Submitted by: Submitted by andark
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Category: Business and Industry
Date Submitted: 10/16/2011 10:10 AM
RENAULT – France (1989) Luxury Automobile Company
to attract consumer in developing countries, where 80% have never owned car.
1999 Renault bought DACIA - Romania
Oil price still in check
Consumer demand high for powerful/ larger automobile
to attract consumer in developing countries, where 80% have never owned car.
Status Symbol Luxury brand sell low price version
Logan has been an unqualified success, beating Renault’s most optimistic projections Logan success in developing countries like Romania Market fact:
• At Poland – entry level autos 30% of the market • In Russia – 90% auto market falls in 8000-10.000 euro range
Logan Price:
• Currently (normal) = 6,000 euros, at ultra-low end price • In developing countries: Price range of large masses of consumer.
Target 1 million Logan sold worldwide in 2010
• Only 23,000 units in 2004 (its first year) • 250,000 units in 2007
300,000 – 400,000 units sold annually in US
• US is biggest market in automobile
India and China are part of the Plan
Competitor: Volkswagen and Tata
Condition in Western Europe
• Added some additional features • Keep the price well below • Aspiration view about car: “a car is only means of transportation”
Renault’s Logan is anything but luxury.
• Well-design, reliable, easy-to-repair, seat for 5 people
Simple design features – low cost.
• Flat windshields, minimal electronics, single piece dashboard
Low cost manufacturing
• Close to their key market, which factories located in: Russia, Morocco, Colombia, and Iran.
Beyond income, can you see other barriers to sell cars to consumer in developing countries where 80% have never owned a car?
Be a specific as you can about the consumer-related barriers, including culture, value, new product adaption, etc
• Culture: Modern and Traditional
• Value: Collective but Competitive, Active, Family Orientation. • Buying orientation: flexibility and all problem solutions (at purchasing...