On March 12, 2009, more than 300 people from the military, government, manufacturers, distributors, users, and media witnessed SAIC Iveco Hongyan at the national gymnasium that symbolizes “faster, higher, and strongerâ€. The "Shang Yi Hong" brand is listed below. Shang Yihong, general manager of Yang Shuyi, said with a smile: "Red Rock has been placed in the crater, and it is impossible to make a low profile."
Establish a high quality image
Wu Yingqiu: The listing of the lions, from the point of view of the number of participants or the number of participants, capital investment, can be described as grand scenes, very rare in the field of commercial vehicles. With such a large-scale launching ceremony, what information does Red Rock want to convey to the outside world?
Yang Shuyi: Jieshi is a very cost-effective product. We only want to find a suitable way to launch it. We never thought we should exceed the market size of passenger cars. At the same time, we are also building a high-quality brand image of Jieshi.
We can no longer extend the sales model of commercial vehicles in the past. Turnip greens and vegetables begin to sell. Shang Yihong advocates the change of marketing model. The marketing model change is our main task this year: one is the network and the other is the brand. Jieshi release is actually a way of brand communication. We want to make users feel that Jessie is a high quality, high quality and high technology representative from the very beginning.
Wu Yingqiu: SAIC Iveco Hongyan has many brands such as Hongyan, Steyr, Teba, and Jieshi. How do you rationalize the brand of these products?
Yang Shuyi: Our product brand consists of three parts. For high-end products, we will introduce Iveco's "Eurostar" and gradually localize. The goal is to occupy the high-end market of China's heavy trucks and upgrade the corporate brand. The strategy in the mid-end product is to use Iveco's technology to improve Red Rock's products and ultimately to become autonomous. This is also the idea of ​​developing independent brands. Hongyan brand is China, but technology can be imported from abroad. Low-end products are special tyrants, which is based on the old red rock, through the help of Iveco to enhance the product's grade. Our product is to allow users to enjoy the "high quality, low price and medium quality."
Wu Yingqiu: You just mentioned that one of the priorities for this year is network construction. How do you think about this?
Yang Shuyi: Commercial vehicles and passenger cars are similar in marketing. They are branding. The difference is in the face of users. Cars are consumer goods. Most buyers are wearing suits and ties. However, we hope that users who wear slippers and barefoot can also get the service of cars. For this reason, we introduced dealers of cars to sell trucks this year. The purpose is to change the current marketing services.
Wu Yingqiu: The listing of Jieshi marks that Shang Yihong pays more attention to brand marketing. However, there are inconsistencies in the perceptions of SAIC, Iveco, and Hongyan. For example, there are various ways of saying that "Chaoqi", "Hongyan", and "Yiyihong". What do you think of the inconsistency in the perception of corporate brands?
Yang Shuyi: The brand includes two parts: the brand of the company and the brand of the product. Hongyan was formerly referred to as hy. We now use it as the product logo. Later, we also launched a SIH logo, but less publicity because of lack of products and production capacity. At the same time, Shang Yihong still needs time for brand building. Because the reservation of three foreign companies in the joint venture itself will take time. If companies are not well-grounded and advertised, it is very likely that there will be deviations, and it will affect the interests of various shareholders. It is complicated.
Today, product brand launch is the first step. In April, the construction of the new plant was the second step, and it would gradually begin to promote the brand of the company.
Wu Yingqiu: In the brand promotion, did Shang Yihong think of using SAIC brand better?
Yang Shuyi: We are also considering the use of shareholders' resources to enhance the company's brand. For example, using Iveco to improve the image of the product and use SAIC to enhance the image of the company. As one of the three major groups, SAIC has a high brand awareness. With Iveco's technological advantages, we can use Iveco's technology and at the same time use Red Rock's business to improve the brand's brand-name products.
In addition, the status of a company in the industry has a lot to do with its sales volume. The certain market share and the best cost-effective products, as well as the maximization of corporate profits and the greatest returns to society, are the basic prerequisites for a good company.
The ultimate goal is 1+1+1>3
Wu Yingqiu: Shang Yihong as a product of Sino-foreign cooperation. Where does the basis come from?
Yang Shuyi: In the field of commercial vehicles, self-owned brands have always been the main body of the market, but the development seems to have encountered a bottleneck. The sadness of China's commercial vehicles is that we did not expect that the electronic control system would affect us so much. Now we can develop a naked machine, but the control system is controlled by Bosch, Siemens, Delphi and other foreign companies.
Iveco has certain technological advantages and also hopes to find partners in the country. At the same time, SAIC also wants to develop commercial vehicles. This has both technical factors, government promotion, and cultural background, which has led to the cooperation of the three parties.
Wu Yingqiu: How do you see the respective brand advantages and characteristics, and how can you guarantee the effect of 1+1+1>3?
Yang Shuyi: This is what I have to do in recent years. SAIC is an old company with more than 20 years of joint venture experience. This is an important part of its brand value. How to make good use of SAIC's management experience and its influence in the country is very important. Iveco is the third-ranked truck manufacturer in Europe and ranks second in terms of profitability. However, in China, Iveco reminded many people that Nanjing Iveco is doing light trucks and light passengers. In fact, in Europe, Iveco is even stronger than Renault and belongs to the first lineup. Hongyan is a very old company with a history of several decades. It is very tough, self-motivated and has a sense of nationality. I now want to use SAIC's joint venture and cooperation culture, Iveco's technology and Hongyan's history.
Cooperation between companies is like finding a wife. It must be something that you love. It is not good to get together. The government's desire is on the one hand, but it must have market demand. The positioning of products, the integration of cultures, the promotion of the government, and the rapprochement of the enterprise, such cooperation may be 1+1+1>3. So far, the cooperation of the three parties should be greater than 2.5, but the ultimate goal is to produce an effect of 1+1+1>3.
Wu Yingqiu: Chinese and foreign cooperation in the field of commercial vehicles, there are not many successful cases. And Shang Yihong is facing more difficulties in the cooperation of the three parties. How do you bring these people together?
Yang Shuyi: There are two important points in this process. First, everyone's vision must be the same. When I came to Hongyan, I thought of myself as Hongyan, including Zugara also considered herself as Hongyan. In this way we can all think of a company. Everyone has a common goal.
The vision is important, but people who do things are more important. The person who writes the text can write the vision very consistent, but the person performing it is crucial. Their ideas do not agree and the vision is still just a vision. The three parties must have the spirit of mutual cooperation, otherwise they are empty talks.
To be a successful model in the field of commercial vehicles in China
Wu Yingqiu: As a commercial vehicle person, where do you think the gap formed in history compared with other enterprises? What method do you use to catch up?
Yang Shuyi: In the past, the gap between Hongyan was mainly in product and production capacity. Now that the construction of the new plant area has been completed, this gap is gradually being made up.
The current gap is mainly in the business. The former Red Rock is only a local enterprise, there is no independent cab and engine, and Shaanxi Auto, FAW, Dongfeng and other truck companies all have their own engine supporting companies. In addition, there are still gaps between our key components and heavy trucks. In the future, apart from increasing production capacity and increasing market share, we must also increase investment and development in key components and components.
In addition, in the network construction of modified vehicles and special vehicles, it will also increase investment and rationally allocate resources. In fact, there are quite a few resources for refitting this piece, but the level is relatively low and chaotic. We propose to break the network bottleneck of modified cars and special vehicles.
Wu Yingqiu: From the current point of view, Hongyan seems to have higher prices than similar products. This will not affect the future market sales?
Yang Shuyi: Actually, it is not entirely a matter of high prices. The cost-effectiveness of Jieshi is also relatively high. Our cab design and chassis are all newly developed. Of course, the price will be a bit higher than Dongfeng's Tianlong, a little lower than the liberation of J6. Tianlong sold 40,000 vehicles last year. I hope Jessie can sell 20,000 to 30,000 vehicles.
Wu Yingqiu: Prior to the listing of new vehicles in the passenger vehicle industry, some preliminary market research should be done. Compared with direct competitors, where is the direct selling point of Jieshi?
Yang Shuyi: The preliminary market research analysis is definitely done. First, the engine of Jieshi is a major highlight. Iveco's engine technology is relatively mature and can meet Euro V and Euro VI emission standards. It is also very popular in Europe.
The design of the cab is also relatively advanced. The indoor noise is only 68 decibels and the comfort is also very good. We promote the performance of trucks and the enjoyment of cars. In terms of safety, Jessie also met 29 European standards, including positive impact and side impact.
Wu Yingqiu: Now that Yiyihong has products and production capacity, it is also actively conducting network construction and brand promotion. What kind of company will be established in the future?
Yang Shuyi: Our vision is a model for the success of China's commercial vehicle sector. This goal is to be supported by specific elements such as products, technologies, and production capacity.
For heavy trucks, there is no guarantee of technology and production capacity, and it is difficult to obtain advantages in the market. At the same time, we hope to promote corporate branding through the promotion of corporate brands, including the use of major events as a carrier, and even communication and interaction with competing partners. I also visited other domestic heavy truck companies such as China National Heavy Duty Truck, Shanxi Automobile, and Futian. We also need to learn from them.
View related topics: New Generation Hongyan Heavy Truck - Jieshi GENLYON heavy truck listing
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