Dodge Ram Model - Essay Example

Dodge Ram Model al Affiliation) PART ONE Background Information Dodge is an American brand of motor vehicles ranging from minivans, trucks, and sports cars. The Dodge brothers founded the company back in the 1900 as a supplier of auto spares parts and assemblies. It began manufacturing its brand of cars in the 1915 preceding the establishment of the Chrysler Company. However, the company was sold to Chrysler Corporation after the death of the Dodge brothers.in the 1970s; the company had started manufacturing trucks and passenger vehicles (Wenzel & Ross, 2002). In addition, it managed to penetrate the compact car market during that period. The Dodge brand has outlived numerous ownership changes at Chrysler including the momentary merger with Damier-Benz. In 2011, the Dodge Ram model was separated from the Dodge Viper. The management stated that the Dodge Viper would become a Street Racing Technology product while the Ram model would become a manufacturer. In 2014, the Street Racing Technology was merged with Dodge. During the same period, the Chrysler Corporation merged with FIAT automobile to become the Fiat-Chrysler Automobiles. The pickup boom in 1990s brought an outburst of model configuration particularly to the Dodge Ram. The demand for high-performance sports trucks grew dramatically between 1990 and 2000. As a result, Dodge created a Ram pickup with a top speed of close to 155 mph (Chen, et al.,, 2004). However, the towing capability and off-road competence are the primary focuses of modern pickup trucks rather than outright speed. A good example is the Ram 1500 that offers the utmost level of refinement absent in rival models. The Dodge Ram also has 2500 and 3500 heavy-duty model as well. In the mid-1990s, the Dodge Ram was remodeled, as a result changing the people perception of pickup trucks. The Dodge Ram 1500 comprised hinged access doors for both the rear and front passenger seat. In addition, it featured a 175- horsepower 4-liter v-6plus two-magnum v-8 engines. Over the years, Ram model continues to be remodeled to keep up with the growing competition from rival brands such the Ford. The Microenvironment The microenvironment comprises of several components that affect the behavior of employees, events and other factors within the corporation. The factors that occur within the company include the leadership style, organization structure, and organization objectives. Other factors considered under micro environment analysis include the company’s suppliers, customers, target market, and product and services.’ For the past century, the Dodge brand has had its low and high moments. It was divided into Dodge Ram Brand and the Dodge car brand group. During the oil crisis of the 1970s, the Dodge Ram brand experienced a fall in demands due it high fuel consumption rate. Chrysler Corporation, the parent company of Dodge, ran into bankruptcy in 2009. As a result, it merged with Fiat and became Fiat-Chrysler Corporation. The merger did not affect Dodge Ram. Later in the year, Ram sold close to a quarter a million pickup trucks. It represented a decline in sales by 3% compared to the previous year. Each section of the corporation has its president responsible for the business outcome of that division. In addition, the executives have an additional responsibility to the entire company, for instance marketing communication. After the merger of Chrysler and Fiat, two brand heads had to leave the company as part of the reorganization process (Durbin, et al., 2000). Currently, Dodge Ram series are available in most parts of the North and South America and the Middle East. The brand targets the young, energetic fun loving off-roaders. Ford and Chevrolet are the key rivals of the Ram trucks. Macro Environment The macro environment analysis deals with the factors outside the control of the organization. The analysis is a vital aspect in the strategic plan of any business. The PESTLE analysis is the most appropriate tool for analyzing the macro environment of the Dodge brand. Political Factors The U.S. government has put in place strict regulation concerning carbon emissions. The issue of Carbon discharge that is prevalent in most car manufacturers is highly volatile. Failure to abide by the regulation would translate into a high running cost of the Ram truck. As a result, it is likely to discourage customers from buying the vehicles. Economic Factors The recession in 1970s led to the decline of the purchasing power of automobile consumers. The demand for the truck fell considerably. In addition, the oil crisis in that period affected most of the operations of Chrysler Corporation. The rising cost of fuel and raw material has increased the prices of the Dodge Ram trucks. Social Factors Due to a variety of social changes, automobile consumption pattern has changed significantly. In addition, the recession experienced in the U.S. has raised the prices awareness of the customers. Technological Influences Dodge Raw brand derive most of it technologies from the Japanese and German automobile market. The company has been forced to remodel the Ram trucks due to the rapid invention and development from competitors Environmental Influences The strict government regulation concerning carbon emissions and the environmental awareness of the consumers translate to a tight market for Dodge. PART TWO Market Segmentation and Targeting The marketing strategy analyzed in this section involves the division of the target market into segments of consumers, enterprises, or countries. The parts are perceived to have shared interest, priorities, and needs. The company designs and implements strategies to targets these segments. Ram truck created its identity since it was launched as an independent brand. Establishing a separate brand has allowed Ram truck concentrate on its primary consumer, how the use it, and the features they fancy. The Ram truck market ranges from families that prefer the truck for daily commutes, and business that depends on it for commercial purposes. With the growing competition in the automobile industry, Dodge Ram has emerged as the leader by investing heavily in new products and infusing them with appealing looks. In addition, it has refined the interiors of the Ram trucks, developed durable engines, and other features that further augment their capability. In the past five years, Dodge Ram has captured a great portion of the market that previously dominated by Ford and General Motors. It has lured the most loyal clients in the automobile business through its aggressive pricing and incorporating innovative features uncommon in other pickups. The Ram trucks are designed specifically for the consumers who desire power, speed, and agility. The brand has put in place a comprehensive marketing strategy that connects with the Ram truck customers at a personal level than ever before. According to the president of Dodge Ram, the brands have identified its target market and are in the process of building a profound relationship with customers. The heavy-duty market comprises close 30% of the segment, and its consumers are the most loyal in the industry. According to recent research, one in every ten vehicles sold in the U.S. is a Truck. Building contractors are the single most significant professional group of customers for Ram trucks. However, the rising fuel cost has led to the departure from the market of a great number of truck buyers. The Ram trucks consume a lot of fuel due to their huge engine capacity. Differentiation Product differentiation relates to the process in which an organization distinguishes a product in order to make it more appealing to the target market. It may include differentiating it from competitor products as well from the organization own product. The parent company of Dodge separated the Dodge Ram truck from other Dodge brands. As a result, Dodge Ram has continued to establish its identity and to define its customers. In addition, this has led to the acquisition of a significant portion of the market by the Ram trucks. Dodge Ram has added new innovative features to the vehicle that are not found in other pickup trucks. Therefore, it has further differentiated its product from those of rival companies such as Ford and General Motors. The product differentiation strategy has allowed the company to compete in areas other than on product pricing. Additionally, Dodge Ram has differentiated its line of trucks as a status symbol. As a result, it has created brand loyalty among its customers. The strategy has gained the company a significant market share through the Ram trucks perceived quality. Position Market positioning involves the process in which an organization identifies a market problem and come up with a solution based on a market study, segmentation, and supporting data. Over the demand for high-performance, pickup truck has grown dramatically. Dodge identified the niche and created a high-performance truck with the highest top speed ever recorded. An interview with a top executive of Fiat-Chrysler Corporation revealed that Dodge Ram focused solely on truck’s performance (Davis & Truett, 2002). Product Brand The Chrysler Group fragmented its Dodge brand into auto and Ram truck unit. The strategy centered on the promoting the product brand has been refined further with splitting of the Dodge brand into Dodge Ram brand and Dodge car brand. The motive was to develop a unique product within the Dodge brand. Dodge Ram has focused on improving the quality of the trucks by adding more features. In addition, its aggressive pricing has created a brand loyalty among its customers. Product Development Since its inception, Dodge has continued to provide light truck models that resembled the existing passenger cars. However, it eventually began to develop its frameworks and body designs as the market became ripe. The Dodge Ram is part of Dodge group of light trucks. The name Ram was adopted in the 1981 following the rebranding of the Dodge D series of pickup trucks (Alleman & McCormick, 2003). The truck has received numerous accolades as a high-performance pickup truck. The Dodge Ram is marketed separately from other Dodge brands. However, the Ram trucks still have the Dodge logo both inside and outside. The company plans to continue selling the Ram model independently in order to depict a different brand identity. Product Lifecycle The Dodge trucks were first produced in 1917; however, the first pickup that had the Ram name was built in 1981. Between the period of 1990 and 2000, the demand for the ram truck grew exponentially. However, the growth stagnated in the period between 2005 and 2010. Chrysler Corporation got into bankruptcy during that period. After the merger, the sales of the Ram truck fall by close to 3%. Product Pricing There are seven Ram truck model. The current pricing of each model lies between $20,000 and $40,000. The prices match the quality and features of the vehicles. The pricing of these vehicles is considered fairer than that of the rival pick-up trucks. PART THREE Media Channels The internet offers a variety of marketing platform. Dodge Ram uses the internet to market its product. Dodge Ram recognizes that most people shop online. As a result, platforms such as the Amazon and E-Bay provide a reliable channel for marketing. In addition, the social media is also a crucial marketing tool. Dodge Ram also relies on newspaper outlets to market the Ram trucks. Additionally, the television is also a key marketing channel considered by company (Chen, et al., 2004). Retail and Wholesale The Chrysler group has several showrooms across North America and Europe. The Dodge has merged with car retailers across the world to sell the Ram trucks. Due to the rising demand for the certain models of the Ram truck, customers are forced to make orders directly from the assembly. Integrated Marketing Communication Chrysler Group has collaborated with the Ignite social media. The firm is the lead social media agent of the Chrysler group. It will work closely with marketing communication team on strategic development, planning, and production of the Dodge Ram truck brand on the social media. The social media plays a vital role in the marketing and advertising efforts of the company since they can connect with their customers at a personal level. Through the social media, the company gets feedback from the customers in keys areas of the trucks that need to be improved. Ignite Social Media was founded in the year 2007 to provide public relation services to a big corporation such as the Chrysler group. Advertising and Public Relation The Dodge Ram launched a new marketing campaign that included television, social media, and print media. It also collaborated with Miranda Lambert, an American country music artist. The campaign also incorporates a song written by the musician exclusively for the campaign. The campaign ran in major cables channels around the world. The campaign has heightened the sales of the Ram trucks given its success. The unique aspects of the brand inspired the song. The Chrysler group has hired a top public relation agency to promote the Dodge brand. The firm will work with the senior executive of Dodge Ram to construct an overview on how the public should perceive the company and its products (Durbin, et al., 2000). In addition, the firm will be tasked with the duty of arranging event such as motor shows to raise the profile of the corporation. Through the agency, Dodge Ram has been involved in numerous outreach events such as the super bowl and promoting action films such as the ‘Fast and Furious 6.’ Another role of public relation firm was to maximize the Dodge Ram positive use of the social media in image building. In addition, it managed the brand’s Twitter feeds, Facebook page, and YouTube channels. As a result, the company was able to connect with potential customers and other stakeholders. The agency also handled any emergencies that posed a threat to the image of the brand. The firm was to decide on the appropriate ways of dealing with such emergencies and regain control of its image. Personal Selling Personal selling involves salespersons who use their skills and expertise to build a personal relationship with the potential customers. Dodge Ram brand has hired numerous salespeople in their showrooms spread across the United States (Zheng, et al., 2010). The sale personnel guide the client to the services that the truck can offer them. Mostly the high priced Ram trucks with complex features are sold through personal selling. Personal selling comes with a number of benefits to the company. For instance, through personal selling the chances of closing a sale are quite high. In addition, through personal selling the corporation has provided numerous jobs to the Americans. PART FOUR Online Marketing Strategies The Internet has significantly altered the information sharing process as a vital impact on marketing. Over the years, Dodge Ram has incorporated a number of online marketing techniques. It has hired various online-based agencies to promote its brand. The company has put up a website where the customers can get relevant information concerning its products. The marketing communication of the corporation publishes original contents on the website. The material provides a brief description of the each model of the Ram trucks that vital to branding objectives of Dodge Ram. Content marketing provides insights to the customers concerning the features of the company’s product. In addition, it helps the Dodge Ram build a rapport with its consumers and result in the development of brand loyalty (Vojitisck-Lom & Allsop, 2001). The top content marketing platforms are social media, blogs, online newsletters, and the company’s website. The adoption of the content marketing means that advertisement through television ads and Radio are becoming ineffective in marketing products with complex features. The dodge ram has an embarked on the social media marketing by hiring the Ignite Social Media agency. The agency is tasked with the responsibility of managing the brand’s Facebook pages, Twitter feeds, and YouTube channels. The platform has enabled the company to spread its content across more channels. The business has evaluated numerous networks with the aim of reaching out to the maximum number of potential customers. Because of the diversification, it has built brand equity of the Ram trucks by making it easier for the customers to recognize its brand. Global Marketing Strategies Dodge Ram is more dependent on the US market than other brands. Only 8% of the Ram trucks are sold outside North America. Over the years, the concentration strategy of Dodge Ram has become a liability due to the increasing number of import. As a result, the brand has been forced to go global. The company is looking forward to selling the Ram trucks in fast-growing markets such as China and Russia. It also anticipates increasing sales in mature markets such a number of European countries and in Japan. For instance, in Europe, the company has established close to 100 trucks dealership to further its efforts. The company main objective is to double the sales in the foreign market by close to 300,000 Ram truck within a period of five years. The company global strategies include franchising its Ram truck to local carmakers in various developing countries (Baker, et al.,, 2008). According to the company executives, this is the most effective way of penetrating foreign markets. In addition, the strategy has seen the growth of the Japanese Toyota brand in the international market. Competitive Advantage Chrysler competitive advantage is centered on it innovation and technologies. The corporation is the most technologically advanced in the automobile industry. The Ram trucks have received numerous accolades for its incorporation of innovative features and high performance. The company integrates the latest technologies in its assemblies where the Ram models are fitted, and tested. The technologies allow early detection of anomalies that are eliminated. As a result, this enhanced the competitiveness of the Ram truck in the global market. Sustainability The Dodge Ram brand is committed to environmental sustainability through the company’s effort to minimize the level of carbon emission. It has been able to achieve this by promoting the use of eco-friendly fuels (Ling, Hsieh & Cowing, 2005). In additional it has been engaged in the various community service efforts for instance supporting student education in tech-related fields. According to a recent research, cars are the most recycled products in United States. Scrap Ram trucks are returned to the factory and some of it parts recycled. Ethics The company is committed to upholding a high standard of ethics and quality customer services. The sale personnel are required to treat every customer equally regardless of the racial background or social status. In addition, the employees are required to represent the company’s product clearly and truthfully. The ethical guidelines are broken into advertising, financial services, and sales. References Alleman, T. L., & McCormick, R. L. (2003). Fischer-Tropsch diesel fuels-properties and exhaust emissions: A literature review (No. 2003-01-0763). SAE Technical Paper. Baker, B. C., Nolan, J. M., O’Neill, B., & Genetos, A. P. (2008). Crash compatibility between cars and light trucks: Benefits of lowering front-end energy-absorbing structure in SUVs and pickups. Accident Analysis & Prevention, 40(1), 116-125. Chen, H. F., Tanner, C. B., Durisek, N. J., & Guenther, D. A. (2004). Pole Impact Speeds Derived from Bilinear Estimations of Maximum Crush for Body-On-Frame Constructed Vehicles (No. 2004-01-1615). SAE Technical Paper. Davis, S. C., & Truett, L. (2002). Investigation of Class 2b Trucks (Vehicles of 8,500 to 10,000 lbs GVWR). Oak Ridge National Laboratory. ORNL/TM-2002.49. Durbin, T. 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