CARS

1. GLOBAL
MARKETING
P R O J E C T P R E S E N TAT I O N
C O M PA N Y: R E N A U LT
C O U N T R Y: F R A N C E
P R E S E N T E D B Y: TA F Z I L

2. INTRODUCTION
• Founded in 1898, Boulogne-Billancourt in France
• Groupe Renault is an international vehicle manufacturer present in 128 countries.
• It is one of the largest among three European automobile manufacturers by production
volumes other than Volkswagen Group and PSA.
• Today, Renault is present in 127 countries, Renault designs vehicles adapted to the
local needs of each region. With 36 production sites and 12,700 dealerships
worldwide, the Group also manufactures and distributes its products as close to its
markets as possible

3. • The inception of Renault Corporation was in 1899 as Société Renault Frères by Louis
Renault and his brothers Marcel and Fernand.
• The first Renault car, the Renault Voiturette, sold to a friend of Louis' father after giving
him a test ride on 24 December 1898.
• In 1903, Renault began to manufacture its own engines; until then it had purchased
them from De Dion-Bouton
• The first major volume sale came in 1905 when Société des Automobiles de Place
bought Renault AG1 cars to establish a fleet of taxis.
• These vehicles were later used by the French military to transport troops during World
War I.

4. CONT.
• During World War II, after the occupation of France by the Germans, Renault
production facilities was used to produce vehicles for the German troops
• The production was ceased due to the bombings on factories by British.
• During the 1950s, Renault absorbed small French heavy vehicles' manufacturers and
in 1955 merged them with its own truck and bus division.
• By 1970’s The Renault model was a success and Renault produced more than a
million cars in a single year, building 1,055,803.

5. CONT.
• In 1990’s Renault started moving towards massive innovation.
• It had made alliances with various automobile giants to form up a dominance and
hegemony over the automobile sector across the globe.
• The new millennium of 2000’s emanated Renault as a new design and innovative car
manufacturers around the globe.
• Today, Renault operates in 128 countries, with more than 36 production sites and
12,700+ dealerships networks worldwide.

6. VISION
“Combining connectivity, autonomy and electric energy, Renault is working to become,
by 2020, one of the first full-line carmakers to launch entirely safe road-going
autonomous vehicles. Sustainable and affordable, tomorrow’s mobility is being prepared
today.”

7. MISSION
“We strive to evolve our products beyond the conventional. And we seek to challenge the
status quo at every juncture, to create something that is more than just an object.
Something that is intrinsically connected with your lifestyle. Everything we do is devoted
to understanding and fulfilling your needs. We hope you find something here to inspire
you.”

8. OBJECTIVES
• “Our objective is to stand apart in terms of concepts and design. It would be risky for us
to merely follow trends.”
• “At the heart of Renault’s passion are; innovative engineering concepts that
encapsulate sensual, warm, striking, emotive and functional design.”

9. MANAGEMENT ORIENTATION
• Regiocentric Orientation can be seen in the management of Renault and its strategy.
• For Renault, which has divided its market into segments and various regions, one
region has become as a single unit and its management develops an integrated
regional strategy.
• The company’s strategies are made for the regions rather than global but are hence in
conform to the global strategy set by the Headquarter

10. SEGMENTATION OF WORLD’S
MARKETS
PSYCHOGRAPHIC

11. GEOGRAPHIC SEGMENTATION

12. PRODUCTION AND FACILITIES

13. REVENUES
GLOBAL LEVEL

14. OPERATING INCOME
• € 3.28 billion (2016)
Profits:
• €3.54 billion (2016)

15. REGIONAL SALES

16. GLOBAL MARKET
SHARE

18. RENAULT’S BRANDS
• Renault:
Renault, the Group’s global brand, operates in 128 countries with a range of nearly 30
models, rolled out in different versions (PC and LCV) and phases.
• Dacia:
Dacia is sold in 44 countries in Europe, North Africa and the Mediterranean countries. It
has attracted more than 4 million customers since 2004 by offering a range of robust
vehicles at affordable prices.

19. • Renault Samsung Motors:
RSM, the Group’s local brand, sells cars in South Korea. The seven-model range covers the
mid- and top-range segments, as well as the SUV category. A Renault subsidiary created in
2000, RSM is known for its top-level service quality. RSM operates in South Korea with 197
sales outlets. Its vehicles cover the mid-range segment (including electric vehicles), the high-
end segment, and the SUV segment.
• Alpine:
Alpine was founded in 1955 by Jean Rédélé, a young man passionate about motorsports.
The Alpine name became legendary when the Alpine A110 Berlinette won the 1971 and 1973
Monte Carlo Rally. Today, Alpine is back with the new A110, a car faithful to Alpine’s timeless
principles of lightness, compactness and agility, with one promise: driving pleasure.
• LADA:
In 2008 Renault initiated a strategic partnership with AvtoVAZ, Russia’s leading automaker.
With Renault consolidating AvtoVAZ sales figues and results from the end of December 2016,
Lada would become a Groupe Renault brand. LADA is Russia’s historic market leader,
covering twenty models and variants in the В, В+, SUV and LCV segments. LADA holds a
share of around 20% of the Russian passenger car market and has the country’s most
extensive dealer network.

21. LOCALIZED BRANDS
• The Renault’s Global Marketing Strategy allows it to produce a mix of standardized
and localized products for the respective regional markets.
• The standardization is only limited in some vehicles; which is the engines, parts and
aerodynamics up to a limited extent.
• Most of the vehicles are unique and limited to their own respective regions; Renault
Samsung Motors brand’s vehicles for the region of East Asia, specifically South Korea.
Renault Dacia’s vehicles for Europa and Eurasia.

22. STANDARDIZED BRANDS
• There are some vehicles that are fully standardized
• As the demand of such vehicles are high in the market due to their global
advertisement and utility of such vehicles in climatic conditions of the country is also
standardized; made for every weather.
• These vehicles included: Megane, Duster, Logan, Kwid and electric cars like: ZOE,
Twizy, SM.3 ZE.

23. ALLIANCE
RENAULT-NISSAN-MITSUBISHI

24. CASE: RENAULT-NISSAN; A MARRIAGE OR
NECESSITY?
• On Wednesday, May 29, 2002, the board of directors of Renault-Nissan BV (RNBV) met for the first time to
discuss the state of the alliance between Renault SA and Nissan Motors-two of the world's largest
automakers. RNBV was a 50/50 joint venture company established in March of that year to oversee the
strategy of the alliance and all activities undertaken jointly by Renault and Nissan. The new company would
"steer alliance strategy and supervise common activities on a global level, while respecting the identity and
culture of each company and not interfering in operations." Executives at both companies believed much
had been accomplished in the first three years of the alliance. Nissan, under Carlos Ghosn's leadership, had
improved its finances dramatically and was rapidly reemerging as a major player in the global auto industry.
Moreover, the alliance partners were in line with their initial forecast of $3.3 billion in cost savings and
synergies promised by 2002, according to their internal reporting. As the board prepared to meet, Louis
Schweitzer and Ghosn believed the alliance faced difficult challenges ahead. To what extent would the two
companies be able to realize further savings and synergies, particularly in the areas of manufacturing and
additional sales? How should the RNBV board address issues that had surfaced as employees of the two
firms worked together across disparate corporate and national cultures, functions, and geographies?
Ultimately, would the two firms be able to strike a balance between deepening their alliance while "respecting
the identity and culture of each company and not interfering in operations?"

25. GLOBAL MARKETING STRATEGY
• Renault’s Global Market Participation shows that; it operates in major world markets.
• Renault uses a mix of Standardization and Adaptation in its Marketing Mix Strategy;
each marketing mix element is executed in different way in each regional market and
the products are a mix of standardized and adapted versions.
• The Concentration of Marketing Activities are performed in according to the region.
• The Coordination of Marketing Activities of Renault are planned independently in the
regional head quarter but always remain in conform to the Global HQ’s strategies.
• Integration of Competitive Moves and marketing tactics are interdependent and
interrelated with the regions. This enhances the performance of Renault on the world
wide basis

26. GMS SHOWS RENAULT IS KNOWN
ACROSS GLOBE AND IT ACHIEVES THE
FOLLOWING OBJECTIVES
• 1 of the top 3 car commercial vehicle brands in each region
• 1 out of every 10 car in the world is Renault
• Present in 128 countries
• Aims to maintain a high level of profitability to contribute positively to growth in the
entire market.
• Increase in the market share
• Borderless Segmentation in Regions and take it as a unit

27. GLOBAL MARKETING MIX STRATEGIES
Renault uses Adaptation in its Marketing Mix Strategy; each marketing mix element is
executed in different way in each regional market.
• Product:
The products of Renault are automobiles. It uses standardization of vehicles in the same
region of its segment but uses adaptation in the different regions of its segments. It has
45 standardized and adapted products sold under 5 brands.
• Price:
The prices are set locally, according to the buying power of the individuals in the market
and the house hold income. In the emerging markets like India, Brazil and China,
Renault has introduced cost leadership pricing through which it gains the market share.
For other regions the price for each specific product is different. Premium for High Tech
Luxury Vehicles, Skimming for Sports Vehicles, Cost Leadership for Passenger Vehicles.

29. CONT.
• Placement:
Renault has setup production facilities in the heart of each region’s market; that ensures
the affluent production of Renault Vehicles. Renault uses its own dealers and distribution
channels in each regional market located at various point in the region that has access to
the targeted areas and target market.
• Promotion:
The Promotion strategy is completely adapted for each region, as the cultural differences
and marking activities are different for each region. The conventional promotional tools
are used for mass advertisement for the region.
Adaptation in the Promotions is heavily used.

30. PRICING STRATEGY
• Market Skimming: In Europa Segment of Renault, it used marketing skimming pricing
strategy to get the maximum profits from the customers that want such luxurious cars.
Renault uses this strategy to achieve its pricing objectives; return on investment, profit
and rapid recovery costs.
• Penetration Pricing: For Utility Driven and Enthusiasts Renault uses this pricing
strategy to penetrate the market by setting a price low enough to build the market
share. In India, Renault used penetration pricing to get the market share.

31. CONT.
• Target Costing:
The company has decided to use the target costing for the Comfort Driven and
Responsible market segments, because these cars would be in high demand in future;
the hybrids and electric cars. So, the production of these cars will be massive. Hence,
increase in the market share and more profit through more market share is the key to
success for Renault in future.

32. CASE STUDY: PRICING OF RENAULT
LOGAN –TARGET LOW INCOME
CONSUMERS

33. ADVERTISEMENT AND PROMOTION
EUROPE

34. FRANCE

35. EAST ASIA

36. GERMANY

37. MIDDLE EAST AND INDIA

38. RENAULT’S ENVIRONMENTAL POLICY

39. R&D
• $5-$8 Billion for R&D; primarily on the research and innovation project for electric vehicles
and low carbon emitting vehicles.
• It has also submitted its budget of $ 90 million for the project of Intel-French embedded
software development for Renault’s autonomous vehicles production and utilization.
• Alliance combine their manufacturing and research functions in a move that have saved
the alliance more than $3.86 billion a year.
• Under the planned structure, Nissan and Renault will be able to assemble cars, using
shared parts, at the same factories. Nissan and Renault will adopt the new structure first at
their jointly held factory in India as early as in 2015, expanding to more than 10 countries
by 2020. The alliance, which together owns nearly 50 factories worldwide, plans to bring
Russian affiliate Avtovaz into the fold.
• The Renault-Nissan partnership, formed in 1999, has said it generated 2.69 billion euros
($3.68 billion) of new cost savings in 2012, up from 1.75 billion euros in 2011.

40. INDUSTRIAL COMPETITORS
Nissan is a Japanese multinational automobile manufacturer headquartered in Nishi-ku,
Yokohama, Japan.
Estimated Revenue: $104b Employees: 150,000 Location: Yokohama,
Japan
Estimated Revenue: $152b Employees: 200,000 Location: Dearborn, MI,
USA
The Ford Motor Company is an American multinational automaker headquartered in
Dearborn, Michigan, a suburb of Detroit. It was founded by Henry Ford and incorporated
on June 16, 1903

41. Estimated Revenue: $166b Employees: 230,000 Location: Detroit, MI, USA
General Motors Company, commonly known as GM, is an American multinational corporation
headquartered in Detroit, Michigan, that designs, manufactures, markets, and distributes vehicles and
vehicle parts, and sells financial services. Founded in 1908.
Estimated Revenue: $135 b Employees: 208,399 Location: Japan
Honda Motor Co. Ltd. is a Japanese public multinational conglomerate corporation primarily known as a
manufacturer of automobiles, aircraft, motorcycles, and power equipment
Estimated Revenue: $252 b Employees: 348,877 Location: Aichi, Japan
Toyota Motor Corporation is a Japanese multinational automotive manufacturer headquartered in
Toyota, Aichi, Japan

42. CRITERIA OF BEING A GLOBAL
COMPANY
• Potential in the product:
The industry in which Renault is working is itself a potent industry and the products that
Renault offers to the Global Market is innovative and has potential in the products.
• Aptitude and Attitude:
The attitude of Renault’s management towards the world market is aggressive and
positive towards capturing the market share by introducing its products in the new
markets and continuously developing new products.
• Whole world – one market:
Renault takes the whole world as one market and utilize its potential to deliver its
products to every continent of the world.

43. CONT.
• Borderless segmentation:
Renault has segmented its market into regions, so it can be said that the whole region is
taken as one unit and there is no borders in the whole region.
• More than 50% revenues outside home country:
France is the home country of Renault; which gives only 15% of revenue to Renault all
the rest of Revenue is generated outside France.
• Best people are deployed:
The truly diverse culture in Renault Groupe and its employees are well trained, the cross
cultural and cross regional sharing of employee skills and competencies shows the
diversity in every aspect at Renault.

44. CONT.
• Organization wide global perspective:
The Organization takes world as a market and its whole perspective has a wide global
reach.

45. THE END