicles (published last week in the Australian Motoring Review) reached similar conclusions to this review. The AMR conclusion is worth quoting:“After test driving the M240 ute, the BIG question has to be: Should a tradesman buy a near new 4WD ute from Toyota or Nissan (with half the warranty still remaining), or take a chance with a new MKM model for about the same price?”TOTAL NEW MOTOR VEHICLE SALES– September, 2010▪Total Australian sales for new motor vehicle (85 392) decreased by 0.3% when compared with August 2010.SALES BY TYPE OF VEHICLE▪Passenger vehicle sales decreased by 1.0% compared with August figures, while sales of Sports utility vehicles increased by 1.1%. During September, sales of Other vehicles decreased by 0.4%.SALES SUMMARYNew Motor Vehicle Sales:Total Vehicles – Long TermNew Motor Vehicle Sales:Total vehicles - Short termANCAP Safety Ratings03 October, 2008: Kluger Gains 5-Star Safety Rating∙The Toyota Kluger, has received a 5-star safety rating by the Australasian New Car Assessment Program (ANCAP)–Australia’s leading independent vehicle safety advocate.29 September, 2009: Cheaper imported utes score poorly in safety tests∙The Middle Kingdom Motors MK220 and M240 utes from China received only two stars out of five.∙ANCAP Manager, Michael Case, said the results were disappointing. Commercial vehicles are now more commonly rating four and even five stars and most passenger vehicles are five-star rated.∙MKM received a warning from the Australian government. MKM will need to rectify the safety limitations or face being forced to remove the vehicles from sale in Australia.27 June, 2010: 5-Star for VW polo, but 2-star results spell problems for MiddleKingdom Motors SUV∙While the new VW Polo scored the top ranking 5-star ANCAP rating in new results released today, China’s budget-priced SUV –the Z250 from MKM was again rated at only 2 stars. MKM now faces a governmentenquiry in November and must show reasons why the Z250 model should not be banned from sale inAustralia.*****Vehicle Recall Data – Australia – 4WDs & SUVs1. Toyota – Australia: 2008 - 20102010 [Total vehicle recalls: 37,524]∙Toyota—Hilux - No:4 Crossmember Bracket∙Toyota—Land Cruiser 100 Series & Lexus LX470 Steering Shaft Snap Ring2009 [Total vehicle recalls: 13,416]∙Toyota—Land Cruiser 200—With Toyota Genuine Bull Bar2008 [Total vehicle recalls: 14,774]∙Toyota—Land Cruiser 100 and Lexus LX470—Dash Board Wire Harness Interference with Pedal Support 2. Middle Kingdom Motors — Vehicle Recalls: M2402009 [Total vehicle recalls: 3,944]∙ A manufacturing defect in the handbrake assembly which could cause the handbrake to disengage.∙Passenger seatbelt clip defect – seatbelt can refuse to release.3. Nissan Y60 Patrol Wagons2009 [Total Vehicle Recalls: 11,478]∙Hardtop and coil sprung chassis; front brake hose durability.Major Competitor Pricing: Toyota – Comparative Prices。