What Is a High Price Strategy?

Price strategy refers to an enterprise that chooses a strategy that can attract customers and realize a marketing mix through the estimation of customer demand and cost analysis. The costs of logistics companies are relatively complex, including transportation, packaging, and warehousing. Therefore, the determination of the price strategy must be based on the study of scientific laws, and judged by practical experience. Under the premise of safeguarding the economic interests of both producers and consumers, based on the acceptable level of consumers, based on market changes Flexible response, objective decision-making by both buyers and sellers.

Price Strategy

Price strategy is based on the buyer's different payment capabilities and utility conditions, combined with product pricing, so as to achieve maximum profit pricing. Price strategy is a more modern concept, derived from the large-scale

When setting the price for the first time, the company should consider the following factors: (1)

After the product price is determined, due to changes in the objective environment and market conditions, the price is often modified and adjusted.

Here are three simpler and easier to use pricing models.

Price strategy Accord cars

Guangzhou Honda Automobile Co., Ltd. was established on the ruins of the original Guangzhou Peugeot. It was established on July 1, 1998 with a registered capital of 1.16 billion yuan. It was constructed by Guangzhou Automobile Group and Honda Industrial Technology Research Co., Ltd. each with a 50% investment. Guangzhou Honda introduced Honda Accord's latest 2.0 upgraded series of cars at the beginning of the plant. The production goal is to produce more than 50,000 cars per year, and the initial stage is to produce 30,000 cars per year. Production models are the Accord 2.3VTi-E luxury sedan, 2.3VTi-L ordinary sedan and 2.0EXi environmentally-friendly sedan. On March 26, 1999, the first Guangzhou Honda Accord sedan was rolled off the production line. In November of the same year, it passed the strict inspection and acceptance of 40% domestic production of Guangzhou Honda Accord sedan. On February 28, 2000, the Guangzhou sedan project passed the completion inspection of an annual output of 30,000 vehicles. At the beginning of 2004, Guangzhou Honda had reached an annual production capacity of 240,000 vehicles. Guangzhou Honda produces and sells four models: Accord, Odyssey, Sedan Fit and Hatch Fit.

For the Chinese market, Guangzhou Honda Accord's price strategy also looks superior. The release of "price bombs" reflects the long-term vision of manufacturers when the product is in short supply.

In 2002, it was called the Year of the Chinese Automobile. In this year, the Chinese automobile achieved a historic leap-the sales revenue of 646.5 billion yuan and the total profit of 43.1 billion yuan (the year-on-year growth reached 30.8% and 60.94 respectively. %), Making the automotive industry overtake the electronics industry for the first time as the primary driving force for China's industrial growth. According to figures released by the State Development Planning Commission's Industry Department in January 2003, the national automobile production and sales volume in 2002 exceeded 3 million vehicles, of which 1.09 million were passenger cars and 1.126 million were sold. The huge profits of China's auto industry has long been an open secret in the auto industry. Especially in high-end cars, the profit margin is surprisingly high. According to figures released by an authoritative statistical agency in a German industry, the benefits of Chinese mainstream OEMs in 2002 were surprisingly good, with average profits exceeding 22%, and some companies even reaching 30%.

From January 1, 2002, the tariffs on cars have been greatly reduced. The import tariffs on cars with a displacement below 3.0 liters have been reduced from 70% to 43.8%, and those above 3.0 liters have been reduced from 80% to 50.7%. After the tariff reduction, the price of imported cars has not fallen to the expected price range due to various reasons. It seems that the general manager of Guangzhou Honda Gate Wujiu II has already predicted. He said: "The reduction of tariffs from 70% to 43.8% and eventually 25% is a process. Although some people have temporarily postponed their car purchase plans because they consider that imported cars will become cheaper, the government actually decided The number of imported cars will not increase much in a short period of time. "Guangzhou Honda announced a decision that surprised everyone: in 2002, all prices of Guangzhou Honda's products will not be reduced.

The establishment of Guangzhou Honda in 1998 confirmed the introduction of the sixth-generation Accord to Chinese production. On March 26, 1999, the sixth-generation New Accord rolled off the assembly line in Guangzhou Honda and sold 10,000 vehicles that year. In the year when the Accord was launched, the market was becoming popular, with the highest price increase of more than 60,000 yuan, becoming the best-selling mid-to-high-end car of the year. After becoming the first company in China to produce and sell more than 30,000 mid-to-high-end cars annually in 2000, Guangzhou Honda produced and sold more than 50,000 cars in 2001, four years ahead of schedule. In 2002, Guangzhou Honda produced and sold 59,000 vehicles, with sales revenue of 13.732 billion yuan and profits and taxes of 5 billion yuan. On March 1, 2002, the 100,000th Honda Guangzhou Honda Line marked Guangzhou Honda's full ranking among domestic mid-to-high-end automobile brand companies.

When the Accord was first listed, the localization rate was 40%. After several years of operation, the localization rate increased to 60%. In 2003, the North American version of the new Accord increased to 70% when it was launched, reducing the cost of imported parts. When the factory was built, the production scale of Guangzhou Honda was The production volume reached 30,000 in 2001. In 2002, it was upgraded to 110,000 units, and the scale brought about a reduction in average cost. In the same year, the production capacity of 120,000 units was transformed.

In 2003, the listing of the North American version of the new Accord (the seventh-generation Accord) ended the tacit understanding that China's mid-range sedan market was safe and expensive, and its price set a new standard for the pricing of all domestic new cars that year. It also shows a trend of overall decline. What follows is that prices continue to be crushed downwards and the market continues to blow out.

Guangzhou Honda has introduced a replacement model to fully upgrade the vehicle configuration while significantly reducing prices. In January 2003, Guangzhou Honda Xinya line, at the offline ceremony, Guangzhou Honda announced the price of the new Accord, and announced that Guangzhou Honda will not reduce prices in 2003. Its new announced price system shocked the entire automotive industry: the new Accord sedan with a displacement of 2.4 liters was priced at only 259,800 yuan (including freight). Previously, the demand exceeded the 2.3 liter old Accord sedan. The price is also 298 thousand yuan, not including shipping costs. This means that Guangzhou Honda actually reduced the price of the Accord by more than 40,000 yuan, and the engine, gearbox and body of the new Accord have been completely redesigned, which improves the operability, comfort, and safety of the vehicle. . The general manager of the company, Mr. Menxian Hongji, explained: "On the one hand, Guangzhou Honda is committed to increasing the localization rate to reduce costs, and may consider returning this profit to consumers; on the other hand, this is also the China Automotive Industry and International The inevitable requirement of convergence. "Industry insiders believe that this is the result of Guangzhou Honda adjusting its profit model under the new competitive situation.

The original price of Accord 2.3 is still in short supply. The price of the new Accord is reduced by 40,000 yuan, and the displacement, power, torque, and scientific and technological content have all increased. The cost performance improvement should be around 50,000 yuan. The price of Guangzhou Honda New Accord is quite different from the old model. The old Accord 2.3VT1-E (luxury) is priced at 300,300 yuan, a difference of nearly 40,000 yuan, including the interior, engine and chassis of the new Accord The value of the new technology upgrade is estimated at 60,000 yuan. The price of the old Accord 2.0 is 262,500 yuan, which is two or three thousand yuan higher than the new one. Guangzhou Honda's new low price for the Accord is based on the premise that the old Accord is still very popular. Although the industry has anticipated that Guangzhou Honda New Accord's pricing will be significantly reduced, the new Accord's pricing has caused an "earthquake."

Guangzhou Honda New Accord's pricing will become the price vane of domestic mid-to-high-end cars. The upcoming Shanghai Buick Regal 2.0 and 2.5 and FAW Car M6 will be listed here. Passat, Fengshen Bluebird, Bora, and Fumeilai, which are on the market, will also Can't escape the relationship. Before the Accord's price reduction in December 2002, the first Sonata was taken off the line. It is reported that Fengshen Sunshine entered the game in June, and Dongfeng and PSA's Peugeot 307 may also go offline. The new Accord's pricing will undoubtedly be an unavoidable frame of reference for them. After the price cut, the 2.4-liter new Accord is close to the 1.8T Passat price. Shanghai GM's Buick Regal, which was listed on February 10, is focusing on the price of the new Accord, pushing 3.0 first, and waiting for 2.0 and 2.5. On January 21st, it attracted much attention from the market, and was even regarded by many media as the most anticipated mid-to-high-end FAW 2.3-liter M6 in 2003. The relevant person in the FAW Car M6 project revealed that "the price of the luxury version will be between 250,000 and 300,000 Between RMB, it will not exceed 300,000 yuan. "Previously, the industry agreed that the price of M6 would be around 300,000 yuan. In April, the 2.3-liter technical Mazda 6 was pre-ordered for 238,800 yuan.

The one-step pricing of the New Accord has affected the price of the entire mid-to-high-end sedan market. This pricing strategy of Guangzhou Honda has continued to fit the marketing of Fit models after the offline. The price system of Guangzhou Honda models has therefore become the price of the entire domestic automotive industry. The benchmarking of the system has promoted the return of domestic mid-to-high-end car prices to "value", and has pushed China's cars to gradually align with the international market. Several models produced by Guangzhou Honda have also been in short supply in the market for several years. In 2003, Guangzhou Honda even increased its sales by more than 100% with the sales of 117,000 vehicles, becoming the largest car maker. When the sales were the hottest, the price increase of an Accord was as high as 40,000 yuan. In this year, the production of sedan cars in China also exceeded 2 million for the first time, reaching 2.0189 million, a year-on-year increase of 83.25%.

Price strategy Sichuan Changhong

The predecessor of Sichuan Changhong Electronics Group is the state-owned Sichuan Radio Factory, a military industrial enterprise established in 1958, located in Mianyang City, Sichuan Province. In 1965, "State-owned Sichuan Radio Factory" was renamed "State-owned Changhong Machine Factory". In 1973, the Changhong Plant took the lead in successfully developing the first television set in the military industry system, with the registered trademark "Changhong", and the Changhong brand was founded. Since the successful production of "Changhong" TV sets in 1973, it has been among the top five TV brands in China since 1992. From 1993 to 1998, the "Changhong" color TV set made its way out of its domestic competitors and successfully reached the throne of "China's color TV king". Changhong stock was listed on the Shanghai Stock Exchange in March 1994 and soon became a "leading stock". In 1998, Changhong put forward the strategic goal of "World Brand, Centennial Changhong". Changhong Color TV started from entering the global market as a new starting point. Changhong products expanded from color TV to air-conditioning, digital audiovisual, electronic parts, batteries and other related industries. In 2004, the value of Changhong brand reached 33.073 billion yuan, becoming China's most valuable well-known brand.

In the course of development, Changhong has grown into China's "color TV king" through multiple price reduction activities, and has also become a banner for China's home appliance industry, driving the home appliance industry to become one of the most market-oriented industries in China. Changhong's performance today is attributed to several proactive price reduction actions by Changhong:

For the first time, the road of independent price adjustment was started. In 1988, there was a severe shortage of color TV sets, and the trend of snap-in resale prevailed. It was difficult for ordinary people to buy color TV sets at a price higher than the national price. Under the restriction of the state's listing price, the situation that "the people spend more money and manufacturers cannot make money" has appeared. Changhong sold a batch of color TV sets to the Provincial Industrial and Commercial Bank of China at a price slightly higher than the national price but lower than the black market to start its own price adjustment journey. In 1989, a large number of domestic color TV production plants introduced color TV production lines. At the same time, the state levied a color TV consumption tax. The color TV market suddenly oversupplied and manufacturers' color TV backlogs were severe. In the first half of the year alone, Changhong had a backlog of nearly 200,000 color TV sets, occupying 320 million yuan of funds, and was severely strained. After asking the Provincial Price Bureau, Changhong carried out its own price reduction activities on August 9, 1989. The price of each color TV was reduced by 350 yuan, and Changhong's backlog of color TVs sold out, which also improved Changhong's position in the color TV industry. For this reason, the censure of "don't let the price increase you rise, not let the price decrease you fall" has triggered a big discussion of "Changhong phenomenon". In September 1989, around the two price adjustments of Changhong in 1988 and 1989, the "Changhong Phenomenon" discussion that was actively responded to by the "China Electronics News" was launched by the "Communication of the Chinese Institutional Reform", and the discussion of "Chonghong Phenomenon" was vigorously launched nationwide. In March 1991, the National Bureau of Statistics announced that Changhong was the first color TV industry sales champion in 1990.

The second time was a decisive price-cutting action, and domestic color TVs began to be "owners." In 1996, imported brands had an absolute advantage in the large-screen color TV market with more than 25 inches, and their market share in Beijing, Shanghai, and Guangzhou was as high as 80% or more. However, many joint ventures have not yet put into mass production. On March 26, 1996, Changhong TV set up the banner of price reduction with "the same technology and the same quality" and declared war on foreign TV for the first time. In the face of the overwhelming foreign color TV sets, Changhong announced a national price reduction of 18%, which led domestic color TV sets to capture market share. As a result, domestic color TV sets occupied an absolute dominant position in the domestic low-end color TV market. Changhong's market share increased from 22% in 1995 to about 27% in 1996, and sales of color TVs increased by 61.96% over the same period last year. The price war initiated by Changhong in 1996 contributed to the turnaround of domestic color TVs.

For the third time (1999-2001), Changhong's reshuffle of traditional color TVs gradually advanced to the high-end market. For Changhong, 1998 was a turning point. In order to curb opponents, Changhong purchased large-scale color tubes from August of that year, and controlled more than 70% of domestic color tubes at most, making the payables and bills from 3.551 billion yuan to 6.19 billion yuan. Changhong plans to produce 800 color television sets 10,000 units, but the actual sales were only over 6 million units. By the end of 1998, Changhong's inventory reached 7.7 billion yuan, which was double the previous year. At the same time, the problem of Zheng Baiwen broke out in 1998. When exposed, the sales revenue of this channel accounted for 30% of Changhong's total turnover. Due to the "Zheng Baiwen Incident", in the first half of 1998, Changhong's sales expenses increased from 198 million in the same period in 1997 to 346 million, an increase of 14.75%, while sales revenue fell by 14.2%. By 1999, Changhong's sales performance had fallen by 14.5% year-on-year, while its cost of sales had risen by 25.5%. The "stock hoarding of color tube" incident not only forced the company to bear the pressure of 7 billion yuan of inventory, but also made TCL, Skyworth, Konka, the three swordsmen against Changhong's alliance stronger. As a result, Changhong has fallen from the habit of being the first to become exhausted in frequent price wars. In this year, Changhong's main business income dropped sharply by 400 million yuan. After the price war initiated by others in 1997 and 1998, Changhong's color TV dominance was in jeopardy. In order to restore the decline, in April 1999, Changhong Color TV began price reductions. However, Konka has long responded to Changhong's price reduction, and the price reduction has exceeded Changhong's 80-300 yuan. Changhong's main profit dropped from 3.16 billion yuan in 1998 to 1.57 billion yuan in 1999. The return on net assets was only 4.06%. In the second half of 1999, Changhong's profit was only over 100 million yuan.

The domestic color TV market sold 20 million units in 2000, but its production capacity exceeded 40 million units. Excessive competition caused by repeated construction has forced companies with homogeneous products to survive, and only constantly raise the price of sharp blades to engage in melee. At the beginning of 2000, the domestic color TV industry was shrouded in a heavy shadow of 14.7 billion losses in the industry. In order to avoid a fierce price war in 1999, on June 9, 2000, the nine major color TV companies signed the lowest price agreement on color TV sales at the "China Color TV Enterprise Summit" held in Shenzhen, which was immediately declared illegal by the State Planning Commission. In less than a month, color TVs around the world set off an unprecedented wave of price cuts, with 29-inch color TVs falling to as low as 1,680 yuan, and at this time a paper agreement at the color TV summit was not dry. Since then, allies in the Confederate have betrayed. Xiahua and Panda, the ally, have taken the lead in reducing prices. In August, Konka, the ally, and Sichuan Changhong, which did not participate in the ally, announced a significant reduction in the price of color TVs. %, While Changhong's decline was even higher, reaching 35%. The color TV price reduction is the largest in scale and price reduction since Sichuan Changhong provoked a price war in 1996. In this price reduction, 29-inch flat-screen TVs sell for less than 2,000 yuan. As of mid-December 2000, Changhong's sales revenue has exceeded 80 billion yuan, of which the sales volume of color TVs, the main products, has reached 45 million units. In 2000, Changhong color TVs sold 6.94 million units and Sony color TVs sold 500,000 units, but the profits of the two were almost the same. In 2000, Changhong Color TV once again became the number one in sales. In the face of a major industry downturn, the market share has returned to 25%.

In 2000, while domestic brands cut prices across the board, imported brands launched a large-scale counterattack, taking the lead in launching the most advanced products in the Chinese market, and relying on closer and closer prices and existing brand advantages, they will bring color TVs larger than 29 inches 'S market share increased from 15% to 30%, taking three of the top ten market shares. Although many color TV companies have been eliminated after several price wars, by the end of 2001 there were still 70 or 80 production companies in the national color TV industry, with more than 100 production lines and an annual production capacity of 50 million units, while domestic sales were only 20 million Taiwan, after efforts to reach 10 million units, and 20 million idle production capacity. In order to seize the market occupied by multinational companies and further clean up domestic brands, the self-proclaimed "May 1 Battle" launched by Changhong in mid-April 2001 advanced this expected price war by half a year. On April 13, Changhong significantly reduced the price of more than ten varieties of high-end color TVs across the country. Most of these color TVs were large screen super-screen TVs that were previously considered unattainable. The 29-inch large-screen "National Gifts" color TV that sells well in the market has dropped from about 4,000 yuan to about 2,000 yuan, and the price is only 40% -50% of the same grade of imported brands.

For the fifth time (from 2002 to the present), it has pioneered the road of leading domestic high-end color TVs. In 1998, China's rear-projection TV sales were 4,795 units, exceeding 100,000 units in 2000, and reaching 350,000 units in 2001, an increase of more than 300% for four consecutive years. On January 1, 2001, China's first precision display TV, Changhong Jingxian Color TV, was born, thus breaking the situation that the high-end core technology of color TV has been monopolized by multinational color TV giants. In July of the same year, the world's third generation 60Hz digital frequency conversion progressive scan rear projection color TV was born in Changhong. At this point, it has become history for China's color TV industry to be fully controlled by high-end core technologies. In early 2002, Changhong developed the third-generation 75 Hz digital frequency conversion progressive scan rear projection color TV set, which is world-leading. Before Changhong products were put on the market, high-end color TV products have always been the world of Japanese and Korean companies. Due to technology and profit cycle considerations, Japanese and South Korean companies adopt a differential treatment strategy in the rear-projection market: the third and fourth-generation rear-projections are put in developed markets, and the first- and second-generation rear-projections are mainly put in the Chinese market. In order to use ordinary rear projection to extend their profit time in the Chinese market. On April 29, 2002, Changhong Projection Corporation announced that it will completely stop the production of first- and second-generation (50Hz and 100Hz) ordinary rear-projection color TVs from now on, and will transfer all its energy to the third-generation and fourth-generation 60 / 75Hz + Production and sales of line-scan rear projection TVs. At this time, it was only 16 months since January 1, 2001, when China's first precision display television was successfully rolled off in Changhong. In May 2002, Changhong took the lead in launching the sophisticated rear projection, which fired the first shot of the domestic color TV industry to fully enter the high-end market; after that, multinational companies began to pass on high-end rear projection technology to domestic enterprises, so TCL, Skyworth, Hisense Domestic color TV brands have successively launched high-end products such as plasma and LCD color TVs. In July, TCL and Skyworth successively launched the plasma color TV market at an ultra-low price of 29,800 yuan. At this point, domestic color TV companies have successfully completed the transition from the low-end market to the high-end market. In the 2002 Interim Report, Changhong, who had been in the doldrums for five years, finally had the feeling of returning to the past. According to the Interim Report released on August 10, Changhong Color TV and other main business income increased by 65.38% year-on-year, net profit increased by 435.67% year-on-year, and color TV exports reached 2.796 billion yuan, an increase of 1789% year-on-year. . In addition, it took only one year for Changhong Jingxian rear-projection color TV, which was close to Toshiba and Sony, and became the spokesperson of China's rear-projection color TV. In October 2001, Changhong's rear-projection market share was less than 1.5%, compared with 18.5% in the same period in 2002.

On April 8, 2003, China's color TV king Changhong launched a "Changhong rear projection popularization storm" campaign in less than half a month after winning the 2002 national color TV sales champion, and fully countered the transnational backlash in the high-end market. Cast a brand. Changhong Jingxian Wang's rear projection TV prices have been cut across the board. The average price reduction is 25%, and the highest price reduction is 40%. Further consolidate and increase their market share in rear projection. In October 2004, Changhong began the "Rainbow October" operation. The "Rainbow October builds a new generation of digital class" activities were carried out in full swing throughout the country.

POLO Price strategy hatchback POLO

Shanghai Volkswagen Co., Ltd. is a Sino-German joint venture car manufacturer, established in March 1985. The Chinese and German investment ratios each account for 50%, and the contract period is 25 years. On April 12, 2002, the Chinese and German investors revised and extended the Shanghai VW joint venture contract signing agreement, and the joint venture period was extended to 2030. Shanghai Volkswagen has been awarded the title of China's Top Ten Joint Ventures for eight consecutive years. It has been ranked among the top 500 foreign-invested enterprises in the country for eight consecutive years, and has been rated as a national quality and efficiency enterprise for nine consecutive years. Relying on its outstanding performance in terms of quality and economic benefits, Shanghai Volkswagen became the first company in China's automotive industry to receive the National Quality Management Award, and has been named the "China's Most Admired Foreign Investment Enterprise" for three consecutive times , Two of them topped the list. The products mainly include: SANTANA, SANTANA2000, PASSAT, POLO and Gol dozens of models.

As one of the most prestigious brands of Volkswagen, POLO was launched in 1975 and is known as the "magic kid" of Volkswagen. In September 2001, Volkswagen launched the fourth-generation POLO sedan, which was unveiled for the first time at the Frankfurt Motor Show, known as the "Olympic Games." Its perfect shape, leading technology, complete equipment and reliable performance made it a star at the auto show. Listed in Europe in November. At the "2001 China Shanghai International Automobile Exhibition" which opened in December 2001, the fourth-generation POLO sedan unveiled the mystery to Chinese consumers for the first time. The fourth-generation POLO was introduced to the Chinese market by Shanghai Volkswagen in early 2002. It was the first compact car launched by Volkswagen to invest in China for more than 10 years. It had previously achieved 7 million sales worldwide. On March 25, 2002, Shanghai Volkswagen Sales Co., Ltd. officially accepted users' reservations for POLO, and on April 8, POLO was officially launched on the market.

From the end of 2001 to the beginning of 2002, as the price reduction of imported cars began after China's accession to the WTO, the price advantage of domestic cars gradually weakened, and the phenomenon of consumers holding currency to purchase became increasingly serious. Chinese car manufacturers were under the greatest pressure ever. . Usually the fourth quarter of each year is the peak season for car sales. In the fourth quarter, the sales volume of domestic cars was 174,500, which was 13.1% lower than the 20,300 in the third quarter. The automobile sales market was in a slump of winter.

Before POLO went on the market, there were already many economic cars in the domestic market. The models similar to POLO's target customers were Sail, Palio and Xiali 2000. Before POLO went on the market, people in the industry referred to them as the "Big Four". Sail first proposed the concept of a compact car of 100,000 yuan, and became a dark horse for home economy cars. Since its launch, it has been the sales champion of economy cars. On January 29, 2002, the day before Palio went offline, Shanghai GM significantly adjusted the market price of Sail, with a minimum of 92,800 yuan. Sail again became the focus of the media. Xiali 2000, which has been stalemate with Sail, also adjusted its price to 97,000 yuan on January 11th. Since then, there has been a unique situation in the history of Tianjin automobile-in major cities across the country, Xiali sales have been blocked. On March 22 before POLO accepted the official reservation, Nanjing Fiat held a grand listing ceremony for Palio in Juyongguan, the Great Wall of Beijing. It will sell for 95,900 yuan, 1.5 liters of standard configuration and price of 109,900 yuan. The 1.5-liter luxury model was put on the market first, but the 1.3-liter Palio with a price of 84,900 was not launched at the same time. Among the three cars, Palio's minimum sales price is more than 80,000 yuan, Sail and Xiali 2000 are around 100,000 yuan. POLO and these three cars are very close in model and displacement, plus the previously popular "100,000 yuan "Compact car concept", so people have more expectations for the price of POLO.

Based on the prices of Sail, Perio and Xiali 2000, Shanghai Volkswagen does not want consumers to compare POLO with them. Nanyang, general manager of Shanghai Volkswagen, said in an interview with reporters that "POLO is a reduced Passat. Its functions, configuration, and driving feel are in the same vein as Passat. It is unmatched by other domestic compact cars. Our goal The competitors are the Peugeot 206, Toyota Yaris, and Opel Corse that have been approved in China after the WTO. "Shanghai Volkswagen vigorously promotes that POLO is China's first sedan to be launched in sync with the world. The attractive product is not a cheap car, but a compact car. Compared with Fiat Palio and Shanghai GM Sail, etc., Volkswagen polo has a much higher technical content than them, and has only equipment such as dual airbags and ABS. At the same time, in order to adapt POLO to China's road conditions, Shanghai Volkswagen took out 82 prototype cars and passed 2 million kilometers of tests.

Shanghai SAIC Volkswagen Sales Co., Ltd. implemented a new dealer business policy and re-approved the market minimum prices for Shanghai Volkswagen products. After the introduction of this measure, the actual market prices of Shanghai Volkswagen's various varieties have been reduced to varying degrees. Among them, Poussin is about 6000 yuan, Santana 2000 is about 10,000 yuan, and some Passat products are about 16,000 yuan. After the price adjustment, Santana's lowest price is close to 100,000 yuan, and the price range is 107,200 to 122,400. The price comparison of some models before and after the adjustment is as follows:

Decrease in models (10,000 yuan) Current price (10,000 yuan) Original price (10,000 yuan)

Rookie VN372 0.62 10.73 11.35

Rookie VN482 (improved) 0.62 10.79 11.41

99 rookie VN472 (improved) 0.62 11.3 11.92

Century Rookie VN422 0.62 12.24 12.86

Century Rookie VN392 0.62 11.98 12.6

Optional VN402 0.72 11.83 12.55

Time Superman VG021 1 16.35 17.35

Time Superman VG061 0.99 16.67 17.66

Time Superman VG042 0.997 16.713 17.71

Junjie VH031 1 17.95 18.95

Junjie VH041 1 18.466 19.466

Junjie VH051 1 18.5245 19.5245

Junjie VH061 0.998 18.352 19.35

Junjie VH071 1 18.4 19.4

Travel sedan VP071 (normal / gold lacquer) 0.62 11.53 12.15

Travel car VP091 (general / gold lacquer) 0.62 11.53 12.15

Passat VX012 / VX011 1.6 22.9 24.5

Before POLO went public, Shanghai Volkswagen conducted a lot of publicity activities. On December 9, 2001, at the "2001 China Shanghai International Auto Show", the POLO sedan unveiled the mystery to Chinese consumers for the first time, attracting media attention. "R u POLO?" This stylish slogan opened the prelude to POLO advertising. For a while, the slogan "Is it you? POLO" abounded, the overwhelming advertising impact and media publicity made people have to pay attention to this "synchronized with the world", "the perfect combination of technology and fashion" cars . From March 20th to 25th, the activity of "Anyone at the End of the World-POLO's First National Reporter Test Drive" started, and POLO received rave reviews. In September, SAIC Volkswagen sponsored the Shanghai International Women's Tennis Open that year under the name of POLO. Extensive publicity activities made consumers look forward to POLO.

On March 25, SAIC-Volkswagen Sales Co., Ltd., the general dealer of Polo cars, officially announced that Polo cars will be formally accepted for booking from now on and will be officially put on the market on April 8. For a while, the telephone numbers of inquiries from various dealers were one after another, and the people who ordered were endless. By March 28, 172 licensed dealers of SAIC Volkswagen had accepted more than 5,000 orders in 4 days, creating a history of Chinese car sales. New record. On April 8, 1.4 liters of POLO went on sale, with prices ranging from 127,500 to 148,000 yuan, mainly including manual transmission comfort 127,500 yuan, 128,800 yuan and luxurious 140,000 yuan; automatic transmission comfort 135,500 yuan, 134,100 yuan and luxury 148 thousand yuan. Previously, the German-made 1.4-liter manual Polo sedan, which was listed earlier, was sold in Germany for about 13,000 to 14,000 euros, equivalent to about 100,000 yuan (excluding consumption tax, which includes consumption tax in China), and on April 8 Compared with the Japanese listed price, European car prices are about 25% cheaper than China, which is almost the lowest import tariff on Chinese cars after 2006. Nonetheless, the published prices clearly exceeded previous estimates. However, the monthly sales of POLO reached 3041 units. On September 12, 2002, a 1.6-liter POLO went on sale with a price of 135.5-14.8 million. At this time, POLO sales exceeded 15,000 units, with an average of 100 units sold per day. As of the end of September 2003, POLO's total sales were 59,800. On September 12, 2003, POLO began to reduce prices, with prices falling by 8100 yuan to 11100 yuan.

The appearance of Polo has filled the gap of 130,000 to 150,000 in Shanghai Volkswagen's entire price chain. From Poussin to POLO, to Santana 2000, and finally Passat, Shanghai Volkswagen has the most complete price chain for Chinese auto companies. From the price of 130,000 yuan to 150,000 yuan of POLO cars, its strategic significance has been seen. On February 28, 2003, Shanghai Volkswagen's two-door Gol sedan was officially launched. The listed Gol is a two-door introduction type, a two-door basic type and a two-door comfort type. The pricing is from 75,000 to 98,300 yuan. This extends the price chain of Shanghai Volkswagen's product line to less than 100,000 yuan.

CCTV Advertising Bidding

China Central Television is the national television station of the People's Republic of China. It was pilot broadcast on May 1, 1958 and officially broadcast on September 2. The original name was Beijing TV Station, which was renamed CCTV on May 1, 1978, with the English abbreviation CCTV. Today, the national population coverage rate reaches 90%, and the audience exceeds 1.1 billion. The fourth program (Chinese International Channel) and the ninth program (English Channel) cover the whole world through satellite transmission.

In 1994, CCTV first pioneered and held a prime-time advertising bidding conference, using the bidding method to allocate the scarce resource of advertising prime-time. As of November 18, 2004, the "2005 CCTV Gold Segment Advertising Bidding" CCTV advertising bidding campaign has been held for 11 sessions. Since the bidding of the prime position advertisement of CCTV, the day of the annual advertising bidding (November 8 before 2002 and November 18 from 2002) has become a grand event in the industry, because it not only reflects television The growth of the media and advertising industry also reflects the company's expectations for the industry and economic development in the coming year. Therefore, CCTV's golden segment advertising bidding has therefore been hailed as the "barometer of the Chinese economy", "the vane of industry development" and "business expectations" Index of confidence. "

Before 1993, there was no advertisement between "News Broadcasting" and "Weather Forecast", only a "5 second advertisement" in "Weather Forecast", which sold 600,000 in 5 seconds. In 1993, as the two companies competed for the 5 seconds at the same time, CCTV added a 5 second to the weather forecast. In 1994, many companies requested advertisements for this location. Even with the 5-second ad rising to 3.7 million, the competition is still fierce. In order to resolve this contradiction, CCTV tried to add a 30-second advertisement between "Newscast" and "Weather Forecast" from January to April 1994. After April 1, "Newscast" and "Weather Forecast" The advertisement between has increased to 60 seconds, and this advertisement form has continued to this day. In August and September of 1994, various relations found the advertising department of CCTV, and wanted to determine the advertisement of the golden segment in 1995. Resources are scarce and companies are not giving up. CCTV finally decided to resolve the contradiction between supply and demand by tendering. The first public bidding for the golden segment advertisement in 1995 ended the era of black box operations. Practice has proved that advertising, as a special commodity, can fully operate in accordance with market rules through bidding, and can make better use of the benefits of advertising.

Prior to 1999, people saw three turning points. One was the first public bidding for a prime segment advertisement in 1995, which ended the era of black box operations. The second was that the bidding king was changed from a dark label to a clear label in 1998. Enterprises can bid multiple times. In 1999, the standard was adopted and the king was cancelled. These three transitions mean that in the increasingly fierce media competition, advertising bidding has become more market-oriented and standardized, and enterprises' attitudes towards advertising bidding have become more rational.

Since 2000, CCTV advertising bids have been improved. In 2000, CCTV's prime advertisement was placed on the basis of the full implementation of the standard in 1999, and the bidding time unit was changed from one quarter to two months as a time unit, which is more conducive for enterprises to choose the month of bidding according to actual needs. At the same time, the bidding positions for key time periods such as the first three 5-second standard editions of the news broadcast were added. The ban on alcohol advertising during the prime time has been lifted, and alcohol companies can directly participate in the bidding for the golden segment. At the same time, at 19 o'clock, the rule that only watch companies were allowed to participate was cancelled. The number of participating companies has increased from several coastal cities in the past to the central and western regions and the northeastern region, and another batch of foreign brands have also participated in the bidding.

In 2001, CCTV s prime bidding for advertisements changed the sections of the news broadcast and the sections of the special section to hidden bids. In 1998, the bidding king changed from a hidden bid to a marked bid. Today, the conversion of the marked bid and the hidden bid is apparently due to the fact that in the previous year's bidding, companies joined forces with CCTV to bargain prices, causing CCTV to suffer losses. Advertising bidding continued to decline for two years. Enterprises have shown a fairly strong rationality in bidding. A few years ago, the scene where Qinchi Winery spent 320 million yuan to capture the bidding king and Aiduo 210 million yuan became the "last bidding king" of CCTV is gone. The maturity of enterprises is the concrete manifestation of the maturity of China's market economy.

CCTV s newly added "weather forecast advertisements" (a total of 2 advertisements, each 5 seconds each) in the 2002 golden segment advertisement bidding, the weather forecast trailer (reprint) changed from two pieces to one piece; a "TV drama special screening" project was added, up and down One for each half year; for the standard version of the news broadcast and the special section A, continue to adopt the method of concealed bidding and clear bidding to determine the winning unit and its broadcast position. It is slightly different from 2001. In 2002, the "preliminaries plus finals" method was adopted, and two shortlisted bidding units were added respectively. A "CCTV strategic partner advertising exhibition" column was set up to be broadcast in a columnized and themed form. Partner advertisements with an annual investment of more than 50 million yuan during the bidding period. The adjustment of the bidding rules in 2002 gave the biggest impression that the bidding plan was getting closer to customers.

After 2002, there was no major adjustment in the content of CCTV's prime bidding, only some fine-tuning of the content according to the needs of enterprises.

From the perspective of the successful bidders, from 1995 to 1998, Guangdong, Shandong, Jiangsu, Zhejiang and other coastal developed areas were concentrated, and there were very few Midwestern companies. Since 1999, the successful bidders have not been limited to coastal areas, Heilongjiang, Chongqing, Inner Mongolia, etc. Enterprises in inland provinces have entered the bidding stage, reflecting that China's economy is developing in depth. In recent years, some foreign companies, such as Procter & Gamble, Colgate, Hitachi and Philips, have also come to bid for foreign companies' confidence in the Chinese market and Ambitions can also be seen in the tender section.

From the perspective of winning the bidding industry, the hottest fastest-growing industries in the past decade have first ignited the war in the prime position of CCTV. Liquor, home appliances, health products, thermal underwear, dairy industry, mobile phones, lubricants ... Before 1997, the number of liquor companies won Larger, but with the introduction of national restrictions on liquor advertising, from 1998, home appliance companies have risen to become the largest. In 2001, with the continuous improvement of the living standards of Chinese residents, the medical and health products industry has emerged. After the state introduced a series of advertising restrictions on the medical and health products industry, the advertising of the medical and health products industry in 2002 has been greatly affected. This effect may continue. At the same time, dairy, food, beverage, mobile phone and other industries have shown a steady rise in development momentum, and will perform well in the 2003 tender. Lubricant emerged in a 2004 tender. Facts have proven that all industries that are engaged in fierce advertising competition in the bidding stage have the fastest development. The fierce competition in the home appliance industry has greatly strengthened the international competitiveness of China's home appliance companies; the dairy advertising war has brought about the development of the dairy industry ; As a result of the mobile advertising war, the share of domestic mobile phones rose from 19% in 2001 to 51% in the first half of 2003; as a result of the advertising competition among lubricant companies, the initiative to compete in the domestic market was quickly seized. Advertisements in the bidding segment stimulated market consumption, enlarged the cake of the entire industry, and promoted the development of China's economy.

Since 2002, the advertising department of CCTV has actively carried out industry cultivation and industry development. Soy sauce, candy, moon cakes, fresh meat, lubricants, these small industries that were previously difficult to associate with the bidding section. Since 2003, there are brands in the central government. TV stations have begun advertising on prime segments, such as Yake Candy and Gaga Soy Sauce.

CCTV's bidding process has undergone many changes in the past ten years: the way of bidding has changed from hidden bidding to clear bidding, then to a combination of bright and dark bidding, and the bidding of shortlisted bidding bids; Medium and A special sections, before the "News Broadcasting", 19 o'clock time, designated locations in section A and TV special broadcasts; in terms of time division, from annual tenders to quarterly units, to two months as a Units; resources for bidding support range from single to optional and targeted telecasting.

The bidding method has been continuously adjusted in 11 years, reflecting the purpose of continuously adapting to changes in market demand. Subdividing units lowers the barriers to entry for enterprises and allows more enterprises to participate; in the operation of business placement, it increases flexibility and makes it possible for the two companies to jointly own a segment of advertising; the bidding segment plus preferential broadcasts forms In order to take the tender section as the main body through CCTV's integrated dissemination. The bidding scheme is becoming more and more scientific and more and more adapted to the needs of customers.

Since CCTV s prime-time advertisements were put into tender in 1995, the winning bids have generally risen steadily, and the annual bidding amount has risen step by step. The amount of tenders in 2001 was 2.16 billion yuan, an increase of 240 million yuan over the 1.92 billion yuan in 2000, and the growth rate reached 12.5%; the total amount of winning bids in 2002 was even more significant, with a total of 2.626 billion yuan, a net increase of 466 million yuan over the previous year The growth rate is as high as 21.9%. In 2003, CCTV's advertising bids totaled 3.341465 billion yuan, an increase of 26.22% over the previous year. In 2004, the total amount of advertising bidding reached 4.41157 billion yuan, 1.1 billion yuan more than the 3.3 billion yuan in the previous year, an increase of 33.1% over the previous year. The total amount of tenders in 2005 reached 5.248 billion, and the amount of tenders was 4.41157 billion, an increase of 18.9% in the same year.