Logan Renault

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...