The logan's Renault

Résumé du document

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.

Extraits

[...] Alliance Cooperations / Institutionnal Renault-Nissan Agreement. Yoshikazu Hanawa and Louis Schweitzer Now, the Renault group has over 350 industrial and commercial sites in over 40 countries, and employs 130,740 people worldwide. In 2003, the group generated revenues of EUR 37.5 billion, an increase of Renault's bi- national alliance with Nissan - 5,357,315 vehicles sold in 2003, is one of the world's top five automobile manufacturers. B. Type of business ACTIVITIES THE GROUP'S BUSINESS ACTIVITIES ARE DIVIDED INTO TWO MAIN AREAS: THE AUTOMOBILE DIVISION, WHICH HANDLES DESIGN, MANUFACTURE AND MARKETING OF VEHICLES, AND THE SALES FINANCING DIVISION, CLOSELY LINKED TO THE GROUP'S SALES ACTIVITIES. [...]

[...] Nevertheless, Renault is a French company. It thus has a strategy for its country and for Europe. Indeed on these markets, Renault benefits from its fame: its strategy thus is to consolidate in this position. The heart of its international growth strategy is to have a physical presence on markets in term of volume but most importantly from the quality of its products and services. Renault wants to be known for its innovation's capacity and for the reliability of its products. [...]

[...] That is what the Logan represent for them. - Dacia is present in Western Europe and this is the first reason that is going to be more easy for Renault to conquer those markets. WEAKNESSES - The fact that Logan cost only 5000€ should be a risk for Renault to change its corporate image due to the low price of the car. It could happen in Western Europe where the brand is well known. - Even if the manufacture of the Logan costed less than usual for Renault, it is a big investissment on an unknown market. [...]

[...] The truck division, which absorbed Saviem and then Berliet, became Renault Véhicules Industriels and acquired a stake in American manufacturer Mack Trucks. The brand became involved in motor racing, winning the Le Mans 24-hour race and in 1977 moving into Formula a sport in which it soon scored a string of victories. But the company's ambitious growth and product policy, overstaffing and mushrooming costs led the company into a spiral of deficits which became intolerable when the years of high inflation came to an end. [...]

[...] but American manufacturers were still responsible for 85% of automobile production worldwide. By the eve of the Second World War, the SAUR had become a veritable corporation. At the end of the Second World War in 1945, the company was nationalized for being "an instrument of the enemy" and became the RNUR (Régie Nationale des Usines Renault). It was during the sixties that the RNUR, headed by Pierre Dreyfus, has continued its development. The strategy was based on two main ideas: corporate planning, in order to clearly define the direction the company would take and how it would get there, and exporting half of the company's production, to ensure growth. [...]