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Table of Contents1.0 INTRODUCTION................................................................................................................................4

2.0 CHINA................................................................................................................................................4

2.1 ECONOMY........................................................................................................................................42.2 TRADE OF CHINA............................................................................................................................5

3.0 CSA IDENTIFICATION OF CHINA.............................ERROR! BOOKMARK NOT DEFINED.

3.1 CHINA’S WORLD LEADING INDUSTRUES................................ERROR! BOOKMARK NOT DEFINED.3.2 AUTOMOBILE INDUSTRY OF CHINA...............................................................................................6

4.0 MAJOR FIRMS CONTRIBUTING TO CREATE CSA.................................................................7

4.1 FAW.......................................................................................ERROR! BOOKMARK NOT DEFINED.4.2 DONGFENG MOTOR CORPORATION ...............................................................................................74.3 SHANGHAI AUTOMOTIVE INDUSTRY CORPORATION.......................................................................74.4 CHANG'AN AUTOMOBILE (GROUP) CO., LTD.................................................................................74.5 CHERY AUTOMOBILE......................................................................................................................7

5.0 DONGFENG MOTOR CORPRRATION.........................................................................................8

5.1 FSA OF THE DONGFENG MOTOR CORPORATION...........................................................................9

6.0 COUNTYR OF DESTINATION.......................................................................................................9

6.1 ECONOMY .......................................................................................................................................96.2 CHINA & SOUTH KOREA RELATIONS...........................................................................................106.3 SOUTH KOREA’S AUTOMOBILE INDUSTRY....................................................................................106.4 SOUTH KOREA’S AUTOMOBILE INDUSTRY IN 2009......................................................................106.5 PROBLEMS THAT ARE FACED BY SOUTH KOREA’S AUOTMOBILE INDUSTRY...............................10

7.0 FOREIGN DIRECT INVESTMENT: SEEKERS OF OPPORTUNITY....................................11

7.1 SEEKERS OF MARKETS..................................................................................................................117.2 SEEKERS OF KNOWLEDGE............................................................................................................117.3 WHOLLY OWNED SUBSIDARY .......................................................................................................11

MARKETING PLAN....................................................................................................................12

8.0 SITUATIONAL ANALYSIS...........................................................................................................12

8.1 MARKET SUMMARY.......................................................................................................................128.2 MRAKET NEED..............................................................................................................................128.3 MARKET TREND............................................................................................................................138.4 MARKET GROWTH.........................................................................................................................138.5 PEST ANALYSIS............................................................................................................................138.6 SWOT ANALYSIS...........................................................................................................................148.7 COMPETITON.................................................................................................................................158.8 PRODUCT OFFERING.....................................................................................................................15

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9.0 MARKETING STRTEGY................................................................................................................15

9.1 MARKETING OBJECTIVES.............................................................................................................159.2 FINACIAL OBJECTIVES..................................................................................................................169.3 TARGET MARKET..........................................................................................................................169.4 POSTIONING..................................................................................................................................169.5 MARKETING MIX...........................................................................................................................16

10.0 FINANCIALS...................................................................................................................................18

10.1 SALES FORECAST..........................................................................................................................18

11.0 CONTROLS......................................................................................................................................19

11..1 CONTIGENCY PLANNING...............................................................................................................19

APPENDIX....................................................................................................................................................20

REFERENCES..............................................................................................................................................20Tables & Figures.......................................................................................................................................21

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1.0 Introduction

This report explains how to conduct or expand business in the global scenario while keeping in mind the current situation of Global financial crisis. In this report, we have recommended that China as one of the prominent country in the world and Automobile Industry is one of the CSA of the china so make it stronger; China has to expand the business internationally, in our this project we are actually proceeding with company perspective, that we chose one of the Chinese company that is contributing to make its Automobile it’s CSA that is DongFeng.

The reason behind taking DongFeng is among the top major automobile companies of the China and is major manufacturers of Commercial Vehicles and there is more demand of commercial vehicles two important reasons are financial crisis and Kyoto Protocol Issue that is deeply explained in the report.

2.0 China:

China, is the largest country in East Asia and the most populous in the world with over 1.3 billion people, approximately one-fifth of the world's population. It is a socialist republic (specifically a "people's democratic dictatorship" according to its constitution) ruled by the Communist Party of China under a single-party system, and has jurisdiction over 22 provinces, five autonomous regions (Xinjiang, Inner Mongolia, Tibet, Ningxia, and Guangxi), four municipalities (Beijing, Tianjin, Shanghai, and Chongqing), and two highly autonomous special administrative regions(Hong Kong and Macau). The PRC's capital is Beijing.

China's importance in the world today as a great power is reflected through its role as the world's third largest economy nominally (or second largest by PPP) and a permanent member of the UN Security Council as well as being a member of several other multilateral organizations including the WTO, APEC, East Asia Summit, G-20 and Shanghai Cooperation Organization. In addition, it is a recognized nuclear weapons state and has the world's largest standing army with the second largest defense budget. China has been identified as an emerging superpower by academics and other experts.

2.1 Economy:

The economy of the People's Republic of China is the third largest in the world after the U.S. and Japan with a nominal GDP of US$4.4 trillion (2008) when measured in exchange-rate terms. It is the second largest in the world after that of the United States with a GDP of $7.8 trillion (2008) when measured on a purchasing power parity (PPP) basis.

The financial crisis hit the global economy heavily and caused a recession in many countries, China also to some extent suffered as the below graph shows that china faced decline in GDP growth in the period from Jan to Jul but it was still extremely healthy compared with other major economies, it is less than the figure expected by experts.

China Gross Domestic Product (GDP) expanded 8.90% over the last 4 quarter (Graph 1).According to the World Bank The China Gross Domestic Product is worth 4326 billion dollars or 6.98% of the world

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economy. During the past 30 years China's economy has changed from a centrally planned system that was largely closed to international trade to a more market-oriented that has a rapidly growing private sector. A major component supporting China's rapid economic growth has been exports growth.

2.2 Trade of China:

As part of its continuing effort to become competitive in the global marketplace, China joined the World Trade Organization in 2001. Its major trading partners are:

United States, Hong Kong, Japan, South Korea, Germany, Netherlands, United Kingdom, Singapore, Taiwan, Russia, Malaysia, Australia and Thailand

As the Chinese economy steadily grows, its foreign trade is also booming. In 1978, China ranked 32nd on the world trade performance chart. It climbed to 15th in 1989 and further jumped from 10th in 1997 to 6th in 2001. In 2001, China's imports and exports volume was over $500 billion for the first time. In 2002, China's imports and exports continue to rise, topping $620.77 billion. In 2003, China's imports and exports volume was $851.2 billion, a 37.1% increase over 2002. In 2008, the exports volume was $1,428.5 billion, an increase of 17.2%; the imports, $1,133.1 billion, an 18.5% increase. In the first half of 2009 the total value of China’s exports was 521.7 billion USD.

Now China is listed fourth on the world trade chart. At present, China has established business links with over 220 countries and regions around the world.

3.0 CSA Identification for china:

Country Specific Advantage (CSA), while talking about from the China’s perspective almost every industry of the China is acting as the CSA but among them we tried to choose most suitable and probable one.

3.1 China’s leading Industries:

China has become a preferred destination for the relocation of global manufacturing facilities. Its strength as an export platform has contributed to incomes and employment in China. It has many leading industries account for about 48.6% of China's GDP. China ranks third, worldwide in industrial output.

Some of the major Industries of China with their market share and Competition Index are as follows:

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These all are Leading Industries of China contributing significantly in the country’s GDP. From one point of view these all are acting as the CSA of the country, but among them we Choose Automobile Industry of China as one of its CSA

3.2 Automobile Industry of China:

China's automobile industry has been in rapid development since the early 1990s.

China's annual automobile production capacity first exceeded one million in 1992. By 2000, China was producing over two million vehicles. After China's entry into the World Trade Organization (WTO) in 2001, the development of the automobile market further accelerated.

Between 2002 and 2007, China's national automobile market grew by an average 21 percent, or one million vehicles year-on-year. In 2006, China’s vehicle production capacity successively exceeded six, then seven million, and in 2007, China produced over eight million automobiles.

In 2008, 9.345 million motor vehicles were manufactured in China, surpassing United States as the second largest automobile maker, after Japan.

In recent years, China's exports of automobiles and parts also show rapid growth trend in 2001 and 2007 average annual increase of nearly 50%, exports of automotive products in 2008 reached 30.2 billion U.S.

The dramatic rise of China’s automotive industry, in terms of both consumer demand and production supply, is truly unprecedented in the history of the industrialized world. No country has risen from a nearly standing start to the size and scale that China has achieved in such a compressed time frame.

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No Industries Market Share Competition Index

1 Real Estate 17.81% 1.87

2 Automobile 9.51% 1.42

3 Household Appliance 6.71% 1.15

4 Other Industries 5.81% 1.03

5Tourism, Leisure &

Hospitality 5.65% 1.26

6 clothing 4.49% 1.04

7 Household & Decoration 4.33% 1.06

8 communication 4.08% 1.00

9 medical service 4.06% 1.04

10 Pharmaceutical 3.89% 1.05

According to the view of experts China’s Automobile Industry will going to cross U.S Industry by 2010 and will become the worlds largest auto maker, if it continues to grow at same pace.

4.0 Major Firms Contributing to Create that CSA:

The top five Chinese automotive manufacturers are:

First Automobile Works (FAW)

DongFeng Motor Corporation

Shanghai Automotive Industry Corporation

Chang'an Motors

Chery Automobile

These are the top five local companies, contributing to make Automobile Industry CSA of China.

4.1 FAW Group Corporation is a state-owned enterprise with a publicly-traded subsidiary, FAW Car Company (SZSE: 000800). A maker of light, medium, and heavy-duty trucks, automobiles, municipal and touring buses, custom bus chassis, mini-vehicles[1] and auto parts,[2] FAW became China's first automobile manufacturer when it unveiled China's first domestically-produced car, the Hong Qi, in 1958.

4.2 Dongfeng Motor Corporation is a Chinese automobile manufacturer, which ranks second among the "Big Five" Chinese automakers. It manufactures and assembles buses, trucks, cars and parts under its own name and in joint ventures with a variety of international automobile firms.

Dongfeng (which means "East Wind") was founded at the behest of Chairman Mao Zedong in 1968. As part of his "Third Front" strategy, it was located in Hubei Province, far inland, to protect it from foreign invasion. It has become the second-largest automobile manufacturer in China.

4.3 Shanghai Automotive Industry Corporation is a Chinese automobile manufacturer which ranks the third among the "Big Five" Chinese automakers.

4.4 Chang'an Automobile (Group) Co., Ltd is an automobile manufacturer in Chongqing, China. It is also known as Chana. A subsidiary,Chongqing Changan Automobile Company Limited.

4.5 Chery Automobile is an automobile manufacturer in China.It is owned by the local government of Wuhu, Anhui province but is scheduled to be privatized. It is the largest independent Chinese auto manufacturer and one of the fastest growing automakers in the world.

There are also several foreign automobile manufactures in China, they are entering in the market by forming Joint venture with local company, this is the restriction by Chinese government and it also plays an important role in making China now the second largest automaker in the world.

The following 17 foreign makers have joint venture factories, with local partners, in China

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.

Now among them all top manufacturers of China we choose DongFeng Motor Corporation as the company to export it products internationally.

5.0 DONGFENG Motor Corporation:

Founded in 1969, DongFeng Motor Corporation (hereafter referred to as DFM), formerly named Second Automobile Works Co., is one of the 3 giant auto makers in China. Its main businesses include passenger vehicles, commercial vehicles, engine, auto parts & components, and equipment. Through over 40 years of development, a set of R&D and manufacturing facilities have been established as well as an extensive distribution and after-sales network, which unfolds a business display of footed in Hubei while radiating the whole nation. The major business facilities are located in Shiyan, Xiangfan, Wuhan and Guangzhou. In addition, several branches are placed in Shanghai, Liuzhou (Guangxi), Yancheng (Guangxi), Nanchong (Sichuan), Zhengzhou (Henan), Urumchi (Xinjiang), Chaoyang (liangning), Hangzhou (Zhejiang), Kunming (Yunnan), etc.

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Toyota Isuzu

Nissa Ford

Suzuki GM

Mazda PSA

Diahtsu VW

Mitsubishi Honda

FIAT KIA

Daimler Chrysler BMW

Hyundai

As of 2007, DFM has gained an annual output of 1,137,000 vehicles, a sales income of ￥164,800,000,000, 12.94% market shares and 121,000 registered employees. The company ranks 20th in TOP 500 of domestic enterprises and 5th in TOP 500 of domestic manufacturers respectively. In 2007, the domestic market shares of medium/heavy duty commercial vehicle and medium duty bus topped 1st; light duty commercial vehicle and SUV secured 2nd and car the 3rd.

5.1 FSA OF DONGFENG:

Now talking about the FSA or in simple words competitive advantage of DongFeng. Following are the Major FSA of the DongFeng

Cost Effectiveness:

As already described earlier it is one of the largest automaker in Chain, and it is part of DongFeng group which is one of the largest machinery manufacturing group in China so because of this characteristic DongFeng motors are specialized in making auto parts and finally the vehicles and this will help to achieve their competitive advantage in Cost Effectiveness, in terms of reducing cost per unit. Because there is no need to higher any third party to help them in any of the process of Vehicle manufacturing and because of this they are able to reduce their production cost per vehicle and finally to provide at lower cost to end consumer.

So in that time of financial crisis this competitive advantage is helping them in order to gain excellent business performance and high profits return.

Innovative Designs:

Another competitive advantage of DongFeng is its innovative designs. For that purpose they are using product development software Windchill PDMLink by Windchill Foundation. This software not only help them to improve the designs but also help them in Manufacturing Process Management; Performance Analysis and in data distribution efficiency.

6.0 Destination country:

South Korea, officially the Republic of Korea (ROK) and often simply referred to as Korea, is a country in East Asia, located on the southern half of the Korean Peninsula. It is neighbored by China to the west, Japan to the east, and North Korea to the north. Its capital is Seoul, the second largest metropolitan city in the worldand a major global city. South Korea lies in a temperate climate region with a predominantly mountainous terrain. Its territory covers a total area of 100,032 square kilometers and has a population of over 48 million, making it the third most densely populated (significantly sized) country in the world.

6.1 Economy:

South Korea is a presidential republic consisting of 16 administrative divisions and is a developed country with a high standard of living. It has the fourth largest economy in Asia and the 15th largest in the world. The economy is export-driven, with production focusing on electronics, automobiles, ships, machinery, petrochemicals and robotics. South Korea is a member of the United Nations, WTO, OECD

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and G-20 major economies. It is also a founding member of APEC and the East Asia Summit, and a major non-NATO ally of the United States.

6.2 China and South Korea Relations:

Historically, Korea has had relatively close relations with China. Before the formation of South Korea, Korean independence fighters worked with Chinese soldiers during the Japanese occupation. The PRC assisted North Korea with manpower and supplies during the Korean War, and in its aftermath the diplomatic relationship between South Korea and the PRC almost completely ceased. Relations thawed gradually and South Korea and the PRC re-established formal diplomatic relations on August 24, 1992. The two countries sought to improve bilateral relations and lifted the forty-year old trade embargo, and South Korean-Chinese relations have improved steadily since 1992. The Republic of Korea broke off official relations with the Republic of China upon gaining official relations with the People's Republic of China. Today, China is South Korea's most important trading partner.

6.3 Korean Automobile Industry:

The Korean automobile industry is currently the fifth largest in the world in terms of production volume and the sixth largest in terms of export volume. While its initial operations were merely the assembling of parts imported from Japan and the United States, Korea is today among the most advanced automobile-producing countries in the world. Annual domestic output exceeded one million units in 1988. In the 1990s, the industry manufactured numerous in-house models, demonstrating not only its capabilities in terms of design, performance, and technology, but also signaling its coming of age.

6.4 South Korea auto industry in 2009

It had been forecast that in 2009 South Korea auto Industry would face tough times as sales are likely to go down this drop would be worst since 2004.

Sales of Automobile would go down by over 10 percent. It is estimated that in 2009 1.1 million cars would be sold in South Korea car market.

6.5 Problems for South Korea automobile industry

A number of problems are plaguing South Korea auto industry. Rules and regulations in credit markets of South Korea have been tightened. This has made it tough for consumers to get access to loans that are needed to buy cars. To top it, this Asian country is experiencing economic slump. These factors have brought down demand for cars and this, in turn, has affected both automobile industry of South Korea and its real economic growth prospects in an adverse way.

Some major auto makers who are important parts of auto industry of South Korea have stopped their operations on a temporary basis. They are doing this so that inventories of both car dealers and warehouses across South Korea could be sold.

In last quarter of 2008 sales went down and this led a number of South Korean car companies to sack majority of their employees. Many of these companies are also selling some of their branded products with rebates so that they can regain their production costs and sell more cars. Since new cars are not being made, consumers in South Korea have stopped buying as they assume that prices would go down later. This would enable them to buy cars at lower prices later on.

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As these are some of the problems that South Korean automobile industry is facing and these problems are actually opportunity for DongFeng to enter and capture the market as the customers are asking for the less costly vehicles and to provide the less costly vehicle is one of the FSA of the DongFeng.

Further we are actually going with Commercial vehicle category in South Korea, the reason behind this is that because of financial crisis people are not able to buy cars and one very important reason is Kyoto Protocol, an international environmental treaty with the goal of achieving “stabilization of greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system”

Because of this South Korean government is promoting the public transport instead of cars so to reduce the emission of greenhouse gases. Government is trying to revive confidence of consumers. Rates of lending have been cut down as well with an aim of increasing consumer expenditure.

Now there is Figure 2 in appendix showing the demand of commercial vehicles among the overall automobile demand.

7.0 Foreign Direct Investment: Seekers of Opportunity:

DongFeng chose the mode of entry the FDI in South Korea and in this further as the seekers of Opportunity. Opportunities are Markets and Knowledge.

7.1 Seekers of Markets:

As there is continuous increase in the demand of low price and low emission commercial vehicles as the above chart is also showing it so that’s why we are entering too capture the market.

7.2 Seekers of Knowledge:

As it is already mentioned South Korean Industry is one of the most advances automobile Industry of the world using the most advance technology, although the China is one of the top manufactures of automobile vehicles and DongFeng is the second major manufacturer but still there is very important opportunity for DongFeng to go there and get the knowledge of most advance technology and that adopt the new technology to make there products more competitive in the world.

7.3 Wholly Owned Subsidiary:

Secondly we are following control focus strategy as it is mature market so the form of FDI we chooses is wholly owned subsidiary of DongFeng that is DongFeng Motors Korea (DFMK), that is actually assembling plant of DongFeng that will going to handle the exported parts of DongFeng and then assemble them into Vehicle.

As from markets point of view there is potential of growing market and demand is there for Commercial vehicles in the South Korean market as the above statistics shows that currently there is 24% demand of CV in South Korea and demand is still growing.

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Marketing Plan

8.0 Situation Analysis

DongFeng Motors Korea (DFMK) is a wholly owned subsidiary of DongFeng Motor Corporation, China and is the second largest and the fastest growing car manufacturer in China. DFMK is the newly established subsidiary of DFMC. DongFeng Motor Group’ has signed an agreement with DongFeng Motor Korea (DFMK) to export automobiles in South Korea. DFMK will mainly sell four models in the market – a commercial minivan, a one-ton truck, a six and a twelve passenger van from April 2010.

With increase awareness in consumers about potential hazards, automobile industries are in constant competition with each other to produce a better vehicle for the right consumer. It is estimated that the DongFeng industry will continue to prosper to increasing trends as national economies and population increases. Mobility 2030, of the World Business Council for Sustainable Development, reported that per capita mobility of china, Latin America, Russia and rest of Europe would double by 2030 to 5000-14000 km per year. This will contribute to the automotive industry a big deal.

Now before proceeding further it is important to mention an other thing that is as discussed earlier we have established wholly owned subsidiary but in mean time among the top 5 automobile manufacturers of South Korea, SsangYong Motor Company had been bankrupt in this running month so DongFeng as the new entrant in the market decided that to takeover it make it position strengthen as it contains 2.7% of the total market share in the South Korean Market. So this marketing plan and its strategies are designed keeping this situation in view especially sales forecast.

8.1 Market Summary:

Currently there is demand of 24% commercial vehicles in overall vehicle demand in South Korea and there is potential of growth too. The Figure 3 in appendix is showing the demand of different types of commercial vehicles in South Korea.

8.2 Market Need:

Now considering the entire current situation like financial crisis and Kyoto Protocol, there is demand of commercial vehicles as governments are promoting the public transport and low emission producing vehicles.

So currently there is demand of economical, fuel efficient and low emission vehicles that and meet the current need of customer.

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8.3 Market Trend:

As we are providing with the commercial vehicles of DongFeng in South Korean so it very important to analyze the market trend of commercial vehicles in South Korean market.

There is increasing market trend in purchasing commercial vehicles one of the major factor contributing in the increase of this market trend is government policies, as south Korean government is promoting the public transport in order to reduce the carbon emission and thirdly countries economy depends upon the exports that’s why for that purpose also more export agencies and private enterprise are emerging.

8.4 Market Growth:

As it is already known that there is market trend towards buying commercial vehicles. But to analyze the market growth it is necessary to know about the potential demand in this sector there is the (Figure 4) showing the market growth in this sector.

8.5 PEST ANALYSIS:

We have used the acronym PEST to describe a framework for the analysis of macro- environmental factors.

Political Factors:

The South Korean Government is aiming at placing its automotive manufacturing industry among the world's top four by 2010. For this, the government has been creating a favorable environment by forming automotive parts clusters and announcing tax holidays for companies operating in these zones. It has also been promoting more environment-friendly vehicles to implement its climate change policy successfully.

Economical Factors:

In the time of that financial crisis the South Korean government, to support it automobile Industry provided them with low-rate interest loans and tax subsidies.

Social Factors:

Lifestyle and preferences of people that impact their choice of types of automobiles. Social norms that impact the decision to own and use automobiles versus other means of

transport.

In the case of South Korean market these are factors are in favor of commercial vehicles.

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Technological Factors:

Capital investment in R&D tends to concentrate heavily on the improvement of hard technology, including emission control, design simulations, fuel efficiency, and the development of alternative fuels, while R&D spending for the improvement of management and production techniques tends to remain relatively low. Recently, automakers founded the Korean Automotive Manufactures Association in order to support R&D of soft technology, including labor-management relations

8.6 SWOT analysis:

Strengths

Following are some of the major strengths of company

Variety of Automobiles being produced. Low cost of production.

Financially DongFeng is a strong company.

High Quality products and Unique Designs

DongFeng Motor owners experience fewer problems with their vehicles giving them the quality advantage

Weaknesses:

Lack of an extensive distributor network New in the South Korean market

Need for stronger brand management.

Opportunities:

Following are some of the opportunities which DongFeng motor corporation can avail in future to increase its market share:

Better management of available resources Innovative marketing that will lead to attract customers.

Increased awareness of people.

Improved economic condition of people because of government aid

Increased media influence on people.

Increased market demand.

Threats:

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Well established competitors

8.7 Competition:

There are five major players in the South Korean Automobile Industry, but among them there of them are that much potential that they are going to be competitors of DongFeng

Hyundai KIA Motors GM Daewoo

Hyundai Motors:

Hyundai Motor Company is the world’s fourth largest automaker in terms of units sold, it is south Korean local company and having the market share of 50.2% in south Korean market.

KIA Motors:

Kia Motors is South Korea's second largest automobile manufacturer and having market share of 32.0% South Korean market.

GM Daewoo:

GM Daewoo (GM Daewoo Auto and Technology Company or GM DAT) is South-Korean automobile manufacturer, member and part of the General Motors Company.

GM Daewoo roots go back to the former Daewoo Group which went bankrupt in 1999. It has five manufacturing facilities in Korea and having market share of 8.0%.

8.8 Product Offerings:

Initially we are introducing three models of Commercial vehicles. These are :

KINGRUN 4*2 Truck FENGSHAG commercial van

K07 minivan

9.0 Marketing Strategy:

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9.1 Marketing Objectives:

First year Objectives: We are aiming for 5% market share of the south Korean commercial vehicle market through unit sale volume of 6000.Second year Objectives: We are aiming for 10% market share. An important objective will be to establish a well-regarded brand name linked to a meaningful positioning. We will have to invest heavily in marketing to create a memorable and distinctive brand

image projecting innovation, quality and value. We also must measure awareness and response so we can adjust our marketing efforts if necessary.

9.2 Financial Objectives:

A double digit growth rate for each future year. Reduce the variable operating costs.

9.3 Target Markets:

As commercial vehicles are comparatively expensive then passenger vehicle so our target market is Entrepreneurs, private enterprises with small operations, export agencies and transporters as all of them like to invest in vehicles with high technical quality and lower prices.

9.4 Positioning:

We are positioning our commercial vehicles as Environment friendly, low emission, fuel-efficient and economical vehicles.

9.5 Marketing Mix

Product

We are currently offering three models of the Commercial vehicles that are:

KINGRUN 4*2 Truck

FENGSHAG commercial van

K07 minivan

KINGRUN 4*2 Truck:

That product is bearing following features:

Economically pleasing design

All major components used in trucks are latest technology engine, transmission, suspension, electronic control

Durable and efficient fuel consumption

Low Emission Engine

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FENGSHAG commercial van (EQ5040XXY3G:)

Following are the main features of that product:

Energy saving

Environment protection

Innovative Design

Economical

Post Seats 6-12

K07 minivan:

That product is bearing following features:

Economical

Practical

Fuel Efficient

Post Seats 4-8

Price:

While setting the price of the product after careful analysis we decided to choose Market Penetration strategy, that we are going to set prices of our product 30% less then the products of south Korean brands and its not difficult for us to provide the customer at this price as Cost Effectiveness is one of our FSA.

Promotion:

For promotion of our product we are using following mediums:

Television advertisements

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Advertisements to promote and market our product will be shown on leading television channels. On Major television channels we will promote are: MBN (Business and Economy Television), Woori (Commercial sales television channel), GTB and KTV.

Print Ads

Daily advertisements in leading newspapers and magazines will be used to promote the product. Leaflets at the initial stage will be distributed at railway stations, malls and various other locations.

Banners, neon signs

Hoardings, banners, neon signs will be displayed at road side to promote our brand car.

Booklets and pamphlets

Booklets will be kept at car showrooms, retail battery outlets, etc for the customer to read. These booklets will provide information about our company; the products offered which suits the customers

need accordingly.

Place:

Now for the distribution of our product we are using the model in which there are four key players:

• The Stockiest will represent 3 to 4 districts in a State.

• The Dealer will represent a district or main City.

• The Sub-Dealer shall represent a particular area or taluka.

• The booking agents will be individuals working on freelance basis.

10.0 Financials:

In that part we have discussed about the financial part of the marketing plan and we just focused on sales forecast.

10.1 Sales Forecast:

Before proceeding with sales forecast it is important to have overlooked over the domestic sales of South Korean companies over the previous years, there is table showing the continuous decline in the sales of previous years but last year the sales drop was less then the expected. As it had been forecasted that sales will going to decline by 10% but in real scenario the drop was just 4% so this is

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showing some signs of recovery and secondly the south Korean economy also grew by 2.3% quarter on quarter.

Secondly as it is previously discussed that DongFeng Motor Corporation is going there to overtake the Ssangyong motors so their share is 2.7% and forecasted growth in the coming years of 2010,2011 and 2012 is 3%,3% and 5% respectively so by keeping these assumptions in mind the forecasted sale is as follows

11.0 Controls:

The purpose of DongFeng’s marketing plan is to serve as a guide for the organization.

The following areas will be monitored to gauge performance:

Revenue: monthly and annual. Expenses: monthly and annual.

Customer satisfaction.

11.1 Contingency Planning

Difficulties and risks:

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2006 531,547

2007 486,762

2008 445,111

2009 427,307

2010 12,764 units

2011 13,147 units

2012 13,804 units

Problems generating visibility. Lower than forecasted demand.

The entry of another competitor that recognizes the market potential.

Worst case risks may include:

Determining that the business cannot support itself on an ongoing basis. Having to liquidate equipment to cover liabilities

Appendix

References

1. www.economywatch.com

2. www.wikipedia.com 3. www3.interscience.wiley.com4. www.researchandmarkets.com 5. www.reportlinker.com 6. www.just-auto.com 7. www.dfmc.com.cn 8. World Economic Forum9. CIA Fact Book

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Tables & Figures

Graph 1:

Figure 2:

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Figure 3:

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Figure 4:

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Figure 5:

Figure 6:

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STOCKIST

DEALERSDEALERS

SUB DEALERSSUB DEALERS

BOOKING AGENTSBOOKING AGENTS