Renault: Presentation of the Group, Management, Marketing and Communication for the Launching of the New Megane III
The global economic crisis did not spare the automotive sector which witnessed a steep decline in new car registrations in France by 14% in November 2008. Sales forecasts were revised downwards for all manufacturers, as the market fell sharply. The global brands found themselves in trouble and were forced to consider layoffs at General Motors, Chrysler, PSA, Volkswagen and Volvo.
In November 2008, the Renault group was even obliged to practice part-time employment at its plants to reduce inventories. The price of steel increased sharply reducing the profit margins of manufacturers. Under these dismal conditions, the group adhered to "Renault Commitment 2009", which was set up in 2006 with the aim of making Renault the most profitable car manufacturer in the European market. Till now, several measures have been taken with the commercialization of 26 new models in the market. Among these models, Renault relied heavily on the output of the Megane III in order to boost sales in the particularly strained period. What is the marketing approach of Renault in the automotive sector and what is the communication strategy used by Renault for the launch of its new Megane, on which the company was relying heavily?
Initially, we will make a presentation of the Renault group. Then we will study the business, market position and the products of each range of the French manufacturer. In the third part, we will examine the marketing mix implemented by Renault. Subsequently, we will focus on the brand communication of the diamond logo brand. Finally, we will discuss the communication strategy presented by Renault for the launch of the Megane III.
Renault has around 130,000 employees who visualize, design, manufacture and market vehicles that are attractive, safe and environment friendly. Its sales financing subsidiaries offer a full range of financing and services. With the growth plan "Renault Commitment 2009", the Group aims to position itself as a sustainable automaker in Europe's most profitable market.
Renault has established itself internationally. From 1919 to 1929, 30 subsidiaries were created around the world. Thus in 1929, the brand was present in 49 countries in all continents except Oceania. The diamond logo brand was nationalized in 1945 and focuses its production on the 4CV. It became an SA in 1990.
Renault has established a strong horizontal diversification. Undeniably the company offers a wide range of models to meet a wide range of applications. The offer can range from simple small city cars (Twingo, Modus) to family accommodating cars (space) while providing very different “trim” levels depending on each model to meet consumer expectations.
With the development of sales, Renault is positioned against its main competitors. French brands like Renault especially have seen their sales drop sharply in recent years. The reason for this dip is conducive to the lack of renewal of the range. Foreign brands are doing better because of a dynamic range. The diamond logo brand has low-end vehicles such as the Twingo, midrange and high end vehicles with the Vel Satis, or the Laguna Coupe.
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