over all report

Upload: ravi007kant

Post on 02-Jun-2018

223 views

Category:

Documents


0 download

TRANSCRIPT

  • 8/11/2019 Over All Report

    1/19

  • 8/11/2019 Over All Report

    2/19

  • 8/11/2019 Over All Report

    3/19

    3 | P a g e

    I. EXECUTIVE SUMMARY

    The main purpose of the project is to analyze the marketing plan undertaken by Duster prior to

    its release, analyze its current position in the market, outline the challenges that it is facing and further

    chart out a marketing plan which would help the Duster face these upcoming challenges and improve its

    market share.

    The initial portion of the report focuses on the marketing plan of the Duster prior to its release

    in 2011. The failure of the Mahindra Logan has brandished the image of Renault and hence Renault was

    under high pressure to innovate and come up with a stellar product to cement its position in the Indian

    car market. Having learnt from its mistakes, Renault placed a high importance on identifying customer

    needs and behavior as a prerequisite to product design. It conducted vast surveys, had expert groups

    observe customer car usage and identified the gap in the SUV market. Renault discovered the compact

    SUV segment through the Duster and offered an SUV with the comfort of a sedan. The Duster offered

    high Value for Money and was quick to strike a chord with the urban Indian car buyers.

    The Duster enjoyed being the single player in the compact SUV segment until 2013. This year

    saw the release of the Ford Ecosport and Mahindra Quanto, which offered better performance features

    and aesthetics at a similar price point. Ever since the release of these compact SUVs, the market share of

    Duster has constantly declined. The main issues identified with the Duster are seating capacity, meager

    leg space, driver seating comfort and the higher price point of certain Duster variants. In order to survive

    in the Indian market, the Duster would have to reduce its price or address some of the major issues

    which customers are currently facing. Renault is looking for ways to increase its market share.

    This project outlines a marketing plan for Renault to face the above mentioned challenges and

    increase its market share in India. The current Duster should be modified to do away with some of its

    feature drawbacks and also improve on internal aesthetics. However, this alone would not be sufficient

    to ensure long term survival in the market. Faced with upcoming competition from SUVs like Ecosport

    and Quanto, Duster has to target a different segment to cement its position. This report evaluates the

    significance of targeting the rural India market, which has been a major market for SUV sales in India.

    Some of the very few SUVs which are specially targeting the rural market are Scorpio, Bolero, etc.

    However, Duster with its unique design and precision engineering has the potential to outshine Scorpio,

    which is the current leader in the rural SUV market. This report outlines a thorough marketing plan for

    Duster LX, a variant of Duster; to enter the rural market, effectively market itself and thereby improve

    its market share in the SUV market. A different set of innovative targeting and positioning plans coupled

    with a stellar promotion and product offering would ensure that the Duster becomes the No.1 preferred

    SUV in rural India.

  • 8/11/2019 Over All Report

    4/19

    4 | P a g e

    II. SEGMENTATION, TARGETING & POSITIONING

    (PRE-DUSTER STRATEGY ADOPTED in 2011)

    Segmentation

    Market segmentation involves dividing the target population into subsets of people withcommon features, priorities and preferences. For example, consumers can be segmented on the basis of

    their age, income levels, geography, etc. When a product is introduced in the market, it is primarily

    targeted at one specific segment and the product is designed to satisfy their needs.

    Demographic Segmentation

    Depending on the segmentation done above, it may be said that consumers in the age group 45-

    54 hold the maximum market share in the Indian automobile market. The people in the age groups 35-

    44, 45-54, 55-64 put a lot of weightage on exterior style, fuel efficiency and comfort.

    From the bar graph given above, we can see that close to 50% of market share of cars goes to

    the people with income between 12 lakhs and 25 lakhs. People in this income group may not be able to

    afford high-end luxury cars or premium SUVs, but would prefer cars in the range of 6 to 10 Lakhs. On the

    other hand, people with income of more than 25 Lakh would prefer luxury cars and people with income

    levels less than 12 Lakhs would prefer the hatchbacks which are available at lower costs.

    Though the market share of hatchbacks and MUVs were higher than that of SUVs, there was

    high competition in the former two segments with a large number of products offering like Ritz, Swift,

    etc. available. Despite having a lower market share, the SUV segment was the fastest growing in the

    Indian auto market.

    0

    50

    18-24 25-34 35-44 45-54 55-64 65-74Above 75

    Market Share of Indian Auto Market by Consumer's Age

    Market Share of

    Indian Auto Market

    by Consumer's Age

    0

    50

    100

    Less than 12 L 12 - 25 L More than 25 L

    Market Share of Car Registrations by Consumer Income levels

    Market Share of Car

    Registrations by

    Consumer Income levels

    0

    100Market Share of Indian Auto Market by Body Style

    Market Share of

    Indian AutoMarket by Body

  • 8/11/2019 Over All Report

    5/19

    5 | P a g e

    Targeting

    A target market is the segment towards which a company has decided to direct its marketing

    activities and its intended product. Market targeting is the identification of a target segment among

    those segments generated in the segmentation phase of the STP analysis.

    Segments structural Attractiveness - PORTERS FIVE FORCES MODELa) Threat of new entrants

    Since the compact SUV segment was one which was being created by Renault, there were no

    competitors in the compact SUV segment at the time of entry. It had a first mover advantage. This

    segment has had Medium level of entry and exit barriers as existing SUV makers could have entered the

    market with little R&D investment, yet a significant expenditure on frugal engineering. Thus, Renault

    faced a threat of new entrant in its niche compact SUV segment as leading Indian SUV makers like: -

    TATA and Mahindra & Mahindra were initially not too keen to enter the new niche created by Renault

    given the uncertain demand and the low margin per vehicle sold.

    b) Threat of intense segment rivalry

    The compact SUV segment was created by the Duster and was the first of its kind. Renault

    duster faced almost zero competition within compact SUV segment at the time of its launch and thus it

    was immune to price wars and advertising battles.

    c) Threat of substitute products

    Though the Renault Duster did not come with significantly new technologies, an array of cost

    cutting features had been introduced. Renault Duster faced low probability of being overshadowed by a

    substitute product in the near future because of its unique hybrid features i.e. ruggedness of SUV

    combined with comfort and fuel efficiency of sedan, which no other product had to offer at that time.

    The Duster hit the right chord with the Indian customers as its price showcased its value for money.

    d) Bargaining power of buyers

    Within this Compact SUV segment, buyers have low bargaining power as they have no other

    option to shift to. The features it offered made it stand out from other products in its price range and

    more suited for Indian roads. There were no products like the Duster which offered the unique

    combination of features mentioned above. Thus, absence of competitors in this segment gave Renault

    the advantage.

    e) Bargaining power of suppliers

    India was becoming the automobile component manufacturing hub where many local and

    foreign manufacturers had set up their manufacturing plants. This gave Renault the strategic advantage

    as there were a large number of standardized local suppliers and the parts made in India were 30%more cost effective than those manufactured in Europe. Thus, the bargaining power of supplier was low

    and Renault could shift to other suppliers with a low switching cost.

  • 8/11/2019 Over All Report

    6/19

    6 | P a g e

    Positioning

    Renault Duster is designed with comforts of Sedan and body style of an SUV. This has created a

    niche segment for compact SUVs. Its success can be attributed to its outstanding pricing strategy and

    value communication strategy. Renault Duster's positioning strategy can be seen through various

    frameworks such as target customers, competitive frame and points of difference.

    Analyzing Competitors

    A company needs to gather information about its competitor's real and perceived strengths and

    weaknesses. Once a company has identified its main competitors and their strategies, then it must

    define the competitive frame of reference to guide positioning. Identifying optimal Points of difference

    and points of parity framework can be used for composing a positioning strategy for Renault Duster.

    Points of Parity Points of difference

    Large Body like that of an SUV Comfort of a SedanStorage spaceBoot High Mileage in the SUV segment

    Seating Capacity Better exterior styling

    Suitable for Rugged Terrain Good value for money

    Renault Duster was positioned as 'shockingly affordable car' outside India but it was

    repositioned as 'for the unstoppable Indian' in Indian market. It was advertised as both on road and off

    road vehicle with high fuel efficiency. Renault duster was priced in a range between expensive and

    affordable cars for customers with income up to 25 Lakh. These target customers make around 55% of

    total market share; hence it is a large segment to target.

    Figure: Renault Dusters Position in the Market

    Indian customers seek the best that can be achieved at low prices. The Duster provided a

    customer centric product by overcoming the shortcomings of an SUV such as low maneuverability and

    low comfort. It was highly localized product having 60% local spare parts. It provided customers all the

    positives of sedan combined in a sturdy and macho looking SUV. It was launched with a very good pre-

    launch strategy with an advertisement with statement "our apologies to those who bought a sedan".

    This commercial positioned Duster against sedans and gave high reach to right audience. Renault got the

    right product and positioned it correctly to strike a chord with Indian consumer.

  • 8/11/2019 Over All Report

    7/19

    7 | P a g e

    III. CHALLENGES FACED BY DUSTER IN THE CURRENT AUTO

    MARKET (2014)When Duster was introduced by Renault in the Compact SUV segment, it did not have any

    competitors. It had the first mover advantage in the Compact SUV segment and enjoyed a monopoly

    status for a period of around 2 years. The Renault Duster sold more than Maruti Suzuki India Ltds Ertigaand Mahindra and Mahindra Ltds Scorpio thrice this calendar year to emerge as a strong contender in

    Indias fastest growing utility vehicle segment. In the backdrop of Renaults ordinary sales network (100

    dealers), it is clear that the Dusters success has been clearly by virtue of its product offerings and price

    point.

    In the UV segment in 2013, the Duster was second only to the Bolero, which had a large

    following in rural India. With the income levels of rural population increasing, can the Duster target the

    Indian rural market?

    However, other auto manufacturers were swift to identify the potential growing market in the

    Compact SUV segment and launch their products. By the end of 2013, there were many more players in

    the Compact SUV segment. The launch of Ford Ecosport in 2013 was undoubtedly the most successfulcar launch in 2013. This sub-four meter car bagged plenty of automotive accolades and also dethroned

    the Duster from being the top selling compact SUV.

    Optimized well with the three different fuel efficient power-trains, stunning looks and best in

    class interiors, the EcoSport has been highly successful to induce the compact SUV and mid-size sedan

    buyers to purchase it. The Duster lacks the classy interiors which the Ecosport offers and has been the

    topic of criticism regarding its cramped leg space, ordinary interiors and high priced models. With the

    future of the Duster uncertain, what should Renault do to maintain/boost its market share?

    From the challenges outlines above, two important questions arise, which can only be answered

    by an in-depth analysis on their cause and scope for future action. The two questions which arise are:

    With very few players such as Bolero, Scorpio in the rural market and with the income levels

    of rural India rising, can the Duster position and market its product in the rural market?

    What should the Duster do to sustain itself and maintain its market share in the urban

    Compact SUV market?

    IV. 5 C ANALYSIS

    The 5C Analysis is the most common way to analyze the market due to the extensive

    information it provides. The 5C Analysis helps a business to gain more information of its internal, micro-

    environmental and macro-environmental factors that affect the functioning of the business.

    (i) Consumer

    Indian buyers are increasingly choosing sedans and crossover models although the market has

    traditionally favored smaller more economical micro cars. Micro cars are usually preferred over the

    larger models because, quite logically, they are more fuel-efficient. This philosophy has enabled Maruti

    to rule the roost over the years with its low-priced and highly fuel-efficient cars.

    According to the J.D. Power Asia Pacific 2011 India Escaped Shopper study, the consumer

    preferences in SUVs vary extensively from region to region in the country. According to the study, in

  • 8/11/2019 Over All Report

    8/19

  • 8/11/2019 Over All Report

    9/19

    9 | P a g e

    (iii) Company

    Renault S.A. is a French multinational vehicle manufacturer established in 1899. The company

    produces a range of cars and vans, and in the past, trucks, tractors, tanks, buses/coaches and auto rail

    vehicles.

    Vision & Mission

    Reach performance at an affordable price while racing to build the worlds cheapest car. Mission

    of the company is to produce modern, robust, economic designs and adapted to new markets,

    expectations and needs. It values customer focus, speed, quality, innovation and environmental

    protection.

    Renault India Product Line

    Renault PulseMid-Sized Hatchback

    Renault DusterSUV-Low Cost Model

    Renault ScalaSemi Luxury Sedan

    Renault FluenceLuxury Sedan

    Renault KoleosSUV-High Cost Model

    A SWOT analysis would be instrumental in describing the strengths of the company, the

    effectiveness of its business model, scope for improvement and its responsiveness to customer needs.

    SWOT analysis is a very good tool to analyze the internal strengths and weaknesses, and the external

    opportunities and threats

    Strengths

    Distribution and Sales Networks Renault has an established an efficient distribution network

    across Europe

    Experienced Business and Production Units Renault has more than 20 full-fledged production

    facilities across Europe Strategic Alliances - Strong brand associations with Nissan , Mahindra etc helped in global reach

    High Growth RateOverall management principles are strong and ensure high growth

    Weaknesses

    Asian Markets - Lacks penetration in Asian and growing markets

    Car Recall - Cases of recall of cars have slightly affected brand image

    Logan FailureFailure and poor positioning of Logan have demeaned Renaults image in India

    Company SizeIt is too small to go global without collaborations/joint ventures

    Opportunities

    Partnerships - Develop & sustain strong partnership with national car manufacturers

    New Acquisitions & Plants New plants should be acquired or set up in places where cost of

    labor is low and where govt. policies are favorable

  • 8/11/2019 Over All Report

    10/19

    10 | P a g e

    Threats

    Competitors Competition with national car manufacturers who enjoy increased market

    penetration as well as brand awareness

    Innovation - Innovative features introduced in competitive cars & hybrid cars which lead to

    product differentiation

    Political factorsLegal and political regulations in emerging markets

    (iv)Collaboration

    1. Partnerships

    RenaultNissan Alliance is a strategicFranco-Japanese partnership between automobile

    manufacturersRenault,based in France andNissan,based in Japan, which together sell more than one

    in 10 cars worldwide. The goal of the Alliance is to increase economies of scale for both Renault and

    Nissan without forcing one company's identity to be consumed by the others. The Alliance achieves

    scale and speeds time to market by jointly developing engines, batteries, and other key components.

    The Renault-Nissan Alliance constructed its first dedicated vehicle manufacturing plant in

    Chennai, India. Established with an initial investment of Rs.45 billion (US$750 million), the plant has a

    combined annual capacity to produce 480,000 vehicles. The facility was set up in 2010 in Oragadam,

    about 40 km from Chennai. Cheap and stable labor, along with convenient supply chain logistics and a

    huge market of automobile ancillary industries have made Tamil Nadu a first choice for them. The

    company intends to further increase capacity to 800,000 units by year 2016 and expanding the model

    range to about 20 cars (including cross-badged products like the Micra & Pulse).

    The focus of the Chennai facility will be on production for export of cars like the Duster, Micra &

    Sunny. The major export destinations will be markets like Brazil, Russia, Indonesia, China and the

    UK. The companies claim that they generate more than 200million per year by sharing warehouses,

    containers, shipping crates, seagoing vessels and customs-related processing due to the alliance.

    2. Suppliers

    The objectives of the RenaultNissan alliance can only be achieved through long-term supplier

    relationships that are focused on growth, performance and profit, and are beneficial to both companies.

    However, they have the expertise, tools and processes to optimize the supply chain jointly with

    suppliers. The alliance also oversees the purchasing of both companies, so as to ensure better pricing

    due to very large volumes. They have also consolidated the logistics operations and supply chain under

    the alliance to reduce the cost. The Alliance Supplier Improvement Program (ASIP) enables Renault and

    Nissan process specialists to work with suppliers to improve process efficiency, saving time, money and

    material.

    3. Distributors

    As of May 2014, Renault India has 130 dealerships in 16 cities across 9states and 2Union

    Territories in India which should grow to about 150 dealerships by the end of 2014.

    http://en.wikipedia.org/wiki/Francehttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/Renaulthttp://en.wikipedia.org/wiki/Nissanhttp://en.wikipedia.org/wiki/States_of_Indiahttp://en.wikipedia.org/wiki/Union_Territoryhttp://en.wikipedia.org/wiki/Union_Territoryhttp://en.wikipedia.org/wiki/Union_Territoryhttp://en.wikipedia.org/wiki/Union_Territoryhttp://en.wikipedia.org/wiki/States_of_Indiahttp://en.wikipedia.org/wiki/Nissanhttp://en.wikipedia.org/wiki/Renaulthttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/France
  • 8/11/2019 Over All Report

    11/19

    11 | P a g e

    (v) Competitors

    The Compact-SUV segment faced a rapid shift and gained a significant market share in the

    automobile sector since the launch of Renault-Duster in 2011. Various automobile manufacturers

    realized the potential of this segment and invested in their design and technology. Four years after its

    launch, Renault Duster has been facing serious competition from Ford EcoSport and Mahindra Quanto.

    There had been a sharp decline in the sales of Duster month over month in the year 2013.

    The table below highlights the differences in the specifications between the three models.

    To keep up with the competition, Renault is likely to launch Duster 44 in the subcontinent

    market by the end of this year. Thus, most of these shortfalls have been addressed in the facelift version

    of Duster. It will be powered by 1.5-lite dCi diesel engine making 110 PS (108.45 bhp) and 248 Nm of

    torque. . Being the top-end variant, the Duster 44 will come with ABS, EBD and dual front airbags.

    V. Segmentation

    A market segment consists of a group of customers who share a similar set of needs and wants.

    We have divided market in geographic segments of rural and urban and then tried to analyze buying

    power of rural segment by further analyzing SEC classification to segment rural markets.

    Geographic segmentation

    Using the geographic segmentation, the customers have been divided into segments based ongeographical areas as urban and rural. It is important to note that the purchasing behavior of the

    customers are influenced on where they live, work etc. The geographic segmentation is furthermore

    useful when there are differences in a location where a product is marketed. There are significant

    differences between Indian urban and rural markets because of cultural factors, traditions, politics etc.

    Auto firms such as Maruti Suzuki and Hyundai Motor are witnessing a rise in sales in rural markets, while

    the industrys overall car sales are slowing. One out of every three cars Maruti Suzuki India Ltd, Indias

    largest car maker, sold in the nine months to December, was to a customer in rural India. Rural market

    size and sales growth of competitors speaks for potential for Renault Duster to look for rural markets.

    Renault Duster Ford EcoSport Mahindra Quanto

    85 PS RxE Diesel Ambiente 1.5 TDCi C2

    On-Road Price (Rs) 8,70,000 7,40,000 6,10,000

    Warranty (Years) 4 2 2

    Max Power (bhp@3750 rpm) 84 89 100

    Max Torque (Nm@1900 rpm) 200 204 240

    Mileage (ARAI) (kmpl) 20.45 22.7 17.1

    Seating Capacity (Person) 5 5 7

    Fuel Tank Capacity (litres) 50 52 55

    Engine &

    Performance

    Dimensions

    General

    Rural India

    68% of Indias Population

    19.2% increase in per-capita expenditure

    57000+ Utility Vehicles sold in Oct 2013(7% rise)

    Steady rise in rural car sales despite overalreduction

  • 8/11/2019 Over All Report

    12/19

    12 | P a g e

    Segmenting Rural Markets

    To further analyze capability of rural markets we need to further segment rural markets using

    SEC groups. The Rural SEC Grid uses Education and Type of House as measures of socio-economic class,

    and segments rural India into 4 groups (R1, R2, R3 and R4)

    SEC R1: Farmers who are landlords, those who are educated and have exposure to urban

    environment, children studying in nearby towns exhibit a lifestyle closer to that of urban areas

    SEC R2: This group includes rich farmers with about 5 acres of land, who may not be educated but

    want their children to be educated. They aspire to have a high social status and own consumer

    durables

    SEC R3: this group has landholdings between 2 acres and 5 acres, and children are studying in

    village schools. They are conservative in technology adaption and own some consumer durable

    products.

    SEC R4: this group is engaged in agricultural labor, has low income, and uses subsidized food grains

    and other products through the public distribution system.

    VI. Targeting

    A target market is the segment towards which a company has decided to direct its marketing

    activities and its intended product. Market targeting is the identification of a target segment among

    those segments generated in the segmentation phase of the STP analysis.

    Criteria for selecting any target Segment:-

    1. Segments size and growth

    Duster already has a wide urban market in the compact SUV segment, however it has negligible

    rural presence across India. Earlier, Renaults focus on urban markets for compact vehicles had paved

    the way for growth in the past, thus looking forward, the investment in rural areas will be instrumental

    in driving future volume growth. The Rural and Semi urban market sector SEC R1 (4.3 % of Rural

    population) comprising of affluent and educated farmers with an urban outlook (with annual income of

    12-25 Lakhs) and sector SEC R2 (12.3% of Rural population) together form the ideal target segment.

    2. Segments structural Attractiveness

    PORTERS FIVE FORCES MODEL

    a) Threat of new entrants

    0 10 20 30 40 50

    R1

    R2

    R3

    R4

    Rural SEC Classification (% of Total Population)

    Rural SEC

    Classification (% of

    Total Population)

  • 8/11/2019 Over All Report

    13/19

  • 8/11/2019 Over All Report

    14/19

    14 | P a g e

    supply chain logistics has reduced the dependency of Renault on too many suppliers. India allows

    foreign manufacturers 100% ownership of local operations. Thus, the bargaining power of supplier is

    low and Renault could shift to other suppliers with a low switching cost.

    VII. Positioning

    Positioning is a very important aspect of marketing after a target segment is selected. Renault

    Duster should be launched with the Brand mantra 'The SUV of Real India', so that it strikes an emotional

    chord with the rural customers. Customer surveys were taken and pilot interviews of rural customers

    were taken. The positioning statement and brand mantra are in line with our survey and interview

    findings.

    Positioning Bulls Eye & Perceptual Map

    The above diagram depicts the positioning which Duster should take up in the rural market.Renault should position the Duster as A safe, comfortable and elite SUV which would provide a travel

    solution for a complete family. The different promotion plans would be based on this positioning

    statement so that it would strike an emotional chord with the rural customer.

    This positioning statement touches upon three key strategies based on the expectations of rural

    customers. First, we position the Duster LX as a complete travel solution for the entire family. One of the

    major aspects a rural customer looks for is the seating capacity. The SUV should have a capacity

    sufficient to carry the entire family. This has been integrated into our positioning strategy. Second, we

    position the Duster LX as a safe travel solution, which would strike an emotional chord. Third, we

    position the Duster LX as an elite product. Since the SEC R1 and SEC R2 have similar aesthetic

    expectations as urban customers, this is a part of our positioning statement.

    Analyzing competitors

    The main competitors in the rural segment are Mahindra Scorpio and Bolero, the market

    leaders. The other main players in the compact SUV segment have not extended their dealer networks

    to rural India. This is one of the main motivators for Duster to enter the rural market.

  • 8/11/2019 Over All Report

    15/19

    15 | P a g e

    Points of parity Points of difference

    Good engine performance.

    Suitable for Rural Indian roads

    Rugged Exterior

    Premium Looks

    Value for money.

    High Mileage

    Perceptual help us to locate the exact location in the market were we have to position our

    product. Scorpio operates in a premium SUV sector equally in rural as well as urban areas. And Renault

    Duster currently operates at an affordable price point in the urban market. The position of the Duster LX

    is as shown in the perceptual map above. The suggested position would allow the Duster LX to tap into

    the rural market without competition (first mover advantage).

    VIII. 4P Analysis

    PRODUCT

    Product Differentiation

    Smaller towns and rural areas are a gold mine that foreign automakers are yet to tap efficiently.

    "One of the prerequisites for any automaker to be successful in rural areas would be availability of after-

    market services. As far as the product is concerned, Fuel efficiency and Ruggedness are some of the

    major features required for the rural market.

    FORM

    Renault Duster will go through the following design changes based on the results of consumer

    survey and other complaints so as to remain competitive in the market. The lower version of Renault

    duster would have the following form which would be positioned primarily in the rural market.

    7-Seater SUVTo attract the rural market, it is necessary for Renault Duster to reposition itself to a 7-Seater

    SUV. This can be done by permanently implementing the 2-seater foldable jump seat which was

    provided as an accessory earlier.

    Leg Space

    Compared to its competitors, Duster has a cramp leg space at the rear. Thus to stay competitive,

    the design of the vehicle should be changed so as to stay competitive in the market.

  • 8/11/2019 Over All Report

    16/19

  • 8/11/2019 Over All Report

    17/19

    17 | P a g e

    car which can cater to the travel and safety of an entire family. Two, its advertisements should clearly

    distinguish the Dusters looks, which gives the owner the feeling of a premium car.

    Resident Executives Promotion Initiative Current sales executives working with Renault who are

    natives of rural areas and aware of the local languages can be appointed as Resident Sales Executives.

    These executives would be assigned responsibility of managing the local dealership and in charge of

    promoting the brand image of Duster LX in their respective native places. Being well aware of the local

    customer tastes and needs, these executives would be more effective in conveying the value proposition

    and USP of the Duster.

    Road Shows Road Shows can be organized with film screenings. This has been a rare but very

    successful strategy used by few car promoters. The film screenings could be based on the life of a

    common man who purchases a Renault Duster LX and subsequent changes that occur in his life. The film

    would illustrate the life of an average villager and thereby would effectively strike a chord with the rural

    masses.

    Sponsoring Local Events Sponsoring events like cricket matches, etc. can be yet another strategy to

    promote the Duster LX. Such events are attended by the youth and the elderly of the village and thereby

    are bound catch the attention of the majority of the village.

    Loan AwarenessSince a greater number of youth from rural areas are starting to purchase cars, credit

    finance and banking facilities should be publicized among the rural population.

    PLACE Expanded Dealer NetworkAn expansion in the dealer network is proposed from the current network

    of around 170 predominantly urban dealers to a network of 700+ dealers in urban, semi-urban and rural

    locations. Rural customers unlike urban customers, show high brand loyalty and a first mover in the

    rural market would have the advantage of striking a long-lasting chord with the rural customers.

    Mobile WorkshopsMobile Workshops should be organized, that could educate the customers about

    the importance of SUV servicing and carry out basic servicing activities on the go. A major concern

    among rural customers would be the availability of after sales service. If Duster LX organizes mobile

    workshops at good frequencies, the rural population would see it as a brand which cares for their travel

    needs and hence would build brand loyalty among them.

    ConclusionNo other car in recent times had created a sensation the Renault Duster has done in the Indian

    Automobile Industry. The Duster's success is more of a marketing achievement than the result of

    engineering excellence. Renault identified a gap in the market and used the customer voice to develop

    an appealing product. However, the last year was not as anticipated for Duster as the sales have

    slumped due to the launch of its major competitor Ford EcoSport. However, other auto manufacturers

    were also swift to identify the potential in Compact SUV segment and launched their products.

    Thus, this report focused on the counter-strategy that Duster should encompass to shrug off the

    competition and also increase its market share by targeting the high-potential Indian rural segment. It

    suggests the launch of a new version of Duster LX with modifications based on the results from theconsumer survey and other pilot surveys in the rural segment. The report also focuses on the Marketing

    strategy including the STPs and 4Ps that Renault should follow to enter into the Indian rural market.

  • 8/11/2019 Over All Report

    18/19

    18 | P a g e

    APPENDIX

    Online Survey Questionnaire & Responses

    The main purpose of the survey questionnaire is to identify the key factors which influence car

    consumers purchase decision. For the entire survey questionnaire, please refer to the link

    below.

    https://docs.google.com/forms/d/1SngmKxVt_Z_4eH-83N8usBeBamHYWh5DakTtA2bDfl4/edit

    The survey obtains the following information from the car customers:

    Personal Information (Age, Income Levels, Family Size, Occupation, etc)

    Key factors that influence purchase decisions

    Feedback about the Duster from its owners and scope for improvement

    https://docs.google.com/forms/d/1SngmKxVt_Z_4eH-83N8usBeBamHYWh5DakTtA2bDfl4/edithttps://docs.google.com/forms/d/1SngmKxVt_Z_4eH-83N8usBeBamHYWh5DakTtA2bDfl4/edithttps://docs.google.com/forms/d/1SngmKxVt_Z_4eH-83N8usBeBamHYWh5DakTtA2bDfl4/edit
  • 8/11/2019 Over All Report

    19/19