Marketing Mix (4Ps) Analysis of BYD Company Ltd

Posted by Addison on Jul-19-2022

About 4Ps Model

The 4p model of marketing comprises elements of the product, price, promotion, and place
(Chernev, 2018; Kucuk, 2017). The model is commonly referred to as the marketing mix. The
marketing mix of the BYD Company Ltd allows and facilitates it in achieving its marketing objectives
as well as in positively influencing the target audience (Baines, Fill, & Rosengren, 2017). The
elements identified in the marketing mix are typically used by the BYD Company Ltd for marketing its
product and service, and for brand development and building activities. These elements are critically
fundamental for the development and creation of marketing plans and marketing strategies by the
BYD Company Ltd – especially for developing and sustaining competitive advantage (Chernev, 2018;
Stead & Hastings, 2018; Grewal & Levy, 2021). BYD Company Ltd ensures that the elements identified
for the marketing mix model work together cohesively, and complement each other in all its
marketing strategies and plans (Abratt & Bendixen, 2018; Deepak & Jeyakumar, 2019).

Product

The product refers to the actual good or service that is being marketed to the consumers by BYD
Company Ltd, and which will be consumed by the target audience of the BYD Company Ltd (Groucutt
& Hopkins, 2015). The product or the service being offered by BYD Company Ltd largely aims to fulfill
a market need and demand, as well as works to create demand by providing a unique and fulfilling
customer experience (Stead & Hastings, 2018; Sahaf, 2019).

Quality

Product quality for BYD Company Ltd largely refers to how well the company is able to satisfy the
customers’ needs and demands through its product and service offerings (Baines, Fill, & Rosengren,
2017; Deepak & Jeyakumar, 2019). In addition to this, the product quality for BYD Company Ltd
further includes the adherence of the company and its product and service offerings to industry
standards and benchmarks as well as the ability of the same to serve its meaning and purpose
comprehensively (Iacobucci, 2021; Groucutt & Hopkins, 2015; Chernev, 2018).

Customer demand fulfillment

The ability of the product and service to fulfill customer demands as well as its purpose, and to work
efficiently and effectively are important facets of product quality for BYD Company Ltd (Iacobucci,
2021; Deepak & Jeyakumar, 2019). BYD Company Ltd ensures that its products are available for
customers at affordable prices by controlling internal costs (Wu & Li, 2018).

Warranty
The warranty extended by BYD Company Ltd includes the guarantee that the company to its
customers regarding the functioning and the quality of the purchased food and service (Abratt &
Bendixen, 2018). In addition, BYD Company Ltd’s warranty also includes any compensation that the
company has promised to give the customers in case the product and service fall short of the
marketed benefits and functionalities (Išoraitė, 2016; Grewal & Levy, 2021; Kucuk, 2017).

Packaging

BYD Company Ltd focuses thoroughly on the packaging and makes sure it includes the process of
designing, evaluating, and developing a container for the products and services being manufactured
and marketed (Deepak & Jeyakumar, 2019; Baines, Fill, & Rosengren, 2017). The packaging of the
product and the service allows BYD Company Ltd to highlight the product's purpose, as well as
provides ease in transportation, gives room for more prolonged shelf life, and creates a unique and
delightful customer experience (Kareh, 2018; Park, 2020).

Brand

The BYD Company Ltd invests in developing brands out of its products and service offerings. This
means that the BYD Company Ltd engages in brand-building activities for its offerings i.e. associating
specific designs and communications with its products to ensure differentiation, and easier
communication with the target audience (Gillespie & Swan, 2021).

Building the brand

The branding-building activities undertaken by the BYD Company Ltd ensure that its target audience
is better able to relate to the offerings (Abratt & Bendixen, 2018). Through this, the BYD Company Ltd
ensures higher loyalty and repeat purchases, as well as positive perception creation for its offerings
(Khan, 2014; Kareh, 2018).

Features

Product features or characteristics refer to the product traits and attributes present in the offerings
of BYD Company Ltd that allow the company to successfully deliver unique value to customers
through the products and services manufactured and offered (Varadarajan, 2015; Kotler & Keller,
2021). The product traits and features also allow BYD Company Ltd to create points of differentiation
from the competition for its offering (Kotler & Keller, 2021; Park, 2020).

Product style

BYD Company Ltd makes sure to focus on the design and the look of the product, and the ability of
the same to meet the expectations and lifestyle of the target audience (Groucutt & Hopkins, 2015).
The BYD Company Ltd ensures that the product style and design complement its features and
purpose.
Functionality

BYD Company Ltd makes sure that the product manufactured fulfills its purpose, and meets customer
expectations (Abratt & Bendixen, 2018). BYD Company Ltd focuses on the product design, and how
well it is able to fulfill the demands of the customers, as well as fill in the market gap (Baines, Fill, &
Rosengren, 2017)

Experience

BYD Company Ltd products provide the customers with an exceptional and unique experience upon
consumption (Kotler & Keller, 2021). This experience includes interaction with the products that
leads to different unique and positive customer feelings and helps the BYD Company Ltd maintain
differentiation from the competition (Varadarajan, 2015; Kotabe & Helsen, 2020).

Availability

BYD Company Ltd ensures that its product and service offerings are available for its target consumers
at various retail setups. The easy availability ensures that consumers are able to purchase the
offerings of BYD Company Ltd from various locations, allowing the BYD Company Ltd to create an
advantage over competing players (Kotler & Keller, 2021; Chernev, 2018).

Convenience

One point of focus for BYD Company Ltd in its product offering is convenience. The BYD Company Ltd
ensures that its products and service are easy and convenient to use. The factor of convenience
allows BYD Company Ltd to enjoy a higher consumption rate, as well as increased sales and trials
(Kotabe & Helsen, 2020; Kucuk, 2017).

After-sales service

BYD Company Ltd caters to after-sales queries and demands of customers, which also includes
processes of returns as well as exchanges. The after-sales service of company BYD Company Ltd is
detrimental and critical in determining customer satisfaction with its offerings (Iacobucci, 2021;
Chernev, 2018).

Sizes

BYD Company Ltd has different SKUs in the product available. BYD Company Ltd has its products
available in various SKU sizes which helps the company boost its sales, as different customer groups
have different demands for the product quantity – depending on their usage, income as well as
lifestyle (Grewal & Levy, 2021; Deepak & Jeyakumar, 2019).
Price

The element of price in the marketing mix refers to the value that customers pay for the service or
the product offered by BYD Company Ltd. The pricing strategy and the price of the offerings are
critical because it determines three success for BYD Company Ltd by directly influencing the profit
levels and revenue for the company (Kotabe & Helsen, 2020; Kotler & Keller, 2021; Deepak &
Jeyakumar, 2019).

Discounts

One of the ways through which the BYD Company Ltd influences its pricing strategies is through
offering discounts on its product and service offerings. Discounted pricing for the BYD Company Ltd
means that BYD Company Ltd decreases the price of the product and service in order to generate
interest, or even unload excessive inventory and stock; as well as for boosting sales (Baines, Fill, &
Rosengren, 2017).

Margins

BYD Company Ltd makes room for margins through the additional value charged in price over the
cost – which allows the BYD Company Ltd to build profit for its offerings (Kucuk, 2017). The margins
available to the BYD Company Ltd largely depend on the offering and its quality itself, in addition to
the brand equity and brand value of the company.

Payment method

A significant factor of the pricing element of the marketing mix for the BYD Company Ltd includes the
payment methods that the company offers (Kotler & Keller, 2021; Abratt & Bendixen, 2018). Since
the BYD Company Ltd largely operates distribution to retail via agents and retailers, it ensures the
inclusion of different payment methods. This includes digital payment, cash payment, as well as
credit allowances (Grewal & Levy, 2021; Groucutt & Hopkins, 2015).

Pricing strategy

Penetrative pricing strategy

For BYD Company Ltd, the penetrative pricing strategy is adopted as it allows the company higher
trial generation of its products and services in the desired target market, as well as allows the
building of a broader reach for its product offerings by ensuring easier affordability (Baines, Fill, &
Rosengren, 2017).

Introductory pricing strategy

For new products that the company launches, BYD Company Ltd ensures to adopt an introductory
pricing strategy. This means that the company prices its products and service offerings at relatively
lower prices than the competition. This introductory pricing strategy allows the company to increase
trial generation, achieve higher penetration, as well as lead to the generation of increased brand
awareness and recall (Kucuk, 2017).

Aggressive/competitive pricing strategy

For existing products, BYD Company Ltd uses a competitive and aggressive pricing strategy. This
ensures that the products are available readily at competitive prices. Aggressive and competitive
pricing strategies allow the BYD Company Ltd to experience high rates of growth and experience by
allowing the buildup of consumer loyalty and following based largely on product attributes and
quality instead of price– leading to the generation of higher brand equity and value for BYD Company
Ltd (Deepak & Jeyakumar, 2019).

Place

The element of place within the 4Ps model of the marketing mix largely refers to the locations where
company BYD Company Ltd stocks its product and service offerings for consumers' accessibility and
purchase. BYD Company Ltd ensures to include all possible placements which are easily accessible to
and available for the company's target audience (Iacobucci, 2021; Išoraitė, 2016). With the
advancement of technology, BYD Company Ltd has expanded the placement of its products beyond
the traditional brick-and-mortar retail spaces, to include modern Omni channel retail platforms as
well (Iacobucci, 2021).

Physical stores/retail

The physical retail and stores i.e. the traditional brick and mortar spaces continue to be the
prioritized locations for product placement by BYD Company Ltd (Iacobucci, 2021; Groucutt &
Hopkins, 2015; Abratt & Bendixen, 2018).

Retail types

These include hypermarkets, upper markets, and smaller grocery stores - all of which allow increased
accessibility and availability of BYD Company Ltd’s products and services to its target audience.
Physical retail has a higher footfall and allows direct interaction of the BYD Company Ltd brand and
its product offerings with the consumers (Groucutt & Hopkins, 2015; Groucutt & Hopkins, 2015;
Chernev, 2018).

E-commerce

E-tailers

The BYD Company Ltd also stocks its products on e-commerce retail shops – such as amazon. This
allows the BYD Company Ltd higher access and penetration in other markets, as well as in secondary
consumer groups. Moreover, e-commerce retailing is more cost-effective for the BYD Company Ltd
(Wu & Li, 2018; Chernev, 2018; Baines, Fill, & Rosengren, 2017).

Company-owned website

In addition to stocking products with other e-trailers, the BYD Company Ltd also manages orders
through its own website, where consumers can place orders for BYD Company Ltd’s products directly.
This allows the BYD Company Ltd greater control over stock and inventory management, as well as
distribution networks – allowing the buildup of stronger relations with consumers.

Lastly, the BYD Company Ltd also takes limited orders through social media pages and platforms (Wu
& Li, 2018; Baines, Fill, & Rosengren, 2017).

Aggregators

Another way through which BYD Company Ltd uses e-commerce is by stocking its offerings with
aggregators (Kucuk, 2017). This allows the BYD Company Ltd to maximize its reach and increase
penetration. At the same time, it also allows increased trial generation and repeats purchases for the
BYD Company Ltd product offerings (Išoraitė, 2016; Groucutt & Hopkins, 2015).

Specialty stores

Interestingly, the BYD Company Ltd also stocks its products with specialty stores (Grewal & Levy,
2021). This gives the company direct exposure to its target market and audience and allows the
consumers to directly interact with the brand and its offerings- without too much clutter (Kotler &
Keller, 2021; Gillespie & Swan, 2021). The specialty stores are located in prime locations, and allow
BYD Company Ltd higher penetration and reach, leading to increased brand awareness for its product
offerings (Groucutt & Hopkins, 2015; Išoraitė, 2016).

Direct sales

The BYD Company Ltd also has a trained sales team for making direct sales (Kotler & Keller, 2021).
BYD Company Ltd targets not only B2C consumers but also B2-B consumers (Chernev, 2018; Grewal &
Levy, 2021). Both these categories, also make use of direct marketing whereby the sales agents and
teams visit the target audience and business directly and detail the product features and benefits
(Kotler & Keller, 2021; Groucutt & Hopkins, 2015).

B2B and direct sales

BYD Company Ltd’s team makes sales instantly during field visits for the company (Sahaf, 2019; Stead
& Hastings, 2018). The target audience is carefully profiled and selected by the BYD Company Ltd so
that the sales representatives are able to filter out the clutter (Gillespie & Swan, 2021; Išoraitė,
2016). BYD Company Ltd is able to easily contact and communicate with the desired business groups
only (Groucutt & Hopkins, 2015; Abratt & Bendixen, 2018).

nventory management

BYD Company Ltd effectively manages its inventory and fulfills the retailer's demand in time to
ensure that it manages customer relations efficiently – and does not lose any customers. BYD
Company Ltd has also introduced automation in inventory management which allows it to improve
efficiency and speed, and reduce error rates (Park, 2020; Gillespie & Swan, 2021; Kucuk, 2017).

Transportation

For BYD Company Ltd, this includes choosing cos effective transportation means for inventory
handling, as well as order deliveries to customers, as well as retailers. The company uses third-party
transportation, as well as manages its own in-house transportation networks for ensuring on-time
order deliveries (Abratt & Bendixen, 2018; Chernev, 2018; Grewal & Levy, 2021).

Promotion

The element of promotion in the marketing mix for BYD Company Ltd largely refers to the tactics and
activities of communication that the company has adopted for promoting its products and services –
including the brand, and its offerings, as well as other product features, characteristics, and activities
(Varadarajan, 2015; Gillespie & Swan, 2021). The communication is largely targeted toward the BYD
Company Ltd's target audience and is aimed to increase brand awareness, brand loyalty as well as
sales of the company (Wu & Li, 2018; Grewal & Levy, 2021).

Direct marketing

For its more specific products and offerings, BYD Company Ltd uses direct marketing. BYD Company
Ltd directly emails potential customers- especially its B2B consumers for detailing its product
offerings and features. BYD Company Ltd uses personalized messages and captures new clients and
customers for the business. In addition to direct emailing, the BYD Company Ltd also makes use of
telemarketing and direct mail for targeting audiences through direct marketing (Chernev, 2018;
Sahaf, 2019).

In-store promotion

BYD Company Ltd also focuses on in-store promotions for appealing to the customers, and boosting
sales as well as raising brand awareness and profile of its offerings (Baines, Fill, & Rosengren, 2017).
For BYD Company Ltd, the in-store promotions include offering price discounts, loyalty points, and
flash sales for its products. In addition, the company also invests in building up the POS within the
store locations (Stead & Hastings, 2018; Groucutt & Hopkins, 2015).
Social media marketing

One of the more contemporary forms of marketing and promotion for BYD Company Ltd includes
social media marketing. The company has an official presence and profiles on social media platforms
such as Facebook and Instagram, and regularly uses these platforms to promote its offerings, and
product features and characteristics (Stead & Hastings, 2018). In addition, these platforms are also
used by BYD Company Ltd to inform consumers about using sales and discounts to increase in-store
footfall.

Traditional advertising

The BYD Company Ltd continues to use traditional marketing tactics and promotional platforms as
well – largely for mass marketing purposes. The company especially focuses on TV advertisements,
ad print media advertising for this purpose (Išoraitė, 2016; Iacobucci, 2021).

TV

TV advertisements are generally placed in prime time for higher visibility and reach by BYD Company
Ltd. The TV advertisements use functional as well as emotional appeals to communicate the message
of the BYD Company Ltd to the audiences (Iacobucci, 2021; Stead & Hastings, 2018).

Print

Print media and advertisements are published in newspapers and magazines – both of which are
generally consumed in high proportion by the broader target audience of the BYD Company Ltd
(Chernev, 2018; Iacobucci, 2021; Stead & Hastings, 2018).

Radio

The BYD Company Ltd also places advertisements on the radio to appeal to a segment of the target
population. The radio communications by the BYD Company Ltd are usually shorter and focus on
functional appeal only (Park, 2020; Išoraitė, 2016; Groucutt & Hopkins, 2015).

Integrated marketing communications

The advertisement and promotional messages by BYD Company Ltd for all mediums and channels
however are built on an integrated plan, and ensure that they reflect messages and communication
that is similar to the overall campaign to void confusion and discrepancies (Gillespie & Swan, 2021;
Kotler & Keller, 2021). The use of integrated marketing and integrated media has allowed the BYD
Company Ltd to build strong relations with the consumers through prompting conversations and
discussions directly with them (Deepak & Jeyakumar, 2019; Sahaf, 2019; Stead & Hastings, 2018).

Conclusion
The 4p model or the marketing mix is an important aspect of brand building and development for the
BYD Company Ltd and significantly guides the company in the chalking out of its strategic marketing
goals and plans. The marketing mix model or the 4P model has helped the BYD Company Ltd in
increasing its products’ and services’ reach and penetration and witness high levels of expansion and
growth. The model has also led BYD Company Ltd towards a better understanding of its target
audience and consumers. This understanding, in turn, has fostered strong emotional relations and
increased loyalty on part of consumers towards the company – leading to an overall increase in the
brand value and brand equity, as well as higher levels of brand affiliation, brand awareness, and
brand recall. Together, the marketing mix has helped the company boost its sales and revenue by
aligning its offerings with the needs and demands of the consumers, and the market more effectively
and efficiently.

References

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