Comprehensive Marketing Analysis of Dacia: Strategies and Insights

This report presents a comprehensive marketing analysis of the Dacia company, examining its strengths, weaknesses, opportunities, and threats through a SWOT analysis. It also applies Porter's Five Forces framework to assess the competitive landscape of the automotive industry. The report further delves into Dacia's key marketing segments, utilizing demographic, psychographic, behavioral, and geographic segmentation strategies. Finally, it evaluates Dacia's marketing mix, including product, price, place, and promotion strategies, to understand its market approach and identify areas for improvement. The report provides insights into Dacia's market positioning, competitive strategies, and potential for growth within the automotive industry.

Introduction to Marketing

Table of Contents
INTRODUCTION...........................................................................................................................1
SWOT analysis of Dacia company..............................................................................................1
Porter Five force framework........................................................................................................2
Key marketing segments of Dacia...............................................................................................3
Marketing Mix of Dacia..............................................................................................................3
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................6

INTRODUCTION
Marketing refers to the process of ascertaining consumers' needs and supplying various
goods and services to the final consumers or users to satisfy those needs. This assessment covers
the classification for Dacia in order to capture the share their market and the strategies they use.
Also recommendations have been assessed in the report for improving their services. Analysis of
SWOT, Porter five forces and key market segments of the company have been highlighted
(Hulland and Houston, 2020).
SWOT analysis of Dacia company
SWOT model is an effective way of knowing own strengths, weaknesses, opportunities and
threats. By knowing own strengths and weaknesses, Dacia can take better decision and make use
of strategies accordingly.
Strengths
 One of the main strength that can help Dacia is it gets overwhelming support from
Romania Government.
 There is open access to European market and this strength can help it out in expanding
business successfully (Busu and Stamule, 2020).
 It has diversified products that can help it out in attracting customers and increasing sales.
Weaknesses
 There is high distribution and export cost and it is found that it exports many of its cars that
can increase cost.
 Due to lower manufacturing and other cost, its designs are poor as compared to other
competitors.
Opportunities
 It can take opportunities of becoming the market leader in Romania market.
 Its innovation skills and strategies can help it out in competing with other players and
increasing sales.
 Exist vertical integration opportunities can also make it able to provide qualitative car
vehicles to other countries.
Threats
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 Decreasing rate of purchasing power of customers due to economic crisis can create
barriers in increasing sales.
 It is also found that this brand is associated in Romania mind with low quality product
due to low manufacturing cost (Anca and Andreea, 2018).
From the above discussed strengths, weakness it can be said that Dacia can focus on developing
other strategies for reducing weaknesses and increasing scope of taking opportunities.
Porter Five force framework
Competition in the industry-
It is important for Dacia to look after their competitors in the markets as there are many
car makers whose products are better in similar range. The buyers of the company will look for
all the alternatives and if they get a better deal from Dacia then they will select it. If they make
their products more superior and better as compared to them then they will be able to overcome
this threat.
New Entrants-
The level of business of the company if they have to deal with more players in the
market. Although the industry in which Dacia deals in has many barriers to new entrants such as
investment and resources which keeps them safe. Also if they are able to maintain edge over the
new entrants they can charge high prices as compared to them through which they will be able to
generate more profits.
Power of Suppliers-
This aspect is concerned with the power of suppliers and their numbers. If there are more
suppliers then company can easily get the products at time and less rate which is similar in the
case of Dacia that is why they don’t have any issue with them as relationship is maintained. In
order to maintain their production levels they have maintained good relationship with every
supplier so that they can get their products at reasonable amount of time and they never have to
miss the deadline for delivery.
Power of Customers
If the customers do not agree with the products offered by Dacia then the prices will have
to be reduced which is a threat for the business. It is important for the business to keep this
power in their hands and make their products in such a way that they have control over this
aspect (Malhotra and Dash, 2016).
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Threat of Substitutes-
Company is weak in this aspect because there are lot many brands who offer products in
similar range which is a high threat for them. They have to make their products with that
attributes that feels more superiors to the products offered by the competitors of the company.
Key marketing segments of Dacia
Dacia divides their market on the basis of four aspects of market segments such as demographic,
psychographic, behavioural and geographic.
Demographic-
This form of segmentation is used by the company in those markets where they believe
they can work with the same approach for a group of people. For instance company will have to
target a certain age group of people for their car, more suitable gender for the car and the level of
income group they are targeting through which they can easily come to a decision.
Psychographic Segmentation-
This form of segmentation is used by the management of the company for those markets
in which they have to serve their products as per the characteristics or personalities of people.
They have to recognize the interest, attitude of the target audience and the lifestyle they maintain
and on the basis of that agents of the company can motivate them. It gets difficult for the
company to understand their pattern and increasing their sales.
Behavioural Segmentation-
In this form of segmentation they have to serve as per the reaction of the customer after
seeing the final product. They have to analyze their purchasing behaviour, and habits on
purchasing, the level of interactions they keep with the brand. This way they can prepare the
strategies for them through which they will be able to direct their team to perform better services
and achieve more sales.
Geographic Segmentation-
This is the clearest form of segmentation as it is easy for the management of Dacia to
target them. This is because they have to classify their target audience as per the location of a
country or city. This helps Dacia to cover many of the customers as per their profile of working
in a specific geographical location (Kumar, Keller and Lemon, 2016.).
Marketing Mix of Dacia
Product-
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There are various products offered by Dacia in the market both in Europe and outside its
borders. They launch their products as per the diversity of the market. They have been able to
establish their market in UK but it is important because of the changing times that they improve
their strategy and bring products as per the changes happening in the market. They are working
on hybrid and electric vehicles so that they can grasp a share in the market.
Price-
The pricing of Dacia is clear as they have segmented it as per the class of customer they
offer their products too. They have made it clear for SUVs and sedan. Other than this they also
alter their price as per the competition in the market. With this they keep in mind for their every
product that customers get value for their money.
Place-
Dacia started their operations in Romania and ever since they have expanded their
operations and make Europe as their base of operations. They have made their primary base there
and the second one is in France from there they keep control over the sales and operations of the
business. In order to improve it is important that they set their level of production as per the
demand in the different market so that none of the inventory gets stuck or disrupts the flow of
work. For this they need to deeply analyze the market and prepare for more production levels
because then only they will be able to cater the high demand of the market.
Promotion-
Dacia has to maintain their operations on a large scale and for that it is necessary they
maintain awareness of the brand. Their current medium of promotion is different as they
participate in races and events with their cars so that they can prove the worth of their cars on
difficult tracks. They are known for their engines and its efficient performance. They have
earned the trust of people and more than that they invest a lot in promotion which is because they
want to improve, they sign up with celebrities and this has helped Dacia toget better recognition
in the market (Jena and Panda, 2017).
CONCLUSION
From the above study it has been summarized that Dacia needs to improve their methods so that
they can get better results in obtaining the required class of customers. It is important that they
keep a check on the stages of production and analyze the demand in the market so that they can
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be prepared if there is a case of rise in demand. They need to improve their marketing mix
portfolio so that they can promote their brand in a better way and get the attention of more
people in the market.
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REFERENCES
Books and Journals
Busu, M. and Stamule, S., 2020, July. An ANP approach to estimate the market shares of the car
industry companies in Romania. In Proceedings of the International Conference on
Business Excellence (Vol. 14, No. 1, pp. 953-962). Sciendo.
Anca, M. and Andreea, N.N., 2018. How Can Companies Adapt to the Growing
Competition?. Ovidius University Annals, Economic Sciences Series. 18(1). pp.320-
325.
Jena, A.B. and Panda, S., 2017. Role of marketing automation software tools in improving or
boosting sales. Splint International Journal of Professionals, 4(7), pp.30-35.
Kumar, V., Keller, K.L. and Lemon, K.N., 2016. Introduction to the special issue—Mapping the
boundaries of marketing: What needs to be known.
Malhotra, N.K. and Dash, S., 2016. Marketing research: An applied orientation. Pearson,.
Hulland, J. and Houston, M.B., 2020. Why systematic review papers and meta-analyses matter:
an introduction to the special issue on generalizations in marketing.
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