[Year]

[Document title]
[DOCUMENT SUBTITLE]
SHUBHAM SEHGAL
INTERNATIONAL MARKETING Page 1

DODGE MOTOR COMPANY

ENTERING INDIAN MARKET

IN 2020
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TABLE OF CONTENTS

ExecutiveSummary………………………………….………………………………………….4

Situational Analysis………………………………………………………………………….….5

Internal………………………….……………………………………………….…….…5

Organizational Background………………….…………………....5

Product Overview………………………………………..…...…....6

Sales Analysis…………………………...………………………....7

External……………………………………………...................................................8

Market Analysis…….………….…………………………………..8

Customer Analysis…………...………………………………...….8

Competitor Analysis……………….……………………………....9

PEST Analysis………………………………………………..……………………..…10

Political……………………………………………………...10

Environmental……………………………….………….….10

Social…………………………………………………….….11

Technologies……………………………………………….11
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SWOT Analysis…………………………………………………………………..........11

Strengths………………………………………………........11

Weaknesses…………………………………………….…11

Opportunities…………………………….………………...12

Threats……………………………………………….…….12

Marketing Objectives…………………………………………………………………………..12

Marketing Strategy………………………………………………………………………….....13

Target Market………………………………………………………...…….13

Geographic’s………………………………………...…………...13

Demographics…………………………………………………….14

Psychographics…………………………………………………..14

Positioning…………………………………………………………………14

Product Strategy………………………………………………………….14

Pricing Strategy………………………………………………………......15

Promotion Strategy……………………………………………………….15

Distribution Strategy……………………………………………………...16
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Financials, Forecasts and Budget…………………………………………………………...17

Controls………………………………………………………………………......……….…..18

Conclusion……………………………………………………………………......................18

References…………………………………………………………………………...………20

EXECUTIVE SUMMARY

DODGE is expecting to launch its SUV named Journey in the Indian market to compete
with other local and international brands. As the Indian market is blooming and companies are
witnessing huge growth in the sales of SUV cars. Within last few years many international
brands like KIA and MG launched their cars in Indian market and getting a greater response of
sales from public. So, Dodge is also planning to launch its family SUV as first car in the country
to provide a value product with sports car like features.

Indian market is home to second largest population in world and covers 17.7% of world
population with young population at its peak. Millennials are fascinated to purchase new cars
and Dodge wants to take this opportunity by providing young generation of country what they
want. In India most people are preferring SUV’s over Sedans or MVP’s, so every international
brand is planning to launch their products in market to acquire the valuable share. Dodge
company was started in Michigan, USA in early 1900’s as an engine and chassis components
and supply that to ford cars but now the Dodge make all type of cars from utility vans to high
performance cars. The company have a great share in American and Europe markets and now
expanding to other Asian counties too. The quality, doggedness and experience make it one of
the best car company in the whole world.

During market research, company find out that 4 out of 10 car buyers in India prefer
SUVs over other car models. This makes Dodge to think about expanding their base to India
with its entry level SUV in market. Dodge hopes to target the Generation Y (aged 25-40) which
will help them to get maximum sale in this new market. The initial batch of the cars will be
exported to India but after that they are planning to setup a full-fledged manufacturing unit to
produce cars. Company hopes to sale 3000+ units in the first month and will target he major
brands like Tata, Kia, MG, Hyundai etc. After this launch Dodge is also planning to launch other
product lines in India also which includes mini vans, light wheeled trucks and pro line also. The
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Journey of the company with its Journey SUV will help them to make their footprint in the Indian
market. The service and the quality with initial bonus offer will help Dodge to create a long-
lasting effect on the Millennials in the country.
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SITUATIONAL ANALYSIS

1. Internal
a) Organizational Background
Dodge is an American company that started production of engines and chassis for cars
in early 1900’s. They supplied their products earlier to Detroit based manufacturers for
production of their cars. But in 1910, they started making their own cars and started selling in
the American market. They also started the Chrysler group and also started manufacturing cars
under this name also. It is headquartered at Michigan, USA. In the beginning, Dodge started
production of family cars for the people but with the increase in demand of other vehicles during
WW-I. In World War I, there were approximately 12,800 dodge cars and light trucks— more than
8,000 tour cars and more than 2,600 private vehicles— mostly ambulances or repair lorries,
including screen trucks and panel vanes were used by US army From this they became the
primary supplier to US Army which helps them to grow in the market.

After the death of Dodge brothers, the company was sold and Chrysler group purchased
the ownership. They also produced army vehicles during WW=II and increased their reach to
other light wheeled delivery vehicles. It became one of the top sellers of the cars during that
time and acquired the major proportion of US car market.

The company is ownership under Fiat Chrysler LLC and produce wide range of products
in the market. The most popular products in the US and Canada market are the High or Sports
line which attracts the young buyers to attract towards this brand. The Dodge Challenger and
Charger are the one of the best offering in the world market which helps them to create their
name as the best high-end vehicles competing with other German and Italian brand of cars.

b) Product overview
HEAVY TRUCKS: Dodge has been well-known over the decades for its passenger car
production and its numerous trunk models, the Dodge Ram is a popular brand model. Based on
the popularity of its top-selling truck after a century they created a different brand for trucks
under Ram brand. Trucks are used in the whole US and Canada in transporting products from
one province to another.

PICKUPS AND MEDIUM WEIGHT TRUCKS: The brand also sold light truck models
after Dodge began making its own vehicles back in 1914. Originally the passenger cars were
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entirely target to manufacture, but gradually acquired own frame and body designs as the
industry grew. Small and medium-sized versions have been sold first in the 1930s and 1940s
and then a heavy-duty variety has been introduced. In Michigan, just north of Detroit, modern
Warren Truck Assembly plant was constructed and began manufacturing of Dodge trucks in
1938. It was a great success in the market of light weight trucks but after 1970’s it shows
decline in market share and they started making it under different brand name as Ram and
picked the pace again in market.

VANS: Doge has offered a lot of models of Vans since its commencement, but their first
van was launched in market in 1964 and till then competing with other domestic and
international brands. These vans are mostly used in delivery services by many businesses but
the use is expanding with time. These have an edge over other competitors because of high
powered engines and best after sales services. Dodge is also offering a cargo version of vans to
fill the gap between the light wheeled trucks and mini vans.

SPORTS VEHICLES: Dodge also started to make wagons in early 1950’s. These 7-8-
seater cars were used for transporting people from one place to another. These cars became
the starting point for the SUV market in USA
and whole world. With span of time these
were evolved in full 8-seater SUV’s. Something
different was attempted by Dodge in
1997. They designed the Durango 4-
door SUV with seating for eight and
developed a new market using the Dakota
mid-size truck chassis as a foundation for
that which became a huge success.

HIGH PERFORMANCE VEHILES: In the late 20th century, Dodge started making high
performance cars with high powered engines specially designed to compete with other sports
car brands. In this category all the products are marked under SRT category which includes all
the sports line made by dodge. Cars like Charger
and Challenger are top selling in this category.
Equipped with V8 engines and the smooth riding
quality which is ranks it in the world’s best cars.
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c) Sales Analysis
Since the beginning of the 2000s, Canada's demand for cars has been very steady with
annual sales fluctuating between 1.45 million and 1.95 million, exhibiting single-digit upsurge
and decline overall, with the exception of 10.7% in 2009. Last year in Canada, car sales
reached their lowest level in the new century. Since then they have achieved a highest yearly
selling high in 2013.

Dodge is one of the top five American brands owned by Fiat-Chrysler Automobiles and is
advertised with an audacious and confident representation in Canadian market. In 2010 Dodge
was split into RAM trucks and the company failed to regain its name in the USA and North
America in vehicles like the Grand Caravan, the Avenger and Dart, the value--trip but Dodge
found its value again few years ago. The Charger and Challenger versions of the 707 hp Hellcat
and the even more powerful versions of Demon attest to the Dodge ' American Muscle Car '
image. The annual vehicle sales in Canada and USA are below:

YEAR CANADA USA

SALES GROWTH SALES GROWTH

2016 1,960,806 3.11% 506,453 -2.07%

2017 2,039,025 3.99% 446,994 -11.74%

2018 1,996,396 -2.09% 459,324 2.76%

2019 1,920,691 -3.79% 422,886 -7.93%

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Chart Title
6

0
2016 2017 2018 2019
-2

-4

-6

-8

-10

-12

-14

CANADA Column1

2. External

a) Market Analysis

Dodge planned to target the Elite and Upper middle class in India for the high-end

variants of cars and the vans and truck line will be for the agricultural, industrial market to

deliver their raw material and final goods from one place to another. As the data of 2016, the

average increase in the sales of cars in India is by 14% which makes it a potential market or

Dodge to sell a magical figure of their cars to different section in India. Typically, the customers

for cars will be from all the section of the society according to their needs which will help

company to hit its targets.

The new showrooms will be opened in major cities like New Delhi, Mumbai, Pune,

Hyderabad and Kolkata as an initial step of sale in India. Dodge is also planning to partner with

Tata automobiles and their JLR line to sell their cars at their respective showrooms to reach the

wider customer base with their wider network of outlets all over India. This partnership also

helps Dodge to acquire the customer base and buying trends of customers which helps them to

work according to the needs of the customers.

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The buying behavior of the chosen target market will be based on their choices of the

vehicles they want to purchase and are more fascinated about. This data will help us to target

market according to demands of customers which will help to hit the mark in the long run.

b) Customer Analysis

Our customers will be from the different sectors with different needs including of both the

males and females of different ages. The locals will be targeted to know about their need of

vehicles? What an individual sees before purchasing his dream cars? What a cargo transporter

needs in his car at first point? These will help the company to create a supply in the market for

respective products.

Our Dodge representatives employed at respective outlets will help to acquire

knowledge about the demands and needs of the people visiting respective outlets to check the

products by asking different questions regarding products, needs, purpose for purchase, their

daily and monthly usage etc. to know exactly about the customers’ demands. The data base of

customers acquired will help us to target the potential customers for selling of our products.

Also, the data regarding the purchase behavior of customers will also be taken from people by

survey so that we can target the customers accordingly.

To make potential Dodge customers we will provide free test drives for all of our products

which will help us to know about the actual needs what a customer actually wants and will target

them according to the feedback given.

c) Competitor Analysis

In India, cars are not just a way to transporting people to places, it shows connected

emotions of people. It is estimated that country sold near about 2,039,465 cars in a year by

multiple brands. The demand of SUV’s is increasing in market as most people are preferring big

cars rather than others. The domestic brands and international brands are selling cars in good

numbers and the customers have a taste to purchase the cars from those companies who have
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years expertise in the Indian market like, Maruti Suzuki, Tata, Mahindra these are part of

people’s life.

Dodge have to make a trust in peoples mind to make them sift towards their brand. From

last few years many other international brands like KIA and MG which are also selling great

number of cars in India gives hope to us to sell the expected cars in the country. Through the

Dodge will try to provide the different experience than its competitors to gain growth in the

Indian market.

PEST ANALYSIS

Political

In India the products purchased and imported from other have to pay countries excise

duty

and GST. These taxes should be applied to all the products Dodge either assembling or

exported to India. Most of the cars came under 28% bracket of GST in India which makes cars a

little expensive. The custom duty on the imported cars is from 80% to 120% to save the

domestic market.

To get a job working in India, it is required to have a GST number to sold cars in

domestic market. The company also need a working bank account in the country with registered

PAN number for paying taxes. These conditions are important for a company to for functioning

of business in country. These basic conditions are important to fulfill for the company to start the

business in country.

Economic

An economic condition for new companies entering in market at its best. India is the

fastest growing economy in the whole world and attracting a lot of multi-national companies to

invest in the country. Dodge will also be benefited from this greater pace of growth. The
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exchange rate of USD to INR is Rs 75 which will help them company to earn more. Also, the

GOI forecasted that consumer expenditure will rise in 2020 for cars. The inflation rate is also

under control of Central bank of India which will be beneficial for the new players who are

planning to invest in this blooming market.

Social

India as a country with highest level of youngsters in the population will help to attract

more customers towards our brand of cars. This also means that more the number of young

people more the disposable income, which they can use to spend on other items like cars.

Although India is a multilingual country but as English, as second language will also help

company to use all the resources directly form US that will help them in cost cutting for initial

phase of start.

Technological

For Dodge, technology can be a best option to market its product in Indian market. It is an

aspect to consider as India have a huge demographic dividend with highest active users on

social media platforms which will help them to reach wider customers with online platforms.

Also, the website should be launched specifically for India which will allow more customers to

know about our products.

SWOT ANALYSIS

Strengths

i. Powerful grip in North American Market

ii. Sound and Financial performance of sales

iii. Large variety of Products with best quality products.

iv. Friendly and outgoing staff

v. Strong Brand recognition in whole world

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vi. Constant technological advancement and product innovation

Weaknesses

i. High cost manufacturing sector

ii. Strict Government regulations in many domestic markets

iii. Declining market share because of stiff competition

iv. High employee turnover ratio

Opportunities

i. Expansion towards South Asian market

ii. Encouraging to shift towards Green/Electric Vehicles

iii. Worldwide shift to new and better Emission standards

iv. Strategic partnership with domestic companies

v. Large potential in emerging markets

vi. Increasing demand for fuel efficient vehicles

Threats

i. Rising competition in market

ii. Fluctuation in fuel prices

iii. Uncertain and sluggish economy

iv. Strict standard to curb CO2 emissions

MARKETING OBJECTIVES

Short term Objectives

a) Non-Monetary Objectives

1. To be recognized in the domestic market for the quality of products and services

2. To create a strong customer network for expanding dealerships

3. To create a brand image in domestic market

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4. Build strategic partnerships with local businesses

b) Monetary Objectives

1. To touch the break-even point within a year for domestic costing

2. Increase the sales numbers on monthly basis

3. Adjust pricing according to the competition

4. To adjust prices significantly with the existing exchange rate

Long Term Objectives

a) Non-Monetary Objectives

1. To be part of more and more local brands to be part of governmental campaign

2. In total, Dodge is expected to gain an above average market revenue share; the goal is

to achieve unit sales of over 50,000 vehicles annually.

3. Dodge strives to be the most appealing employer in automobile industry and tends to

employ more than 5000 of staff. The goal is to have a highly trained, healthy, driven,

highly skilled team in the field.

b) Monetary Objectives

1. To earn consistent annual profits in long run

2. To acquire more than 25% of market share in all category of 4 vehicles

3. To find a way to reduce the variable expenditure for running the business

MARKETING STRATEGY

Target Market

MAIN DIMENSIONS VARIABLES TYPICAL BACKDOWNS

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 Location  India
Geographic  Zone  Mega cities
 Target market  All the groups

 Age  25-60 years

Demographic  Gender  Male; Female
 Income Level  Any
 Occupation  Salaried employee
 Education or Businessman
 College; University
or Any
 Personality  Any
Psychographics  Behaviour  Goal Driven
 Life-style  Any

Positioning

The product positioning is important for every brand in order to be successful in market.

A company needs a clear and distinct position in the minds of all prospective buyers in order to

sell effectively into the various segments of the market, which shape the user base. To make our

products a success we will understand the customer segment. This will allow the group to get a

more balanced understanding. We will use all the channels to make our product to be reached

to wider customers. Surveys that display population statistics on each site will be helpful to

make people interested through social media. This will also help us to understand the

competitive landscape to put our products in the specific position as needed.

Product Strategy

For making Dodge a success in Indian market the products will be strategies

according to the demand of the products. The products will be launched according to people’s

need and the stores for high end cars will be opened in the mega cities according to the
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demand generated by people through the surveys. The wagons and the trucks under Ram

lineup will be sold in Tire 2 and 3 cities where demand for these products is more than other

high-end cars.

The accurate strategy for selling products according to market demand will help us

increase the sales of cars in this domestic market and also helps to compete with other car

selling companies. The brand name and logo will be used as same which is modern and

attractive but integrating with Tata. Also, the work will be done to maintain the same atmosphere

like of North American market to make people feel inviting. This will help company to gain a

goodwill in market and helps to increase the sales of cars.

Pricing strategy

In India the prices of cars may vary greatly. The custom duty on these cars made them

costly then the North American markets but we are trying to launch that on discounted price so

that we can compete with the competitors. The products offered by other companies have

different pricing according to the category of the product in the market but we will be offering it

on lesser or similar price with extra features than the competition in the market. To illustrate a

SUV by other brands like Hyundai, Kia, MG and Mahindra costs from Rs 12 lakh to 18 lakhs and

we also will be launch our product in the market between this price with all the essential and

luxury features included starting from basic model.

We will also work to provide the products in a best available price by minimizing our

variable expenditures such as profit percentage and Dealer margins which will help us to save

money for initial push of our cars in the Indian market.

Promotion Strategy

Every organization wants a creative advertising plan, as advertising campaigns tend to

have a significant influence on product acceptance among the potential consumers in market.

For the launch of Dodge, we will be utilizing all type of media to target a wider range of

customers. To get the things started we will organize a physical launch event at all the mega
INTERNATIONAL MARKETING Page 17

cities of India on the same date to create an unanimity among the people regarding the product.

This will act as the first pin for the company to create a mark in the market. All the booking on

the launch day will get additional benefits like free insurance cover for 3 years, additional 3

years warranty and a lot more for joining the dodge family.

Other channels will also be used to target the market like advertising, sales promotions

and Public relations. We are also planning to advertise our cars through adding website for

Indian Market which will help customers to know about the available products of the company

and the expected new launches in the market by company for future. The main message of this

promotional campaign is to tell people about the presence of the Dodge in the market which will

hep us to make an active mark in the market.

Distribution Strategy

In the case of other companies in the market they use their own chain of outlets to

provide their cars to public. We as a new entry in the market are collaborating with the domestic

company Tata to use their chain of outlets to sell our cars in the market. Tata, as a choice to

collaborate because of the wider chain in the market and also to the remote areas as well which

will help us to do some cost cutting and saving funds to provide people with best quality

products at best price. We will be following the chain to distribute these to people.
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Export

Assembling in
Factory

Collaborating
chain

In accordance with the laws and regulation of the country we will be distributing the

products to different chains we will be paying each and every duty to make our company a

success in this new market.

FINANCIAL, FORECAST AND BUDGET

For the smooth running of business, we will need an investment of Rs 100 crore which will

include all the fixed and variable costs for smooth running of business. The budget forecast for

the year ending 2020-21 will be:

 Particulars 2020-21
Employees’ Wages and Salaries 19,20,000
Supplies and Postage 70,000
Advertising and Promotion 12,00,000
Delivery Expense 6,00,000
Bad Debt Expense
Travel
Legal and Accounting Fees 2,00,000
Vehicle Expense 70,000
Miscellaneous Expenses 5,00,000
D. TOTAL VARIABLE EXPENSES 45,60,000
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Less: Fixed Expenses*

Rent 10,00,00,000
Repairs & Maintenance 10,00,000
Utilities (Heat, Light, Power)
Telephone 1,00,000
Taxes and Licenses 5,00,00,000
Depreciation 10,00,000
Interest 89,00,000
Insurance 60,00,000
Other Fixed Expenses 3,00,00,000
E. TOTAL FIXED EXPENSES 19,70,00,000
F. TOTAL OPERATING EXPENSES 20,15,60,000

We have to spend more on fixed cost a way more than our variable expenses. As market is

expanding on high pace, we expect a good sale in the year but we will not meet our break even

point in the first year. Ideally, we would like to generate revenue and overall brand awareness

within this time.

CONTROLS

Evaluation and control will be conducted on bi-monthly basis for monitoring of sales in the

market for different category vehicles. These meetings will be held during the first-year

operations at all the branches with their employees. All the meetings will be held for the

discussions of finances, public relations, problems, solutions, new ideas for marketing, cost

cutting measure, sales projections and competitor analysis. This evaluation in the company will

help us to know about the true position in the market and helps us to coordinate with each other

easily. After annual general meeting at the end of the year we will plan a new strategy to make

our business success in the market.

CONCLUSION
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This marketing plan of Dodge covers many areas of opportunity for them to be a success in the

Indian market. Having a strong foundation in the United States and Canadian market we are

entering in the Indian market to be the first preference in the cars for the people of India.

Comprehensive external and internal review of customers and employees should be used for a

full business understanding to help repositioning of Dodge in the Indian market. The company

will effectively meet its target market by means and the technique of competitive pricing. The

financial review will also offer a clear picture of how the marketing plans for the production of

Dodge cars in India should be applied. Effective marketing will be the key to success for this

venture into India. Convenience, quality and variety will once again be the reasons that

customers in India will like and accept the Dodge and will help us to be a successful brand in

this South Asian market.

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