Polaris Industries India

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Team #487

E-mail Address

Ubaldo TrevizoMarquez

dfkeane@uncg.edu

Tiffany Wilkins
Juan Daniel
Lopez Forero

tlwilkin@uncg.edu
juandlopez03@unisalle.edu.co

Muhammad
Fakhruddin Bin
Mohd Fazil

addinswordz@gmail.com

Country of
Tasks Performed
Residence
USA
Shared the majority of the
work with Juan Daniel.
Provided the majority of the
early sections.
USA
Did not participate.
Columbia Shared the majority of the
work with Ubaldo. Provided
the majority of the early
sections.
Malaysia Participated in most of the
sections assigned, though the
other
two
participating
contributed
the
most.
Completed most formatting
and help major work in final
report.
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Table of Contents
Executive Summary ....................................................................................................................3
History ........................................................................................................................................5
Polaris India Background ..............................................................................................................................................................6
Polaris Incs Product: .......................................................................................................................................................................7

Market Success ...........................................................................................................................8

Economy .................................................................................................................................................................................................8
Geography...........................................................................................................................................................................................10
Transportation .................................................................................................................................................................................10

Market Analysis and Selection .................................................................................................11

Entry Mode ...............................................................................................................................13
Distribution Strategy ................................................................................................................14
Marketing Strategy ...................................................................................................................16
Billboard and Outdoor Advertising .......................................................................................................................................18
Advertisement and Culture in Turkmenistan ..................................................................................................................19
Advertising Agency ........................................................................................................................................................................19

Staffing .....................................................................................................................................20
References: ...............................................................................................................................21

Executive Summary
Polaris India Pvt. Ltd was established as a wholly owned subsidiary of Polaris Industries
Incorporation in USA which designs, engineers manufactures and markets innovative, high
quality Off Road Vehicles (ORVs), ATV, Polaris Ranger, Motorcycle and GEM Electric. Polaris
India has a strong network of 14 dealership and two international relationship which are
Kazakhstan and Nepal. In 2013, Polaris launch Indian brand motorcycle by releasing the first
three Indian Motorcycle models engineered by Polaris.
In market success criteria, we are choosing geography environment, economic
environment, political environment and cultural environment. This criteria can impact product to
likely to have high sales and profits.
As we know, motorcycle and On Road Vehicle (ORV) gives low proportion in Polariss
revenue compared to snowmobiles sale. So, if Polaris India can focus to enter market that have
geographic condition that suitable to sell motorcycle, it can help to increase and market Polaris
India product. We provide in depth analysis on number of potential customer and their
characteristic, market size, cultural, legal trade and strength and weakness of several country. At
the end of discussion, we decide to choose Turkmenistan.
We strongly suggest that Polaris India need to use joint venture for entering new market
strategy. As we know, Polaris India will face several challenge such as corruption, workers those
have English language skills are extremely scarce, lack of transparent business legislation and
extremely strict in import export regulation. To overcome this problem, Polaris India need to find
suitable business partner from Turkmenistan citizen and make agreement to joint venture
together in the business.

Additional, from our analysis, we strongly suggest Polaris India form distributor channel
and make relationship with Turkmenistans people. Then, Polaris India can build new retail
outlets in several town in Turkmenistan, by adding distributor in Turkmenistan, Polaris India
need plans for recruiting, training, motivating, compensating them.
In order to spread the Polaris brand around Turkmenistan, it would be useful to have
community events promoting the product in the form of community events. At launch, there
should be a party where the community can learn about what Polaris is, why they should be
interested in it, and offer free test rides and test-drives with a variety of available vehicles. This
will help create a positive initial impression with the community, hopefully making sales at the
launch to get the product out on the streets.
Lastly, in last report regarding to staffing strategy, we think that the best option is to hire
people locally, this could benefit a Polaris because it decreases costs, but also benefit the people
of Turkmenistan as this generates jobs to reduce the unemployment rate.

History
Polaris Industries Inc., a corporation of Minnesota, was formed in 1954, after establishing
a society by Edgar Hetteen, who was chosen by the Hall of Fame as the father of snowmobiles,
who then associate with Allan Hetteen and Derrick Shop. Its employees, David Johnson,
partnered with Paul Knochenmus, and Orlen Johnson, who was the first person to ride Polaris,
decided to create a vehicle that could travel through the snow (snowmobile) .The initiative to
create these vehicles It was done in order to make the game more accessible places.
The first Snow model rating was manufactured in Minnesota in 1956 and had a paint job
in two shades (white and blue), to test its reliability and usefulness, in 1960 Edgar took three
snowmobiles on a journey of 1,200 miles across desert Alaska, having this a duration of 2 to 3
weeks, and after his arrival back to the company after the crossing became notorious problems
because of their absence on the board, which would lead to his resignation and the creation a new
company called Polar Manufacturing in Thief River Falls, Minnesota.
Polaris, in the early 1960s developed a snowmobile which had a front lower power and
useful for competition Skidoo engine and continue with the manufacture of snowmobiles as
Comet and Mustang 1965, the latter being a snowmobile to the whole family which allowed him
to increase sales and building construction Motorcycle similar snow to the 1960s and 1970s.
Thanks to the development and acceptance of each of these is continuous vehicles with
making snowmobiles for different terrains and opening would give a new line which would focus
on road vehicles and development of motorcycles, allowing a few years later to make the
purchase Polaris part of KTM motorcycles, thus ensuring the production of its own brand ATVs
Polaris ATV suitable for all competitions.

Polaris India Background

In the early 1960s, Polaris Industries developed a snowmobile which had a front lower
power and suitable for competition. The company continue with the manufacture of
snowmobiles as Comet and Mustang. Over the decade, the Company has introduced more
advanced features that improve performance, comfort, quality and safety than any other maker.
Polaris Industries Inc. listed on the New York Stock Exchange under the mark "PII". The
company had introduced a brand new road-going motorcycle and make debut in Planet
Hollywood in 1997. In 1998, Polaris introduced the RANGER, which provides the best solution
for individuals who want a convenience vehicle that can pull lots of gear and carry three riders at
the same times. Polaris brings its world-class manufacturing and distribution competencies with
the acquisition of Indian motorcycles. The company portfolio not only represent a fairly new
vehicle in an emerging market but also a developing brand within Polaris.
Polaris India Pvt. Ltd was established as a wholly owned subsidiary of Polaris Industries
Incorporation in USA which designs, engineers manufactures and markets innovative, high
quality Off Road Vehicles (ORVs), ATV, Polaris Ranger, Motorcycle and GEM Electric. Polaris
India has a strong network of 14 dealership and two international relationship which are
Kazakhstan and Nepal. In 2013, Polaris launch Indian brand motorcycle by releasing the first
three Indian Motorcycle models engineered by Polaris.

Polaris Incs Product:

Off-Road Vehicles:
1.

Side x Side Sport Vehicles

2.

Side x Side Utility Vehicles

3.

All- Terrain Vehicles (ATV)

4.

Polaris ACE

On Road:
1.

Victory Motorcycles

2.

Indian Motorcycles

3.

Slingshot

Snowmobiles:
1.

Snowmobiles

2.

Timbersled

GEM Electric:
1.

Global Electric Motorcars

2.

Commercial & Gov't

Market Success
In market success criteria, we are choosing geography environment, economic
environment and transportation infrastructure condition. This criteria can impact product to
likely to have high sales and profits.

Economy
%
Sale
($ in millions)
ORV/Snowmobil
es

2015

$
3,708.9
0
Motorcycles
698.30
Global Adjacent 312.10
Markets
Total Sales
$
4,719.3
0

%
Sale
2014

78%
15%
7%
100
%

$
3,741.2
0
418.50
319.90

84%

$
4,479.6
0

100
%

9%
7%

% Sale
Chang
e
2015
2013
vs
2014
-1%
$
3,255.1
0
67%
263.40
-2%
258.60

%
Sale

5%

$
3,777.1
0

86%

%Sale
Change
s
2014
vs
2013
15%

7%
7%

59%
24%

100
%

19%

From the financial analysis between 2013 until 2015, we can conclude that sale for snowmobile
give big portion in company revenue. The Company can potentially sell snowmobile and offroad vehicle to countries like Sri Lanka, Bangladesh, Pakistan, Tajikistan, and Turkmenistan.
Polaris Industries has generated a lot of good press for its successful resurrection of the Indian
Motorcycle nameplate, off-road vehicles, and snowmobiles generate six times more money for it
than do motorcycles. About 14 percent of total sales are generated outside of North America, and
Polaris intend to continue to expand international operations. Polariss international operations

require significant management attention and financial resources, expose Polaris to difficulties
presented by international economic, political, legal, accounting, and business factors.
Below are analysis of several country that possible for Polaris India potentially can expand:
Country
Currency per US
dollar
GDP(purchasing
power)
GDP per capita
GDP growth
Inflation
Export
Import
Population
below
poverty line
National Reserve
Debt

Tajikistan
Turkmenistan
6.2 Tajikistani 3.5
Turkmen
manat
$23.3bil
$90.29 bil

Sri Lanka
Pakistan
140
Sri 101.45
pakistani
Lankan rupees rupees
$232.5bil
$930.8 bil

$2,800
3%
8.9%
$555.6mil
$3.162bil
35.6%

$15,600
8.5%
16%
$21.04bil
$14.82bil
0.2%

$11,200
5.5%
0.8%
$11.28bil
$20.14bil
8.9%

$4,900
4.2%
4.5%
$23.67bil
$45.83bil
22.3%

$430.3mil
$3.612bil

$22.64bil
$522.3 mil

$7bil
$45bil

$18.68bil
$63.58bil

From the analysis, Turkmenistan are the best choices consider for India Polaris expand their
business. Turkmenistan have stable economy than other countries. Several risk Polaris need to be
consider when doing business in Turkmenistan such as:

international pricing pressures;

laws and business practices favoring local companies;

adverse currency exchange rate fluctuations;

increased costs of customizing products for foreign countries;

difficulties in managing and staffing international operations and increases in

infrastructure costs

tax, accounting, and information technology cost.

Geography
Turkmenistan are located Central Asia, bordering the Caspian Sea, between Iran and
Kazakhstan. The country climate generally subtropical desert. The terrain are flat-to-rolling
sandy desert with dunes rising to mountains in the south; low mountains along border with Iran;
borders Caspian Sea in west. Current issues on environment are contamination of soil and
groundwater with agricultural chemicals and water logging of soil due to poor irrigation
methods.

Transportation
Turkmenistan have 26 airport and railways long 2,980km and roadways totally 58,592km. Major
seaport in Turkmenistan is at Caspian Sea, Turkmenbasy. Overall, the transportation
infrastructure in Turkmenistan is moderate. All people need to be transported from one place to
another safely and quickly is why the opening of a new market in Turkmenistan callers may
move in all fields, thanks to the different vehicles Polaris people of Turkmenistan may give
multiple uses each of these because these are due to move into their country who has a division
in five provinces within.
1.

Ahal capital: Annau; extension: 97 160 km2; population: 939,700

2.

Balkan capital: Balkanabat; extension: 139 270 km2; population: 553,500

3.

Daoguz capital: Daoguz; extension: 73,430 km2; population: 1,370,400

4.

Lebap capital: Trkmenabat; extension: 93 730 km2; population: 1,334,500

5.

Mary, the capital: Mary; extension: 87,150 km2; population: 1,480,400

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Market Analysis and Selection

Most promising country to expand based on our analysis is Turkmenistan. As we know,
motorcycle and On Road Vehicle (ORV) gives low proportion in Polariss revenue compared to
snowmobiles sale. Our strategy if Polaris India can focus to enter market that have geographic
condition that suitable to sell motorcycle, it can help to increase and market Polaris India
product.
So, the point we provide an in-depth analysis, on:
a.

Number of potential customers and their characteristics

b.

Market size

c.

Main competitors and their strengths and weaknesses

d.

Cultural, legal, political, and economic environments

e.

Trade and labor regulations

Market Analysis
Market Size

Potential
Customers

Trade
Regulations

Turkmenistan
Population : 5,231,422 (21% are male aged from 25-54)

Urban population: 50% of total population

GDP: $90billion with 8.5% growth

Potentially aiming 90% of market share because main competitor in industry quite
low
Every working citizen
o (According to the State Statistics Committee of Turkmenistan, wages and salaries
have increased by 11.2 percent during 2012 compared to 2011. After adjusting
for inflation, the real rate of wage increase still make up 6 percent.)

Tourism business owner

Laws and regulations are subject to frequent change.

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Market
Challenge

Strength and
Opportunity

Turkmenistan
Requires export and import contracts be registered at the State Commodity and
Raw Materials Exchange the only exchange in the country.

Restrictive visa regime and taxation policy are also difficult issues for companies
to overcome.

Does not apply tariffs per se on imported goods. However, in practice the
government levies customs duties and higher excise taxes on imports which are
significant barriers to trade.

An April 2011 presidential decree prohibits the import of the vehicles older than 5
years.

Turkmenistan lacks consistent and transparent business legislation

Corruption exists at all levels of the government.

Qualified employees, particularly those with English language skills, are

extremely scarce
The government continues to seek foreign technology and in order to diversify its
economy

Turkmenistan created the Awaza Tourist Zone (ATZ) to promote tourism and the
development of its Caspian Sea coast.

Plans to invest in new transportation infrastructure and social projects

communications and Internet service.

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Entry Mode
We strongly suggest that Polaris India need to use joint venture for entering new market
strategy. As we know, Polaris India will face several challenge such as corruption, workers those
have English language skills are extremely scarce, lack of transparent business legislation and
extremely strict in import export regulation. To overcome this problem, Polaris India need to find
suitable business partner from Turkmenistan citizen and make agreement to joint venture
together in the business. This business alliance will sharing technology, joint product
development, and conforming to government regulations. Other benefits include political
connections and distribution channel access will become smooth and easy depends on
relationships. The key issues to consider in a partnership are agreement in term of ownership,
control, length of agreement, technological transfer resources and government interventions.
Polaris also must establishing Headquarter office there to makes sure the relationship
between business partners runs efficiently. The laws regulating that need to follows are the Laws
on Enterprises, Civil code, Law on Corporations which relate with joint venture companies. The
requirement need for establishing a joint venture business are get an application to establish a
joint venture signed by official company and information on the investor must be clarify. Then,
the application must approval from Ministry of Foreign Affairs of Turkmenistan and the
transcript of approval should notice by Consulate of Turkmenistan in India. Written confirmation
from government and a document confirming the payment 50 percent of the capital of joint
venture. Documents should be submitted as originals in the language of the investors country
with appropriate official stamps with Turkmen and Russian translations.

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Turkmenistan joint venture members will also have to give in to a copy of the Charter,
Certificate of State Registration and transcript from the Unified State Register of Legal Entities.
For state enterprises, a decision of the Cabinet of Ministers of Turkmenistan will be needed.
Polaris need establish an office in Ashgabat and may rent space in business centers or in a
building that belongs to a state organization or state/private enterprise. After that, Polaris need
chosen office space, it must apply for approval of its legal address with the appropriate local
government office.

Distribution Strategy
Our team need to assess Polaris India distribution capabilities. In the plan, Polaris India
need to introduce new distribution or adding new distribution channels such as online sales,
distributor relationship and new retail outlets.
From our analysis, we strongly suggest Polaris India form distributor channel and make
relationship with Turkmenistans people. Then, Polaris India can build new retail outlets in
several town in Turkmenistan.
By adding distributor in Turkmenistan, Polaris India need plans for recruiting, training,
motivating, compensating them. Distribution also effects cost basis and promotion for company,
but if company have balance pricing, distribution and promotional strategy, they will create
value to Turkmenistan society and can achieve profit in future.

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Distribution Methods
Company Owned or Provided

Catalog/Mail Order

Telephone

Internet

Distributors/Wholesalers
Other company carries Polaris India product and perform the physical distribution and sales
function on behalf. Can sell to retailers/dealers or direct to end-user.
Value Added Resellers (VARs)
Independent firm that sells to end-users and adds tangible value to the product or service being
sold
Exclusive Store
Exclusive distribution is an agreement between a supplier and a retailer granting the retailer
exclusive rights within a specific geographical area to carry the supplier's product
Polaris India can implement the strategy for exclusivity reason. Limiting the amount of product
allow to offer limited editions and enhance the Polaris India brand image in Tukmenistan

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Marketing Strategy
In order to spread the Polaris brand around Turkmenistan, it would be useful to have
community events promoting the product in the form of community events. At launch, there
should be a party where the community can learn about what Polaris is, why they should be
interested in it, and offer free test rides and test-drives with a variety of available vehicles. This
will help create a positive initial impression with the community, hopefully making sales at the
launch to get the product out on the streets.
Similarly to the India marketing strategies, it would be best to use social media such as
Facebook to promote upcoming events, letting the community see what Polaris is currently
working on, and showing more of the product, specifically people enjoying the product.
To establish a marketing campaign in which customers can observe products Polaris,
resort to billboards and advertisements on television which must be approved by the government
because according to previously consulted information in Turkmenistan there is no private TV
and there are only seven public channels which are controlled by the government. Use the
internet is limited to the inhabitants of this country resort, but in spite of this we will use these
media and will resort to word of mouth, in order to generate more publicity and get the
satisfaction of customers They know the product can continue to call the attention of others and
increase sales.

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Table 1: Marketing Costs

Cost

Percentage of Total

Launch Party

~$3,500

~20%

Website

~$6,000

~33%

Advertising

~$6,000

~33%

Social Media

~$2,500

~14%

The pricing decisions were based on the estimated values used when starting companies
based from Entrepreneur.com. To get the word out quickly, a good amount of money would
need to go into the launch party. If possible, it would be best to collaborate with another
company. However, as this is not always attainable, the money should still be set aside to
provide the best community experience possible.
Because Polaris will be trying to give the community as much information as possible, it
would best to have a good website available by the time of the launch party. This should be
easier to accomplish because of the already available media and design schematics from the
other Polaris branches.
To spread the Polaris name even further, advertising should be a primary focus. Using
the advertisements on similar websites should be adequate as a starting point. Once the
expansion is more established, it would be best to look at television and paper advertisements.
The main focus in the beginning should be on the community, first and foremost.
Without the communitys support, it would not be possible for this expansion to work. This is
why there should be a solid social media aspect, primarily Facebook, to answer questions

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customers may have, promote the product, and inform the community about upcoming events
and releases.

Billboard and Outdoor Advertising

Polaris can make a big impact in local area by outdoor advertising. Billboard can be local
primarily on major highways in Turkmenistan like Ashgabat, expressways or principal arterials,
and command high-density consumer exposure. Billboard advertisements are designed to catch a
person's attention and create a memorable impression very quickly, leaving the reader thinking
about the advertisement after they have driven past it. They have to be readable in a very short
time because they are usually read while being passed at high speeds. Thus there are usually only
a few words, in large print, and a humorous or arresting image in brilliant color.
Location that suitable to locate billboard are within international road freight transport
between Turkmenistan and other countries passes through the following 13 border crossing
points: Artyk, Gaudan, Sarakhs, Bekdash, Gudriolum, the ferry crossing at Turkmenbashi,
Dashoguz, Kyoneurgench, Farap, Gazachak, Talimerjen, Ymmamnazar and Serkhetabat. This
area can be targeted place for high traffic viewer.
Other outdoor advertising include banner in shopping mall, bus benches, interiors and
exteriors of buses, taxis and business vehicles.

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Advertisement and Culture in Turkmenistan

In the first instance we have to keep in mind the specifics of national religion (Islam), and
also its traditions and manners which were formed for centuries. Life of Turkmens citizens come
around allegiance, thats why all printed, audio-, and video materials, including advertisement,
have to contain deep internally premise, which will raise their national spirit. This is reachable
by using in advertising legal elements of national symbols. According to this, we need to plan
advertising that concern about local sensitivity and more importantly cannot use women as
medium in advertisement.

Advertising Agency
To build billboard we will use advertising company from Turkmenistan; TEKLIP
ADVERTISING AGENCY. The advertising agency "Teklip" manifests a great activity in
outdoor advertising, advertising in shopping malls, media planning & buying, media production,
exhibition stands, and signage systems throughout Turkmenistan. . Our agency has been the first
in various fields such as locating LED screens in shopping malls and becoming the only private
company that has the right directly to broadcast video ads on all seven TV channels and on all
four radio channels of Turkmenistan. Furthermore, Teklip has been successfully cooperating
with more than 170 brands.
TEKLIP ADVERTISING AGENCY
CONTACT INFORMATIONS
Tel:

+993 12 21 71 63

E-mail:

info@teklip.org

Web:

www.teklip.org

Address: Bitarap Turkmenistan str 91/1, Ashgabat, Turkmenistan

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Staffing
We think that the best option is to hire people locally, this could benefit a Polaris because
it decreases costs, but also benefit the people of Turkmenistan as this generates jobs to reduce the
unemployment rate.
We can hire some personnel who have full - time work and other type of personnel who
have part - time work, the main reason to put into practice this strategy is to give to the workers
the opportunity to work with us while they still fulfilling with their academic obligations.
The best way to pay these new employees would be by commission. Since the job of the
employee will be to sell motor vehicles, Polaris can pay each employee based on their
performance. This will influence the workers to try harder and go out and find more people who
are interested in a Polaris motor vehicle. Polaris can originally set them up on a small annual
salary until they gain enough experience to start selling on the floor. This will allow them to
learn from other employers and gain knowledge on the most effective ways to sell a Polaris.
Once they have gained a good customer base then you increase their pay by paying them
commission.

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References:
Mintz, L. (2015, March 11). How to Determine the Perfect Marketing Budget for Your
Company. Retrieved April 9, 2016, from https://www.entrepreneur.com/article/243790
Central Intelligence Agency. The World Factbook: Turkmenistan. Retrieved March 17, 2016,
from https://www.cia.gov/library/publications/the-world-factbook/geos/tx.html
Central Intelligence Agency. The World Factbook: United Arab Emeritus. Retrieved March 20,
2016, from https://www.cia.gov/library/publications/the-world-factbook/geos/ae.html
Central Intelligence Agency. The World Factbook: Pakistan. Retrieved March 19, 2016, from
https://www.cia.gov/library/publications/the-world-factbook/geos/pk.html

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