Marketing and Management Report: Renault KWID Launch in 2018

This report provides a detailed marketing analysis of Renault, focusing on the launch of its KWID model. It begins with an executive summary, followed by an introduction to Renault and its global presence. The report then delves into a thorough marketing environment analysis using the PESTEL framework, assessing political, economic, social, technological, environmental, and legal factors. A VRIO analysis evaluates the company's internal capabilities, followed by a SWOT analysis identifying strengths, weaknesses, opportunities, and threats. The report includes a competitor analysis, comparing Renault to other automobile manufacturers like Tata Motors, Ford, Toyota, and Honda. Recommendations are provided, focusing on target market selection (middle-class consumers) and positioning strategies. The report concludes with a marketing mix analysis, suggesting adjustments to product, price, place, and promotion strategies to maximize the KWID's success. The report emphasizes the need for competitive pricing to target the middle class and gain a strong market position. It also references various academic sources to support its findings and recommendations.

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MARKETING & MANAGEMENT
Executive Summary
The report highlights the importance of external and internal analysis before conducting a
business. The report focuses on Renault, an automobile company located in France. A SWOT
analysis is conducted that highlights the internal capabilities of the company. The competitors
of Renault is analysed and based on that recommendations are provided that highlight the
strategies that the company can use in its marketing mix to promote its product. The product
in focus is the Renault KWID that is to be launched in 2018. The highlight of the
recommendation of the marketing mix is that the prices need to be reduced so that the middle
class can be targeted.
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Table of Contents
Introduction................................................................................................................................3
Marketing environment analysis................................................................................................3
SWOT analysis...........................................................................................................................5
Competitor analysis....................................................................................................................6
Recommendation........................................................................................................................6
a. Target market......................................................................................................................6
b. Positioning..........................................................................................................................6
c. Marketing mix....................................................................................................................7
Bibliography...............................................................................................................................8
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Introduction
Renault is a French automobile manufacturing company. The company is known to
design some of the best luxurious cars that provide comfort for the people purchasing it.
However, earlier, the company had been known to manufacture trucks, tanks, buses and
vehicles for auto rail. Renault was founded in 1899 by the industrialist Renault brothers. The
headquarters of the company is located in Boulogne in France (Group.renault.com 2018).
Over the years, the company have manufactured luxury cars, automobiles and commercial
vehicles. As of recent survey, it has been seen that the company have a widespread area in
which it operates. Renault has its branches in over 118 countries worldwide and a total
strength of 127.086 employees (Group.renault.com 2018). Apart from luxurious cars, the
company have many other divisions that specialise in racing sports cars that are used in
international competition such as Formula One. Recent reports also confirm that the company
had earned a total revenue of €58.77 billion with over 3,373,278 units of production
(Group.renault.com 2018).
The report analyses the marketing environment of Renault and the success of its
products in foreign countries. The product in focus is Renault KWID. It is a multi-purpose
vehicle designed for carrying a minimum of 5 people per ride. The car is set to be launched in
2018 at a price ranging from €6,250 to €10,000. Some of the key features of the car include a
mileage of 25.17 KmpL and a tank capacity of 28 litres. This can be considered as a big step
towards elevating the company and the product as none of its competitors has managed to
attempt such a drastic step in the past. The report highlights the external as well as the
internal factors that may play a big role in the success or failure of the car. Apart from this, a
SWOT analysis is also provided that highlights the capabilities of the company. The
competitors have been analysed that highlight the differences with Renault. The report
provides some recommendations that take into account the target market along with the
position that the company may have after the launch of the product in the market. The
marketing mix is also taken into consideration.
Marketing environment analysis
To understand the external environment of Renault it is important to conduct a
PESTEL analysis that may help to determine the capabilities of the company.
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Political: The political factor of a country plays an important role in the success of a
company or product. Strict government rules are important to consider so that the business
does not violate any rules set up by the government (Grant 2016). For example, if Renault is
to set up business in India, then the company need to analyse the political climate of the
country. This is important as the political factor of India plays an important role in the
success or failure of any business.
Economical: According to López-Gamero and Molina-Azorín (2016), the economic
factor of a country denotes the income level of the people and the fluctuation that the
economy receives. This can be a huge factor for setting up the price of a company as the
income level of the society needs to be kept in mind. The fluctuation of the economy tends to
diminish the purchasing power ability of the customers. Hence, the economic factor of a
country is important before investment. For Renault, this factor can be important as the prices
of the product need to be kept at a competitive parity.
Social: The social factors include the interests of the people to a particular product.
Renault needs to identify the target market based on the interest shown by the people about
the product. This includes people that have interest in luxury cars and aim to have an outing
with the family (Wheelen et al. 2017). Renault needs to target such people and ensure that the
demands of the target market are met so that the company can achieve success in the
international market.
Technological: In the modern day, technology is an important factor that creates a
difference between competitive advantage and disadvantage (Bennett and Chorley 2015).
Renault can install modern technology in its product such as digital inbuilt navigation system,
one-touch reverse gear so that competitors find it difficult to imitate the product. This can
provide a huge competitive advantage for the company.
Environmental: The environmental factor is a big issue in the case of an automobile.
This is because environmentalists single cars out as an item that creates excess pollution.
Hence, Renault needs to ensure sustainability of the product is maintained so that it can
mitigate the risks posed by the Government rules and the legal rules. This can be a huge
strategy for success (Hill, Jones and Schilling 2014). Renault needs to develop the product by
ensuring that the method of pollution control is installed within the car.
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Legal: The legal factor of a country is important needs to be abided by an
organisation. Every country posses certain laws related to the company and the method of
conducting business. In the case of Renault, the company need to ensure that the legal laws
relating to the environment are strictly followed. For example, if the company is conducting
business in the UK then it needs to abide by the rules stated in the Environment Protection
Act 1990.
Having conducted the external analysis, the internal capabilities of the product is
determined by conducting VRIO analysis.
Resource or
capability
Valuable Rare Imitable Organised
to exploit
Impact on
competitive
advantage
Materials used
for production
Yes Yes Yes Yes Competitive
Disadvantage
Innovation Yes Yes No No Competitive
advantage
Price of the
product
Yes No Yes No Competitive
parity
Table 1: VRIO analysis
(Created by author)
SWOT analysis
Strength
 Strategic alliance
 Strong R&D
 Innovative
Weakness
 Operational system
 Cannot penetrate rich markets
 Reliance on one territory
Opportunities
 Growth in Asia
 New model
Threat
 Economic climate
 Competitors
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 Increase in demand  Cost of fuel
Table 2: SWOT analysis
(Created by author)
Competitor analysis
Competitors Comparison
Tata Motors No new cars each year
Ford Expensive prices
Toyota Lack of market penetration
Honda Fails to drag in more customers
Table 3: Competitor analysis
(Created by author)
Recommendation
a. Target market
The target market of the company can be the people middle-class people residing in a
society. It has been widely renowned that the prices set by Renault are not as expensive as
that of its competitors like Ford. It has also been seen that the revenue earned by the company
is quite stable that makes it possible for Renault to try to conduct experiments with the price
of the product. Thus, it can be said that targeting the middle class of the society can help the
company gain a good reputation in the market. Opportunity regarding entering the Asian
market can be grabbed by reducing the prices suitable for the middle-class people.
Consequently, the higher class of the society can even benefit from the prices. Thus, this can
ensure a high rate of sale of the product.
b. Positioning
Based on the analysis of the external factors as well as the competitors, it can be said
that Renault can achieve the top rank in the automobile industry with the launching of
Renault KWID. The features of the product are designed for the ride of a full family that is
always a wanted characteristic particularly in a country like India. The competitors of the
company have certain disadvantages that may prevent them from posing a huge threat. The
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lack of innovative cars in the case of Tata Motors as well as the expensive nature of cars
manufactured by Ford can help Renault to gain a competitive advantage in the market. The
market of Honda has also dropped as it fails to drag in more customers. Thus, keeping these
factors in mind, Renault can establish itself as the biggest car manufacturer in the world.
c. Marketing mix
After analysing the possible competitive advantage that Renault may obtain from the
launching of Renault KWID, it can be said that a marketing mix analysis can be done that
highlights the manner in which Renault can implement itself in the market.
Product: It has already been established that the features of the product are of high
quality and can provide a huge advantage for the customers. However, it needs to be kept in
mind that the quality of the product plays an important role in customer satisfaction. Renault
has to ensure that the fuel capacity of the car is increased so that customers do not have to
spend much on fuels.
Price: The price of KWID is set to be from €6,250-€10,000. This can be lowered so
that the middle class may have an opportunity to purchase the product. This can provide the
company with an opportunity to become a success in the community in which it conducts its
business. The prices play an important factor for the position of the company in the global
market environment.
Place: The place of a business organisation is important as it dictates the popularity
with the target market. Renault needs to conduct a proper analysis of the external
environment of the business market so that it can gain popularity in the country. Countries
with fluctuating economy or strict political rule need to be avoided so that the target of the
company can be achieved.
Promotion: In the modern day, promotion plays an important role in the success of a
company or a product. In the case of Renault, the company needs to ensure that a proper
method of promotion is adopted that can help KWID to gain popularity in the market. One
such method can be promoting the product via television by getting a celebrity to endorse it.
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