Peugeot to revamp mainland retail outlets

by David Blecken Media Asia 07-Aug-08, 04:02

BEIJING - Dong Feng Peugeot is to overhaul its retail marketing activity in the mainland, after the auto manufacturer shifted its field marketing account from five-year incumbent Euro RSCG to OgilvyAction Beijing.

While the company has also appointed OgilvyOne Beijing to develop its digital strategy, it has maintained its relationship with Euro in other, above-the-line areas, following a review that included nine agencies.

The auto brand is keen to improve the performance of its retail outlets. Arthur Yu, the agency’s business director and managing partner, said that a sizable team would be assigned to develop roadshows and point-of-sale materials for showrooms, as well as co-ordinating media launches, communicating with the press and motivating potential customers to sign up for test drives.

Yu said that while the car manufacturer had developed a good level of consumer understanding over the course of more than 10 years in the China market, it was seeking to generate a greater sense of excitement among potential consumers and “open their eyes” to the brand.

He added that a crucial part of achieving higher sales was not only driving traffic to showrooms, but also making the showrooms themselves more engaging.

Not yet a mainstream player, Peugeot reportedly aims to increase its market share to 7 per cent by 2015.

One of the company’s biggest challenges in China is extending its product range, which currently consists of the 206 and the 307 - both entry-level cars. Yu outlined the target consumer as looking for modern design within a limited budget.

The win hands OgilvyAction its first automobile client. Ogilvy is not expected to have any direct contact with Euro in the servicing of the account.

Dong Feng Peugeot is a major client for Euro in China. Having played a key role in the launch of the 307, the agency will continue to develop brand strategy and above-the-line advertising for the company in what strategy director Matt Donovan described as “the fastest and most competitive auto market in the world”.

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