A Presentation On:-

Renault-India The Rise of Phoenix

Guided By:- Professor Krunal Joshi

Prepared By:- Manthan ChaunhanNICM,Gandhinagar+91 9428640036

Renault Is a French multinational vehicle manufacturer established in 1899The company produces a range of cars and vans, and in the past, trucks, tractors, tanks, buses/coaches and autorail vehicles

In 2013 Renault was the third biggest European automaker by production behind Volkswagen Group and PSA and the ninth biggest automaker in the world by production in 2013The company is known for its role in motor sport, and its success over the years in rallying and Formula 1

Renault has a 43.4% stake in Nissan, and Nissan holds a 15% stake (with no voting rights) in Renault, thereby giving it effective control

Renault-Nissan and Daimler alliance

Renault-Nissan and Mitsubishi collaboration--to exchange electric vehicle technology between the three companies

Renault India Private Limited is the Indian subsidiary of Renault established in 2005. Originally Renault's presence in India was as a result of the joint venture Mahindra Renault which manufactured the Dacia Logan until 2011

Introduction

Joint venture between Mahindra & Mahindra and Renault

The joint venture is a 51:49 partnership between the two companies The Logan plant at Nasik has a capacity to produce 50,000 units per year

The aim of this joint venture between these two companies was to produce no-frills Logan car with class-defying features at an aggressive price & launch

them exclusively for Indian market with the advantage of using dealers of Mahindra in order to reduce the time required to increase the market shares

The biggest challenge for this joint venture was to design a car model that suits Indian driving conditions which includes contemporary styling and design

Logan was supposed to be the unique product in its segment with above features along with the room for the middle passenger in the rear seat

Reasons for failure

Poor marketing strategies

Market Analysis

Price Margin

Failed to understand the image of the brand

“Low-price tag” car

The Rise of the Phoenix - Renault India

Except the dubious distinction of its logo, the diamond, plastered across Logan, a functional boxy looking car that soon became a favourite with fleet

taxis

Renault roped in Agency Law & Kenneth:-The task was to make people understand the diamond is Renault and not Logan In spite of Renault not being the most well recognised name, the agency was clear that it wasn't going to recommend a celebrity ambassador It tied in well with Renault's own philosophy of consumer as ultimate brand endorser

Three critical elements determine a purchase of a passenger vehicle:--initial valuecost of runningfinally resale

Renault focused on a core model strategy of having 7-8 models rather than offering a "bunch of cars" in IndiaLessons in building and retaining consumer trust after the car rolls out of the Dealership,programs like Renault Care kicked in It offers four years warranty and there's a 24 hour helpline for consumer complaints

SCALADUSTER

PU

LS

EK

oleo

s

Flunce

PRODUCT PORTFOLIO

RENAULT LAUNCHES ITS FIRST CAR IN INDIA IN MAY 2011

SEPTEMBER 2011,Registered 120+ bookings in launch month

SEPTEMBER 2012

JANUARY 2012

JULY 2012

The Entry of DUSTER In the Indian Market

No other car in recent times has created the sensation the Renault Duster has done in the Indian automotive industry

This predominantly European car has won over the Indian consumer. It has turbo-charged the compact sport-utility vehicle segment and revived the fortunes of Renault India

The Duster took the Indian market by storm. It fuelled the segment of compact SUVs and grabbed a 23 per cent market share within a year

How did a predominantly European car win the hearts and minds of difficult Indian customers?

Company went back to the drawing board to understand the Indian customer

41 modifications were made from the European Duster

Survey resulted that Indian consumers liked especially the exterior. a strong dose of chrome on their cars, body-colored bumpers.dual tone interior, andswitches for power windows on the door

Fast (the adaptation to Indian needs must happen within 12 months)Frugal(on limited budget)

Fantastic (with no compromise on quality)

Globally positioned as the ‘shockingly affordable’ car it was re-positioned as ‘for the unstoppable Indian”

Globally sold as Dacia Duster, it was sold as Renault Duster in India due to higher brand awareness among Indian consumers for Renault also Highly Localized, carrying 60 per cent localized parts

3Fstrategy

Renault Duster's success factors

Increased road travel

Image

Competitive pricing

Category growth

Success factors...

Safety

Pre-launchDigital

platform

Associa. with

Cricket

Encourag-ement

“Renault Lounge”

360 media

activities

Three weeks prior to the

launch of the vehicle a

commercial men weeping

and a statement

“our apologies to those who

just brought a sedan”

Three weeks prior to the

launch of the vehicle a

commercial men weeping

and a statement

“our apologies to those who

just brought a sedan”

Renault associated with Cricket

by sponsoring the Extra

Innings (IPL) and Ind Vs SL series where the car was

given to Virat Kohli for being

the ‘Man of the Series’

Renault associated with Cricket

by sponsoring the Extra

Innings (IPL) and Ind Vs SL series where the car was

given to Virat Kohli for being

the ‘Man of the Series’

The company also

encouraged auto

reviewers, journalists from auto

publications, even

bloggers, to test drive the vehicle and write and

speak about it

The company also

encouraged auto

reviewers, journalists from auto

publications, even

bloggers, to test drive the vehicle and write and

speak about it

created at five star hotels,

complete with an LED

entrance arch, circular stage

with LED screens, white

leather couches for

guests and a long ramp as

a strategic driveway for the Duster

created at five star hotels,

complete with an LED

entrance arch, circular stage

with LED screens, white

leather couches for

guests and a long ramp as

a strategic driveway for the Duster

Including television

commercials, radio spots, out-of-home and digital

media activities

Including television

commercials, radio spots, out-of-home and digital

media activities

It also extended to digital platform to reach the right audience for the car Created a lot of buzz among the Indian consumers for the new Renault Duster

Different Launch Strategy

Duster -- A marketing achievement…The Duster's success is more of a marketing achievement than the result of engineering excellence Renault's strategy indicates a coming of age for the car industry in India with focus on customer-centric product development and use of consumer insights to drive engineeringRenault identified a gap in the market and used the customer voice to develop an appealing productIt is a product that delivers a strong value for-money proposition of price, convenient handling and mileage

What has worked for Duster in India?The right product at the right time and price Renault offered what no other car in India offered Aggressive & Innovative marketing strategy Higher Customer Satisfaction, An independent survey from TNS nine months after the launch of the vehicle ranked Duster No 1 in post purchase customer satisfaction Most importantly, Duster emerged as car designed and marketed keeping the ‘Unstoppable Indians’ in mind

How should Renault further enhance its Brand Name..?

How should Renault further enhance its Brand Name..?

THANK YOU !!!