Saab Project and Lotus Cars: Two Main Threads Advance Simultaneously
In 2011, young man's Lotus transitioned from strategic reserve to a strategic layout phase. On one hand, the acquisition of the Saab brand, though fraught with twists and turns, ultimately succeeded due to persistent efforts, which was indeed a great encouragement for us. On the other hand, the Lotus car brand under the young man has undergone five years of honing, and with the successful launch of the L5 Sportback, it has undoubtedly accelerated its market expansion pace. If the launch of the Lotus L5 was the first wave of impact, then the price adjustment of the Lotus L3 during the sales peak period is our planned second wave of impact. The marketing strategy of Lotus cars has its own rhythm, complementing the development of the Saab project. While operating independently in terms of opportunities, it aligns with the overall strategy of the group to grow stronger. Even if there is a need to join in managing Saab both domestically and internationally in the future, it will still be operated independently by brand.
The Strategy Behind the Significant Official Price Reduction of Lotus L3
This round of official market-guided price adjustments for the Lotus L3 involves product market positioning adjustments. The direct price reduction of 15,000 yuan extends the pricing principle of the L5, which I mentioned at the L5 launch meeting: "the pricing of the Lotus car brand is on par with Korean cars." The L5’s price of 99,800 yuan is comparable to Hyundai Elantra (99,800 yuan) and Kia Forte (98,800 yuan); after this 15,000 yuan price drop, the L3 starts at 74,600 yuan, which is comparable to Hyundai Accent (73,800 yuan) and Kia K2 (72,900 yuan). Therefore, the reason for the direct price drop of 15,000 yuan is justified.
Lotus L3 Benchmark Competitors: No Niche Pricing
Due to the unique sports characteristics of Lotus cars and the previous higher pricing, they were often labeled as niche products. As I mentioned last time, we do not shy away from gathering the unique characteristics of our products; we openly acknowledge what some call "niche," because compared to products without personality, "niche" has its clear target audience. Moreover, with the large-scale popularization of sedans, consumer needs are becoming increasingly personalized. Initially, SUVs were considered niche in early 2004, but now they have become mainstream.
Not only does the Lotus L3 benchmark its pricing against Korean competitors, but in the future, it will also implement benchmarking at the market terminal level to significantly enhance product competitiveness. In terms of pricing, it must first enter the consumer selection range, then add the unique selling points and superior handling of Lotus cars, along with high-standard standard configurations (such as aluminum alloy rims, remote control four-door electric windows, multifunctional steering wheel, electronic anti-theft system, reversing radar, semi-automatic air conditioning, etc.). Without compromising the appearance, comfort, and cost-effectiveness of the product, the "niche" characteristic becomes a bonus high added value.
Thus, this price adjustment is the result of Young Man's Lotus establishing a market-oriented approach, reflecting an overall marketing strategy adjustment.
Lotus L3 and L5 Sales Neck-and-Neck
Previously, the Lotus car network had only one model maintained over four years. This year, the launch of the two-box and three-box Lotus L5 greatly broadened the product line. The speed of new product launches will further accelerate. Since the launch of the L5 Sportback, the market has been severely undersupplied, but it is expected that production capacity will significantly ease in November. Referencing benchmark competitors to adjust reasonable price differences between the L3 and L5 is another reason for this price reduction, ultimately aiming for neck-and-neck sales of the Lotus L3 and L5.
Post-Interview Notes: At a time when many manufacturers are hesitant about official guide prices, Young Man's Lotus took the lead in waving the flag of official price reductions. Besides boosting sales volume, we can see the urgent desire of Young Man's Lotus to break free from its current market position. "We are ready," was the strongest impression left by Huang Zhiqiang, the pioneer of Young Man's Lotus marketing, in our half-year visit.
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