DODGE DURANGO 2014
DODGE DURANGO 2014
MARKETING II

Name: Tran Thanh Long
ID: 1357030
Class: Tuesday Morning

MARKETING II

Name: Tran Thanh Long
ID: 1357030
Class: Tuesday Morning

Content:

I/ EXECUTIVE SUMMAR
II/ SITUATION ANALYSIS: 1. Dodge’s history 2. Product history 3. Describe Dodge Durango 2014 4. Product evaluation A. Industry analysis and Industry trend B. Product differentiation C. Sale history D. SWOT 5. Target market 6. Marketing objectives A. Need satisfying objective B. Long and short term sale market
III/ ADVERTISING OBJECTIVES: 1. Product concept 2. Target market -
Detailed description of target audience: Relationship between target market and target audience 3. Communication media 4. Advertising message

I/ EXECUTIVE SUMMARY:
Have you ever felt the power of a horse when you rode it? Imagine a herd of horses as they run through an open plain. You do not want to ride a herd of horses on the street, now you just need the new 2014 Dodge Durango. In this planner, you will be seeing, imagining and experiencing the unique way Dodge advertises using lower cost but still attracting more potential consumers of Dodge brand and Paramount Pictures, also you will get the information about the new Dodge Durango.
"But for the most part, the Durango remains a stylish, aggressive-looking truck with available V-8 power, plenty of towing ability, and some new fuel-economy technology lurking behind its menacing face." -- Car and Driver

The Dodge brand is upping the ante in the fast-growing full-size sport-utility vehicle (SUV) and crossover segments, introducing the new 2014 Dodge Durango at the 2013 New York International Auto Show. This new SUV is built on the Dodge brand's pillars of performance, style and innovation, delivering a new standard state-of-the-art class-exclusive eight-speed automatic transmission that improves fuel economy up to 9 percent, the Chrysler Group's award-winning U-connect Access easy-to-use touchscreen technologies and the Dodge brand's signature racetrack LED tail lamps to driving enthusiasts in the market for a three-row family performance SUV.

When Dodge re-introduced the Durango in 2011, it immediately earned accolades from customers and critics alike. Its combination of sleek yet muscular lines, comfortable three-row seating, large cargo volume, class-leading power, driving range and towing capability and overall driving enjoyment was unlike anything ever seen in the SUV segment before. For 2014, the engineers and designers at Dodge have made the ultimate "no compromise" SUV even better. In 2012, Chrysler – Dodge brand spent more than $20 million on Durango advertising, according to Kantar Media. Dodge's sales grew 3% in September, and 18% over the first nine months of 2013. Dodge brand now plans Durango sales have been very strong in 2014, specifically are up 50 percent for the year so they have to promo very strong for the new product to set an image in consumer’s mind. However, Chrysler has got the smallest marketing budget of the Detroit three auto-makers, so they have to take risks to get your TV spots noticed. Because of that reason, Dodge Durango is using Will Ferrell’s Anchorman character, Ron Burgundy, as pitchman for its all-new 2014 SUV and the ad videos were created primarily as a viral campaign online, although some are airing on television, too. For Dodge's part, the cost of the videos was significantly lower than a usual television campaign thanks to the fact that Ferrell wasn't paid for the spots since they were made in cooperation with promotional efforts for his new movie – “Anchorman 2: The Legend Continues” and from The partnership between Dodge and Paramount pictures, it marks the first time a movie studio and brand tie-in has used starring talent, in character, to create original long- and short-form content.

II/ SITUATION ANALYSIS: 1. DODGE’S HISTORY:
Dodge, formally the Dodge Division of Chrysler Group LLC is a brand of automobiles, minivans, and sport utility vehicles manufactured by Chrysler Group LLC, based in Auburn Hills, Michigan. Dodge vehicles presently include the lower-priced badge variants of Chrysler-badged vehicles as well as performance cars, though for much of its existence Dodge was Chrysler's mid-priced brand above Plymouth.
Founded as the Dodge Brothers Company by brothers Horace Elgin Dodge and John Francis Dodge in 1900, Dodge was originally a supplier of parts and assemblies for Detroit-based automakers and began building complete automobiles in 1915, predating the founding of Chrysler Corporation. The Dodge brothers died suddenly in 1920 and the company was sold to Dillon, Read & Co. in 1925 before being sold to Chrysler in 1928. Dodge vehicles mainly consisted of trucks and full-sized passenger cars through the 1970s, though it did make some inroads into the compact car market during this time. The 1973 oil crisis and its subsequent impact on the American automobile industry led Chrysler to develop the K platform of compact to midsize cars for the 1981 model year. The K platform and its derivatives are credited with reviving Chrysler's business in the 1980s; one such derivative became the Dodge Caravan.
The Dodge brand has withstood the multiple ownership changes at Chrysler from 1998–2009, including its short-lived merger with Daimler-Benz AG from 1998–2007, its subsequent sale to Cerberus Capital Management, its 2009 bailout by the United States government, and its subsequent Chapter 11 bankruptcy and acquisition by Fiat.
In 2011, Dodge, Ram, and Dodge's Viper were separated. Dodge said that the Dodge Viper will now be a SRT product and Ram will be a manufacturer.
Now, Mr. Tim Kuniskis is the president and chief executive of Dodge.

2. PRODUCT HISTORY:
The Dodge Durango is a sport utility vehicle (SUV) produced by the Dodge division of Chrysler. Durango’s lineage can be broken down, roughly, into three generations. Generation one, produced from 1998 through 2003, was a ground-breaking, sturdy, midsized SUV with body-on-frame construction shared with the Dakota, Dodge’s highly acclaimed midsize pickup. Signaling its rugged, no-nonsense nature, in its first year the Durango was offered only in a four-wheel-drive version. For ’99 both 2WD and 4WD drivetrains were offered, along with a full range of V6 and V8 engines. In 2001 Durango’s interior was thoroughly upgraded, reflecting the changing role of SUVs in American households—increasingly, these were now primary, everyday vehicles. Available features included dual-zone climate control and premium audio systems.
When the second-generation Durango appeared in 2004, it was three inches taller, two inches wider, and seven inches longer than its predecessor. Now edging into the full-sized SUV category, this new Durango offered third-row seating and a redesigned suspension with rear coil springs for a more luxurious ride. In 2007 the second-generation Durango received an attractive restyle with a new grille, hood, and headlamps, and in 2009, a two-mode hybrid version was briefly offered.
To go with the changing times, in the summer of 2010 the Internet was put to use to tease the first images of the third-generation Durango to the public and the press. Based on an all-new, computer-designed unitized platform, this Durango went into production in December of that year. Buyers had their pick of a pair of world-class engines, the 3.6-liter Pentastar V6 or the 5.7-liter HEMI V8 with 360 hp. The 2012 model earned the Drivers’ Choice Award from the editors of MOTOR- WEEK, and is ranked as a “Top Safety Pick” with the Insurance Institute for Highway Safety (IIHS).
Model based on the new 2014 Durango Dodge said the rapid growth in demand segment sport utility vehicles and even large crossovers. Dodge Durango is an SUV with bold American, wide, strong, aggressive and bring in it is the Dodge brand's core performance, style, creativity and technology.

3. DESCRIBE DODGE DURANGO 2014 :
The 2014 Durango offers a host of premium features, such as high-end interiors, the latest infotainment technology and impressive powertrain options, along with the exterior design that is distinctively Dodge. The new face of Durango is still distinctly Dodge and features a new, slimmer "split crosshair" grille with mesh textures unique to each trim level. Combined with the redesigned projector-beam headlamps and a raised front bumper, the 2014 Dodge Durango has an even more sinister look than the previous model. Durango's sculpted hood and grille complete the unique to Dodge forward-leaning profile that continues through the deeply browed headlamps.
The new 2014 Durango continues to deliver excitement and refinement with world-class suspension and performance. Benchmarked against premium performance SUV's in the market, Durango delivers modernized refinement with electronics, suspension and structural characteristics that are usually found at much higher price points.
The unique body structure is built with a selection of high-strength and ultra-high strength steels that improve driving dynamics by integrating the suspension with the body — reducing flex and weight when compared with body-on-frame designs.
The short/long arm front suspension and isolated multi-link rear suspension features isolated front and rear cradles to deliver precise on-road handling and comfort. The four-wheel independent suspension, combined with the Durango's nearly 50/50 weight distribution, transmits to a solid driving feel and fun-to-drive characteristics.
Dodge Durango delivers on the pavement with aggressive shock and spring rates and large sway bars to handle body roll in hard turning maneuvers. Electro-hydraulic power steering, unique caster and camber settings along with standard electronic stability control also contribute to maintain tire grip and vehicle stability.
The 2014 Dodge Durango's rear-wheel-drive-based drivetrain is the foundation for its outstanding on-road driving performance. Available all-wheel drive (AWD) further enhances driver confidence by leveraging the SUV's 50/50 weight distribution.
The Durango's two AWD systems - one for the HEMI® V-8 and one for Pentastar V-6-powered models - greatly enhance the vehicle's traction and handling by delivering a smooth driving experience on a wide range of road conditions
The 2014 Dodge Durango, which was unveiled earlier this year at the 2013 New York International Auto Show, is available in five trim levels: SXT, Rallye, Limited, R/T and Citadel. The starting price ranges from $29,795 for a standard model to Citadel at $40,995.
One of the biggest competitors of DODGE Durango is TOYOTA Sequoia.
4. PRODUCT EVALUATION
A. INDUSTRY ANALYSIS AND INDUSTRY TREND:
During the 1990s, sport utility vehicles (SUVs) became the fastest growing segment of the auto industry. In 1999, SUV sales reached almost 19% of the total light vehicle market and the mix of SUVs on the road was about 8.7%. Some has called this popularity a passing fad, but the continued increases in SUV sales seem to indicate a more permanent trend. Additional explanations for SUV popularity include the general economic well-being in the US, a perception of safety, and “utility.”
Demand for high-margin sport-utility vehicles (SUVs) and light trucks peaked in the early 2000s, until rising oil prices and the credit crisis undermined industry profitability. Generally larger and heavier than the typical automobile, SUVs require more fuel and produce greater amounts of pollutants. They are also driven further annually than are automobiles of the same vintage, a fact that exacerbates the fuel-use and emission problems. Although buyers believe that SUVs are safer than automobiles, which they are in some cases, SUVs are more prone to roll-overs than are automobiles. In addition, SUVs, with their higher bumpers and greater weight, may be a threat to other vehicles on the highway. However, a strong post processing recovery has pushed industry revenue up at an annualized rate of 2.6% to $135.7 billion over the five years to 2013. Despite the turmoil of the recession, heavy buying activity from key downstream markets helped revenue expand in recent years. Following consecutive years of substantial declines, revenue surged 38.0% in 2010, and is expected to grow another 2.7% in 2013, SUVs show no sign of decreasing in popularity. It is clear that automobiles and SUVs will be sharing the highways for years to come. Over the next five years, Dodge will focus on producing crossover-utility vehicles and trucks with an emphasis on improved fuel efficiency. Additional powertrain options, including clean diesel and hybrids, will fuel revenue.
B. PRODUCT DIFFERENTINATION:
When the Dodge Durango debuted in 2011, it had a distinct advantage over the competition as an SUV designed to deliver performance, without compromising fuel economy. With the addition of the new eight-speed automatic transmission with paddle shifters standard across the lineup, Durango ups the ante delivering improved efficiency, as well as a more refined and engaging driving experience and while competitors have switched to front-wheel-drive car-based platforms, the HEMI-powered AWD Durango features a low-range transfer case with a neutral position. Low range improves light off-road performance and helps ease maneuvers, such as pulling a boat up a steep launch or backing up with a trailer. The neutral position in the transfer case allows the vehicle to be flat-towed without damaging powertrain components.
C. SALE HISTORY:
October, 2012 - 59% Dodge Durango sales gain versus year-ago, while impressive, is only the fifth highest sales increase in the ten 2013 reporting months:
+117% August; +88% July; +66% September; and +65% April.
The 2014 Dodge Durango has been redesigned, and at least one commentator attributed the October sales spike in part to pent-up demand for the new model. It’s possible that one factor driving the strong summer 2013 sales was clearing 2013 model year inventory. Note that the 2014 Durango hit US showrooms in October.
Overall, Dodge Durango is on a 12 consecutive months sales increase stretch. For the first ten months of 2013, Durango is up 50% versus year ago. Total Dodge brand sales are up 17% in the same time period.
D. SWOT Strength | 1. Technological support from the parent company (Fiat)
2. Strong brand equity globally except for Europe3. Recent “Make your Crossover SUV, minivan & so on” option provided by them is very unique4. Products have strong fan following across the globe5. The brand has its presence in Middle-East, Australia, Brazil, Canada, Europe and Mexico. | Weakness | 1. The brand has declining brand popularity and brand recall due to less advertising2. Limited acceptance in markets other than the American & Gulf countries3. Poor relationship with dealers, suppliers and the American consumer | Opportunity | 1. Currently there is a rising trend for environmental friendly cars; there lies an opportunity for luxury brands as well
2. Look for newer markets like the Asian markets but with smaller engines3. Innovation in terms of technology: especially for more fuel efficient cars | Threats | 1. Removal protectionists trade policies which existed until 1970s & brought again post 2008 crisis
2. Unwillingness of people to buy a vehicle which lacks fuel efficiency3. The increasing acceptance of Japanese & Korean, cars especially in American market |
5. TARGET MARKET:
Durango customers are tech-savvy, youthful and full-of-life, with one of the youngest demographics in the segment. Their active lifestyles keep them on the run, and they depend on technology to keep them connected. The Durango delivers with the latest U-connect Access technology and connectivity in an agile, flexible vehicle that is spacious with versatile three-row seating for passengers and their gear. 6. MARKETING OBJECTIVES: A. Need-satisfying objective:
The objective is starting point of the marketing plan. The purpose of objective includes: * To enable a company to control its marketing plan * To help to motivate individuals and teams to reach a common goal * To provide an agreed consistent focus for all function of an organization B. Long and short term sale market: * Become one of the top three brands in our industry named among consumers. * Deliver 600,000 vehicles worldwide this year * Sales are up 40% year-to-date from 2013
III/ ADVERTISING OBJECTIVES:
Dodge Durango’s ad is using Will Ferrell’s Anchorman character, Ron Burgundy, as pitchman in “Starring contest” advertising for its all-new 2014 SUV and it is approaching the goals: * To make attitudes more favorable to Dodge Durango * To build a new image for Dodge Durango * To reduce existing negative attitudes. * To keep building loyalty. * To establish the brand and position it in a particular way, e.g. as warm and friendly. * It will increase sales up to 50% in the first month of this campaign. * The entire year has been strong for the big SUV, with year-over-year sales increases in the double and even triple digit percentages.
IV/ ADVERTISING STRATEGY: 1. PRODUCT CONCEPT:
Chrysler and Dodge brand in particular has a small budget for Ad that's why Olivier Francois, Chrysler's marketing chief, gambles a lot. He's following successful ads featuring rapper Eminem and movie star Clint Eastwood with a pitch from a fictitious character — egotistical airhead television anchorman Ron Burgundy from the 2004 movie Anchorman: The Legend of Ron Burgundy.
And this time, Francois got the talent to pitch a refurbished version of the Dodge Durango SUV for free. Paramount Pictures, he said, bartered work on the commercials by Will Ferrell, who plays Burgundy, in exchange for the promotion in the ads of an Anchorman sequel that is due out in December.
"We can't compete on the money," said Francois, a Frenchman behind the gritty 2011 Super Bowl image ad for Chrysler with Eminem in his hometown of Detroit, and the follow up spot featuring Eastwood talking about America making a comeback.
Chrysler is by far the smallest of the Detroit car companies and has the lowest advertising budget. GM was the second-largest advertiser in the nation, while Ford ranked sixth and Chrysler No. 11, according the trade publication Advertising Age, which uses figures from Kantar Media to estimate spending and rank the top 100 advertisers.
So for Chrysler to compete, it has be creative to multiply the impact of its ads, Francois said. Ferrell, Francois said, was given a free hand to write and produce the ads. Initially he was supposed to make three to six television commercials, but ended up with 70, all featuring Ferrell in a 1970s burgundy suit.
The campaign brings together the might of the Detroit automaker, the Hollywood studio and the actor/comedian in a unique collective experience that promises to engage consumers through specifically created content across multiple platforms.
"Ron Burgundy as the new Dodge Durango spokesperson brings together two iconic American legends," said Josh Greenstein, CMO of Paramount Pictures. "This campaign was an unprecedented opportunity to collaborate with our filmmakers to create new original content and distribute it worldwide in advance of the long awaited 'Anchorman' sequel release this December. With the personal involvement of Will Ferrell, our writer / director Adam McKay, the comedy team at Funny or Die, and the Dodge creative team at Wieden + Kennedy, we were able to create a truly epic partnership."
The campaign's co-branded television commercials and online content, directed by Jake Szymanski, are set in a colorful auto showroom where Ron Burgundy hilariously brings to life what makes Dodge such an entertaining, spirited brand and the Durango a superior SUV. As a leading news anchor and celebrity, pitching for Dodge—or anything else for that matter—is a cinch. He doesn't need scripts or to study up on auto features. And because he's Ron Burgundy, interpreting the modern Dodge Durango through his 1970s brain, he's got a decidedly different take on the cross-over sport utility vehicle.
“STARING CONTEST” ad - "Horsepower": Ron Burgundy chastises a horse on the showroom floor regarding Dodge Durango's 360 horsepower telling viewers, "On my right is the new Dodge Durango with up to 360 horsepower. On my left is one horse (points to horse) with one horse power. That makes you feel pretty dumb, doesn't it?" 2. TARGET AUDIENCE: A. Detailed description of target audience : Relationship between target market and target audience:
Target market of Dodge Durango is generation who are active and sporty. And the ad campaign is targeting younger drivers who are also young and active; they are interested in sport events which celebrities and want to create their own fresh images. And also, they need a car which is flexible, versatile and can appear really "aggressive" in front of people a. Geographic: audience from all over the world who in middle to upper class citizens. Especially people in the North America. b. Demographic: customers ages from 25 to 45 c. Behavioral: active, sporty… 3. COMMUNICATION MEDIA
Will Ferrell will reprises his comedic role as Ron Burgundy in the “Ron Burgundy Anchors New 2014 Dodge Durango Advertising campaign”, the boastful news anchorman, in a robust campaign which debuted from Dodge on Saturday, October 5-2013. The integrated cross-promotion marketing campaign marks the first time a movie studio and brand tie-in has utilized starring talent, in character, to create original long and short form content. The co-branded promotional advertising campaign will span television, print, digital and social media. It debuted across television and online on Saturday, October 5. The new 2014 Dodge Durango arrives in dealerships in North America this month. "Anchorman 2: The Legend Continues" releases nationally in theaters December 20, 2013.

Co-branded advertising campaign combines power of Detroit automaker, major Hollywood studio and Will Ferrell (as Ron Burgundy) in biggest ever original content promo and Multimedia campaign spans television, digital, social, print. The Original content created specifically for social media, including BurgundyDodge.com, FunnyorDie.com, YouTube, Twitter, Instagram, Tumblr, Pinterest and Vine and the new Burgundy/Durango spots will run across a number of networks, including: ESPN, E! Entertainment Television, MLB Network, MTV, NBC Sports, Spike, TBS, TNT and AMC. There will be also national print ads featuring the Burgundy character. Those will have the look of Dodge print work from the '70's 4. ADVERTISING MESSAGE:

The ads already appearing on TV and online, the campaign will roll out co-branded ad content across multiple TV channels and social media platforms to promote the Dodge Durango and Ferrell’s soon to be released Anchorman 2: The Legend Continues.
“We need to be super-engaging. But we also need to be very entertaining. Otherwise, you run the risk of being boring, speaking about the horsepower, the U-connect system and the fuel efficiency," Chrysler Group CMO-Mr. Francois said. Chrysler Group is super-proud of the engine 25 MPG for Durango. But is it the most engaging and entertaining story? No. So the idea of the campaign is very simple…Hiring a guy who comes from the 1970s. And he's going to look at our advanced technology through the eyes of a guy who comes from the '70's. That is the creative design. That is the big idea.
As one might expect, Will Ferrell is more than funny as Ron Burgundy – the anchorman that can be described as a buffoon with bravado, people will be attracted of the new 2014 Dodge Durango. In one spot, he lectures a horse about being inferior because it has only “one horsepower” compared the Durango, which has “360 horses” under the hood – From this campaign, we can feel what Ted Kuniskis, Dodge brand CEO claims the “unique” benefits are (1) best in-class power, (2) towing and fuel economy, and (3) class-exclusive technology of Durango - Especially, the POWER of Durango - because the ad campaign gives viewers humorous snippets of his character in the movie, and the clear power comparison between Dodge Durango with a herd of horses. It is likely to be very effective in selling Anchorman 2 and also increase sales of Dodge Durango. So, through this Ad, we can see the power of Dodge Durango is more effective and stronger than a horse, even a herd of horses.
Also, the ads campaign has huge viral potential because this is a new way to co-brand and promote both a movie and a product, this campaign is already getting a lot of media attention, and it is likely to get much more. The spots are, or will be, appearing on multiple Web sites including those of the Dodge Durango, Funny or Die (Ferrell and writer Adam McKay’s comedy site), Paramount’s Anchorman and Ron Burgundy sites, and all of the social media channels of those involved with the movie and the marketing of the Durango. Besides, comedy absolutely gets attention. Infusing commercial spots with comedy from the star of the movie is a great way to get the Dodge Durango brand in the minds of prospective buyers. More viewers are likely to watch the spots because they are funny.
REFERENCES:
http://en.wikipedia.org/wiki/Dodge_Durango http://en.wikipedia.org/wiki/Dodge http://adage.com/article/news/ron-burgundy-rides-time-dodge-durango-ads/244614/ http://www.businessinsider.com/would-you-buy-a-car-from-ron-burgundy-2013-10 http://www.autoblog.com/2013/10/14/dodge-durango-ron-burgundy-will-ferrell-ads-2.7-million-views/