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Proposed Marketing Strategy of Haval in Bangladesh

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 Marketing Strategy of

Submitted to
Mr. Rafsan Elahi
Senior Lecturer
Department of Marketing & International Business
North South University

Submitted by
# Name ID Serial
number
01 Mehedi Hasan 1420234030 02

02 Syed Hasan Mashfik 1421069030 03

03 Md. Moin Uddin 1530513630 13

04 Mohammad Fazle Rabbi 1530629030 14

05 Eshika Chowdhury 1531536030 15

06 Md Tanzimul Sahad 1621058630 24

 Letter of Transmittal

Date- 05th October, 2020

Mr. Rafsan Elahi (RFE)
Senior Lecturer,
Department of Marketing & International Business,
School of Business & Economics (SBE),
North South University,
Dhaka- 1229, Bangladesh.
Subject: Submission of the report on Marketing Strategy of HAVAL
Dear Sir,
With due respect, we would like to submit our MKT-460 group project titled Marketing
Strategy of ‘HAVAL’ due 05 October, 2020. While preparing the report, we have tried
our level best to include the relevant topics and theories whatever you taught us.

If you have any questions and/or comments regarding the interpretation of this report,
please do ask us. Thank you for your immense support through the course.

Sincerely yours,

Mehedi Hasan

Syed Hasan Mashfik

Md. Moin Uddin

Mohammad Fazle Rabbi

Eshika Chowdhury

Md Tanzimul Sahad
 Table of content

Company background 01

Mission 02

Vision 02

Objective 02

SWOT analysis 03

Porters five force 06

Segementation 08

Targeting 09

Positioning 09

Branding strategy 09

Pricing & distribution strategy 11

Integrateged marketing communication 14

Recommendation 16

Reference 17
Company background
HAVAL is an automotive marque owned by the Chinese automaker Great Wall Motors that
specializes in crossovers and SUVs. Haval was initially launched in March 2013. Since its
autonomous procedure on March 29, 2013, HAVAL brand has been devoting to assemble a top
notch, dazzling and proficient item arrangement, and win the consumers trust by building a brand
administration of "moving the customers". HAVAL wants to make their consumers happy by
providing durable, nice looking and quality vehicles within an affordable price. It has 50 overseas
investors as well as distribution channel over 40 countries around the globe. The company
produces world class vehicles at lower price than Japanese vehicle with excellent performance.

Haval follows several marketing strategies in order to take a good position in the automobile and
s industries and trying becoming a giant company day by day. In order to capture a great share of
market they are offering different model of vehicles for different consumer segments. Haval offers
SUVs at a better price then other to capture customers. In Bangladesh HAVAL use social media
like facebook page and a website as well as print advertisements at periodicals to promote their
product to desire consumer segments. Promotion on print media is to target people with high
income. They use billboard in other countries like Australia, Malaysia etc. HAVAL promotes its
brand name with affordable SUV and uses different types of strategy to promote their vehicles.
Day by day they are becoming larger in automobile industry.

1
 Vision:
We will create a worldwide union of Chinese auto endeavors in the interest of HAVAL. We are eager to
impart imaginative worldwide innovations to amazing self-claimed brands, do top to bottom collaboration
in all fields, for example, new vitality, insightful drive and wise organization, accomplish co-creation,
sharing and win-win of the entire worth chain, and advance the globalization of Chinese car, with the goal
that China could change from a significant auto bringing in nation to a significant auto sending out nation.

Mission
We will be the world’s most consumer centric automobile manufactures who will provide the modern
sports utility vehicles to the customer at a affordable price so that the people can have their dream suv
vehicle at their garage.

Objective:
We Chinese Vehicle manufacture company produces vehicles at sells at a better price than other.
Our Objective is to increase our sales and capturing a smart amount of market share.

2
 SWOT Analysis
Strengths (S) Weaknesses (W)
Internal Factors (IFAS)
1) Evolving Industry 1) Cars recalled
2) Growth Shifting 2) High Turnover rate
3) Increasing demand of SUV 3) Government regulations
vehicles. 4) Market growth
4) Innovation
External Factors (EFAS)

Opportunities (O) SO Strategies WO Strategies

1) The growth of Bangladesh 1) Growing demand 1)Introduce new technology

2) Strategic Alliances 2) Introduce new compact SUV 2) Enter luxury segment
3) Changing lifestyle and 3) Brand value 3) Sustainability
customer groups 4) Use the reputation 4) Increase sales
4) Market Expansion

Threats (T) ST Strategies WT Strategies

1) Intense Competition 1) Adopt expansion strategy 1) Increase Research and Development

2) Growing Cost 2) Make Available 2) Provide after sale service
3) Economic Slowdown 3) Meet Competition 3) Overcome regulation problems
4) High fixed cost 4) Improve fuel consumption 4) Increase promotional activities

Strengths
1) Evolving Industry: HAVAL allow people to live, travel in ways that were unimaginable a
century ago and allows people with an economic transaction or some other benefit of life.

2) Growth shifting: Automobile market focus is shifting to developing markets like Bangladesh
because of the rise in disposable income, changing lifestyle & stable economic conditions.

3) Increasing demand of SUV vehicles: Automobile manufacturers to target developing

economies. But these developing economies have high demand for HAVAL’s SUV products.

4) Innovation: Innovation is the key success factor through massive production in SUV vehicles
like HAVAL. All over the world that has been increasing HAVAL’s sales including Bangladesh.

Weakness
1) Car recalled: Controversies relating to recalling vehicles on account of some technical dis-
functionality or non-abidance to govt. led rules is becoming very common.

3
2) High Turnover rate: This market has shifted from a demand to a supply market. Competition
between them and a long list of alternatives to choose from has given power to customers like.

3) Government regulations: Our regulations like excise duty, no entry of outside vehicles in the
state, decreasing number of the validity of registration period, these factors HAVAL.

4) Growth rate of HAVAL: Is the in the hands of the government due to regulations like excise
duty, decreasing number of validity of registration period & volatility in the fuel prices.

Opportunities
1) the growth of Bangladesh: Perspectives is changing, and now people are more inclined to buy
HAVAL. In the developing nations, the demand for cars is exuberating.

2) Strategic Alliances: Making strategic alliances can be a smart strategy for HAVAL. By using
specialized capabilities & partnering with other companies, they can differentiate their offerings.

3) Changing lifestyle and customer groups: Shift in consumer demand, expanded regulatory
requirements for safety and fuel economy, and the increased availability of data and information.

4) Market Expansion: Entering new markets like Asian nations will result in upsurge in demand
of vehicles. HAVAL has a big market in Bangladesh. After these markets, other markets are likely
to emerge soon.

Threats
1) Intense Competition: Presence of such a large number of players in the Automobile industry
in Bangladesh and results into extensive competition, leaving little scope for new players.

2) Growing Cost: The costs of labor and raw material are growing which has led to high
operational costs in the vehicle industry and this has ultimately affected the profitability

3) Economic Slowdown: The economic slowdown in various economies in Bangladesh can have
a negative impact on the demand and sales of HAVAL SUV vehicles.

4) High fixed cost: mature markets are already overcrowded; industry is shifting towards
emerging markets by building facilities. ROI out of these decisions is yet to be capitalized.

4
Strengths and opportunities Strategies

1) Growing demand: HAVAL SUV’s demand is increasing day by in Bangladesh. This is a big
market and if things are going well this market will be one of the most growing market.
2) Introduce now compact cars: Though it is a big market and people want to update their cars
so new models and features should be available in Bangladesh.

3) Brand value: HAVAL’s brand value is high and its demand is also growing in Bangladesh so
we will take many steps to grab the market and introduce our new models.

4) Use the reputation: HAVAL has a strong brand name and our market is also broad so we will
establish our self as an iconic brand and introduce new models as if consumers can buy.
Weaknesses and opportunities Strategies

1) Introduce new technology: HAVAL Bangladesh introduces new models of SUV regularly
with new and modern features as a result people will buy their desire model.

2) Enter Luxury segment: HAVAL is a luxury brand they manufacturing luxury SUV models.
HAVAL focuses on premium segment and they include updated technology in their models.
3) Sustainability: Though Bangladesh is a big market and HAVAL planning long time period and
they will introduce new models regularly and will build a sustainable position.

4) Increase sales: HAVAL will introduce new models regularly and we will also increase our
promotional activities to reach our potential customers as well as we will try to grab the market.
Strengths and Threats Strategies

1) Adopt expansion strategy: this is a big market for HAVAL, and we will expand our outlets all
over the country and we want to expand HAVAL all-around the country with five years.
2) Make available: We make us available all around the country. We will give our customers
better experiences and provide all types of support if they face any car related problems.
3) Meet Competition: Bangladesh is a big market for HAVAL. Many car companies doing
business in Bangladesh, We will do compete with our latest technology.

4) Improve fuel consumption: They focus on customer responsiveness as a result they are
minimizing their problems and HAVAL is working for fuel consumption issues.

5
Weaknesses and Threats Strategies

1) Increase Research and Development: New plan comes from R&D department. HAVAL will
apply new strategies and we invest R&D sector to innovation new technologies.

2) Improve after sale services: HAVAL will improve after sale services for customers and we
want to establish ourselves as a prominent brand so customer satisfaction is an important factor.

3) Overcome regulation problems: foreign brand entering into a new country will face some
govt regulation problems. We will face and solve every problem and will continue our business.

4) Increase promotional activities: We will increase our promotional activities and will establish.

Porters five forces

Bargaining Power of Suppliers (Moderately High)

Haval motor purchases several parts and accessories from different suppliers. Their main suppliers
are Schaeffler, Delphi, Bosch, Continental AG, ZF, TRW, BorgWarner, HELLA, Valeo, MAHLE,
Autoliv, Johnson Controls, and Brose. As a result, the power of suppliers is moderately high. As
they purchases specific parts from specific company like safety system and seatbelts from autoliv,
body electronic modules, body control modules and automotive lighting from hella and much more
from other companies its very tough to shift from one vendor to another vendor.

6
Bargaining Power of Buyers (LOW)

Products are made for selling it to consumers. There is some similar brand like Toyota Nissan etc
are offering cars at same range. For example: there is a higher competition between Haval H6 VS
Nissan Qashqai. Buyer can switch to another brand if they become dissatisfied with Haval. But
Haval always offers much better price than its competitors. For example Haval H2 is around
$10,600 - $15,510 and Toyota RAV4 which is similar to Haval H2 is around $25,977 - $56,990.

Threat of Substitutes (LOW):

As HAVAL focus on price, so the moment till HAVAL provides standard and durable vehicle in
this price range, till there are no threats of substitutes. Haval already is providing similar types of
vehicles. From that point of view, the threats of substitution are relatively low. But if suppliers
forcefully increase the price of raw materials, then may be the price of vehicle may increase as a
result Toyota and Nissan can be substitute then.

Threat of New Entrants & Barriers (Low):

New contestants don't present significant danger for the current brand since they don't have R&D,
money related venture for promoting cost and HR. Any new brand enter in the market they faces
heaps of issue since they can't deal with the opposition. New brand attempting to enter in existing
brand faces a few obstructions. Law is additionally a significant hindrance that can influence the
movement of development or become a costly for the development of another brand. New brand
with existing brand like Walton bicycle or Jamuna Pegasus nobody offers enthusiasm to purchase
the neighborhood brand since people groups eye as of now in existing brand so danger of new
contestants don't presents significant danger it stays low.

Competitive Rivalry (High):

Although HAVAL provides the SUV’s at the finest price ever, the customer sometimes doesn’t
look after the price, alternately they look after the brands. As HAVAL has Chinese brand started
at 2013, when people take a decision to buy a SUV’s or other vehicles, they also look how old and
prestigious the brand is. People sometimes avoid new brands.

7
Segmentation:
Organizations can't associate with all the clients in huge, expansive or various business sectors. In
any case, they can gap such business sectors into gatherings of purchasers or fragments with
unmistakable needs and needs. Market division mostly implies cutting the market into such
gatherings so as to provide food well to the requirements of the clients having a place with a
portion. An organization then needs to distinguish which market portions it can serve successfully.
This requires a sharp comprehension of customer conduct and cautious key reasoning. Companies
Segment by focusing various characteristics which are Geographic’s, Demographics,
Psychographics, and Behavioral.

Geographic Segment: Geographic segmentation basically targets clients dependent on

geographic outskirt. Contrasts in premiums, qualities, and inclinations it is significant for
advertisers to perceive these distinctions and promote as needs be. Haval additionally portions
their item as indicated by nations culture and decision.

Demographic Segment: Demographic segmentation separates a market through factors, for

example, age, sexual orientation, education, income, occupation, and then some. Its assumes a
significant part of the vehicle industry like contingent on the sections the component of bicycle
shifts. HAVAL has distinctive competencies for various segments. Like they make a distinctive
vehicle for medium and high both income people as indicated by their inclination. They separate
the market as per salary and age likewise, they make a wide range of bicycle for a few age gathering
of individuals and pay. Their objective age bunch is 25-60 and they set their cost from upper-
middle-class tom upper class.

Psychographic Segment: Psychographic division centers on values, personalities, interests,

attitudes, cognizant and subliminal motivators, lifestyles, and suppositions. Haval also focus on
psychographic categories. They produce separate vehicles for different personality people. For
example we can say that Haval H9 Premium is for the people who want all the features like
automatic defogging, air purifier, electric differential lock. On their other hand there are other
vehicles like H2 City,H2 Dignity which vehicle are for those who just want to buy and SUV price
as they can and they are satisfied with their vehicle.

8
Targeting:
Select which client group (at least one) to serve. The market portion utilized by the organization
for showcasing of item is Differentiated promoting focuses on that are a few market fragments and
plans which will isolate the item. Presently it has new style staying on the tank also. The headlight
of the vehicle has more noteworthy looks. The headlight has another top on it which makes it look
much better. Moreover, the vehicle guarantees the dark treatment probably. They focus on various
on the group who wants to have a decent car with a reasonable prize

Positioning:
An object to have a not mistakable, precise, and enticing contrast point with contending objects in
the target buyers' minds. At the end of the day, people's groups assemble in the psyches of the
selected groups.. Structure the shape and size of the bicycle is solid and consistent. It is an excellent
looking just as snazzy vehicle. The driver will locate the driving joy and SUV feels. As it looks
same as exceptional vehicles, it will make a positive impression in clients mind.

Branding strategy of haval:

Generic Strategy of Haval (Porter's model): Haval generic serious strategy is Cost leadership.
In light of Porter's model, this generic strategy makes an upper hand dependent on the appeal of
low expenses and comparing low costs of items. For instance, Haval autos are offered at lower
costs than premium or extravagance vehicles like Mazda, Nissan, and Toyota. The generally lower
costs pull in clients, prompting Haval's upper hand. A key goal dependent on this generic strategy
is to upgrade producing measure efficiencies through automation and persistent improvement to
help Haval's upper hand.

Bowman Strategy clock of Haval: The generic separation strategy has a supporting part for
Haval's upper hand. Be that as it may, cost administration remains the Company's essential generic
serious strategy. The key goal is to make items appealing dependent on highlights, brand picture,
quality, and related factors in separation. For instance, the separation generic serious strategy is
applied through Haval's innovative work endeavors toward delivering vitality effective vehicles.
These items' highlights ought to likewise separate them from the opposition to guarantee the
Company's upper hand.
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Strategies at Functional Level:

Market Penetration: Haval utilizes market entrance as its essential escalated development
strategy. This concentrated strategy adds to the Company's improvement by extending bargains in
current business areas. For instance, Haval is attempting to extend its market reach by expanding
the quantity of its vendors. Thusly, the dissemination of Haval autos increments, improving clients'
admittance to these items. Haval cost-authority generic strategy makes an upper hand that
encourages the fruitful execution of market entrance. A vital target is to keep extending the
Company's dispersion organization to help business development and improvement dependent on
this serious development strategy.

Product Development: Product development fills in as an optional serious development strategy

on account of Haval. This concentrated methodology ensures improvement through new thing
bargains. For instance, each new item or product offering means a possible increment in Haval's
incomes. This serious development strategy underpins the separation of generic serious cycle by
zeroing in on uniqueness in the plan and highlights of new items. In this manner, Haval's vital goal
dependent on item advancement is to accomplish a high development rate in new item
improvement.

Market Development: Haval utilizes market advancement as a concentrated supporting

procedure for development. In this concentrated method, the Company creates by entering new
business segments or market partitions. For instance, Haval development as a worldwide car
business has been essentially founded on ongoing business sector passage, for example, when the
Company adds a nation to its activities and deals regions. Notwithstanding, considering the
company's present overall tasks, this concentrated development procedure now just backings
business development. A vital target is to enter new business sectors novel items to enter new
market fragments for Haval development dependent on market improvement. The conventional
separation system can add to the upper hand expected to amplify actualizing the market
advancement escalated development methodology.

Diversification: Broadening is another serious procedure that has a supporting function in Haval
development. The Company has a low probability of using this strategy. Enhancement upholds
business development through new business. For instance, Haval could gain a vehicle rental

10
administrations organization to fuel business development in a homegrown market. This
concentrated development methodology can contribute new business abilities to help the
separation of conventional serious system. An indispensable objective associated with this genuine
strategy is to create Haval through further acquisitions of associations outside the vehicle business.

Mid to Long Term Strategies

Existing Markets

Existing mechanical fields: Continually move in the direction of consistent development and
inorganic extension.

New mechanical fields: Promoting electric automation, the sharing of flexibility, and marine
structure supplier frameworks, etc.

New Markets

Existing Technological Fields: Focus on business sectors, for example, computerized driving.

New Technological Fields: To not apportion assets to new zones that are not synergistic with
existing innovation and markets

The accompanying shows explicit instances of each center region, of which we will keep on
advancing with different activities later on.

Changing Mobility It is extending the client base by offering a model that consolidates
wellbeing, solace, and fun. All riders are hoping to procure their center abilities by rethinking the
essential benefits of riding with certainty and riding delight.

In the midst of the quickening pattern towards electric mechanization, the Company gives a
scope of items in the novel style of Haval.

11
Pricing and distribution:
Pricing and distribution are distinct yet complementary elements in marketing. Strategically they
are difficult to separate. Haval is a specialist manufacturer of premium SUVs and is the No.1 SUV
brand in China ( the world’s biggest car showcase) and has been for the past 15 years. They use
the best features safety and technology. The Haval brand is perfectly acceptable for the average
people. Mainly Haval will target government officer in BANGLADESH.

Strategic Options

Reverse
Variations POS
Successful
Price Competitor
Pricing

Customer Emotion
Individual?

Price senility
HAVAL does follow a competitive pricing strategy which is because of market profile, Size,
Competitors; they will prefer customer’s wants and needs. Buyer should be smart when buying
desired car. They compare the Haval H2 when you decide which one to get when you are in the
market for an affordable mid-sized SUV. It Competes against Toyota, Hyundai. Competitors
usually react to a lower price by lowering their prices as well.

Emotion It is important to attract customer emotionally for both brands consumers. Sometimes
emotions drive us to buy something which we don’t want to purchase.

12
 HAVAL car Price List for BD 2020

Model name Engine Price in BDT

HAVAL H2 1.5 LITRE Turbo 4- TK 3,100,000

Cylinder

HAVAL H6 2.0 LITRE Turbo petrol 14 TK 40.50000

HAVAL H9 Turbocharged 4-Cylinder TK 62.95000

16 valve,double VVT

Promotion
HAVAL car promotes its products and brand thorough a billboard and bikroy.com in Bangladesh.
Events are one of the most popular methods that the brand uses to promote its products and brands
in Bangladesh. It can create several events on Gulshan, Basundhara, Dhanmandi areas where their
target consumer stays.

13
Integrated marketing communication:
The primary aim of the communication strategy is to produce consumer mental knowledge and
hype, trigger trials and create a comfortable, trendy, upper-class, integrated technological car brand
profile. We have selected the channels that greatly affect our target audience to ensure that the
communication framework functions to our benefit and we can illustrate our communication
wherever our target audience is present.

In these different contact media, the mode of communication and the use of terms will remain very
enticing to target customers and these elements will also appear in the proper order and be
incorporated as per the contact schedule.

One post, one voice and one look "will provide all our contact networks." All the components of
the contact blend discussed above would have synergies to spread this information about the brand.
We would ensure that 6 Cs of coordination are followed and enforced, above all these.

Implementation plan

1. After taking into account not just broadcast features, but also viewers, communications and
broadcast used by rivals, Commercial Media was chosen.
➢ Broadcast: It targets a wide audience and can send incredibly dramatic messages. Our brand
ambassador will be used in TV advertisements that will be shown in prime time.
➢ Print Media: It is visually intense and reflects the meaning as much through pictures as
through writing. The message can be read by any user at any time. We will hit mainstream
markets through newspapers, while we will specifically connect to our intended audience via
magazine.
➢ Display Media: It is a form of contact to meet the intended audience while they are away from
home. It will be shown in prime community and local places.
➢ Online Advertisement: Our target demographic is predominantly on the internet and is
increasingly growing. In addition, online advertising is less expensive and gives the target
audience greater and much more direct visibility. Our ads will be on Google , Yahoo,
Facebook, etc.
➢ 2. Sales Promotion
➢ Provide greater car dealer margin values for some periods of time

14
➢ To promote sales and offer prizes for the same, plan activities for them
➢ Haval may take part in trade shows and put car for a trade show
➢ Providing clients with a luxury quality and repair package

3. Events and experiences

➢ Sponsor the cricket tournament and send the car to the player of the season as a reward
➢ Sponsoring events performed by our target demographic, such as conventions, trade fairs, etc.

4. Public relation

➢ Providing public knowledge and organizing news conferences

➢ Organize activities in the newspapers
➢ Publish ads

5. Personal selling

➢ Set up a small kiosk to provide potential clients with information and direct contact.
➢ Race across the city and invite individuals to take a test drive

6. Word of mouth

➢ Encourage individuals to share their perspectives on the car website.

➢ Add these people to the brand's TV commercials
➢ Provide stimulus for referrals

7. Interactive marketing

➢ Haval online ads in multiple websites and search engines.

➢ Establish a website and a popular platform where current clients can exchange their expertise
with potential clients.

➢ Develop handles for the brand's social media.

➢ Video marketing on YouTube.

15
 Recommendation
From our examination viewpoint, we have a few Recommendations for Haval. Those are given
below:

➢ In Bangladesh, Haval needs to expand more outlets so their distribution channels increment
everywhere in the nation. Haval should expand its number of outlets in each division in
Bangladesh.
➢ Ensure the accessibility of vehicles once in a while numerous purchasers didn't get the most
recent form or model vehicle at the earliest opportunity at whatever point the organization
discharges any new vehicle so they need to hold up commonly or they need to preorder the
vehicle and this handling framework requires some investment. Therefore, Haval must
guarantee the accessibility of the apparent multitude of new vehicles quick in their outlets.
➢ We found that Haval should focus more on TV and radio promotion because they are currently
focusing on social media like Facebook and Instagram only, they should hold events and
sponsor different sports programs.
➢ Increase the number of service points car service is very valuable for every car user because
they can ensure their safety through proper car service that their car is capable to run smoothly
without any interruptions. Therefore, Haval should increase the number of service points to
ensure car servicing for every Haval car users.
➢ Haval ought to guarantee legitimate checking and assessment. They should zero in on various
locale and furthermore country zone as like metropolitan zones through both low and excessive
cost extents to catch various sections of clients

16
 Reference

1. Abdelkareem, M. A., Xu, L., Ali, M. K. A., Hassan, M. A., Elagouz, A., & Zou, J. (2018, August). On-field
measurements of the dissipated vibrational power of an SUV car traditional viscous shock absorber.
In International Design Engineering Technical Conferences and Computers and Information in
Engineering Conference (Vol. 51784, p. V003T01A010). American Society of Mechanical

2. Engineers.Wong, J., & Data, L. K. (2015). Great Wall Motor (2333 HK). EPS, 53(44.5), 2-1.

3. Zhao, Q. (2016). The Concept of Vehicle Design for Chinese Marketing (Doctoral dissertation,
University of Canberra).

4. Wong J, Data LK. Great Wall Motor (2333 HK). EPS. 2015 Jan 27;53(44.5):2-1.

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