Dongfeng commercial

vehicle company-EU
market entry and
distribution

By
Aniket Ghule
Ruchit Chauhan
Yogesh Pande
Yogeshwar Patil
Vaibhav Shinde
 Dongfeng is a Chinese commercial vehicle company.
 The joint investment with the Japanese motor corporation
by the predecessor of dongfeng led to the start of
globalization for the company.
 It engages in R&D manufacturing and marketing of
medium and heavy duty commercial vehicles.
 Recently dongfeng Kinland trucks have become china’s
fastest selling heavy duty truck.
 Dongfeng medium and heavy duty trucks are now exported
to more than 20 countries.
 Dongfeng commercial vehicle company aspires to be
china’s no.1 truck manufacturers and among the top 3
across the globe.
 Dongfeng also plans to enter European market especially
UK.

Introduction
 With a strong network of dealers the company will be
able to provide end to end service thus leading to
build good brand image and relationship with the
customers.
 Availability and the timely delivery depend on how
strong the dealer network is.
 Toyota’s subsidiary Hino trucks a newcomer in the
European market achieved significant success by
building a great dealer network.
 As we see that small transporters may lease trucks
from vehicle importers and large dealers. Hence,
having large dealer network will be beneficial for the
company.
1. In terms of meeting end-user
organizational customer needs, why is a
dealer network so important to Dongfeng's
ambitious plans for EU market entry?
 “Sneaking in under the radar” which is also known as
stealth strategy.
 Market sensing helps them to identify various local dealers
who are long established members of their communities as
they can get closer to customers than the global company
on its own.
 Detailed study of the distributors as to know their nerve.
 Help to understand competitors market closely and monitor
their activities.
 Competitors information can be gathered from the
distributors so this will help to build robust strategy.
 Identification of potential dealer which will help to build
distribution channel.

2. What are the benefits of the firm’s cautious

‘sneaking in under the radar ‘approach to find
distribution partners? Are there any risks with this
strategy?
 It takes long time, by which the market share will be
captured by other companies.
 Competitors may monitor Dongfeng agents and their
activity as they are aware of it.
 Chinese agents for Dongfeng, also works for
other Chinese nationals which includes the risk of
sharing data.

Risk in this strategy

 It should focus on providing ‘Total distribution
service’ right from the truck delivery to provision of
the financing package to servicing and parts
availability.
 Dongfeng should not allow their agents to work with
other Chinese nationals as their strategies can be
revealed not only within the country but outside the
country also.
 The entire supply chain should be taken into
consideration, right from the availability of parts to
truck servicing and after-sales service.
 Dongfeng should focus on Traditional transactional
approach of exporting goods which can be either
Direct or indirect exporting.

3. What logistical issues do you think Dongfeng

will need to take into account? Are there any
organizations from which it can get assistance in
meeting these challenges?
 They can take assistance from IT Fleet to
meet this challenges.
 They can use ‘Cradle to grave’ service including
as used by IT Fleet:
 Specifying vehicles for customers
 Managing their acquisition process and their
build process, if necessary
 Return; providing rescue and repair and
supplying relief vehicles.

THANK YOU