Executive Summary
Dong Feng Motor Company is a China automobile manufacturer owned entirely by the China government. It has done well in the local and regional markets, but its brand is hardly recognized internationally. Therefore, Dong Feng Motor Company firm has reached a point where it must aggressively enter the foreign market. Nigeria has been identified as being the most suitable market for Dong Feng Motor to pursue. Because of the large middle-class population in Nigeria, it is proposed that Dong Feng Motor Company give Nigeria’s market a greater priority.
Introduction
Dong Fend Motors Company is one of China’s most well-known automakers. The corporation, whose headquarters is in Wuhan, China, was created in 1969 and now works globally. This organization has consistently expanded its activities throughout Asia, South America, and Europe. The mission of Dong Feng Motor Company is to continue its growth as an open, inventive, and internationally competitive corporation while also establishing a successful strategy. This paper aims to create an international marketing plan for Dong Feng Motors to sell its brand in Nigeria, where it presently does not operate.
Market Overview
Environmental Audit Summary
Both internal and external factors frequently impact the success of a company. When a company decides to enter a new market, it must realize that the prospective economy’s external environmental factors will determine whether it succeeds or fails. Before entering a new market, a corporation should do an environmental audit (Lynch & Jin, 2016). A corporation must comprehend the target market’s political, social, economic, and legal dynamics. It also has to figure out how these dynamics will help or hurt its activities in the new market. Before entering such a marketplace, the company must devise a strategy for dealing with the problems and capitalizing on the possibilities. In this section, I will conduct an environmental analysis of the possible country into which Dong Feng Motors ought to consider expanding in the coming years.
Nigeria is a promising market into which Dong Fend Motors Company might explore expanding. Nigeria is Africa’s most populated nation, with approximately one hundred and seventy million people. It also possesses the continent’s largest economy. According to research conducted by Cavusgil et al. (2014), Nigeria has a fast-rising middle class, even though the vast majority of the people remain impoverished. Nigeria will be the preferable country due to its large population and substantial economic expansion.
A company must examine a variety of variables when selecting new host nations (Coulter, 2009). The market size is one of the essential criteria. The demand for a company and its products ought to be large enough to enable commercialization. Because of its large population, China is one of the major appealing markets worldwide for companies looking to expand globally. This firm should also target a nation with a large population that may help them increase product sales. The buying power of the new government is the second consideration. It’s not simply about the number of people. A country is only desirable if its residents have sufficient spending power. Willingness is nothing more than a wish if you don’t have the financial means to get it. The company must guarantee that the intended nation’s gross domestic product is in line with expectations (Spulber, 2007). Other fundamental aspects, including the legal and political settings, should also be taken into account.
It is critical to comprehend both macro and micro environmental elements in Nigeria (StudyCorgi, 2020). Nigeria’s business situation is among the most significant aspects of the macro environment. As previously said, Nigeria’s economy is quickly improving, with a rise of the middle population ready and capable of acquiring automobiles. The country’s current state of affairs is also conducive to business. Despite the threat presented by terror organizations, the nation has robust political governance. Nigeria is not as highly advanced in technology as China. The company should be prepared to develop solutions to bridge the nation’s technical divide. It may be obliged to employ some citizens from its homeland to work at its new facility in Nigeria, particularly in high-skilled sectors.
Dong Feng Motor benefits from the socio-cultural influences in Nigeria. The micro-environmental factors in this firm’s host nation will have a substantial impact on its activities. The accessibility of sources is amongst the most significant micro-environmental elements. In this foreign nation, Dong Feng Motor might well be required to acquire several of the necessary raw materials to manufacture its product (StudyCorgi, 2020).
International Segmentation, Targeting, and Positioning
Segmentation
Dong Feng Motor Corporation should segment the markets into sections or sectors that are measurable, reachable, actionable, lucrative, and have room for expansion. It must have a distinct segment consisting of many customers who can be recognized and addressed with minimal effort, expense, and time. Once a group has been found, the firm must determine whether or not this mass can be effectively managed with the resources available or whether or not the group is reachable to the organization. Beyond that, the corporation must assess whether the group will react to marketing initiatives or be responsive.
Even if the product and aim are apparent, the corporation will see if selling to the masses can be successful. At this stage, it’s also essential to figure out whether the segment’s size and value will increase, resulting in more sales and profits for the product. The corporation will personalize its development to its client’s wants, preferences, uses, and financial capabilities through segments. Furthermore, it will allow the company to focus its resources and efforts on a lucrative market with increasing numbers, consumption, and worth.
Targeting
I would start by identifying markets that are both interested in and capable of purchasing my stuff. Identifying the target market will allow me to understand more about my clients and, as a result, design adverts that will appeal to them. The targeting approach is practical because it targets the customers most likely to interact with the brand or product based on a buyer profile. Targeting tactics such as demography, regional, emotional, and behavior targeting might be used.
Demographic marketing will be centered on the target consumers’ age, income, and financial status. I’d be able to target clients for my products in various ways, from marketing to product placement, by merging multiple groups. Understanding my demographic can also assist me in boosting sales if my product isn’t performing as well as I had hoped. The geographic targeting approach would be based on both local and national locations in Nigeria. Consumer targeting inside areas is essential and successful because it ensures that advertising is delivered to the correct people at the right time.
Geographic targeting also uses information about the consumer’s typical destinations, which may be highly useful in determining which category the client belongs to. Behavioral and psychological target marketing, on the other hand, will rely on personal attributes, prior purchases, and favored locations. Knowing the personality of my target market will substantially improve the effectiveness of my marketing strategy.
Positioning
Market position pertains to a customer’s perception of a brand or product in comparison to competing brands or products. The act of constructing a brand’s or company’s image or reputation in such a manner that people perceive it in a certain way is known as market positioning (Schlegelmilch, 2016). Positioning is all about creating a mental environment for your consumer, which they think about and link with your product. For instance, I will market mine as a high-end status symbol.
The positioning of a firm’s brand or item entails advertising it in a specific way to generate and create an impression or image in the eyes of the intended market’s consumers. A company’s market positioning should be sustained throughout its life cycle. Continuous marketing actions aimed at reinforcing the target market’s views of the brand or product would be required to achieve this. From the customers’ perspective, a firm must have a unique image and product set apart from its competitors. Consumer survey results may be plotted on a perceptual map to demonstrate the firm’s product lines concerning rivals (Schlegelmilch, 2016).
Action Programme
Product
Yixuan MAX is a “track-class wide-body sedan” with a one thousand eight hundred and seventy millimeters body, the broadest among similar brand cars. The “track storm aesthetic” is reflected in the visual design. Dong Feng is also committed to transforming the inside into an exquisite tech cockpit. The timely and effective car machine package Wind 6.0 Ui offers a multi-intelligent sensation. Yixuan MAX will be the first competitive model developed on DSMA technology, with a greater area, higher control strategy, and more pleasant experience than comparable models.
Yixuan Max boasts five great technological strengths in performance, fuel efficiency, dependability, and intelligence, thanks to the newly designed MACH Energy technologies installed on Dong Feng Motor (Donfeng, 2021). Because it includes the growth of an existing product line, it is considered a product line extension. It would be introduced as a complement to the existing brand. It offers diversity to appeal to a broader range of clients while tempting current customers with fresh possibilities. Because it includes modifying an existing product that makes it appropriate for diverse clients in the Nigerian market, the product requires adaptations. It guarantees that the product complies with local legislative and cultural requirements.
Place
E-commerce, direct sales, and intermediaries are examples of distribution channels. E-commerce will be the most efficient distribution channel for the company since it removes the need for numerous storage locations, distributors, and brokers to connect you to retailers to sell your product line. I plan to employ stores as middlemen. In addition, I will use a multi-channel approach since it usually necessitates one crucial message and calls to action and interaction with consumers through a combination of indirect and direct communication channels.
Price
I would adopt the Market Penetration Pricing technique because it employs cheap pricing to enter a new market. This method would be used to attract clients to buy a particular product from me. Furthermore, this method will act as a disincentive to competitors by preventing them from entering the market with a rival product and forcing them to lower their prices. Because the industry is still young, I may gradually raise my pricing to a more acceptable level once I have established a client base. Dong Feng Motors Company must employ these techniques (product, location, and pricing) because clients must become acquainted with the product characteristics, location, and prices.
Marketing Communication Plan
Yixuan MAX is the product’s brand name. Yixuan MAX has set the standard for power configuration, intelligence, and uniqueness as the DSMA sophisticated modular design and the first version with Mach performance. In terms of the model itself, first and foremost, the new automobile employs a creative design idea, and the whole shape exudes a feeling of a long time.
The most revolutionary unframed layout is used on the rear grill, with a black-gray contrasting design that is especially eye-catching. Even though the headlights are not overly ornate, they do provide a perfect finish. The current car’s curvature is highly rounded when seen from the outside, and the famous slide-back layout is used, giving the lines a feeling of fashion. Furthermore, the newly designed seventeen-inch gun gray aluminum alloy wheels have a very dynamic appearance. The luxury car has a unique through-type rear light and asymmetrical double exhaust layout at the back, adding a sense of sports cars.
The entire automobile is designed in the most stylish style, providing consumers with a quality and taste experience. The new automobile has also put in a lot of effort in terms of the inside. The new car’s interior is designed in a basic yet contemporary manner, and the asymmetrical arrangement offers individuals a rebellious attitude. The track blood running over the new body informs us that it is compelling. The new car’s emphasis on performance MAX corresponds to the maximum velocity far above imagination; this is a brand-new automobile featuring MAX performance, MAX technology, and MAX style. MAX will also become the first and most important option in the life of the younger generation. Max is with us, and you can learn more about our company by visiting us. Max is not your typical automobile, as you will get the most satisfactory driving experience possible.
We are glad to inform Nigerians that Dong Feng Motors will be launching in Abuja City very soon. We hope you appreciate your one-of-a-kind vehicle, as we aim to provide you with the finest. The corporation will target customers who are financially and economically competent in acquiring the goods. Their attitudes toward the brand and how they genuinely feel about the goods, and how well customers believe a product is constructed, including the sort of materials and procedure, are taken into account by the firm. All factors that influence the selection and acquisition of the firm’s products will affect customers’ attitudes toward the firm.
Strategic Planning, Implementation, and Control
I will employ strategic planning frameworks such as the balanced scorecard, SWOT analysis, strategy mapping, gap planning, and PEST planning frameworks to help me make decisions. A balanced scorecard will aid in connecting the company’s strategy to the operational factors that enable it to be implemented. The organization will measure performance using a balanced scorecard that considers more than just financial earnings. A balanced scorecard also helps the organization integrate everyday work with the long-term goal, convey where and why it is doing it, set priorities, track progress, and assess performance. Strategy mapping will enhance my balanced scorecard by assisting me in understanding how all of my company’s objectives connect.
I will utilize the SWOT analysis to figure out what internal and external variables may influence the company; this framework will be used at the start of my strategic planning process to help me identify where things are going well for the organization and where it needs to improve. The Gap Planning Strategy will help the company figure out how to bridge the gap between where it is now and where it wants to go. It will assist the company focus on all it has to do to get from where it is now to where it wants to be. Finally, a PEST study will help me to identify the external issues that can affect my business.
I will create a clear and well-targeted worldwide marketing strategy based on a profound grasp of the areas where the firm’s products will be introduced. In addition, I will ensure that the international plan follows the discipline of extensive study and a piece of complete knowledge and accurate assessment of what is necessary to establish a competitive advantage. I will develop a flexible framework that will allow the organization to adapt to essential distinctions in the markets in which it operates while also clearly defining linkages between its parts and individuals.
I will evaluate the short-term and long-term income raised by a marketing plan and how effectively the firm’s client acquisition expenses are reduced throughout the marketing plan to determine the effectiveness of my marketing strategy. I will also perform benchmarking findings regularly to assess where the marketing plan is leading the company. By benchmarking, I will see if the marketing strategy has to be tweaked in any manner. In addition, I will outline specific objectives that the firm and its workers must meet for the marketing plan to function smoothly; this will guarantee that the campaign reaches its maximum capabilities.
Limitations of the International Marketing Plan
The international marketing environment constrains my marketing plan in several ways. The following are some of the drawbacks:
- Tariff Barriers: Tariff barriers are tariffs and levies imposed on products from visitor nations. As a result, I will have difficulty making enough profit while promoting things in the host nation. To prevent foreign items from entering the country, the host nation will often enact strategic tariff rules that limit my international marketing efforts.
- Administrative Policies: Administrative processes in the host nation might complicate my marketing plan. The country may have excessively long requirements that I must pass before beginning my marketing strategy. Unfair practices to give the legalities may also cause plenty of issues for my international marketing plan.
- Considerable Diversities: Different nations have their civilizations and cultures, which might hinder my marketing plans. Global clients demonstrate significant cultural and socio-economic diversity in terms of demands, tastes, expectations, purchasing power, and consumption habits. The conduct of customers in the host nation is also challenging to comprehend.
- Political Instability or Environment: The hosting nation’s political structure, various economic systems, and political volatility provide significant hurdles that might hamper my marketing plan.
- Norms and Ethics Challenges: Different norms of practice unfavorable to the marketing plan may be established in the host nation for all foreign business players to follow.
Conclusion
The Chinese government owns Dong Feng Motor, which is a prominent automobile manufacturer in China. Since 1969, the company has established itself as a significant participant in the local automobile sector. However, the moment has come to expand its activities beyond the current market in order to capture more market share. Pricing, products, and relationships with intermediaries and consumers will all be affected by the distribution channel selection you choose. All company operations should have a comprehensive marketing strategy since it outlines how you intend to acquire and keep clients, which is an essential component of any organization.
Reference List
Dongfeng. (2021). Overwhelming momentum! Dongfeng launched many new products at auto Shanghai 2021!Dongfeng motor. Dongfeng Motor. https://www.dongfeng-global.com/index.php/dongfeng/news/id/197.html
Lynch, R. and Jin, Z., 2016. Knowledge and innovation in emerging market multinationals: The expansion paradox. Journal of Business Research, 69(5), pp.1593-1597.
Coulter, M 2009, Strategic Management in Action, Pearson Higher Education, London.
Spulber, F 2007, Global Competitive Strategy, Cambridge University Press, Cambridge.
Cavusgil, S.T., Knight, G., Riesenberger, J.R., Rammal, H.G. and Rose, E.L., 2014. International business. Pearson Australia.
StudyCorgi. (2020) ‘Dong Feng Motors Company: Internationalization Strategy.’ 13 December. (Accessed: 27 October 2021).
Schlegelmilch, B.B., 2016. Segmenting targeting and positioning in global markets. In Global marketing strategy (pp. 63-82). Springer, Cham.
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