Proposal on Salary and Performance Management System2005/9/20 Taihe Consulting,To: Nissan (China) Investment Co. Ltd,Our Understanding to Nissan 2Methodology & Expected Effects 13Schedule & Advantage of Taihe 44,Page,Index,IP Agreement,This proposal is strictly confidential. Nissan (China) Investment Co. Ltd (below mentioned as Nissan China) agrees that all the materials related with this project provided by Taihe Consulting can be only reviewed by certain personnel in Nissan China. Before we sign up a formal contract, Taihe Consulting owns the intellectual property of this communication material. All the contents are strictly prohibited to any other third party.,Before reading this proposal, please read the following IP Agreement and accept these terms.,Our Understanding to Nissan,To: Nissan (China) Investment Co. Ltd,Development Trends of Auto Industry in China,Analysis on Top-grade Car Trading,The key to top-grade car trading is to change from sales to marketing, from passive waiting to actively contact the clients to promote the customers satisfaction and loyalty. To achieve above goals, the sales staff are required to have higher professional qualifications in car trading, criterion implementation, CRM knowledge, etc. Customized performance evaluation and salary systems are needed to effectively motivate those sales staff., Synthetic Analysis ,Because it is positioned in the high-end market, all the sales staff need to have good qualification so that they can understand the customers consuming psychology. Positioned as professional car sales staff specialized in auto trading, market research, market promotion, advertising, product service, technical consulting and training, etc.,Car Marketing Positioning,4S trading center, (sales, spare part, service and survey) To provide more than products and services, but focus on unique experience, taste, personality, culture and a life style.,Unique Experience,The demand to product and services is getting higher with the consuming rationalization and requirement diversification. It is crucial to maintain customers satisfaction and loyalty. The implementation and standardization of sales working flows need to be improved to achieve customers satisfaction. The evaluation becomes more professional.,Customers Satisfaction,Manage the client data effectively by CRM system. Classify and analyze the clients from communication and feedback from the clients. Promote needs acquisition, sales tracking and aftersales service.,CRM,In 2004, the total export volume of vehicles and spare parts is 8.16 billion US dollars with a 73% increase and the export volume of spare parts is 7.38 billion US dollars with a 71% increase. Till 2010, the total product volume will be 86.5 billion US dollars.,China will establish several export centers and companies. It is in process already. The government will develop related policies to support the above centers and companies. In ten years, China will increase the export volume to 120 billion US dollars.,The scales of the domestic suppliers are too small. Low level products result from weak R&D capability. Lack of effective planning on export, authorized credit and information platform and brand resources is also fatal to all the domestic suppliers.,High Growth Rate,Policy on Export,Obstacles,Developing Methods,Good development of the export centers, investment on R Improve the export warning system to avoid business conflicts.,Average labor cost in China is $0.90 per hour while $22.5 in United States. The big three US auto manufacturers required the suppliers to make use of the advantage of labor cost. Many big spare parts suppliers have entered China which promote its development in China.,Advantage in Labor Cost,Analysis on Development of Spare Parts,Intense Competition on Talents,Now there is no R&D center with independent IP. The major R&D job is just imitation for domestic manufacturers. The domestic design companies are still in developing. Many foreign design companies have entered Chinese market.,Analysis on R&D and Design,Weak Domestic R&D and Design Capability,With more and more new auto companies in China start to fight for qualified talents. The competition will be much more intense while it is a time-consuming job to foster those talents.,R&D Centers of MNCs to China,The MNCs have begun to balance the sales and R&D in Chinese market. MNCs have set up their own R&D centers in China to work together with the headquarters to customize the products according to the local market in order to cooperate with the localization strategy. All the R&D centers are in the overall arrangement of these big manufacturers.,Talents Sources,Big MNCs can cultivate their own R&D talents and can afford the cost. Most domestic manufacturers have big needs about the talents, especially those who are determined to develop their own cars. Universities cant provide enough talents to the manufacturers.,Needs from Nissan,Support from Taihe,