The marketing mix for the Hybrid Electric Vehicle (HEV) includes place (China), price (still being determined), product (the HEV), and promotion. The decision to introduce the HEV into China was based on many factors, among them ChinaÆs newfound prosperity. From a country where 80% of the inhabitants survived on less than a dollar a day twenty years ago, China has become a nation with 230 million mobile phone accounts. In fact, looking at China today, ôwe see a country with substantial 'software advantages' that promise to sustain growth and create greater prosperityö (ôChina Joins the Global EconomyùPart Twoö). Determining the price of the HEV will require extensive financial analysis and cannot be finalized until the analysis and research are concluded. The pricing has to be competitive, yet not so low that the product does not bring a profit.
The promotion of the product has to take into account the possibility of product modifications as well as considering promotional programs, distribution channels, and e-business in China. Therefore, the design of the promotional campaign will be flexible, based on a modular approach with sections that can be changed out if modifications are introduced. Car-makers doing business in China need to bring their own established distribution channels with them. In fact, ChinaÆs automotive industry policy (AIP) ôcalls on Chinese enterprises to team up only with foreign firms with "sufficient" management know-how, product development capability, and technology, as well as independent distribution channels and adequate financing. Such criteria are meant to attract large, multinational auto companies to the PRC marketö (Xing). China is well positioned for e-business, and First Data Corp. (FDC)ùa global e-business and payment service giantùnotes ChinaÆs growing banking card market with anticipation (ôE-business Giant Favors Chinese Marketö).
Market indicators show that although...