Marketing Mix of Renault analyses the brand/company which covers 4Ps (Product, Price, Place, Promotion) and explains the business & marketing strategies of Renault.
Let us start the Renault Marketing Mix:
The company offers a wide range of products to its customers, both locally (Europe) and Internationally. These are based on an in-depth understanding of the markets and its requirements. Renault looks to offer different types and models to different parts of the world, keeping in mind diversities and needs. Most of the vehicles launched are unique to a region in the world. However, certain top performing models are standard across all markets.
Being a European brand, the company enjoys a considerable amount of success in this region, with half the overall sales being generated from this part. The Renault Clio IV and the Duster have been most successful during the recent years. The Clio has been a star performer across Europe while the Duster has found great success in the Middle east and Asia. Apart from these, the Sandero, Logan and the Captur have been substantial performers for Renault.
Recently, Renault, along with the partnership of Nissan, have revived the hybrid and concept vehicles into the market. With heavy investments in the electric vehicle segment, the company is now looking to develop more sustainable, environment friendly and clean vehicles. The company has a history of being associated with acceptable emission norms. In 2013, the Renault engines had the lowest carbon di oxide emission figures in Europe. The commercial vehicle unit of Renault has been considerably successful under the Volvo brand name. also, Renault offers financial services on its vehicles and undertakes vehicle distribution by itself. This concludes the products in the Renault marketing mix.
Image: company website
Keeping in mind the markets it caters to, and the type of vehicles it manufactures, Renault has a clear pricing strategy. Vehicles are categorized into segments according to the markets they target. The major categories are of small budget vehicles, SUV’s and luxury sedans. Each of these has a clear price range and all the products offered follow the same. The pricing strategy in the marketing mix of Renault is not only dpeendent on category but also based on competition.
Vehicles are launched in markets depending on the competitors and their offerings. For example, the Indian portfolio consist of the Kwid (Entry level vehicle) offered at the entry level price. The Pulse (mid-sized vehicle) is priced slightly higher, according to market prices. The Duster (premium SUV) enjoys a comparatively higher price while the Fluence (luxury Sedan) and the Koleos (Luxury SUV) are priced the highest. Each market influences the pricing for Renault. The company is perceived to be a competitive price taker and a value for money by the customers.
The manufacturing units of Renault have been largely based in the native region. Europe alone accounts for about 75% of the total manufacturing units across the globe. This strategy is in-line with the primary market and sales network for Renault. The company attracts major sales from these parts of the world. The top 5 markets for the company are in Europe. France is the single largest market for the company, therefore, having multiple manufacturing and design facilities.
Apart from Europe, Renault has expanded its base to other parts of the world as well. Manufacturing as well as design units have been setup in Asia, Africa and South America to cut costs and reach out to newer markets. The manufacturing units comprise of design centres and development centres as well. Renault company tries to minimize its inventory carrying costs and export costs. The newer manufacturing units have helped in this regard, in turn helping the company reduce price of the products in these emerging markets.
Being an automobile brand, the promotional strategy in the marketing mix of Renault pretty much is comprehensive and uses all types of media for brand awareness. Much like many other internationally claimed automobile manufacturers, Renault is one of the major promoters of various rally racers and events. The company has been involved in rally racing for a long time. Renault powered engines have gained wide acceptance in the racing circuits. The company utilizes this opportunity to promote itself as a clean, efficient and reliable manufacturer.
Renault has also been associated with the F1 rally racing as a design and technology partner as well. The company looks to create prototypes each season to enable newer designs and better technology. In India, Renault has signed popular Movie Stars and celebrity brand ambassadors for their promotion. Hence, the marketing mix of Renault is explained above.
Groupe Renault, or, the Renault group, is a French car-maker, known for its modern design and affordable pricing. The company was established in 1899 in the French town of Boulogne-Billancourt, near Paris. The company, as of 2013, was the 11th largest automobile manufacturer in the world based on production volumes. The company has multiple ventures at present, with successful partnerships with other major manufacturers across the globe, including Nissan and Mahindra. Presently, the Renault-Nissan collaboration has been a remarkable success.
Apart from these, Renault also diversify into other products such as heavy vehicles, commercial vehicles, and engine manufacturing. Renault owns stakes in the Daimler AG group, providing engines to Daimler’s Mercedes A class and B class cars. Commercial vehicles offered by Renault were previously part of the Volvo truck segment. Also, Renault group has its presence in the automotive financing and distribution and vehicle spares as well. The company has revenues of €45+ billion converting to a total profit of approx €3 billion.
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