BYD's marketing strategy case study cover

The Journey to the Top: BYD's Marketing Strategy​

BYD's marketing strategy case study cover

The Journey to the Top: BYD's Marketing Strategy

Key Learning Objectives

1. Assess and comprehend BYD’s marketing strategy, which has increased visibility worldwide.

2. Discuss positioning BYD as a leader in the sustainable automotive industry and innovative technology.

3. Analyze the importance of a customer-centric marketing strategy that leads to brand loyalty and outstanding customer experience.

Abstract

In this case study, we will analyze BYD’s marketing strategy and how it impacted its growth. Thanks to its technological expertise and environmental sustainability commitment, BYD has deliberately characterized itself as an environmental solution pioneer in the sustainable use of automotive technologies. We will cover BYD’s digital marketing approach, community involvement strategy, strategic partnerships, and product innovation, emphasizing its efforts to increase brand awareness, boost sales, and promote sustainable development.

Overview of BYD

BYD is a Chinese multinational company recognized as a pioneer in the EV industry. Founded in 1995, BYD started as a battery company. However, in 2003, BYD acquired Qinchuan Automobile Company. This business move opens its way to the automotive industry. They had a chance to utilize its battery technology to drive down vehicle prices without sacrificing reliability. Even though BYD started as an ordinary fuel car maker, they later shifted to producing only EV vehicles using their expertise¹. Their primary goal is to make the planet greener, so they positioned themselves as key players in the EV industry, even surpassing Tesla.

Evolution of BYD's Marketing Strategy: From Humble Beginnings to Brand Recognition

When BYD entered the automotive sector early in 2000, its marketing strategy was focused on the technological advantages of its product and building brand awareness. This is evident in the introduction of the F3 Sedan.

The F3 Sedan - The Beginning of BYD Dominance

Introduced in 2005, the F3 car turned things around for BYD. In fact, this model marked a new turn for the company as it introduced a vehicle whose price had been set relatively low to attract sensitive prices in China’s client base. Again, this opened doors for BYD and helped them make a name in a very competitive auto industry.

BYD F3
BYD F3 Source: BYD Drive Place

BYD positioned F3 as an inexpensive alternative to much more established names, such as Toyota. This was quite the strategy in pursuing first-time car buyers and middle-class consumers looking for dependable transportation at minimal cost. BYD leveraged the F3, which is very similar to the best-seller Toyota Corolla. That similarity could attract those who already knew and trusted the Corolla model, effectively setting this up for customers who want a much more affordable way to achieve a similar look and functionality. 

 

Advertising was part of the intensive campaign across media, from television to print. These advertisements concentrated on fuel efficiency and safety ratings to develop consumer interest and build trust in the F3.

BYD worked with local dealerships to coordinate test drives and provide hands-on experiences featuring F3. They focused on customer-centric marketing, allowing potential buyers to get a confident feel while making a purchase decision. The F3 was marketed at that time as a technically advanced vehicle, with air conditioning, power windows, and stereo system modernities, giving it the feeling of being high-tech, hence appealing to the younger and more tech-savvy consumer².

Transition to New Energy Vehicles: Marketing That Emphasizes Sustainability

When environmental issues started finding space in global concerns, BYD shifted focus to new energy vehicles around 2008. The growth in this area was characterized by the introduction of an electric car, the e6, in 2010³. The marketing strategy started focusing on green or sustainable development and the environment.

The introduction of the e6 followed the “Green Dream” campaign in 2011. The Campaign highlights BYD’s vision to create a zero-emission energy ecosystem that includes EVs, energy storage solutions, and solar energy products—this forms part of their integral approach to finding solutions against urban pollution and traffic congestion. The campaign was promoted at the 2011 North American International Auto Show (NAIAS), where the company rolled out its “Three Green Dreams” strategy involving the display of BYD’s electric vehicle portfolio, which includes the e6 and the F3DM, alongside solar panels and energy storage systems. The collaborations also included those with local governments and organizations to implement electric public transport solutions. For instance, BYD has had the dream to electrify public urban transportation systems—further underlining its commitment to the sustainable development of cities.

Unveiling Advanced Features That Redefine Innovation

For the past years, BYD has placed technological innovations at the center of their marketing strategy. They invest in research and development to improve their electric vehicles’ performance and safety rating. The ability to innovate has been one of the main selling points in marketing, which enables this brand to differentiate from other EV manufacturers.
With the launch of the Han EV in 2020, we can see their commitment to differentiating themselves from other competitors.
BYD HAN from BYD's marketing strategy 2020
BYD Han EV from 2020 Source: Electrive

They upgraded their marketing strategy by creating engaging social media campaigns, partnering with influencers, live streaming for launch events, and sharing user testimonials. By investing in the development of more efficient cars and batteries, they now needed to talk about it and let it be known what BYD is working on. So, they started to create marketing materials to promote their products further. They did all of this to generate trust for Han EV. They master this marketing strategy with the 2022 launch of four new variants of Han. Here is what BYD did regarding marketing and promotion.

  1. Promo video – they published videos regarding the launch event, focusing on the main features of their Han EV: sleek design, luxurious interior, and advanced driver assistance systems.

 

2. They organized crash test demonstrations featuring the Han EV’s 11 airbags, advanced driver assistance systems, and more. Videos of these tests were uploaded to YouTube and other platforms to demonstrate the vehicle’s safety.

3. They also introduced the Han EV Green Edition, a limited variant that appealed to environmentally conscious consumers seeking a sustainable luxury sedan. They focused on targeting all types of consumers through customer-centric marketing.

4. They promoted Han via social media such as Instagram, Weibo and WeChat. The consumers engaged using hashtags such as  #HanEVLuxury, #BYDHan, and #HanEVGreen.

5. BYD created an immersive virtual showroom experience, enabling potential customers to explore the Han EV’s features and specifications in detail from the comfort of their homes.

A Dolphin on the Road

The level of marketing art that BYD has mastered can be testified by its “Dolphin on the Road” 2023 campaign to promote its new EV model. They have given the public an inkling of what they intend to gain from this campaign—to maximize coverage and exposure. They also wanted to emphasize the advanced premium features and the benefits to the environment that Dolphin would bring.

Here is what they did:

1. Interactive Engagement

People were encouraged to spot BYD Dolphin cars on the road. They were also told that when posting pictures or videos of the dolphin they had taken at different places, they were supposed to use the hashtag “SpotTheDolphin” on social media platforms. This approach created a sense of excitement and belonging around the brand.

Spot the dolphin campaign from BYD's marketing strategy
Spot the Dolphin campaign Source: Cimex Inc

2. Win Big

BYD gave prizes to encourage customers to participate. The prizes were different: branded items, discounts on future purchases, and privileged invites to events arranged by BYD. This made consumers engage actively with the company.

3. Social Media Promotion

BYD used social media platforms like Facebook, Instagram, and Twitter to spread the campaign’s visibility. They invited people to participate through storytelling, which was followed by interesting posts, stories, and reels. They also focused on car features and technological innovations.

What were the results of this engaging marketing campaign? 

The “Dolphin on the Road” campaign proves that strategic marketing is crucial in building brand awareness, improving consumer perceptions, and finally boosting sales in the competitive electric vehicle market.

BYD’s Strategic Partnerships

In 2013, BYD’s marketing strategy focused on global expansion. The company knew the importance of its presence in overseas markets, especially North America and Europe. They saw the opportunity for expansion through strategic partnerships and joint ventures. BYD’s strategic collaboration with local governments in providing such electric buses, as in Los Angeles and London, was a huge help in carrying the brand abroad. The company’s serious attempts made the Green Environment-Friendly Public Transport System a success.

Opening of BYD's headquarters in Los Angeles
Opening of BYD’s headquarters in Los Angeles. Source: BYD

The strengths of BYD’s partnerships are in creating awareness for its customers, increasing the brand’s reliability, and helping to meet these people’s needs for being original and environmentally friendly. BYD shall have a better understanding of how it is involved in environment-related issues as well as closer connections to its customers who care for the environment giving it recognition among electric vehicle industry leaders. Furthermore, this move will support BYD’s dedication to ecological sustainability while developing fruitful relationships with eco-minded clientele.

BYD’s Strategic Mastery of Technology and Sustainability

BYD’s marketing strategy has evolved from brand recognition to sustainability, leading to technology innovations and global expansion. BYD made strategic marketing the heart of its business moves by using its skills in battery technology and having a small carbon footprint (creating a green environment). The capability to communicate their dream of a clean and bright future resulted in the worldwide sale of their electric vehicles and the success of global electric vehicle production. Even then, while increasing the number of products and penetrating international markets, strategic marketing and innovation steered BYD’s early electric vehicle (EV) story.