6.1.1 Refine Market Segmentation
It is suggested to refine market segmentation based on the following standardsaccording to the five characteristics of effective market segmentation: differentiation,measurability, sufficiency, accessibility, and profitability, so as to ensure theeffectiveness of market segmentation.
According to different vehicle models, it is divided into auto parts suitable fordifferent car brands. The same brand can be further divided into auto parts suitable fordifferent models. Vehicle models of different brands have different positioning in themarket, so the car holdings vary from brand to brand. Therefore, LS Company mustpay attention to important factors that affect product sales, such as which products aresuitable for development, and list price according to the characteristics of the productsin a given market.
From the perspective of geographical factors, the main overseas markets can bedivided into Southeast Asian market, South Asian market, Central Asian market, WestAsian market, East Asian market, Southern European market, Western Europeanmarket, Eastern European market and American market. Market potential anddevelopment costs vary from market to market. For this reason, LS Company shouldchoose the market with higher revenue that it can best serve as the target market.According to consumer psychology, customers generally have the followingpsychology when buying products. First, no special requirement for product quality aslong as the product price is low. Second, good quality with acceptable prices. Thethird type of consumers who have strong purchasing power demands high productquality, but insensitivity to prices. LS Company should choose to cater to thepsychology of the latter two types of customers and make corresponding adjustmentsto the quality and price of its products.
7 Conclusion and Future Prospect
The huge market potential and the promising prospect of China's auto parts industryprovide opportunities for companies within the industry but also leads to increasinglyfierce competition. To develop market trends, seize opportunities to sharpen its owncore competitiveness has become the haunting problem for the whole auto partsindustry to explore and tackle. As an early company specializing in producing tunedautomotive parts for Mercedes-Benz and BMW, the experiences and advantages inoverseas markets accumulated over past years have been weakening due to theever-changing environment. It is important to solve these problems of how to improvethe competitiveness of LS in overseas markets, how to enhance the brand reputation,how to achieve sustainable growth in export value.
This paper explores the international marketing strategy with a case study of LSCompany. It first starts with LS Company’s background research for its economicscales, business models and its general marketing policies. Based on the export salesfigures and client database analysis, it has a very good global clients coverage,however the sales growth is poor. By mapping all details into SWOT analysis models,it clearly gives the indication of future opportunities and the current strengthens;further to that, its weakness and threads. It then carefully studies the actualinternational operation of LS Company. It gives an in-depth analysis of theinternational marketing environment of LS Company and the competitiveenvironment of the auto parts industry with PEST and Porter's Five Forces marketingtheory. LS Company’s international marketing strategy objectives and strategicmapping analyze the internal strengths and weaknesses, external opportunities, andthreats of LS Company's international operation with SWOT analysis. Based on LSCompany’s international marketing strategy objectives and strategic mapping, itanalyzes the internal strengths and weaknesses, external opportunities and threats ofLS Company's international operation with SWOT analysis. Based on theinternational market of LS Company, it applies STP theory t
