dossier international marketing

INTERNATIONAL MARKETING

PERSPECT.

1Fathallah BENOUIDAT, IDRAC Grenoble. INTERNATIONAL MARKETING PERSPECT RENAULT

Benaouidat Fathallah, IDRAC Grenoble.27 Mars 2014.

Introduction :

For this report, I’ve decided to present the company Renault which is one of the biggest company in France but also all over the world. I’ve decided to extend my analysis to the automobile sector and not to be focused on a specific product.

What is interesting with the study of Renault is chiefly the second part because we will analyze Renault in Japan and this study brings us directly to the alliance RENAULT-NISSAN.

Indeed, the adaptation to the Japanese market depended on this alliance and we will study the development of the company in Japan through the alliance RENAULT-NISSAN.

I have chosen the Japan market because Renault was strong in Europe and Amarica latina but not in Asia where Nissan was facing to some trouble. The main objectives of these two companies was to attack mainly China and Japan.


I) The company:

A) History & presentation of Renault

Renault S.A. is a French multinational vehicle manufacturer established in 1899. The company produces a range of cars and vans, and in the past, trucks, tractors, tanks, buses/coaches and autorail vehicles. In 2011, 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 2011.

The Renault group is a French automobile manufacturer founded in 1898 and linked to the Japanese automaker Nissan since 1999. This group has subsidiaries and groups worldwide. Founded by brothers Louis, Marcel and Fernand Renault in 1899, he quickly distinguished himself by his innovations. It was nationalized after World War II because of the collaboration with the Nazi leaders. It is privatized since the 90s.

Today the company Renault am part of the Renault group which includes several subsidiaries such as DIAC, DACIA, RENAULT SPORT. Renault owns 80.1% of the automotive arm of Korean Samsung.

The Renault-Nissan group was created in the 2000s to cope has giants like General Motors and Toyota.

Renault is the eleventh in the world rankings of the largest automotive groups.

B) Executive committee

The government of France owns 15.7 per cent of the company. The company is administered by a board of directors composed of 19 members (10 of them being independent). As of April 2010, members of the board of directors include:


Carlos Ghosn, Chairman and chief executive officer (and also Director of Alcoa, AvtoVAZ; President and chief executive officer of Nissan Motor Co., Ltd.; and Chairman of the Alliance Board: Renault-Nissan b.v.)

Yves Audvard Patrick Biau Alexis Kohler, Director appointed by the French State Marc Ladreit de Lacharrière Philippe Lagayette Franck Riboud Luc Rousseau, Director appointed by the French State Hiroto Saikawa Executive Vice President Purchasing of Nissan Pascale Sourisse Carlos Tavares is the company's chief operating officer Thierry Moulonguet is chief financial officer Louis Schweitzer was Chairman and CEO from 1992 to 2005, in succession

to Raymond Lévy

C) Renault in some figures


D) Micro-Environment

Competitors in France :

PSA :

Founded in 1810 by the Peugeot brothers, this company has its origins in a small steel foundry that provides springs local watchmaking industry. During the 72 years following the creation of new plants emerge. Production is diversified and the company began producing springs, tools, buscs corset, coffee grinders, sewing machines.


It was in the 1970s that Peugeot became the "General Motors " in French by taking under his wing Citroën and Chrysler Europe , whose models were renamed Talbot Samba, Solara ...

Despite numerous collaborations always balanced with various manufacturers such as Fiat , Ford, Renault , Toyota , Mitsubishi, Peugeot defends its independence fiercely . The strategy of the manufacturer based on three points: growth, innovation and profitability to satisfy the greatest number of European drivers .

That is why long folded over the "old continent" , Peugeot continues past few years, its development of new high growth continents . To improve the Group's profitability , the manufacturer shall jointly plants , platforms , political products of the two brands. Finally , as regards the innovation , it is mainly around the engines ( engines , particulate filter ) and concepts

Competitors in Europe :

Volkswagen :

Volkswagen is today Europe's leading automotive group. The group consists of brand such as Volkswagen, Audi, Seat, Skoda, Lamborghini, Bugatti, Bentley, Scania. Unlike PSA and Renault, Volkswagen is a global player because the group operates in all markets. However as PSA, despite the group is a risk of cannibalization at the disposal of all its brands its various global platforms. The group's policy is technical excellence and upmarket brands. Thus offering the possibility of competing brands such as Mercedes and BMW offering but, turning away from the bulk of motorists the opportunity for French manufacturers to strengthen their positions constructor public.

Daimler Chrysler :

DaimlerChrysler is itself the first German industrial group. The group has built world around two axes: luxury cars and trucks. Here we focus only the luxury automotive brand of Daimler Chrysler Mercedes-Benz. The strategy of Mercedes-Benz is extending the range, global expansion and diversification down on promising segments its range. In fact, the brand is aware that the market for luxury car is approaching saturation, the marketing of small cars sober allows the brand to continue to sell luxury sedans. However, despite a downward extension of the brand, Mercedes-Benz targets only the most lucrative part of the market. Regarding the expansion, the brand has a real desire to be a major player in the United States and Japan.

Fiat :

The Fiat group is Fiat, Lancia, Alfa Romeo, Ferrari, Maserati, Iveco, Magetti Marelli (OEM) and Teksid (foundry), a diversification that has its particularity. It is this feature


and the excessive centralization of activities on which heavily penalized the automaker Italy. Mismanagement of these brands: Fiat having a too low-end image, Lancia is too little known, Alfa Romeo is not profitable enough and Ferrari, Maserati being only low attendance, forcing the manufacturer to adopt a strategy rescue and not of development. However, the alliance with General Motors will allow it to benefit from significant financial benefits for redeployment.

International Competitors :

Général Motors :

General Motors has long been the leading manufacturer worldwide, it remains the number one American manufacturers and the world number two. The group includes many brands such as Cadillac, Buick, Pontiac, Chevrolet, GMC, Hummer, Holden, Saturn, Isuzu, Suzuki, Subaru, Daewoo, Opel, Vauxhall, Saab, Fiat Auto. Unlike Fordism, GM's strategy is the diversity of supply by standardizing the technical bases. General Motors is a "giant" considered uncontrollable due to the distance between its head (Detroit) his feet (various markets). However, its size is a huge financial asset to the group for years to loss of growth.

Ford :

Ford is the second largest American manufacturer and the third largest manufacturer. This company is responsible for the mass production and democratization of the automobile. This family company but not least World consists of the following brands: Lincoln, Mercury, Aston Martin, Jaguar, Volvo, Land Rover, Mazda. The strategy of the manufacturer was from the late 90s, a diversification strategy in the parallel services to the automobile such as credit, leasing and rapid repair. However this new investment effort hampered those invested in the revival of models: contributing to the darkening of the brand Ford.

Toyota :

World's leading manufacturer since 2007, the group control four brands: Toyota, Lexus, Daihatsu and Hino. The strength of the manufacturer lies in its production model called the "Toyota way". Conservative original company, it was able to show over time as innovative technically and conceptually. The group is present over the entire range of scales: from the city to the luxury sedan and on all continents microphone. Toyota represents a serious competitor, as its financial strength with its qualitative and technical production for all manufacturers in the world.


Suppliers : 7 companies Faital : speakers Sanden corporation : compressors Axson France SAS : sealants and anti-gravelling Gris Découpage : bearings Componente Auto S.A. : stabilizer bars Denso Manufacturing Argentina SA : air conditioning system Hanjoo Metal Co ltd : wheels

E) SWOT :

Strengths :

the brand awareness

successful development in Asia and the usa

synergies platforms group

planned investments eleven billion

the development of distribution networks in emerging countries

record sales and strong operating profitability

Weaknesses :

the European market weighs more than half of its revenues

production too centralized in Europe, away from growth markets

after sales services too expensive

Opportunities :

the development of superior middle classes in emerging countries

the difficulties of some European manufacturers

favorable regulations for hybrid engines

the further positioning on small formats


diversification in the bike after buying Italian DUCATI

Threats :

a reluctant European market.

competitive pressure is increasing everywhere.

regulations on emissions.

growing protectionism.

few competent suppliers in emerging countries

II) RENAULT-NISSAN IN JAPAN

A) Japan : an open market

The Japanese are affluent consumers who set trends in Asia. Behavior and the provisions of consumers in Japan are so well developed that market differs significantly from the other Asian countries.

Japan is the second largest economic power.

The quality of production processes of enterprises, their ability to regenerate, but also unwavering commitment to putting the customer at the center of their approach, are strengths that enable the greatest Japanese groups to be among the most powerful companies world.

127 million Japanese are all consumers high purchasing power attached to the label «France " and with a personal savings among the highest in the world . GDP / Inhabitant: $ 34,000. Main gray area is the inability of Japan to establish a pro-natalist policy

The innovation leader in Japan


The quality and abundance of Japanese industrial fabric, the excellence of its research centers, make Japan a paradise of innovation, especially in manufacturing. Japan is a leader in R & D as illustrated by the myriad of patents filed each year.

Japanese economic trends

Japan is the second largest economic power. Today despite the rapid growth of its Chinese neighbor for 20 years. The quality of production processes of enterprises, their ability to regenerate, but also unwavering commitment to putting the customer at the center of their approach, are strengths that enable the greatest Japanese groups to be among the most powerful companies world.

Too often, these giants are merely the domestic market and the vastness of its middle class. But a new era: the population ages, the purchasing power of stagnant consumption habits evolve and Japanese companies, whatever their size, must turn to foreign markets. This implies a rethinking of their working methods, an adaptation of their production, but also increased staff training to international trade issues.

Japan was hit by the current crisis. Unemployment rises and the country became aware that its social homogeneity is jeopardized. The country did not have a social protection system adapted to the new contours of a society where insecurity is gaining ground. On this point too, Japan is facing a considerable challenge. Ultimately, the strength of domestic demand depends.

Note, the main employers' association and the Japanese Ministry of Economy and Finance are calling for the opening of negotiations on compliance standards between Europe and Japan. Such an agreement would have a real and positive impact on the Franco- Japanese trade relationship. Moreover, the global economic recovery will almost mechanical stimulus of Japanese exports. In the shorter term, the government injected massive money to revive the economy should be positive


B) A useful alliance

Concluded in March 1999, the alliance of Renault and Nissan responded to a double objective: Renault wanted to become a global player and Nissan, which had accumulated billions in debt and saw its market share shrink every year , looking for a partner to inject capital. Carlos Ghosn, CEO of Renault then helped the recovery of

Nissan reducing costs, streamlining procurement, dismissing and closing factories. Renault says that the French group has provided € 6.4 billion to Nissan and the Japanese accounted for more than 11 billion euros to Renault.

The main features of the Alliance are cross-participation (Renault owns 44.3% of Nissan and Nissan holds 15% of Renault ), a collaboration through group work cross ; pooling purchases via Renault -Nissan Purchasing Organization (which supports 100 % of purchases on or after April 1, 2009, against 30% in 2001 ), the share components (engine, gearbox ... ), a directorate composed of 50-50 executives of the two companies , a model that allows both sides to keep their identity and independence and geographic complementarity (Renault was strong in Europe , North America and South Africa, while the historical territories of Nissan were Japan, North America, Mexico, China and the Middle East).


C) Characteristics of the Japanese automarket

The Japanese automotive industry in figures:

Second largest manufacturer (16.4% market share) behind the United States (18.7%).

First industry in Japan (13% of industry turnover). First employer (4.91 million direct and indirect jobs, 7.7% of the workforce). The first fleet in Asia with 75 million vehicles (9.4% of the world fleet).

A domestic market dominated by Japanese manufacturers :

The Japanese domestic market is stabilizing after 10 years of uninterrupted growth. Toyota unquestionably dominates the market with record results for fiscal year (FY) 2006, with a market share of 44.3%

Foreign car manufacturers settled successively in Japan

Sales of Japanese vehicles are increasing in the world, it is increasingly important for manufacturers to be present near the factories manufacturers in Japan.

Japanese automakers boost their expansion abroad


Manufacturers continue to shift production to lower their dependence vis-à-vis the exchange, to globalize their operations and enhance their international presence and market share, and benefit from growth markets of emerging countries.

The overseas production vehicles Japanese automakers were for the first time than domestic production in fiscal year 2010 (April 2009 to March 2010). Indeed, their overseas production reached 11 million units in fiscal year against a domestic production stood at 10.89 million units.


D) Porter Model

III) An unavoidable presence


As we see, Renault is present worldwide despite high competition. It is very hard to imagine new opportunities of implementations. But it could be two new opportunities in Canada and Australia but needs are not the same and we need to study these ones as we did with Japan.


dossier international marketing

Design

company renault

renaultnissan group

study of renault

fernand renault

renault sport

alliance renaultnissan

volkswagen group

idrac grenoble