Case study of Twingo
- Japanese car market and the introduction of the Twingo
- The automotive market in Japan
- The Japanese car market segmentation
- The competitive market
- External diagnosis
- Market trends and opportunities
- Internal diagnosis
- The marketing strategy of the Twingo in Japan
- The marketing mix
Renault's presence in the Japanese market dates back to the 1950's, where about 50,000 cars were sold. However, the import of cars to the Japanese market declined considerably during the 1960s. It was not until 1994 that Renault saw its sales increase in Japan with the signing of a contract with a new importer.
Following the policy of strategic development in Asian countries, Renault will look at the feasibility of launching the Twingo in Japan. Japan has a total area of 377,835 square kilometers, which gives it a relatively small territory. Its population density is very high. This population is concentrated in particular on an axis of Tokyo-Hiroshima. Japanese life expectancy is relatively higher than the rest of the world.
[...] Renault will therefore focus on the strengths of the Twingo and highlight its qualitative aspects such as safety, comfort, refinement etc. The message conveyed must be clear and accurate. As seen earlier in the distribution policy, television advertisements are a means to implement communication. In addition, advertisements in women's magazines would add to its reputation. Secondly, business partnerships with Kenzo and other brands would help launch limited editions (example, the Twingo Kenzo) Displaying adverts in the crowded underground passageways can also be a good way to reach many potential consumers. [...]
[...] For consumers, the Twingo small car will be a product suited to women, and characterized by its originality, taking into account the constraints of security which are very important to the Japanese. The model aims to create a desire and attachment among the consumers. The Twingo will be pitched against other models in the market for Midgets, and will need to differentiate itself by virtue of its exterior and interior design, roominess maneuverability and a sense of "Zen" about the use of the vehicle. [...]
[...] This segment represents only 17% of the market. The competitive market Toyota is the market leader, with 36% market share in 1994, Nissan challenger, had 19% market share in 1994, Honda Mazda, Suzuki, Daihatsu and Fuji are also in the reckoning representing market shares that are increasingly important. There has been a sharp increase between 1998 and 1994 with respect to imported vehicles against 7.9 However a significant part of the import market is dedicated to German manufacturers of sales). [...]