DACIA LODGY IN DENMARK

Alexandra Mareci

Kristine Amolina

Linda Azul

Maybe Biswas

Viborg, Denmark, 2014

Project Supervisor:

Number of Keystrokes:

1 Executive SummaryThe purpose of this project was to analyze the measures by

which Dacia’s family car Lodgy can better penetrate the Danish

car market in order to anhance its brand name. In order to

answer problem statement a diversity of elements was taken into

account. Project was started from the theory examination. What

are the choice criteria, consumer behavior, emerging markets,

international marketing and market positioning? A research was

made and also an interview to ascertain ‘who are the main

competitors for Dacia Lodgy’? The information obtained was used

to compare Dacia family car Lodgy to its competitors through

competitor analysis. Competitor analysis was done through an

interview and research. It was done in order to understand

strengths and weaknesses of competitors and competitive

advantage of Dacia. A SWOT matrix for Dacia Lodgy was also made

and the answers and information obtained were analyzed and

explained. To answer the problem statement question has been

examined branding strategy and branding equity. The research

and analysis were done in order to understand which are

strengthens for Dacia Lodgy, how it can penetrate in Danish

automotive market and how it can gain valuable brand equity in

Danish automotive market.

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2 IntroductionDacia is a Romanian car manufacturing company with almost 50

years of history. Shortly after the launch, Dacia began

cooperating with French car manufacturer Renault from whom they

bought the tools and the license to build the first cars. The

Romanian car manufacturer Dacia was first described as a

hazardous bet, but at present it has become Renault’s cash cow.

Since 1995 when Dacia first released one of its car models in

Europe, there has been a significant growth in sales and

popularity throughout the world. At present, Dacia is marketed

in mostly all Eastern and Western European countries as well as

Northern Africa and the Middle East, but until 2013 Dacia was

not present on the Danish automotive market.1.The problem is

that there is only one model (from 7 available) available for

sale in Denmark: the family car model called Lodgy and another

model announced to be launched in May 2014.2

The purpose of this project is to identify the means by which

Dacia’s family cars can better penetrate the Danish car market

in order to strengthen their brand name. The idea is to

determine what brand strategy is required and most suitable in

order to create substantial value for the customers and

therefore gain the Danish market’s entrustment.

3 Problem Statement

1 http://webbut.unitbv.ro (Article2)2 www.dacia.dk (Link1)

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How could Dacia Lodgy gain valuable brand equity in the Danish

automotive market?

4 Delimitations

In the project will not included customer review. Dacia cars

Lodgy are quite new in the Danish automotive market and were

decided to make an interview with direct representatives –

Dacia cars dealers. It will probably give us better

understanding of the competitors and direct position of Dacia

in Danish automotive market. The group has decided not to

include financial data according Dacia sales in Denmark. As our

project was focused on Dacia’s brand equity, financial data is

not relevant for the project.

Porter five forces analysis will not be included by the reason

that its focus is on industry analysis and business strategy

development. Project’s main goal was to focus on brand equity,

competitors in order to understand how Dacia family cars can

better penetrate the Danish car market. Dacia Lodgy’s external

environment will only be described by doing a competitive

analysis

5 Methodology

5.1 Project structure

In order to provide the reader with an outline of this project,

we will first display the structure that will consequently lead

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to answering the problem statement. Firstly, the project starts

with an executive summary, followed by the introduction, the

problem statement and the methodology, secondly, the project

will continue with the presentation of theory, the analysis

which will consist of eight sections ( About the company,

Dacia’s objectives, Dacia Lodgy SWOT, Dacia Lodgy’s

Competitors, Dacia Lodgy Strategy Description, Dacia Lodgy

Strategy Implementation, Dacia Lodgy Brand Equity and Branding

Strategy and Discussions and Evaluations), followed by the

conclusion, bibliography and of course appendices.

5.2 Presentation of method

The research will be based on gathering information in order to

answer the problem statement. In this project there will be

used information from the study materials in order to

understand the customers’ choice criteria regarding buying

family cars. In order to achieve the goal of this project, both

interna land external analyses will be made starting with

generic details about the company and heading to details about

the industry. In order to better understand what is Dacia

Lodgy’s current position in the Danish market and how can it

become more popular we will analyze the strategic objectives

and the branding strategy as well as we will explain what brand

equity is and how can Dacia Lodgy strengthen it. We will

analyze Dacia Lodgy in terms of Porter’s generic strategies and

will position it in one of Miles and Snow’s archetypes in order

to understand what is Dacia’s place on the Danish market and

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what are their core strategies. A competitive analysis will be

made in order to better understand competitor strategy and the

competitive area. Dacia’s strengthens, weaknesses, threats and

opportunities will also be analyzed. Moreover, the project will

also contain field research in order to better illustrate the

problem and its solutions. Field research will include

interviewing two or three car dealers that sell Dacia in

Denmark: Renault Viborg Dahl Pedersen A/S and another car

dealer in Aarhus in order to indirectly find out what are

customers buying in terms of family cars.

6 Presentation of theory

SWOT Matrix :The SWOT matrix is a type of analysis used to

evaluate the strategic position of a company while identifying

its strengths, weaknesses, opportunities and threats. This

approach is based on synthesizing the results obtained from the

marketing audit. While doing a SWOT matrix, the company’s

internal strengths and weaknesses are summarized in accordance

to what external threats and opportunities might occur.3

Market Penetration :This strategy implies attempting to

increase the penetration of an existing product in an existing

market, in order to increase the customers’brand loyalty. In

terms of tacticts for penetrating a market, there are two that

need to be mentioned: making existing customers use the brand

3 Jobber and Ellis-Chadwick,2013:505

more often or convincing them to use a larger quantity of

products.4

Competitor Analysis : This type of analysis is related to how

does the structure of an industry affect long-run

profitability, reason why there is constant need of monitoring

and understanding competitors.5

International marketing: Is the performance of business

activities that direct the goods of flow and services to

consumers and users in more than one nation. 6 Competing

internationally is challenge for companies. Entering

international market imposes obligation to know customs,

language, tariff regulations, transport systems and trading in

foreign currencies.7

Political and legal environment: Each country has its own

rules. Political and legal environment can influence marketing

decisions by setting the rules by which business is conducted.8 In Denmark where there are high taxes for car owners. The

180% on top of a basic car price, sales and registration:

106,960 DKK, ownership tax: 44,562 DKK, insurance tax: 8412

DKK, fuel tax. Fuel tax carries a certain environmental

4 Ibid:525 Jobber and Ellis-Chadwick,op.cit: 7126 Paul and Kapoor 2008: 37 Jobber and Ellis-Chadwick 2013: 7748 Ibid : 79

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aspect.9 The firm doing business internationally must follow

the rules, regulations, trade laws, taxation laws. 10

Cultural environment: Culture includes traditions, taboos,

values and attitudes of society. Differences in the

traditions, values of society can lead to situations where

communication with customers can be misunderstood. Successful

marketing depends on knowing the cultural differences.11

Adaption to differences will avoid waste of time and cost.

Cultural sensitivity is paramount to effective marketing in

Denmark. The complexity of a nation its beliefs can make or

break business. Never expect marketing strategy will be

transplantable to a foreign country. Danes are usually modest

about their accomplishments. They believe people should act in

a certain way, expecting attentive behavior from everyone.12

Competitive environment: Companies must not only monitor and

seek to understand customers but also research competitors and

their brands to understand their strengthens, weaknesses and

strategies.13 Romanian manufactory Dacia is gaining

competitive advantage in Danish market. They entered market

only one year ago with two family cars models. For example,

Dacia Sandero causes worries to competitors. With a price of

60.999 kr. it is the 14,000 kr. cheaper than the nearest

9 http://www.copenhagenize.com (Link2)10 Paul and Kapoor 2008: 511 Jobber and Ellis-Chadwick 2013: 9412 http://www.startupoverseas.co.uk (Link3)13 Jobber and Ellis-Chadwick, 2013: 98

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competitor.14 When competition starts to have an impact of its

profits in domestic market it may mean getting better product

prices from export market.15

Brand Equity: This is creating the right brand knowledge with the right consumer and value endowed to product and services and reflected in how customers think, feel, and act with respect to the brand as well as the prices, market share and profitability.16 There are four consumer perception dimensions to score the brand equity:

1. Differentiation- what makes the brand stand out2. Relevance- how consumers feel it meets their needs3. Knowledge- how consumers know about the brand4. Esteem- how highly consumer regard and respect17

Consumer behavior: This method is used by costumers in decisionmaking to understand the value of buying, to engage particularproduct and service offerings, to examine the key areas whichare important in understanding consumer behavior and itsimplication for marketing: the dimensions, the processes, andthe influences.

7 Analysis

The following chapter will deal with analyzing Dacia both

internally and externally. To begin with some general

information about the company will be provided, secondly

Dacia’s objectives will be defined and the next point will

consist of the SWOT matrix of the company. Another important

14 http://www.mynewsdesk.com (Link4)15 Paul & Kapoor 2008: 1116 www.slideshare.com (Link30)17 http://uwmktg301.blogspot.dk (Link31)

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point of this chapter will be the one about the company’s

strategy description and branding strategy implementation while

finally the chapter will fiind its conclusion with the

discussions and evaluations.

7.1 About the Company

Dacia is a Romanian car brand almost fully owned by the French

group Renault, which exclusively makes budget-priced vehicles.

Dacia was ``born`` in Romania, but throughout the years it had

become part of the Renault group which now owns 99,3% of the

company. Nowadays, Dacia has assembly lines all around the

world and its popularity is increasingly high mostly because of

the low prices, the clear specifications and solid family car

practicality, elements which have become the slogan of the

Dacia brand.18

Romanian car brand Dacia has faced a spectacular growth in

Europe smashing competition as new car registration statistics

show. In 2013, the registration of new Dacia cars in Europe

rose up to 20% by September compared to the exact same period

in the year before (from 175 234 to 211 419 new cars

registered). Only in September 2013, 21 489 new cars were

registered as opposed to only 15 268 in September 2012. Both

increases were significantly bigger than any competing

manufacturer.19

Dacia in Denmark

18 http://www.which.co.uk (Link5)19 http://daciacars.com (Link6)

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Dacia entered the Danish automotive market in 2013 with the

family car called Lodgy, completing the expansion in the

Western European markets. At present there are two models

available in car shops : Dacia Lodgy, the subject of this

project and Dacia Sandero. According to the company’s official

website, a new model called Logan MCV will be officially

released inn February this year.20

7.2 Dacia’s Objectives

Marketing objectives are closely related to the results of the

SWOT matrix and they are directly linked to the company’s

business mission and corporate objectives. In terms of

objectives, Dacia’s strategic thrust is market penetration

through existing products in existing markets.21 Another

important aspect to take into consideration is setting the

company’s strategic objectives.22 Among Dacia’s strategic

objectives, the most important are:

1. Perpetual investment in terms of diversification and

renewal

2. The best price-quality ratio against the competitors

3. Become market leader in terms of price

4. Produce robust, reliable cars at Renault high quality

5. Design environmental friendly cars using recycled

materials20 www.dacia.dk (Link1)21 Jobber and Ellis-Chadwick, 2013: 5222 www.prezi.com (Link7)

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6. Increase sales by gaining brand sustainability

7. Differentiation through reliability, quality and after-

sale service23

Basically, the future of Dacia’s business and products is

defined by its strategic thrust and strategic objectives, two

of the most important being building sales/market share and

gaining brand equity. After clearly setting the objectives, the

next step will involve finding a way to achieve these

objectives and to find the answer to a crucial question: ``how

do we get there?``24

7.3 Dacia Lodgy SWOT

Dacia, as the pillar of expansion of the Renault Group has the

mission to produce modern cars shaped for new markets in order

to meet the customers’ resources, expectations and of course

needs. The solid association with Renault Group is highly

beneficial for Dacia as it is relying on the facilities and

expertise of the parent company.25 Among Dacia’s strengths, the

most important are:

1. existing distribution and sales network

2. high growth rate

3. low costs cars

4. being under the name of Renault

5. ability to produce a large number of cars per year

23 ibid24 Jobber and Ellis-Chadwick, 2013: 44-4525 Funaru, 2011: 31-32 (Article 2)

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6. own distribution system26

In terms of weaknesses, two of the strongest are brand equity

and high prices for options.

Directly correlated with the strengths, there are the

opportunities:

1. growing demand

2. global markets

3. growth rate and profitability

4. due to the economic crisis, customers are looking for

reasonable priced cars

In terms of threats, there are a few that need mentioning:

1. new competition

2. external business risks

3. financial capacity

4. the emerging sales of used cars27

7.5 Dacia’s Competitors

In order to understand how Dacia can gain brand equity in

Denmark, an overall analysis of the external environment is

required. In Denmark, the external environment in the

automotive industry can be described as stable as the changes

are few and predictable as well as requirements and trends are

changing slowly, product lifetimes and production time is long

enough that is quite facile to predict what the company will 26 www.prezi.com (Link8)27 ibid

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produce in the following year. Therefore the most important

things to look at would be the competitors, the market and the

market trends. 28

After desk and on field research being done, Dacia Lodgy’s main

competitors in Denmark have been identified: Ford C-Max, the

new Opel Insignia, Skoda Fabia Combi and Citroen C3 Picasso.

Basically there are 2 low priced cars, very similar to the

price that Dacia Lodgy29 is sold and two more expensive models.

7.5.1 Competitor Analysis

Ford C-Max

Strengthens – It has really good technical details and very

roomy car as well as it is really safe. 30 Ford motor company –

worldwide know, have brand loyal customers. Superior fuel

economy, useful cargo space. 31 32

Weaknesses – high prices in Denmark comparing to Dacia cars.

(Ford C-Max, price from 232.990 kr.)33

28 Dinitzen and Jensen, 2010: 26-2729 www.dacia.dk (Link1)30 http://www.mumsnet.com (Link10)31 http://corporate.ford.com (Link11)32 http://www.autonet.ca (Link12)33 http://www.ford.dk (Link13)

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Ford Motor Company was built on prime products and that still

exists today. Ford believes that a major factor in their

success is their role as a positive contributor to the

community. Ford is focusing on building relationships with

their customers. They are transforming themselves into a

consumer focused team. The company is learning to view their

business from a customer’s perspective. 34

Ford’s business strategy is personalized in their ONE Ford

plan. ONE Ford widens on their Company’s four-point business

plan for achieving success globally. Business plan consists of

the following:

Aggressively restructure to operate profitably at the

current demand and changing model mix.

Stimulate development of new products their customers want

and value.

Finance their plan and improve their balance sheet.

Work together effectively as one team. 35

The main competitors: Toyota, Honda, Nissan. They have grown in

market share largely as a result of their ability to deliver

better products at lower prices. Especially for more fuel

efficient smaller vehicles. Lower labor costs and greater

efficiency helped companies to be able to turn a profit with

smaller vehicles.36

34 http://www.studymode.com (Link14)35 http://corporate.ford.com (Link15)36 http://wpsenna.wordpress.com (Link16)

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Ford C-max is sold in Denmark at a starting price of 232 999

dkk37

Opel Vauxhall Insignia

Strengths - serviceable, comfortable, efficient and sensible.

Well-known brand, have brand loyal customers. 38 Even though

Opel is owned by General Motors, it has preserved its German

essence (unlike Dacia who is losing its name to Renault, the

parent company). Opel can produce over 1 million of cars per

year, and also they have really strong advertising.

Weaknesses –Expensive. (Prices from 299.900 kr.)39 Due to

strong competition, market share is really limited40

Opel’s focus is on innovation and technology development.

Developed design for Opel communication measures makes use of

the once compelling visual strengths of the Opel brand and

combines them with visibility, high recognition value and new

self-confidence.41

Among Opel’s strategies, probably the most important to mention

are those regarding enhancing their ``global footprint`` by

cost efficiently developing the best cars. Also, Opel is

considering the possibility of creating more effective

37 www.ford.dk (Link13)38 http://www.autocar.co.uk (Link17)39 http://www.opel.dk (Link18)40 www.mbaskool.com (Link19)41 http://www.s-f.com (Link20)

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environment friendly facilities. Generating a really strong

brand strategy is on the top of the list in order to

significantly increase revenues as well as focusing on offering

customers greater residual value at appropriate pricing and

with lower incentives.42

Opel wants to make its cars more affordable and improve the

value proposal of its vehicles. The company will adopt a policy

of making its cars more affordable. 43

Opel Insignia is sold in Denmark at a starting price of 316900

dkk44

Citroen C3 Picasso

Dacia Lodgy’s competitor in Denmark, Citroen C3 Picasso is part

of the PSA Peugeot Citroen Group and it is a very present name

in the automotive market all around the world. Citroen’s main

strengths are: the ability to innovate constantly, the fact

that it is repeatedly prooving reliable performance and the

notoriety of winning several awards such as European Car of the

Year or USA Car of the Year. In terms of weaknesses, Citroen

faces difficulties with the declining market share and the

absence from emerging markets.45

In terms of objectives, Citroen has defines three main goals.

The first describes becoming a global group, the second

objective is ensuring responsible development while the third42 www.gm.com (Link21)43 http://www.s-f.com (Link22)44 www.opel.dk (Link18)45 www.mbaskool.com (Link119)

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objective is directly related to remaining one step ahead while

moving their model ranges upmarket. Citroen’s strategies are

very well outlined as well. Three of the most important being

the nee to set the industry benchmark in operating efficiency,

aiming competitive prices and boosting the brand’s sales

outside Europe.46

Citroen C3 Picasso is sold in Denmark for the starting price of

169 990 DKK47

Skoda Fabia Combi

Some of Skoda’s strengths include the fact that they produce

enjoyable cars, the fact that their branding strategy mixes

product quality with customer satisfaction and the fact that

the brand has received several awards like The 2008 Auto Express

Driver Power ‘Best Car’ . When it comes to weaknesses, Skoda

only has 1.7% market share which makes them not such important

players in the auto industry. Also, one of Skoda’s weakness is

the lack of strong appeal as well as the persistence of the

beliefs that Skoda cars are poor quality vehicles. Probably one

of the most important weakness that directly affects the

customers is represented by the high maintenance costs48.

Skoda’s strategic objectives are providing quality sales and

46 http://europe.autonews.com (Link23)47 www.citroen.dk (Link24)48 www.marketing91.com (Link25)

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services,keeping up with the technology, creating customer

satisfaction and penetrating new developing markets.49

Skoda is sold in Denmark with a starting price of 125000 dkk50

7.6 Dacia- Strategy description

Setting the company’s core marketing strategies is also utterly

important in order to establish the way that the objectives

will be attained. When setting the core market strategies,

there are some aspects that need to be dealt with: competitor

targets, target markets and gaining sustainable competitive

advantage, essential elements that are inevitably intertwined

in order to establish competitive positioning.51 Since at

present Dacia only has one model officially released in Denmark

– the family car Lodgy –52 the obvious conclusion would be that

its target consists of families with children and young

couples. In order for Dacia’s family cars to gain valuable

brand equity it is very important to establish a strong

competitive advantage.53

Moreover, testing the core strategies is highly important in

order to establish whether Dacia has internal consistency,

whether they have the ability to create competitive advantage,

whether they are derived to achieve product market objectives

49 www.studymode.com (Link26)50 www.skoda.dk (Link27)51 Dinitzen and Jensen, 2010: 2552 www.dacia.dk (Link1)53 Jobber and Ellis-Chadwick, 2013: 55

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and if these strategies are supportable in terms of resources

and managerial issues.54

By holding to the strategies, Dacia could be able to create a

productive marketing planning in order to gain sustainable

brand equity. Dacia’s strategy for penetrating the Danish

market involves:

1. Innovation

2. Efficiency

3. Cost Leadership

4. Sustainable Development55

Dacia Lodgy’s pricing strategy is intended to keep Dacia’s

models as low as possible. Several technical elements have been

added over the past 2 years without modifying the price of the

cars.

7.7 Dacia Strategy Implementation

The first step for optimizing the organization in order to

gain brand equity would be understanding the external

environment that influences the organization.

Purpose of the analysis is to look ahead, but it also

represents a snapshot of the situation right now.

The decisions in the company must be dealt with at three

levels: a strategic level that deals with vision, mission,

values and policies, a tactical level that works with

planning resources, budgets and making marketing decisions

and an operational level that deals with specific plans: 54 www.fronter.com (Link28)55 Funaru,2011: 34 (Article 2)

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Continuous technical modernization training and

development, low costs and recycling.56

7.8 Dacia Lodgy’s Brand equity and branding strategy

The Dacia brand evolution has occurred at an increasingly high

pace. The market shares are increasing in all Western Europe,

making Dacia the most dynamic car brand in Europe at present.

This performance is explained by pertinent models, which

benefits from an unbeatable report of interior

space/benefits/price.57

Dacia’s environmental strategy can also be a good starting

point for increasing the brand equity. The company’s

environmental strategy meets the principles of sustainable

development of Renault, it aims to maintain ecological balance

while regarding the lifetime of the vehicle.58

Branding is the process of which companies distinguish their

product offerings from competition. The reasons for branding:

it makes it easy to identify goods and services, to aid

shoppers to move quickly to a discount or making purchase

decision.Dacia has capable of satisfying customers need in

Denmark and globally. Dacia motivates buyer and solidify

customer loyalty.59 The brand Dacia is created by augmenting

core product with distinctive values that distinguish it from

the competitions, to understand more about the difference 56 Funaru,2011: 34 (Article2)57 Ibid:3558 ibid59 Jobber and Ellis-Chadwick, 2013: 310-319

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between features and benefits. In order to build successful

brands a combination of seven factors can be important:

Quality- Dacia produced product to ensure consumer and

company to achieve greater market share and higher

profitability than their inferior rivals and quality

management techniques being employed to raise quality

standard.

Positioning-Dacia involves a careful choice of target

market and establishing a clear differential advantage in

the minds of those people and this can be achieved through

brand names and image, service, design, guarantees,

packaging and delivery.

Long-term Perspective- Dacia Management constantly

evaluates brand investment to ensure they establish and

maintain the desired position of Lodgy in the marketplace.

Dacia should prepare to suffer losses when marketing

brands entirely in the new market.60

Why are strong brands important?

Company benefit because strong brands add value to a

company, positively affect consumer perception of brand,

act as a barrier to competition, improve profits and

provide a brand extension.

Consumer gain because strong brand act as a form Quality

Certification and create trust.61

60 ibid61 Jobber and Ellis-Chadwick, 2013: 310-319

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Concerning nowadays’ marketplace which is entirely focused on

strengthening brand loyalty, Dacia must be aware of and must

understand the marketplace’s perception of its brand62, most of

which are created over time due to a wide range of factors:

advertising, reviews by reputable sources, previous experience

with the brand (if applicable) and even entourage

recommendations. Since Dacia is still a novice in Denmark,

building on brand awareness should be a key focus of the

company. This can be done by thorough field research

interrogating people’s knowledge about the brand. 63

Alongside with brand awareness, brand loyalty is a very

important factor in gaining brand equity. There is a wide range

of factors that can lead to brand loyalty including

experiences, beliefs or attitudes, but basically, the most

important one is trust. Showing appreciation to the customers,

as well as establishing good communication, all together with

being accessible and offering rewards to already loyal

customers could be good strategies for Dacia Lodgy to gain

brand loyalty by building up customer relationships.64

Dacia Lodgy can gain brand equity by making itself memorable by

high caliber reliability and quality as well as maintaining a

cost focused strategy. Brand equity can also be boosted by

strong marketing campaigns.65

62 The sum of all experiences related to the product63 www.sms.uni.edu ( Article3)64 ibid65 http://gatbykitty.blogspot.dk (Link29)

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7.9 Discussion and evaluation

Organizations can be affected by many factors including

customer demand, technological development and competition. The

structuring and design of an organization needs to become a

balance between efficiency and adaptability in order to gain

brand equity. In terms of customer demand, Dacia should be

aware of the fact that customers would rather prefer customized

products at low prices. In terms of technological development,

Dacia could take into consideration to quickly incorporate new

technology and in terms of competition, as discussed in the

previous sections, Dacia would have to take into consideration

that competition requires that the company is efficient and in

control of its economy so that it can offer better products at

lower prices.66

Porter defines two factors that contribute to gaining

competitive advantage: low cost and unique products in direct

correlation with the size of the audience. While Dacia Lodgy

has a narrow audience (mostly young couples with children who

desire low cost spacious cars) and is clearly focused on low

costs, it can be said that Dacia Lodgy’s generic strategy is

focused cost-leader, meaning that its focus is gaining

competitive advantage within a group by a cost-leader

strategy.67

66 Dinitzen and Jensen,2010: 2267 Dinitzen and Jensen,2010: 184

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Alongside with Porter68’s generic strategies, Miles and Snow69’s

archetypes are also interesting to discuss in Dacia Logy’s

case. The two theorists have described 4 archetypes in order to

analyze strategies: The prospector, the defender, the analyzer

and the reactor. Dacia has the role of the defender, meaning

that it has a narrow market, its strategies have an emphasis on

stability, their internal focus is on cost-efficiency and the

price is the most important marketing factor.70

According to Fishbein and Ajzen71’s model, cars represent high

involvement purchases involving a set of beliefs and attitudes

towards the product basically leading to complex choice

criteria. Customers can choose between a wide range of factors:

reliability, durability, performance, style comfort and of

course between economic factors such as price, running costs or

value of money. Cruceriu Automobile markets are quite dinamic

and they are suffering changes frequently, changes manifested

in territorial levels of number of cars sold and also in terms

of preference for one model or another.72

8 ConclusionThe purpose of this project was analyzing the Romanian car

manufacturer Dacia both internally and externally in order to

identify what measeures could be applied in order for Dacia

Lodgy to gain sustainable brand equity in Denmark. Last year

68 Michael Porter, theorist69 Raymond Miles and Charles Snow, theorists70 Ibid: 18671 Icek Ajzen and Martin Fishbein, theorists72 Jobber and Ellis-Chadwick, 2013: 124

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Dacia Company has entered Danish automotive market. Now it has

approximately 10% of sales of all sold family cars per last

year. 73 Dacia Lodgy is gaining competitive advantage in family

cars market. Efficiency and low cost policy gives it

potentially strong position in the Danish market.

Dacia performs benefits from its membership to the Renault

group. Competence and organization of the parent company at the

industrial and commercial level gains advantage to the Dacia

cars as a brand. Renault group as the parent company procures

Dacia being well-known, that will lead to brand loyalty and

awareness of a brand name. Basically, the customers are always

perceived as the beneficiaries of the products that companies

produce and as a result it is utterly important for Dacia to

identify what are the determiners affecting buying behavior.

Beginning with the factors that directly influence purchase

behavior (social, personal, psychological and cultural), Dacia

can be able to arbitrate what are the best ways to influence

buying behavior in their favor. Basing their strategic actions

on the knowledge they already have and on thoroughly

understanding buying behavior, a gathering of consumer demand

focused on similarities can be made in order to reach a proper

segmentation. Understanding the competition is also a crucial

factor in the process of penetrating the Danish automobile

market and therefore thorough competitor analysis is

required.74

73 Information received by interview74 http://mpra.ub.uni-muenchen.de (Article1)

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To conclude, Dacia could work on boosting product quality as

well as incorporating new technological elements in order to

encourage customers to buy Dacia Lodgy because of its high

degree of innovation. At present, worldwide customers are fond

of the brand Dacia, but this aspect still needs improvement in

Denmark. Brand loyalty is a really important advantage to crave

for and therefore this might represent a key factor in

increasing Dacia Lodgy’s popularity in Denmark. In order for

Dacia Lodgy to gain valuable brand equity in Denmark, a strong

combination of marketing, economic and production line elements

must be applied. Dacia has proven itself able to overcome great

struggles and challenges due to current harsh economic

conditions that definitely call for more rationalized decisions

among customers, Dacia could take advantage for gaining strong

positioning in the Danish automotive market and also for

expanding on global markets.75

75 ibid26

9 Bibliobraphy

Books

Bjerreskov Dinitzen, H. and Krogh Jensen, L. 2010. Organisational

theory - a practical approach. Copenhagen: Hans Reitzel.

Jobber, D. and Ellis-Chadwick, F. 2013. Principles and practice of

marketing. London: McGraw-Hill.

Paul, J. and Kapoor, R. 2008. International marketing. New Delhi:

Tata McGraw-Hill.

Articles

Cruceru,G and Micuda,D 2011. Present Challenges and future opportunities

for Dacia cars on the Romanian automobile market. Munich Personal

Archive [online] Available at:

http://mpra.ub.uni-muenchen.de/30620/

Funaru, M and Funaru,G 2011. Strategies of Dacia Renault on international

markets. Bulletin of the Transilvania University of Brasov, vol

4, pp 31-36 [online] Available at:

http://webbut.unitbv.ro/bu2011/Series%20V/BULETIN%20V%20PDF/06%

20funaru%20m%20g%201%20BUT%202011.pdf

Marketing Research Consultants at The University of Northern Iowa College of Business Administration, 2012. Building brand loyalty . Understanding and Measuring Brand Equty, Awareness, Perceptions and Loyalty. Cedar Falls, Iowa [online] Available at:

27

http://info.sms.uni.edu/Portals/127755/docs/Building%20Brand%20Equity%20E-book.pdf [Accessed 19 Jan 2014]

Internet

www.dacia.dk [Accessed: 13 Jan 2014] [4]

http://www.copenhagenize.com/2012/10/danish-180-tax-on-cars-is-rather.htmlhttp://www.startupoverseas.co.uk/expanding-a-business-in-denmark/marketing-a-business.html

http://www.mynewsdesk.com/dk/renault-danmark/pressreleases/

danmarks-i-saerklasse-billigste-varevogn-hedder-dacia-sandero-

906009

http://www.which.co.uk/cars/dacia/ http://daciacars.com/content/view/69/2/

http://prezi.com/9g35dpykewfs/copy-of-copy-of-dacia-duster-

presentation/ [Accessed: 21 Jan 2014]

http://www.mumsnet.com/cars/reviews/mpvs-and-people-carriers/15609-ford-c-max [Accessed 16.1.2014] (1)http://corporate.ford.com/our-company/heritage [Accessed 16.1.2014] (1)http://www.autonet.ca/en/2013/08/01/2013-ford-c-max [Accessed 16.1.2014] (1)http://www.ford.dk/Aktuelle_tilbud/c-max-tilbud?searchid=ppc-

[brand/product]-ford-c-max--+ford-+c-+max-broad [Accessed

16.1.2014] (1)

http://www.studymode.com/essays/Marketing-Strategy-Of-Ford-Motor-Company-521855.html http://corporate.ford.com/microsites/sustainability-report-2011-12/blueprint-strategy http://wpsenna.wordpress.com/2013/06/04/competitive-advantage-ford-motor-company/ www.ford.dk

28

http://www.mbaskool.com/brandguide/automobiles/4974-opel.html

http://www.gm.com/company/investors/corporate-strategy.html

www.opel.dk

http://www.mbaskool.com/brandguide/automobiles/4975-

citroen.html )

www.citroen.dk

http://www.marketing91.com/swot-skoda/

http://www.studymode.com/essays/Skoda-Strategic-Plan-417009.html

www.skoda.dk

https://fronter.com/eadania/links/files.phtml/2136142589$70241520$/Marketing/1.+semester/IMS/Presentations_prcent_2C+slides/Lesson+11-14_prcent_2C+chapter+2.pdf

http://gatbykitty.blogspot.dk/

http://www.slideshare.net/diarta/chapter-9-creating-brand-equity

http://uwmktg301.blogspot.dk/2010/03/brand-equity.html

10 Appendices

Interview 1

Person interviewed: Jørgen Øgendahl

Personvognskonsulent

29

Mobil 41 900 902

E-mail address:

jorgen.ogendahl@sondrup-bilcenter.dk

Date of interview: 14.01.2014

Place of interview: Gunnar Clausens Vej 4 8260 Viby

Interviewers: Kristine Amolina, Linda Azul, Maybe Biswas

1. What is the most sold family car?

Currently the best-selling family car is Ford C-Max. This

is the main competitor to Dacia family cars and it has

double-price.

2. What is the main choice criteria for family cars?

It should be cheap, stable, simple and has to be big.

3. Who is the main audience for buying Dacia cars?

Young couples and families with kids.

4. Does Dacia gain competitive advantage between other cars?

Yes. Dacia is brand new car and it has lower price.

5. Who are the competitors for Dacia cars?

Brand loyal customers to Ford C-Max and also used cars

market is competitor to Dacia.

6. How much percentage does Dacia cars have from any cars are

sold?

Per last year Dacia cars had approximately 10% of all sold

family cars.

7. How many Dacia Family cars have been sold since April

2013?

30

In Denmark was sold approximately 500 Dacia cars, 50 of

them in Aarhus. This is good beginning for Dacia cars in

Denmark.

8. How do the customers gain knowledge about Dacia family

cars?

TV campaign, advertisements in newspapers

Interview 2.

Person interviewed: Thomas I. Sørensen, sales

constultant, e-mail: thois@dahlpedersen.dk

Date of interview: 13.01.2014

Place of interview: Lundvej 1 8800 Viborg

Interviewers: Alexandra Mareci

1. What is the most sold family car?

The most sold family cars are Opel insignia, Skoda Fabia

Kombi, Citroen C3. Most sold in Renault dealer shop: New

Megane, Lodgy.

2. What is the main choice criteria for family cars?

Safety, technical details, space, price.

3. Who is the main audience for buying Dacia cars?

Young couples and families with kids.

4. Does Dacia gain competitive advantage between other cars?

Yes. It has lower price and it is under the big Renault

name.

5. Who are the competitors for Dacia cars?

Citroen C3 Picasso, Peugeot 308 STC, Renault Megane.

31

6. How do the customers gain knowledge about Dacia family

cars?

Website, commercials, word of mouth and also it is

presented on Renault website as well.

7. How can Dacia gain valuable brand equity in the Danish

automotive market?

More advertisement, positioning fact that Dacia cars are

under name of Renault they have low prices. Dacia would

gain competitive advantage with having more models in

Denmark.

32