Marketing Communication - Dacia

TASK 1

Different methods of marketing communications and contemporary internal/external factors

Corporations adopts marketing communication tools to spread awareness among public about products and transform name into brand. This helps firm to attract people and influence them as customers prefer to purchase quality items than local goods (Sozinova and Fokina, (2015).

Company Profile: Dacia is a multinational organisation and Romanian care production company founded in 1966 which consists topmost position in Romania; and it is a subsidiary of French car, Renault. Miovenu, Agres County is enlisted as one of top five largest care production facilities through producing and delivering approximate 581, 219 car unit overall in 2016. Company have manufacturing plants set up in Mioveni and Arges nations. This firm is ale to produce nearly 3,80,000 vehicles in a year and have capacity to utilise resources adequately and deliver appropriate cars in market (Belch, (2014).Company now has employed more than 13, 800 worker and own approximate 101million euro net income annually.

Dacia branches have separate divisions that is painting, chassis, bodywork, assembly and so on. This help management to design vehicles and implement latest tools and techniques in system; so that unique and creative cars are launched in market. Along this, modern technologies are embedded in vehicles which help Renault to create brand image.

This report will conduct a report over Dacia Sandero which is deservedly performing well along with astonishing cost and reasonable car. This is one of the cheapest new car with more significant margin. The car cost is £5,995 to £1,000 s which is more costly to Suzuki Clelerio. This include numerous features such as metal body, steering wheel, stereo features etc. This assignment is focusing over long discussion over the target market and undertaken marketing strategies for the following car. Marketing team of Renault uses various promotion tools to increase customer base by informing public about variants and its features. The company has set the target market of Dacia Sandero on the grounds of different demographic as company has concentrated over middle and upper-middle class of people, students and business person for selling their products. Hence, the organisation, in order to attain large market launched the open economies such as India for delivering products and creating large sales amount.

In order to generate proper communication, the organisation use different communication and marketing methods which is implemented as per the audience and target consumer along with their requirement. Marketing communication methods refer to the different techniques which are valuable m tools that company optimise for develop their business as well as emphasise their sales to create better recognition of certain brand or product. Dacia Sandero are utilising some effective methods of marketing and communication in order to promote their services. These are various marketing communication tactics used by management on basis of market are stated below:

Public Relation: This is traditional method of promotion which was used by companies to interact with public and provide them information about items, its features and benefits. This help salespeople to influence buyers by interacting them and acknowledging their thoughts and ideas. Thereby, persuade people by giving them offers and discounts. This is effective technique that helps management to build relations with clients and compete with rival firms (Castronovo, Huang, (2012). But this, component have various drawbacks as members will not able to cover large market area. Dacia has develop strategies in order to build strong healthy relationship with public, for this they are offer economic product Dacia Sandero at market place with higher brand value so that thus customer's satisfaction should be increase.

Personal selling: This marketing communication defines that organisation uses this tool which help them to communicate with buyers. Face-to-face meeting is conducted by salesperson to influence people and inform them about items and services. This is appropriate tool which helps sales team to promote products with help of their appearance, ingredients and other components. Seller directly provide things to consumers so they are able to take feedback and anticipate their ideas. Various firms uses this technique which define that management prove responsibility to sales members to conduct field visit and attract people. Targets are given to employees so that they uses skills and knowledge to complete objectives. Discounts, offers and after sales service is given by them to influence people and make them purchase items in according to their taste and preferences (Kotabe, Helsen, (2014). Dacia has organising training program to enhance employees selling skills that help to deliver better services as compare to their competitors at market place. So that employees meet clients and build healthy relationship with them thus help to achieve target effectively.

Direct marketing: This promotion mix defines that marketing team sends information to public about items and services. E-mail, mobile phones and fax are various communication tools used by companies to attract people by giving them data about vouchers, discounts and offers. This help management to retain clients and keep them connected by firm. Time-to time information is easily communicated by firm about changes in items, prices, features and so on made by superiors (Rehman, Ibrahim, (2011). Dacia Sandero can use direct marketing methods such as email marketing and campaigns along with other information sources in order to achieve their business objectives as this is efficient and more credible method to influence consumer.

Thus, these are various promotional mix which are available for organisation to spread awareness to people about items and services. This help firm to grab attention of large number of customers and enhance sales and profitability. Dacia is using direct marketing technique which helps marketing department to retain clients for longer period by timely providing them information about vehicles, its features and prices. E-mail, text message and fax are various tools that are used by company to inform public about different variety of cars that are available.

Internal and external analysis of Dacia business firm

Management require to have accurate and complete information about market conditions and system capabilities. SWOT and PESTEL analysis are various tactics that are executed by Dacia to acknowledge internal and external factors; thereby anticipate their impact on business operations. Top personnels require to take appropriate decisions and judgements; thereby select alternatives which are beneficial for company (Mihart, (2012). This help administration to utilise strengths and market opportunities; and protect system from threats by overcoming it from weaknesses.

SWOT Analysis

• Strengths: Transformation in standards of environment as technology updates with time. Implement latest machines in system and fix existing plants. Renault is popular brand, so company consists large customer base. Vehicles are provided at adequate rates in respect to other auto mobile firms. Decia which is subsidiary of Renault which manufacture cars for them, so company provide quality vehicles to people. Renault provide different variants that is different ranges of cars in respect to kinds of people such as rich to working class. Company have strong market image and goodwill in international marketplace.
• Weaknesses: Renault don't have penetration to Asian market. Large amount is invested by management to train staff and enhance their abilities. Supplier switching cost is higher. Variants of vehicles in less as compare to other brands.
• Opportunities: Renault have option to set up new outlets and increase customer base. Dacia require to implement advance technologies so that modern vehicles are provided by Renault.
• Threats: Renault is operating business international market, so they require to compete with other auto mobile brands. Exchange rate, interest rate and inflation varies from country to another. This impact on sales and profitability of company.

PESTLE analysis of Dacia organisation

Management conduct this tactic to acknowledge information about macro-environment conditions and their direct or indirect impact on business operations.

Political factor: This component defines that administration of Dacia require to make policies and strategies in according to government laws and legislations. As, company is set up in different nations, so it is essential that management make system function legally and take care that operations are executed appropriately (Mihart, (2012).

Economical factor: This element consists exchange rate, interest rate and inflation which impacts on performance of organisation. Dacia which is car manufacturing company require to have adequate funds and resources to conduct operations adequately. It is necessary that vehicles are priced according to public.

Social factor: This component defines that Dacia which is subsidiary of Renault require to design vehicles according to people. It is necessary that different variety of cars in respect to target market is provided by firm. Social class, lifestyle, purchasing trends and so on are various tactics require to be taken care while providing vehicles. Middle class and rich people have different funds availability, so it is essential that different ranges of cars are present in market (Nielsen, Thomsen, (2012).

Technological factor: This element specifies that management of Dacia require to implement appropriate tools and techniques in system so that quality vehicles are manufactured. This help company to utilise funds, material and manpower efficiently and deliver adequate things in market according to needs and wants of people (Parente, Strausbaugh-Hutchinson, (2014).

Legal factors: This component defines that management of Dacia makes system function effectively and takes care that employment, discrimination and equality legislation are considered by them while formulation of policies.

Environmental factors: This element specifies that administration of Dacia require to use appropriate tools and techniques so that resources are utilised adequately. It is necessary that vehicles are designed environment friendly and don't emit harmful gases.

Internal as well as external business environment has effect organisation decision of Dacia by two ways positively and negatively. So that, management of the firm has identify their strength and develop strategies to overcome weaknesses to run whole enterprises activities effectively in long period of time. They find out all negative environmental factor and reduce its impact on their performance by developing core competencies accordingly management take decision.

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