...1. Renault Duster Case Study 2. 2. Renault India • Renault came to India in 2005 in a JV with Mahindra and launched the Renault-Mahindra Logan • Within a short span of 5 years, Renault ended its JV with Mahindra and planned to strengthen its network in India by launching new cars by 2011 • Fluence became the first car launched by Renault in India • Expanded it portfolio by launching Koleos and Pulse • However, it was 2012 which proved to be a tipping point for the company when it launched its iconic compact SUV Renault Duster 3. 3. Dacia Duster • Duster was officially launched at the Geneva Motor Show, by the Romanian based Dacia group • Dacia is one of the Romania based automobile company founded in 1966 • It was later acquired by Renault in 1999 with an ambition to make Romania the automobile hub for Europe and Central Asia • Duster positioned as the ‘shockingly affordable car in Europe is considered as one of its most successful launch 4. 4. SUV Market in India SUV’s MUV’sVehicle Categories in India Renault’s Category Innovation Compact SUV A SUV that married the comfort of a sedan, to the rugged strength of a SUV 5. 5. Renault Duster “Made in India” • Globally sold as Dacia Duster, it was sold as Renault Duster in India due to higher brand awareness among Indian consumers for Renault • Globally positioned as the ‘shockingly affordable’ car it was re-positioned as ‘for the unstoppable Indian” • Highly Localized, carrying 60 per cent localized parts 6. 6...
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...changes under different brand names, has not worked so far in India. This case study looks at In January 2012, Japanese auto major Nissan's Indian subsidiary Nissan Motor India sold 1,855 units of its compact car Micra. The same month French carmaker Renault launched its compact car Pulse in India. In February this year, Micra sales were down to 608 units, while Pulse sold 420 units. Turn to sedans. In August 2012, Nissan's sedan Sunny sold 2,757 units. In September that year Renault launched its sedan, Scala. By February this year Sunny sales had fallen to 1,191 units, while Scala sold 620 units. And guess what? Nissan and Renault are not even competitors. They have been strategic partners since 1999. Micra, Pulse, Sunny and Scala are all products of the Nissan-Renault alliance. Or take German car manufacturer Volkswagen's sedan Vento. It sold 3,474 units in India in October 2011. A month later, carmaker Skoda launched its sedan Rapid. Vento's sales have since fallen to 1,909 by February this year. Once again, Skoda is part of the Volkswagen group - Vento and Rapid are from the same stable. In fact, Micra and Pulse are essentially the same cars, with some cosmetic differences, made in the same factories, but sold under different names. So too are Sunny and Scala, or Vento and Rapid. Welcome to the strategy of crossbadging , or selling the same car under different brand names - a concept new to India, but used for decades in the United States and Europe to ...
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...TUTORIAL 8: CARLOS GHOSN: LEADING FOR GLOBAL SUCCESS AT RENAULT-NISSAN ● Summary [Identifying key issues] ■This case discusses Japan’s number-two automobile manufacturer,. (www.nissan-global.com), its CEO Carlos Ghosn, his leadership style, and the company's strategy. The questions focus on these issues and whether the strategy of Renault-Nissan is global or multinational. The case provides a good example of a firm that uses a global, integrated strategy for its worldwide operations. It is also a good example of a large company with ambitious goals to produce high quality products and sell them on every continent. BACKGROUND ■ Based in Tokyo ■ 2009- Sales were nearly $90 billion ■ Management planning to launch 48 new car models ■ A few years ago- on the verge of bankruptcy. ■ Renault- The French automaker took a 44 percent stake and installed Carlos Ghosn as Nissan’s CEO ■ Dramatic turnaround- Ghosn returned Nissan to profitability and became a celebrity in Japan ■ Ghosn- Born in Brazil, raised in Lebanon, and educated in France, he is a charismatic leader who speaks four languages and is idolized for saving one of the world’s premier car companies. ■ Ghosn closed inefficient factories, reduced Nissan’s workforce, curbed purchasing costs, shared operations with Renault, and introduced new products. NISSAN’S ORGANIZATIONAL CULTURE ■ Ghosn cut through antiquated thinking, defying Japan’s often bureaucratic and clubby business...
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...In January 2012, Japanese auto major Nissan's Indian subsidiary Nissan Motor India sold 1,855 units of its compact car Micra. The same month French carmaker Renault launched its compact car Pulse in India. In February this year, Micra sales were down to 608 units, while Pulse sold 420 units. Turn to sedans. In August 2012, Nissan's sedan Sunny sold 2,757 units. In September that year Renault launched its sedan, Scala. By February this year Sunny sales had fallen to 1,191 units, while Scala sold 620 units. And guess what? Nissan and Renault are not even competitors. They have been strategic partners since 1999. Micra, Pulse, Sunny and Scala are all products of the Nissan-Renault alliance. Or take German car manufacturer Volkswagen's sedan Vento. It sold 3,474 units in India in October 2011. A month later, carmaker Skoda launched its sedan Rapid. Vento's sales have since fallen to 1,909 by February this year. Once again, Skoda is part of the Volkswagen group - Vento and Rapid are from the same stable. In fact, Micra and Pulse are essentially the same cars, with some cosmetic differences, made in the same factories, but sold under different names. So too are Sunny and Scala, or Vento and Rapid. Welcome to the strategy of crossbadging , or selling the same car under different brand names - a concept new to India, but used for decades in the United States and Europe to boost sales. "Automobile makers resort to cross-badging to save on engineering, design and product development costs...
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...Nissan Company: Abstract * Nissan is one of the world’s largest automobiles company, * Manufacturing locations in 18 nations and serving in around 160 locations. * In year 2007, Nissan’s Executive Vice President, Tadao Takahashi mentioned its strategy of moving to transnational from multi-domestic so at present Nissan has increased its focus on emerging markets like India and Russia. This presentation aims to evaluate Nissan’s “Go-Global” strategy. In this analysis, we will try to assess the various imperatives that ……… * Company has to operate at multiple locations, * How it chooses among various locations * How it goes about implementing the expansion plan. * Studying Nissan’s global strategy and focusing on its moves specifically in India and Russia. This analysis will conducted by using various analysis tools like porter 5 forces, SWOT analysis, and PESTEL analysis as well value chain and after analysis will suggest the better strategy for betterment of company and for future prospects. Introduction With the increasing trend of globalization and heightened competition, most of the companies at some point of time think of expanding to new locations because of different imperatives ranging from efficiency, growth, competition, knowledge or mix of few. Each company decides its own parameters while making strategic choices of a market or a country NISSAN at a glance: * Nissan is a multinational automaker headquartered in Yokohama,...
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...Ghosn Bets Big on Low-Cost Strategy African Plant Underscores Race to Head Off Chinese, Indian Car Makers TANGIERS, Morocco -- The plan by French automotive group Renault SA and Japanese partner Nissan Motor Co. NSANY -0.75% to build a joint assembly plant in this North African port city highlights the accelerating race among global car makers to redefine the meaning of "low cost" for the auto industry, not just for emerging markets but for the developed world as well. With the sort of flourish that has become his trademark, Renault-Nissan Chief Executive Carlos Ghosn flew to Tangiers Saturday, where, in a carpeted tent overlooking the Mediterranean Sea, he signed the draft agreement with Morocco Prime Minister Driss Jetto for the future Tangiers plant. If Renault-Nissan and the Moroccan government can agree on certain key details, the two companies will invest as much as €1 billion ($1.36 billion) to erect one of the largest auto-production facilities on the African continent, designed to feed low-cost cars and trucks to showrooms in Europe, Asia and North America. The plant's initial capacity of 200,000 vehicles per year will increase gradually to 400,000 a year, including variants of Renault's low-cost Logan car line and a new range of $10,000 trucks under development at Nissan, the companies said. The plant is slated to open during the second half of 2010. Mr. Ghosn said moving into the no-frills segment represents a tough challenge. He set a high standard for...
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...Project – SUV Market in India Success of Mahindra XUV 500 By: Amit Ahi Samir Chitkara Dr. Bhaskar Sonowal Anirban Sarkar Amit Dass J.Mohapatra Dwarka Nath Sharma Table of Contents Current market Size & key market trends 5 India’s Socio demographic profile 5 Indian Automobile Market 6 Size of Indian Automobile market 7 Key Market Trends for SUVs / Automobiles 8 Key market trends of SUVs 10 Segmentation of the market 11 Price Based Segmentation 11 Entry Level 11 Mid Segment 11 Premium Segment 11 Luxury 11 Price Wise Segmentation for Indian SUVs 12 Usage Based Segmentation 13 Off Roading: 13 Soft Roading: 13 Consumer Behavior noticed in Buying SUVs 13 Psychological factors 13 Personal Factors 14 Social Factors 14 Positioning of different brands in SUV market in India 15 Entry Level SUVs: 15 Renault Duster 15 Mahindra Scorpio 15 Tata Safari 16 Mid Segment: 16 Tata Aria 16 Force One 17 MAHINDRA XUV 500 18 Skoda Yeti 18 Ford Endevour 19 CHEVROLET Captiva 19 HONDA CRV 19 TOYOTA Fortuner 20 Key Advertising and Promotion campaigns adopted by leading brands 21 Mahindra XUV 500 21 Digital Marketing – FAce Book & Twitter 21 Launch Campaign 21 Force One 21 Big B as the Brand Ambassador 21 Toyota FORTUNER 23 Campaign Tag: “The Art of Power” 23 Toyota Fortuner Marketing Campaign: Experience the Power of Art on your Mobile 23 Results and achievements 24 RENAULT DUSTER 26 Big, Beautiful...
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... and where relevant ethical concerns. Submitted on December 10, 2010 The internationalization of Renault : a strategy of development in emerging countries Nowadays, Renault is the car manufacturer of reference in France, ahead of Peugeot and Citroën of the PSA group. The Renault-Nissan alliance, established in 1999 and based on two independent companies with their own culture and their own brand identity, is the fourth largest automotive group in the world. After experiencing some difficulties in the 80's, Renault has developed an aggressive strategy of international development that makes it today one of the key players in the global automotive market. By focusing on cultural, political, legal and ethical issues, we will first explain the different stages and difficulties in the internationalization of the group. Then, we will study its different implementation strategies in the several new markets and finally, we will discuss the consequences of the internationalization of Renault. The story of Renault started on the 24th of December in 1898. The society Renault Frères grew rapidly and in 1903, Fernand Renault started to develop the commercial network of the company and created the first subsidiaries abroad – England, Belgium, Italy, Germany, Spain and the United States. However, because of collaboration during the 2 nd world war, the state became owner of Renault Frères in 1945. During this period, the internationalization was started but limited : only some european...
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...Ginger Hotels Name Grade Course Tutor’s Name 25-3-2013 Outline i. Introduction ii. The generic strategy iii. Strengths iv. Weaknesses v. Human resource and Marketing policies vi. Recommendations Introduction Ginger hotels are subsidiaries of the Indian Hotels Company Limited (IHCL). These hotels are based in India and have been in operation for more than six years. These hotels were established by Roots Corporation Limited. This paper will explore the generic strategies, identify the sources of competitiveness of Ginger as well as its strengths and weaknesses as a business entity. Recommendations and the future prospects will also be discussed. The generic strategy Ginger hotel came into existence as one of the greatest innovative concepts of IHCL group. This hotel is signified by well budgeted hospitality that targeted the middle-class in the Indian market. The hotel was designed to ensure a larger percentage of the Indian population could afford luxurious hospitality. However, the hotel has not been as successful as it was deemed to be even after operating in the Indian market for over six years. It is experiencing slow growth rate with several of its subsidiaries still adjusting to the market environment (Odoom 4). Ginger hotel is designed to target customers who are conscious of their expenses. These are consumers who prefer value over luxury (Odoom 12). Therefore, the prices offered by these hotels are lower. The current...
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...Term Paper Of Research Methodology (A Perspective on the Future of Small Cars in India) Submitted to: Submitted by: Ms. Kanika Jhamb Naveen Bangwal Roll no. - 05 Section – A17B2 Reg. no. -7470070078 B-Tech (h) - MBA (IT) Table of contents Abstract introduction objectives and scope of the study RESEARCH methodology literature review tata’s nano conclusion recommendations bibliography abstract A strong car brand can create significant value in the automotive industry. The price consumers expect to pay for otherwise identical luxury vehicles can vary as much as $4,000, depending on the car's brand. For mass-market cars, brand helps determine which products a consumer considers buying. Furthermore, superior brands extend their halo across every model of vehicle within the brand. It's no surprise that most auto manufacturers make brand positioning and development a key item on their marketing agenda. Because of the prominent role that brand positioning and development play in many auto manufacturers' business strategies, this research has been conducted under extensive research and analysis to better understand how consumers think about car brands. The study analyzes the set of factors which provide valuable insights into consumer brand perceptions. The...
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...Renault Nissan Alliance Cotina Mills BSA 555 MBA 462 October 21, 2013 Dr. Peter Natale CERTIFICATION OF AUTHORSHIP: By my signature, and to prevent HONOR CODE violations, I certify that I am the author of this paper and that any assistance I received in its preparation is fully acknowledged and disclosed in the paper. Through the use of APA format, I have cited any sources from which I used data, ideas or words, either quoted directly or paraphrased. I also certify that this paper was prepared by me specifically for this course. Student Signature: __________________________________ Cotina Mills Table of Contents Introduction ……………...………………………..………………………………………….. 3 Vision……………………………………………..…......……………………………………..4 Mission…………………………………………………………………………………………4 Issue…………….………….………………..………………………………………………….5 Strategy…..…………………………………..…………………………………………………7 Current Operations……………………………………………………………………………...9 Introduction Renault–Nissan Alliance is a strategic Franco-Japanese partnership between automobile manufacturers Renault, based in Paris, France, and Nissan, based in Yokohama, Japan. Together they sell more than one in 10 cars worldwide. The companies have been strategic partners since 1999 and have nearly 350,000 employees. They control seven major brands: Renault, Nissan, Infiniti, Renault Samsung Motors, Dacia, Datsun and Lada. The car group sold 8.1 million cars worldwide in 2012, behind Toyota, General Motors and Volkswagen. As of July...
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...With the advent of vehicles like Mahindra Quanto, Premier Rio and Renault Duster launched in the country, the Compact SUV market is making a name for itself with more and more consumers moving towards this segment. Claiming to give an experience of both the worlds; a compact premium hatchback and an entry level sedan, the makers of these SUVs are pitching the product to appeal to a younger, professional and lifestyle oriented users. According to Vivek Nayer, CMO, Automotive Division, Mahindra and Mahindra, the brand that launched Quanto two months back, says that Mahindra is trying to create a new segment as the market for compact SUV was non-existent in India. He explains that this segment will appeal to hatchback owners, entry level sedan owners and SUV owners as well. There are areas and scope for improvement in each of these segments. For example, he says hatchbacks are compact, have decent mileage and have easy manoeuvrability but do not have the presence, high ground clearance or the space of an SUV. “We believe that the compact SUV is the best of both worlds, it allows the user to get the feel of both the worlds. It is compact from the outside, easy to manoeuvre in the city, and at the same time spacious from the inside,” adds Nayer. Change to compact Umang kumar, Co-Founder and CEO Gaadi.com affirms that the segment has gained popularity, but only over the past few years in India. “People in India now indulge in more outdoor activities compared to the past. This is...
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...1. Why is the low cost market of strategic interest to the automotive industry? Growth of the automotive industry in the developed world has started to decline or become steady, the car manufacturers are now shifting their focus on emerging markets for capturing new opportunities, i.e. low-cost cars, presenting substantial potential for growth According to Roland Berger Strategy Consultants, by 2012 the global market for vehicles priced under 6,500 EUR is likely to reach 18 million cars, or a fifth of world auto sales. That's up from 12 million today. Fresh demand is springing up not only in emerging markets such as China and India, but also in the richer western nations, where the cost of buying and running a car has significantly outstripped income growth As a result, many consumers are becoming more and more willing to compromise on comfort, basing car purchase decisions mainly on price instead. In the emerging markets, the new middle class demands value for money automotives. Since they are willing to buy new cars a potential car seller has to meet price With the mid-range price segment shrinking, companies can only earn money on expensive premium offerings or in the low cost segment. At the same time, high fuel prices are driving down demand for large SUVs while boosting sales of small cars. Despite Western Europe‘s prosperity, car prices have outgrown the wages. As a result, many consumers are becoming more and more willing to compromise on comfort, basing car purchase decisions...
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...Renault-Nissan Alliance is a strategic Franco-Japanese partnership between automobile manufacturers Renault, based in Paris, France, and Nissan, based in Yokohama, Japan, which together sell more than 10% cars worldwide.[1] The companies, which have been strategic partners since 1999, have nearly 350,000 employees and control six major brands: Renault, Nissan, Infiniti, Renault Samsung Motors, Dacia and Lada.[2] The car group sold 8.1 million cars worldwide in 2012, behind Toyota, General Motors and Volkswagen for total volume.[3] The strategic partnership between Renault and Nissan is not a merger or an acquisition. The two companies are joined together through a cross-shareholding agreement. The structure was unique in the auto industry during the 1990s consolidation trend and later served as a model for General Motors and PSA Peugeot Citroën,[4] PSA Peugeot Citroën and Mitsubishi, and Volkswagen and Suzuki,[5] though the later combination failed.[6] The Alliance itself has broadened its scope substantially, forming additional partnerships with automakers including Germany's Daimler, China's Dongfeng Motor, and Russia's AvtoVAZ. Corporate Structure and Strategy The Alliance is a strategic partnership based on the rationale that, due to substantial cross-shareholding investments, each company acts in the financial interest of the other—while maintaining individual brand identities and independent corporate cultures. Renault currently has a 44.4 percent stake in Nissan, and...
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...RELEASE January 17, 2012 RECORD SALES FOR THE RENAULT GROUP IN 2011 The Renault group sold 2,722,062 vehicles worldwide, an increase of 94,697 (+3.6%). Sales outside Europe rose 19.2% and now account for 43% of the total. 2011 highlights • • Strong growth was driven by sales outside Europe and by the Renault brand (+6.8%). In Europe, Renault remained the No.2 brand for passenger cars (PC) and light commercial vehicles (LCV), taking 8.6% of the market. The Renault group led the LCV market for the fourteenth year running, with a 15.6% share of the market. Renault laid the foundations for the future by launching a range of Zero Emission (Z.E.) vehicles at year’s end, including Fluence Z.E. and Kangoo Z.E. Recently named International Van of the Year 2012, Renault’s electric van was selected by 19 major French companies (winning a contract to supply 15,600 vehicles). • Commenting on these results, Jérôme Stoll, Executive Vice President, Sales and Marketing & Light Commercial Vehicles, Chairman of Europe Region, said: “In 2011, the Renault group beat its own record, selling 2.7 million vehicles, and pursued its global expansion, generating 43% of its sales outside Europe. Despite mixed results in Europe, Renault remains the market’s No.2 brand and was the LCV leader for the fourteenth year in a row. Last year also ushered in the era of the affordable electric vehicle, with the launches of Renault Fluence Z.E. and Renault Kangoo Z.E.”. Corporate Communications 68 quai...
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