In this report, we will analyze a very strong competitive company in order to identify the factors behind the success of its products. We decided to choose the Logan of Renault. This choice stems from the desire to present a French car and to examine the launch of a new concept car from its creation to its commercialization.
Firstly, the presentation of Renault's history will include its type of business, the size and the market developments. Then, the current marketing strategy employed by the company will be explained according to the market and product analysis. The content of this part will include the market trends, the Logan's positioning, the SWOT analysis and the marketing communication.
We will conclude with the recommendations for the future strategies that Renault should adopt.
The adventure began on December 24,1898, when Louis Renault took up a challenge to drive his A-type Voiturette up the steep Rue Lepic in Montmartre, Paris. The year after, Louis and his two brothers, Marcel and Fernand, set up the Renault Brothers company. Since 1899, the company has had a rapid growth. It was through racing, that the Renault brand became well known. Those victories were the most effective form of advertising and direct marketing that the brothers could have wished for.
[...] Finally, in 1966, Renault entered into a technical cooperation agreement with Peugeot (without cross-shareholdings), which would expand into a three-way agreement with Volvo in 1971 within the framework of the Société Franco- Suédoise de Moteurs. Renault-Volvo agreements were finalized with Bernard Vernier-Palliez and Pehr Gyllenhammar Geneva (Swizerland) Success in Spain RENAULT MOVED INTO SPAIN AFTER BEING CONTACTED BY THE SPANISH GOVERNMENT IN 1951 TO DEVELOP THE LOCAL AUTOMOBILE INDUSTRY. FASA (FABRICACIÓN DE AUTOMÓVILES SOCIEDAD ANÓNIMA) WAS SET UP WITH FINANCING FROM SPANISH BANKS AND THE MAIN PLANT WAS BUILT IN VALLADOLID. [...]
[...] An International Dimension RENAULT IS ONE OF THE FIVE MAIN WORLD PRODUCERS. In the last few years, many car companies decided to merge, but Renault had a double strategy to compete with this trend. In 1999, Renault merged with Nissan company and in a second plan, the group took control of many foreign car factories in order to reach effectively other foreign markets. Nowadays, Renault is one of the top five main world producers. Table The majors world car producers (in 2003) billions of (all vehicles in (billions of millions) Source: La Tribune (French newspaper) 24 September 2004 A multi brand company A. [...]
[...] Indeed, by being engaged in the Formula Renault wants to show its power worldwide. Added to this, Renault's strategy is composed by five objectives. Firstly, the company wants to build recognition for its brand identity. Secondly, to become the most competitive manufacturer on its markets in terms of quality, costs and delivery times. That is why, it is situated in the heart of its markets. Moreover, Renault wishes to extend its international reach. In order to sum up this objective, it maintains its goal of accelerating growth, with a view to generating half of sales outside Western Europe in the longer term. [...]
[...] OPPORTUNITIES - Some cars like the of German Volkswagen, deux chevaux” from French Citroen or the British Austin Mini had got successful launching for cheap car and Renault is going to replicate their huge success. - The demand for the new Logan is huge. Indeed, the Logan has a real success in Roumania at this time. This car is exactly what customers in emergent countries want. A Robust, modern and a new car for a good price. That is what the Logan represent for them. [...]
[...] will conclude with the recommendations for the future strategies that Renault should adopt. I. RENAULT'S COMPANY A. RENAULT'S HISTORY THE RENAULT GROUP EXPERIENCED EARLY INTERNATIONALIZATION. THE ADVENTURE BEGAN ON DECEMBER 24,1898, WHEN LOUIS RENAULT TOOK UP A CHALLENGE TO DRIVE HIS A-TYPE VOITURETTE UP THE STEEP RUE LEPIC IN MONTMARTRE, PARIS. THE YEAR AFTER, LOUIS AND HIS TWO BROTHERS, MARCEL AND FERNAND, SET UP THE RENAULT BROTHERS COMPANY. SINCE 1899, THE COMPANY HAS HAD A RAPID GROWTH. IT WAS THROUGH RACING, THAT THE RENAULT BRAND BECAME WELL KNOWN. [...]
Online readingwith our online reader
Content validatedby our reading committee