Build Your Dreams (BYD) Auto Company Limited International Marketing Report

BYD International Marketing Report

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BYD International Marketing Report
Section A
Brief Introduction
Build Your Dreams (BYD) Auto Company Limited is the subsidiary of the multinational BYD Company Limited, which has its headquarters in Xi’an, Shaanxi Province in China. In particular, it produces buses, trucks, cars, forklifts, electric vehicles, plug-in hybrid cars, rechargeable batteries, and electric bicycles. As BYD Auto Company Limited continues to grow and expand in different parts of the globe, it needs to have a proper marketing strategy selection process. Currently, BYD has established subsidiaries in over 400 cities in more than 70 countries. The company is among those revolutionizing the automotive industry by introducing cutting-edge dual-mode hybrid power and Blade Battery technologies (BYD. Com, n.d.). Notably, this section focuses on Central Europe, the location where BYD is planning to launch its subsidiaries, a rough market screening, a market ranking process, and a fine marker screening. This report will use the marketing theories of SWOT analysis, customer segmentation, and 4P’s marketing mix to determine how BYD can successfully penetrate Poland’s automotive industry.
Central Europe
The global region chosen for this market analysis is Central Europe. Figure 1 shows the map of Central Europe. According to the Data Commons (2019), Central Europe has a population of over 166 million people. In particular, Germany has the largest population of approximately 83 million individuals (Data Commons, 2019). The three primary countries in Central Europe that will be screened include Germany, Poland, and the Czech Republic. Figure 2 shows the approximate population of Central Europe. In that light, Central Europe has a large population that BYD Auto Co. Ltd. Can convert into its potential customers through proper marketing strategies. However, the company should gain a competitive advantage since the region is a hub for other renowned car manufacturers, such as Opel, BMW, Volkswagen Group, Mercedes Benz, and Porsche. 
Figure 1: Countries in Central Europe


Figure 2: The Population of Central Europe
Countries Population Estimate

Germany 83,019,213 Poland 37,972,812 Czech Republic 10,649,800 Hungary 9,772,756 Slovakia 5,450,421 Austria 8,858,775 Switzerland 8,544,527 Slovenia 2,080,908 Liechtenstein 38,378 Total 166,387,590 
A Rough Market Screening
Criteria Purpose What type of information will give you some answers? Market size Germany, Poland, and Czech Republic has a large market for electric vehicles since many individuals are transitioning from conventional cars to plug-in hybrid or electric vehicles. There exist a latent market in Poland and Czech Republic for electric vehicles. Since Germany is more advanced in terms of automotive technologies, due to the presence of large car manufacturers, such as BMW and Volkswagen, it might be challenging to enter. Recently, electric cars have gaining more popularity globally. In Central Europe, the demand for these types of vehicles is steadily rising. Many countries are recommending the use of electric vehicles to reduce the over-dependence on fossil fuels and curtail the emission of greenhouse gases, which are significantly contributing to global warming (Peng et al., 2023). The potential for the emerging demand for electric cars is high in Central Europe as the majority of individuals are looking for ways to save money without compromising their mobility. At this juncture, it would be appropriate to consider the demand for electric vehicles in Czech Republic and Poland since Germany has renowned car manufacturers in the region. AccessibilitySpecifically, BYD Auto Co. Ltd. Can serve the Central European market efficiently and effectively. For sure, the company has made significant steps in introducing cutting-edge vehicle technologies. Moreover, many people in Central Europe are considering transitioning from traditional conventional vehicles to electric and plug-in hybrid cars. On that note, Central Europe is a potential market for BYD’s electric vehicles. Many individuals in the region are likely to adopt BYD Green Hybrid Energy Management System, Remote Driving Control, i-Technology, and the BYD two-way charge-discharge system. The only primary thing that might prevent BYD from entering this region is the European Union (EU) regulations on export and import. However, BYD would look for ways to penetrate this region since it has a large potential. Notably, Central Europe is accessible, meaning that BYD can offer its products and services. The company only needs to comply with the EU regulations so that it can provide its electric vehicles to the residents of this region. The most suitable country that BYD can use to enter Central Europe is Poland. ProfitabilityThe Central European market can afford BYD products. Most importantly, BYD is only required to export the materials needed to assemble its electric vehicles to reduce the cost of production. That way, it can offer products at slightly reduced prices compared to the primary competitors in the region. Nevertheless, BYD should pay much attention to various demographic factors that determine the likelihood of individuals purchasing electric vehicles in Central Europe, namely gender, education level, income, and age (Christidis & Focas, 2019). BYD can make adequate profits in Central Europe. The likely return on investment and timescale of payback might take three years. Besides, BYD needs to market its products in the region so that it can gain brand popularity within the region. BYD can make significant profits in Central Europe. The primary thing that it should do is to provide high-quality products and advertise its commodities and services so that people in the target region can be familiar with the brand. 
A Market Ranking Process
The countries in Central Europe with a large market for BYD products and services, primarily electric vehicles are Poland, Czech Republic, and Germany. The ranking criteria used are meant to determine the most attractive country for BYD to penetrate with ease. In particular, market size, growth, ease of entry, and internal considerations were weighed using a 100% scale (Lecture Three, 2023, Slide 19). Figure 3 in the appendix section shows the market attractiveness comparison for Poland, Czech Republic, and Germany was done by using a scale ranging from 1 to 10 (1=extremely unattractive and 10=extremely attractive). By using this scale, Poland scored a total of 33, followed by the Czech Republic, and Germany. In terms of market size, internal considerations, ease of market entry, and market growth, Poland had high scores of 9, 9, 8, and 7, respectively. Using the same order of rankings, the Czech Republic followed closely with 7, 8, 6, and 3. Germany was the last with 5, 4, 3, and 4. Based on this market ranking, Poland appears to be the best location for BYD to introduce its products and services since it has a significant market size, easy to enter, has favorable internal considerations, and has a high likelihood of market growth.
A Fine Market Screening
After a proper market analysis of Poland, the most significant target segment comprises individuals aged between 20 and 55 years. This demographic is likely to