·Strengthen the A-class car layout Shanghai Volkswagen deep-rooted family strategy

On June 19, 2015, Shanghai Volkswagen Santana Haona was listed in Guilin. As the first bomb of Shanghai Volkswagen to announce the post-mortem listing, Hao Na will continue to expand the layout of Shanghai Volkswagen in the A-class car segment and open the prelude to Santana's “family-style” development.
At this point, Shanghai Volkswagen has formed the family of Santana, LaVida and Polo, and has expanded its A-class car camp to seven. “The simple division of the existing A-level market is far from meeting the requirements of consumers. Shanghai Volkswagen is forming a corresponding matrix to explore different segments.” Jia Mingwei, general manager of Shanghai Volkswagen Sales Co., told the China Business News reporter. “Santana’s brand influence is enough to support the 'family-style’ development.”
In this regard, Zhongshi, a well-known commentator in the automotive industry, said: "For Shanghai Volkswagen, such horizontal expansion is the right choice. Family naming will have a better appeal than building a new brand, but at the same time, It still needs to launch products for other popular market segments in order to make sales growth more robust."
"Family-style" strategy upgrade Santana Haona's launch is after the Langyi family and the Polo family, Shanghai Volkswagen's re-attack in the "family-style" development field.
Compared with the previous Santana models, Hauna's positioning is more youthful, and its target is to lock in the most active “post-80s” and “post-90s” consumer groups, which means to start the “Younger” journey of the Santana brand.
At the end of April, when Hauna made its debut, the Chinese name of NewSantana, another model of the Santana brand, was updated to “Santana Shangna”. As a result, Santana formed a family lineup and wanted different product positioning and product features for the two models. To meet the needs of different consumer groups.
In fact, this is the third attack of Shanghai Volkswagen in the “family-style” strategy sector. In November last year, Shanghai Volkswagen took the lead in launching the “family-style” journey on the LaVida brand. At that time, Jia Mingyu said: “This is only the first step. The family-owned product strategy is the core strategy of Shanghai Volkswagen's key research in the next few years. one."
The reason why Shanghai Volkswagen has formulated a "family-style" strategy has long been self-evident. In the face of the unsatisfactory car market, it has only tried its best to exhaust its brains and exhausted its efforts.
According to the data released by the China Association of Automobile Manufacturers, in May, China's passenger cars sold a total of 1,609,300 units, down 3.57% from the previous month and down slightly by 1.2% year-on-year. From January to May, passenger cars sold a total of 8,583,200 units, up 6.36 year-on-year. %. At the same time, Shanghai Volkswagen sold 14.40 million units in May, a slight increase of 3% from the previous month and a decrease of 0.9% from the same period of last year. From January to May, Shanghai Volkswagen sold 807,800 units, a slight increase of 0.2% year-on-year.
Although its sales volume has indeed increased in May, from the overall data of January to May, Shanghai Volkswagen has been behind the overall industry level by 6.16 percentage points. For this reason, the "family-style" strategy has been highly anticipated by Shanghai Volkswagen.
According to Shanghai Volkswagen internal news, its total sales target for this year is “protecting 1.9 million vehicles and competing for 2 million vehicles.” According to the current sales situation, if the automobile market has maintained a slight increase, Shanghai Volkswagen can no longer continue to “eat the old”. Its total sales volume in 2014 was 1.725 million units. In the previous five months, the growth rate of 0.2% is difficult to achieve. The "family-style" strategy has therefore become an important entry point for the Shanghai public.
"Homogeneous" competition challenge "This move can make Shanghai Volkswagen jump out of the quagmire of price wars, open up more market segments, and lay a solid foundation for Shanghai Volkswagen's million-level sales." At the time of the strategy, Jia Mingyu said.
Zhong Shi also said that with the market saturation, the new brand is no longer as accepted by the market as it was around 2010. With the brand power already known to consumers, the actual effect of Santana's “family-style” strategy is likely to outperform a new brand.
Undoubtedly, for Shanghai Volkswagen, who has been cultivating the Chinese market for more than 30 years, the expansion of the existing product lineup is to make full use of its brand appeal and to provide more consumers who love a certain brand. More choices, but at the same time, Shanghai Volkswagen also has to face the risks of “homogeneous” models.
Take Hauna as an example. In addition to the "same brothers" inciting and positioning a slightly higher Langfang, the FAW-Volkswagen hatchback version of Jetta also joined the battle in the second half. Look at Shanghai Volkswagen's entire A-class car product layout. The sedan has three models: Shangna, LaVida and Lingdu. The hatchback has four models: Polo, Haona, Langhang and Langjing. In addition, Shanghai Volkswagen Skoda Jingrui, Mingrui, Yidong, Haorui models, Shanghai Volkswagen has "sewed the needle" in the A-class car market, especially the price range of 90,000 to 140,000 yuan of Hao Na, product intensity can be seen.
In this regard, Jia Minghao said: "The A-class car market has always been China's largest market segment, accounting for more than one-third of the overall market sales, and the growth rate is also very obvious. But with the gradual development of China's auto market, consumption The individualized demand of the people is increasing, and the A-class car market has further subdivided space. Therefore, Shanghai Volkswagen has divided the A-class car market into A-, A, A and other more subdivided concepts. The 'family-style' product concept that satisfies more market segment demand and captures more market share has emerged." Jia Minghao said. It can be seen that Shanghai Volkswagen is not worried about the intensive product lineup, but instead regards it as a rare opportunity.
Judging from the market performance of the current LaVida and Polo family, the effect of this “family-style” strategy, which continues to be subdivided in the market segment, seems to be still to be verified. According to statistics from the Association, from January to May, Langyi sold 160,654 vehicles, down 7.8% year-on-year; Langfang sold 45,618 vehicles, down 11.6% year-on-year; Polo sold 70,890 vehicles, up 31.7% year-on-year. According to this, Shanghai Volkswagen's "family-style" strategy seems to have not really ushered in a period of effectiveness, and the market performance of Hauna seems to have no rules to follow.
“The sales of the LaVida family have actually reached the highest point, and a certain degree of decline is within the acceptable range. In any case, Hao Na is in the Santana brand, which must be better than creating a brand separately.” Zhong Shi said, “Except In addition, there is still a lot of room for the development of Shanghai Volkswagen's family-style development. The horizontal expansion of SUV and MPV is the focus of Shanghai Volkswagen's rapid follow-up. In today's slightly increased market environment, there are only multiple lines. The combined strategy will maintain a stable sales growth, which will help Shanghai Volkswagen achieve its 2 million sales target."

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