Marketing orientation and its importance in planningFor assignment help please contact at help@hndassignmenthelp.co.uk and

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Harris (2002, p. 247) Defines Marketing Orientation as "The extent to which

an organisation is perceived to act in a coordinated, customer and

competitor-oriented fashion." Narver and Slater's (1990) also confirm there

are three dimensions of Marketing Orientation, customer orientation,

competitor orientation, and interfunctional coordination.

With marketing orientation, a business revolves its strategic decisions

around the wants and needs of the target market, including potential

customers. A company that is marketing-orientated has the commitment to

valuing customers and the customers' needs. In fact, it can even contribute

to the transformation of a company's business culture.

This marketing concept involves three essential steps in being customer-

focused. First, the wants and needs of the customers are researched and

identified. Then, the research outputs are studied by the marketers and new

products are created based on the consumer needs. Finally, customer

satisfaction is aimed after public awareness and introduction of the product

is made.

A marketing-orientated business is characterised by various attributes. The

company makes good and extensive use of marketing research, develops

new and broad products, highlights product value and benefits, uses

product innovation methods, and designs supplementary services or

customer benefits such as delivery, installation, warranty, and credit

availability. All these are geared toward customer advantage.

Marketing orientation has three common alternatives which can be adopted

by a company and these are sales orientation, product orientation, and

production orientation.

Looking at Renault's orientation, the conclusion that we have made is that

Renault is a market orientated organisation. The reason for this conclusion

is Renault is very focused on the needs and wants for the consumer. They

have different types of cars focusing on different markets for their customer

base. For example, Clio which is marketed at young adults who may have a

low budget for purchasing the car. On the other side of the spectrum where

the Laguna or Megane could be classed as a high specification family car.

Also Renault has many of these cars in a range of sports models. Due to the

nature of the business which Renault is involved in they have had to diverse

the range of car models which they sell due to its competitors. For example

Ford and Vauxhall.

Another good example is Renault are in the process of developing hybrid

cars and electric cars within its car range. According to Renault (2011) the

first electric car will be sold in Israel in 2011 and then in other countries.

The reason for this has come from customer demand, consumers are more

aware of rises in fuel prices and carbon emissions. This would be a classic

example how Renault is a market orientated company.

In terms of R&D Renault listen to their consumers as different customers

have different types of criteria when purchasing a car. Mack (1996) states

'That to reinforce customer loyalty they involve existing customer in the

design of its cars'. According to Renault (2011) Renault- Nissan Alliance

spend 4 billion Euros on the investment on electric parts. Many Eastern

European countries would have a different specification of a car compared

to someone in the UK. For example countries such as Bulgaria and Romania

need cars that cater for larger families.

Also some countries may not require a car which has a soft top due to

climate conditions being different in comparison to a country where the

weather is hot. Countries where the weather is constantly warm may

require cars to have air conditioning. The Renault car called 'Dacia Logan

'has created in 2004, this particular type of car was designed for people in

developing countries of the world. The car was first sold in Romania at a

very cheap price of 5000 Euros and then moved into South America and

India after proving a success when the car was first launched.

Demographics would play a major role in the R&D aspect of the business so

Renault would know where and how to market their final end product.

Boddy (2008) defines PEST analysis as 'A technique for indentifying and

listing the political, economic, social, technological, environment and legal

factors'.

Political Factors:

The political factors in any country are largely responsible to alter a

business environment as company may decide to change its business

strategy based on the political scenario of the region it is based in. The

government of any country regulates power supply, telecom and postal

services and finance.

The following are the political factors that affect Renault within the UK.

Current taxation policy:

According to the Trade and Investment minister Digby Jones the UK is

becoming least attractive to work and invest due to the taxation policy,

which was under pressure from opposition to tax rich foreign investors

doing business in the UK. Thus the labour party proposed a cut on taxing

investors who are non-UK domiciled.

Also a worth mention is VAT which means value added tax. It is charged on

most goods and services that are VAT registered.

The recent recession has affected a lot of businesses most importantly the

car manufacturing in the UK, it can be seen as going through a bad phase

for the automobile industry. Thus UK motor agency served a budget to the

current Government in the UK and urged it to create a right mix of policies

to sustain growth in the segment.

Renault decided to follow the following measures to counter any future

threats in regards to financial aspect of the same by the following measures:

Continue to put pressure on banks to give more loans

Support automotive council

Freeze fuel duty

Following the Kyoto protocol, more political pressure has been imposed to

the polluting industries. Regarding the car market, Governments across the

world have established some environmental penalties and bonuses to

manufacturers and consumers.

For customers, they need to pay a tax to the government according to the

level of CO2 emissions.

This can have a massive influence for buyers, especially with sports car and

ones with large engines which are regarded as the most polluting.

Economic factors:

Osbourn (2011) mentions Chancellor of Exchequer made a budget

statement which is meant to reform the nation's economy and this time the

budget is neutral and also becomes the best place in Europe to invest,

which is a good sign for car manufacturers as certain taxes applicable have

been cut and import duty has been significantly reduced, which is a sign of

relief for car manufacturers.

Godlevskaja et al (2011) states: Many OEMs are expanding their model

lines to entice new customers and increase overall customer base range. -

Often at their competitors' expense. At the same time growth increase is

limited within the auto mobility industry as a whole. - in the EU new car

demand fell 7.8 per cent to 14.7 million units in 2008 that reflects consumer

concerns about the economy' the buying power from consumers this could

have been down toward the recession, despite this Renault would

continuously market themselves to its potential consumers. Having

customer awareness makes people want to purchase their vehicles with

newer models being introduced.

Sociological Factors:

These factors constitute various social factors such as cultural aspects,

demographics, lifestyles and attitudes. For e.g. Whatever works in one

country may not be successful in other, Renault may sell racing cars in

France but for a market like India it needs to launch small cars as in this

country small cars are much in demand due to the infrastructure of the

company and population size.

Demographics:

Renault is the third largest car manufacturer in the world with its presence

across Europe, Asia and even Africa thus it needs to proactive rather than

reactive in development in these countries. Its policy of developing strategic

alliances with local manufacturers helps it to get an edge in the global

scenario as locals know their home market better, they use a tried and

tested marketing strategy of targeting the right market segment to see if it

works sells. Such alliances apart from fostering industrial harmony also

helps in sharing of technological aspects of each firm, and helps develop

new products such as the concept of electrical cars to save fuel and protect

the environment.

Though Renault is a French company it has alliances across the Globe that

helps it foster multicultural aspects. In which the sentiments of local

population are not hurt as they continue using the same product such as in

case of Romania and Korea. Where in Renault acquired Dacia and Samsung

motors respectively. Such alliances also help it to launch existing vehicles

from one region to the other, also known as market development from

Ansoff's matrix. Aláez-Aller et al (2010) states knowing your customers

needs and wants are vital to success to entry strategy within new regions.

In depth analysis of macro and micro environment is key when consumers

are looking to purchase vehicles.

Technological Factors:

Any company from any sector catering to any segment needs to change at

some point, in order to grow and survive the growing competition from

consumers and competitors. Godlevskaja et al (2011) states: 'Firms must

constantly adjust their service portfolios because "it is important for

companies to have a dynamic service portfolio that is adapted to various

customer needs'.

Consequently companies that fail to do so lose in the long term as the

outside world is very competitive and brutal to securing a position in the

market. Companies worldwide spend millions of money just to make sure

that they do not lag behind if they lack the technical expertises. Renault

(2011) quotes directly from its website: "Renault is committed to the

development and implementation of new technologies into every aspect of

our vehicles. Renault's engineers cover every angle - roadholding, safety,

comfort, soundproofing, etc. - in their relentless quest to make motoring a

pleasurable experience".

Porter's five forces analysis and criticism

In order to settle a strategy, a company must analyse its industry. However

the analysis of its competitor is not enough to understand all the aspects of

the business. The types of businesses are various and numerous. But in

almost all the industries, Michael E. Porter has identified a common

structure composed by five global forces. These are to take into

consideration in order to implement a successful strategy.

1. The Analysis

For our topic we will consider these five forces within the car industry

adapted to the Renault Company.

Rivalry among existing competitors

Strong competition

Very strong competitive rivalry in the cars sector, especially with the

brands focusing on a particular market segment. E.g. Audi are becoming

leaders on high standard quality cars, while TATA is undertaking the low

cost cars segment

The Asian manufacturers have a very strong growth thanks to their low cost

cars and their quality car is very reliable. E.g. KIA and their 7 years

warranty.

The structure of the automotive industry is becoming more and more

powerful because of all the merges and the joint ventures, so the

competition is strong and aggressive.

The threat of new entrants

Low threat

Few new brands entering on the market for these important reasons:

The investment that has to be made is extremely important. Especially in

the manufacture part of the activity, where the investment must be

important if the brand wants to get a competitive advantage

The experiment and the know-how are essential elements to have its place

on its market, in particular on management of the costs and the

competitiveness.

The competitors already present are already well known brands. All these

companies trend to be restructured into fewer big groups. These implicate

that they are more powerful and do not let possibilities for any small new

company to enter in the market

The threat of substitute

Mild/ Relative Threat

Even if there are the other ways of transportation, the car remains

indispensable nowadays. It is true that sometimes changing the

transportation way can have some advantages as the cost (with the low cost

airline carrier), the ethic of environment (with ecological way of transports

such as trains or the buses) or time in important factor within lsrger cities

(with the underground), none of the transport way offer a good mix of

"utility, convenience, independence, and value afforded by automobiles".

Nowadays, the automotive companies have a wide range of product, which

can satisfy every demand, in adapting their cars in satisfying every new

need, that increases the loyalty of the consumers to use cars.

Bargaining power of the suppliers:

Dependence Suppliers/Customer

The purpose is being to establish a profitable, reliable relation for both

parts. But the parts suppliers are sometimes small manufactures so Renault

has more pressure to put on its supplier in terms of price

However the image of Renault, as a reliable car company also depends on

the quality of the car parts

Suppliers are also important to Renault in terms of costs, according to

Renault (2011): "Suppliers account for 80% of total vehicle production

costs. It is therefore essential for Renault to gain their commitment and to

make them part of its approach to sustainable development"

Bargaining power of the buyers

Strong power of negotiation

The consumers are the target of communication campaigns and marketing

actions because it is more and more tempted to try other brands

The final product are standardised, customers can put the pressure on the

different vendors insisting on the fact that an equivalent car can be find

from another company for approximately the same price

The negotiation can be in the price, but also on obtaining more options or

services with same price. This affects the costs to organisations

2. Criticism of the Porter's analysis

The three new forces

The Porter analysis remains one of the most influential marketing and

strategy tool. However this analysis has been written by Porter during the

1980's, and the economic world has considerably changed during the last

decades. Especially due to the Internet and all the e-business that make

evolved most of the industries.

Larry Downes, co-author of "Unleashing the Killer App: Digital Strategies

for Market Dominance" relates in the article "Beyond Porter" that the

Porter's five forces analysis is no longer a complete tool to opt for a viable

strategy.

He describes new strategic frameworks composed by three new factors

(forces), which permit to analysis the business area more relevantly:

The digitalisation

Due to increase power of information technology, new business models will

be born from the market. This allowed the global awareness of the

consumers on the global market. The competitors will now not only be part

of the same industry. Now the tour operator Thomas Cook can be a

competitor of Renault. These two companies will push their clients to use

their money to buy their product when there are the same prices

According to Recklies (2008) "The old economy used IT as a tool for

implementing change. Today technology had become the most important

driver for change".

Therefore mindsets have changed for organisations and how they operate;

the final end product will require an element of technological advances for

it to successful in modern society due to social factors.

The Globalisation

The globalisation of the market is nowadays something that a company

cannot afford to ignore. The effects of the globalisation on businesses are

betterment in the areas of distribution logistics and communication. The

Global companies have to adapt their strategies in function of the global

network. These strategies remain more complex than what Porter describe.

It's not a question of price or quality for the customers, but trying to reach a

type of loyal relationship with a network of partners and consumers.

The deregulation

One of the big changes in the business from the Porter's model is the taking

into consideration of the intervention of the governments in the business

and in the industries. Because of the action of the states (new laws, new

quality requirements, new importation/exportation quotas) the industries

and the organisations have to adapt their strategies, finding new

alternatives to their business models.

These factors became important but they rarely appear into the Porter

analysis. So an important Company like Renault cannot focus on this tool to

create a solid and successful strategy. The purpose of the five forces model

is to define the attractiveness of an industry in relation with theses 5 forces.

But according to Dagmar Recklies: "In economics, the constellation of

factors determines issues like profit maximisation or supernormal profits." 

So we can conclude that the Porter's five forces analysis is a strategy tool

that can be used only knowing its limitations and among others tools to be

the base of a correct strategy.

Place

Jobber (2006) defines price as 'The agreed value placed on the exchange by

a buyer and seller'. Price is one of the fixed key factors in the marketing mix

and should be blended together with all element of the marketing mix, to

create customer value. It can be argued then that price interlinks with the

other elements of the marketing mix and must be met by supply and

demand to achieve its best.

Price in the marketing mix is very important to a business as it can

determine if a company is successful or not when selling the product, it can

be perceived that price can reflect quality when selling to consumers. The

price can affect the following areas so it's pivotal to have the right pricing

strategy to market the right product.

Pricing Goals - Marketing Mix Price

Price can include the cost of production to an organisation and the strategy

they use to market the product at a competitive price so consumers decide

to use you, rather than your competitors. The price of a product can be sold

at a cut-price to boost volume of sales. This can be a strategy used by

organisations to gain market share which can have its positives and

negatives. Walker (2006) states 'Having low prices may be perceived by

consumers as being low quality'. Organisation may market themselves so

they may be seen as obtain profits on a short term basis. This is where

promotion can be interlinked to a pricing strategy. Organisations spend vast

amounts on R&D before setting prices on products. It can be argued that

'firms must price the product in a way which reflects the appropriate

position of the product within the market'.

The balance for organisations is to maximise profits, but to have a

consistent amount of sales. Marketers use this strategy as they maybe price

orientated within the marketing mix. This is where product development

would occur and knowing your target market well.

Renault uses price within the marketing mix very well. Throughout its range

of cars they have luxury cars including the Laguna all the way down to the

Clio which is targeted on price with low maintenance costs. In terms of

price to the Renault Clio it can be seen as being priced similar to its major

competitors. Considering the Vauxhall Corsa, Ford Fiesta and also Peugeot

206.

The pricing strategy of the Renault Clio new ranges from around £9,000 to

£19,000 plus. There are many factors that can influence the prices of just

one particular type of car. For example engine size, motor sport version

etc... The Clio range has the sport 2000, Dymanique, Gordini and also Bizu.

This shows that the product has been diversified to achieve maximum price

when selling the product to consumers.

Clio Series

Price

Sport 2000

£16,000

Dymanique

£11,000

Gordini

£19,000

Bizu

£9,000

Walker (1996) shows that all other 'competitors i.e. Corsa and Fiesta are

based around the same pricing strategy'. This is because the car industry is

large and production costs are not so important and creating the largest

profit is not as necessary as it would be for a smaller organisation. The

reason for Clio having the same pricing strategy as its competitors is

because it is the only model in Renault range to predominately focus on

lower cost with low quality from launch. Therefore it needs to be

competitive with its rivals. The Clio model has done this very well as new

models for the Clio are designed every few years. The Clio has been on the

market for over 15 years proving its successfulness to its consumers who

are aware of other markets available to them.

The following is a perceptual map of small commercial cars sold and its

comparison with the Renault Clio. It can be seen that the Clio and Corsa can

be placed in the same category as each other, as both focus on price mainly.

Other small cars including Audi and BMW focus on both high quality and

price as the reputation they have is that it's a 'long term investment'. The

Skoda Fabia is a low priced car because of the reputation it held from its

unreliable past, but its reputation has slow been built back up.

High Quality

*BMW 1 Series

Audi A4*

*Skoda FabiaLow Price High Price

Vauxhall*

Corsa

*Renault Clio

Low Quality

Relationships can be built up between the consumer and the seller. Mack

(1996) states that Renault try and use this strategy as much as possible

when selling cars. But why do this? They do this to make the consumer feel

they are receiving a personalised service. Some dealerships offer free gift as

an indirect way of making customers by their product too its competitors.

Walker (1998) also says 'This has been a vital part of our strategy in helping

to persuade customers that we can meet their needs especially targeting

smaller cars'. However it can be argued this strategy possibly may not work

in modern society. As many people are aware the automotive industry is

very competitive, it is becoming quickly cost orientated in particularly

markets, indirect costs such as fuel, insurance and tax.

Trade-off analysis could be applied to the Renault Clio. Jobber (2006) says

'Features such as speed, petrol consumption, brand and price are placed in

front of consumers and asked which combinations they prefer'. While the

Clio Mk 3 was being designed it would have consulted potential buyers,

they would have used r&d for this because the car was designed to be low

cost and wanted as many luxury as possible while concentrating on its core

competence its price.

However this analysis can have its limitations. When r&d is taking place

respondents may ask for a lot of things but all these additions may not be

feasible. When asked to purchase the car consumers may not be willing to

exchange money.

Product

Jobber (2006) defines product as "A good service offered or performed by

and organisation or individual, which is capable of satisfying customer

needs".

To have an effective product that consumer's desire, it needs to be prices

fairly and requires a Unique Selling Proposition. (USP) Walker et al (1998)

states there are four elements which creates a well balanced and successful

marketing mix. These included:

Matching customer needs

Need for balance

Creates a competitive advantage

Matches corporate resources

The product Renault Clio has historically been targeted at the younger aged

population who maybe on a budget. The product is a smaller model

compared to other ranges in Renault yet also delivering the majority of

luxury that other models offer. Including air-conditioning, climate control,

Bluetooth and satellite navigation, this makes Clio very positive when it

advertises the model to its consumers. The Clio then however meets the

criteria set to have an effective marketing mix.

Jobber (2006) states that 'Product development is important. As technology

and tastes change, products become out of date and inferior to those of the

competition, so companies must replace them with features that customers

value'. The fundamental feature of the new Clio model is the tom-tom

feature. Renault and tom-tom have had to come to an agreement to include

the satellite navigation to integrate this within the models. This has given

Clio a competitive advantage over external competitors. Having a

competitive advantage enables them to charge a premium price.

However in few cases charging a premium price for products can have its

down fall. Many consumers may not be willing to pay extra for products that

may not be essential, consequently consumers will move to Clio's

competitors such as the 206 and Corsa. The balance is conducted by market

research to see what consumers want, referring back to trade off analysis.

According to Renault (2011) Clio is its most successful range of car across

Europe. This is because the product caters for a broad range of markets.

The reason for can be considered when looking at the anatomy of the Clio.

The core product (I) would be the car itself and the way it is strategically

priced, as being a low value priced car compared to its other cars within its

range. The second layer would be products that add value to the overall

product. Making it match customer needs and creating a competitive

advantage. This could be as mentioned above, tom-tom, Bluetooth, keyless

entry system, parking assist sensors and warranties. The outer layer

includes extras which maybe indirectly related to the car including after

sale support and credit sale. 'Many augmenting features are closely related

to establishing a successful relationship between buyer and seller'.

ImageAnatomy of a product model

A product life cycle (PLC) can determine where the product lies within its

life. Many organisation use different strategies to pro-long the life of its

product. When a product reaches maximum maturity and sees's signs its

declining it then considers using Product/Market Ansoff matrix. This

involves 4 different strategies that can be used:

Product development

Diversification

Market penetration

Market development

The reason for this is to maximise profits for Clio. Renault Clio mainly uses

product development to change its model throughout years so customers

have the opinion of upgrading and keeping up with trends rather than going

to competitors.

http://www.websukat.com/TQM-product-life-cycle_files/image001.gif

When the Clio was first launched it obviously begins in the introduction

phase of the PLC and is strategically priced high. Jobber (2006) states that

'the Strategic marketing objective is to build sales by expanding the market

for the product'.

The growth stage is next to follow, there is increase of sales and profit

growth. The reason for this is due to increase in promotion by creating

awareness. Renault Clio use TV advertising predominately to penetrate the

market. They also have their own Renault TV channel.

The maturity stage is where the product sales are at its peak whilst time is

increasing. This is where the organisation may offer discounts or extra such

as warranties. This is also the stage where product improvements occur at

the peak of the maturity stage. The reasons for this include:

Maintain competitive advantage

Future growth

First move advantage

The decline stage is the final process of the PLC, the reason for this

according to Walker (1998) is due to 'technological superior substitutes' and

also consumers change in preferences due to competition.

The Renault Clio was an innovation that Renault developed due to

competition from its competitors. According to Bloomberg Businessweek

(2006) Renault was at number 49. Its competitors did not even reach the

top 100 of innovated companies. Other automotive companies included

within the list lower than number 49, Nissan and Volvo. This information

could now be argued because companies such as Ford, Volkswagen and

Toyota are much more innovated in 2010 as they have developed cars whilst

considering external factors such as the environmental factors.

(Development of the Hybrid car)

Distribution Mix Marketing

The distribution policy includes all decisions and actions that can be related

to the delivery of our product to the customer.

There are two different ways of distribution existing for Renault's company.

Business to Business (B to B) = Company Retailer Consumer

Business to Consumer (B to C) = Company Consumer

Engineering

Renault is one of the biggest car industries worldwide. It is present through

the world in around 201 countries, including Europe, North, Central and

South America, Africa, Asia and Oceania.

An international engineering; closer to the markets.

The Techno Center (France)

Engineering:

The Renault Group is deployed globally. It revolves around two components:

Engineering Central, the heart of the system and regional engineering

spread over Renault's strategic markets.

Engineering centers:

The Techno Center (France), the heart of the engineering world

Renault Technologies Americas

Renault Technologies Romania

Renault Technologies Spain

Renault Samsun Technical Center

This organisation is based on a standardised process of engineering at

Renault World of unified technical standards, defining key functions and

technical harmonisation of policies.

A well-developed network of design centers

Renault Design America Latina in Sao Paulo

The group relies on a parallel network of five 'satellites' design centers.

Observatories real trends these emerging centers of vehicles for new

markets.

They are involved from the launch of a new project through to the

production of the final concept car.

The design centers are:

Renault Design Paris

Renault Design Central Europe

Renault Design America Latina

Renault Samsung Design

Renault Design India

Two objectives are

Warranty the best customer satisfaction all around the world

Produce close to the markets

Renault's industry realises two type of sell: Either to the customers or to

companies.

But, all confounded, Renault has realised for the Year 2010 reporting record

sales volumes with 2.6 million vehicles sold. Thanks to its positioning,

essentially outside Europe, in the emerging countries, Renault has bounded

its sales. Here's a graph which represents the market where Renault is

present in 2010:

C:\Users\Nabil\Desktop\chart.png

 

 

From: Renault Website

It is important to understand that the Clio is one of the best vehicles brand

for Renault.

In about 20 years, it has won more than 10 million customers around the

world (100 countries). This success is thanks to a styling, comfort, safety,

versatility and different equipment package worthy of cars from the next

segment up.

Renault February 2011 sales in Europe region

In February 2011, by Renault (2011) Website, its sales represent in Europe

28,350 cars sold, this means 29.74% are Clio's models.

Renault February 2011 sales in Worldwide region

In February by Renault (2011) Website, its sales represent in Worldwide

40,969 cars sold, showing 27.15% are Clio models.

In the following table are the most popular diverse ways to market the Clio

model

Place

Advantages

Drawbacks

Car Dealerships

This is the most profitable distribution channel for the car market.

Customers, generally, come in this type of sales area because they have, in

front of them, any professionals.

The car Dealerships can ensure a warranty on the car during one part of the

life cycle.

There are many small garage which sell, also, the same cars but less

expensive.

The occasion's sales are more benefit for customers.

There is a need in efficient logistic.

Internet

This way is not commonly used as the consumer prefers to see the tangible

product before exchanging money.

Industry

We can offer a good price because the customer will be directly at point of

sale.

Few customers use this way

Car show

Good place to communicate on the new products: 'New Clio'

Good way to show our presence to market.

Don't realise any sales but we can just to take any contacts.

We can see that the best method to advertise cars is to dealerships. This

represents the majority of sales from Renault's industry, about 95%.

For the future, maybe the sales by internet will be most important. This

strategy would be useful for both the organisation and consumer as cost

savings methods could be allocated. Currently customers can view Clio's

online and book test drive and attend dealership to agree the sale contract.

PROMOTION MIX MARKETING

To achieve a good strategy to promote its cars, in particular, the Clio's

model, Renault has, always, used the communication through different

countries.

It can adapt the advertising or the way to promote its car if it is in one

country or another.

The communication policy helps to:

Improve the image and reputation of the company or the model of car

To influence the people's attitude and behaviour towards cars

To enhance a competitive advantage

The communication mix offers lots of different instruments to achieve the

targets from above. But there only effective if they are used in the right

phase of the product life cycle. (PLC)

Reminder

Advertising

Persuasive

Advertising

Informative

AdvertisingC:\Users\Nabil\Desktop\Product Life Cycle 1.JPG

Clio is in the maturity stage of the product Life Cycle. The main target in

this phase is to change the price and promotion to increase the life of

product. If we describe it in the way of the AIDA communication we have to

get the attention and interest of the people.

C:\Users\Nabil\Desktop\aida.gif

Communication Model AIDA

We have to design a position on which we offer our cars to the car

dealerships, which will catch the attention and interest of people. The best

way to achieve this is to show a high picture of an animal trapped in a

plastic bag on our position which get underlined by our marketing message:

Quality rescues our environment!!!!C:\Users\Nabil\Desktop\sml_plastic

stork.JPG

The picture will generate an outrage at people and will cause an over

thinking about their current shopping behaviour. This is all we want to

achieve to get attentions and interests about environmental issues.

Another way to get the attention of people is to get prominent people to use

our shopping bag. Of course we know that it could be difficult to convince

well known people to do that, but there are different characters that are

involved in the environmental discussion. They can be convinced easier

because our bag will support their attitudes towards the environment and

we would get a positive advertising without spending vast money. It is a win

win situation for both sides.

Celebrities can support our cars to become a prestige car. Thanks to them

we can capture the attention of consumers.

Sponsoring Support

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Source: Compucars/ Autochannel

Another opportunity to catch the attention of people will be with advertising

in magazines, newspapers and with posters. Renault, for its cars, uses the

ways to capture the attention of people. For example, for the new Clio,

Renault is in the Introduction stage in the Promotion through Product PLC.

Renault has to develop a good campaign to increase car sales.

When the car 'Clio' will be in the Growth Stage of the PLC, then, Renault

has to do persuasive advertising to increase the brand loyalty of customers.

In the AIDA this would create desire and drive the people to action.

Communication Mix

We can select the different advertising channels; Renault has to consider

the advantages and disadvantages of each media before launch.

Below, you will find a summary table of disadvantages and advantages for

the Media and None Media, which will be the basement of Renault's

decisions.

Support

Advantages

Disadvantage

Media

Press

- Potential customer

- Reader Loyalty

- High price

- Low impact, message has to be repeat lot of times

Radio

- Good targeting for Clio

- Big sample of people listening in the worldwide

- People are not concentrated

- High price

- Low impact, message has to be repeat, also, lot of times

Cinema

- Great attention of the spectators, good impact

- Very high price

- Small sample of people

Outdoor advertisement

- Important sample of people touched

- Large range of support

- High price

- Difficulty of targeting

- Weak measurable impact

None Media

Point of purchase

- Dynamic image

- Quick return on investment

- Creation of a data base of prospects

- Low price

- Have to be creative with good support

- Well organised

- Cooperation with retailer

Internet

http://www.renaultshop.com

- Creates interactivity

- Gives lot of information

- Touched a large sample of people

- No geographic limits

- 39% of home in UK don't have internet for example

Public relations

- Nearly free of charge

- Impact on lots of customers

- Expensive

- Difficult to have a good relation with journalist but the Prestige of the

brand can bring to succeed

Sponsoring

- Good way to launch a product with a relatively low budget

- Importance to choose well your sponsor because of the impact on image

brand

Direct Marketing

- Quick return on investment

- Create a link with the customer

- Need a good data base (good information)

- Make a good follow-up

We have analysied the different channels of communication and on this base

Renault uses for Clio about all these channels.

Budget:

Renault's headquarter gives to all its car dealerships a budget to

communicate the Clio. It is, in general, the communication's service from

headquarter which communicate on a national point of view. But each year,

and in ad equation with the result of sales for each period (quarterly or

annually), the headquarter helps the car dealerships to communicate on the

product, giving a budget, more or less important to succeed to obtain good

result for the next periods.

We can tell that the three mains supports of communication are TV with

ads, Outdoor ads with billboards, and the Newspapers. About all budgets is

consecrated for these channels.

The mains channels

As the crisis continued to hit with full force the car industry, Renault has

announced, it would retain its approximately 600 million euros allocated to

communication for 2010.

In 2008, Renault has launched for its news car 20 advertising campaign in

more than 80 countries, with a new slogan for Clio. Since this period,

Renault has considerably increased his brand's image in Europe.

TV ads

Renault communicates on this channel because we can capture a lot of

people through these ads.

This channel represents for Renault in 2010 about 65%.

And by Renault website, we know that Renault has used about 20% of

budget to communicate on the new CLIO, including 13% with TV ads and

the rest with other ways. This performance brings Clio in top of the rank of

sales for the first months of 2010, and the same for 2011. Through the

world, Clio stays the cars the most sold follow by Megane. In Europe,

Megane is just in front of Clio in the ranking. 

The goal of Renault is to focus on TV media because more than the half of

purchases has been concentrated on this canal. Also, Renault has launched

a web-based TV channel translated in French and English. It is the first

brand which launches its own channel around the world, presented on the

channel Sky Guide 883 in UK. This program includes a large choice of

information on the Renault's range and of course the Clio.

Sponsoring

Renault uses different forms of sponsoring to communicate on its cars. The

celebrities are a good target to convey a good image and to increase the

brand, and the car's value. This is important for an industry like Renault

because famous celebrity equally quality brand.

And, also, targets the image in sportive events like the Formula 1 for

example. Watched by millions of people through the world, you can, thanks

to the sponsoring, communicate directly with people.

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Launched in the sport like here with the Formula 1, Renault spends much

money but in 2010 they have elected the winners of world cup. It wants to

keep the pressure for 2011. This image, this prestige will permit to Renault

to develop an interesting communication over its entire range of cars.

And indirectly, Renault communicates on the Clio, because people who want

to buy Renault, they will go to see the others models.

Other partnerships have been signed. The first one is with yachtswoman

Ellen MacArthur who symbolises Renault's strength to the environment

through Renault eco label. The second one is with Electronic Arts to place

New Megane Coupé in one position of the most famous car racing video

games. Thanks to that, you can focus on new customer segments.

Each year and for the 11th consecutive, Renault is an official partner of the

Deauville American Movie Festival. The brand provides a fleet of about 15

Laguna to escort jury members and celebrities on the red carpet. It is a big

event to show its presence.

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Internet

Renault, since 2007, tries to develop its strategy on internet. Between 2007

and 2009, Renault has doubled its investment in web advertising. This

means that The Group starts to take a fine place, a good position on the web

market. Renault, in 2009, has launched the first shop website in France and

Spain and at the end of 2010; it was the turn of UK, Italy and Germany.

This way is easier to take a first contact and to see the different range of

products.

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Example of Ads on internet for Turkey

In conclusion to Renault Clio's product phase in the marketing mix, it can

be seen as being a very successful within Europe with it being one of

Renault's best sellers in Europe. The car has many successful competences

including in build tom-tom and wireless connectivity, making it

technological advanced. This constant change in technology bring healthy

competition for the consumers as they can shop around to see which vehicle

best meet their personal criteria. From personal interpretation on Clio's

model it been seen at the peak stage of maturity, which constant adaption

bringing product improvements to stay competitive. Price is one of the

major factors when it comes to delivering the product to the consumer,

without having the right pricing strategy the product may not be successful

on launch. Renault Clio can general be seen as a car marketed at a low cost

and low quality, (in terms of extras) so when selling the car customer

satisfaction plays an important part of the supply chain when selling the

Clio. Promoting the product as the right price is key, as this is vital to

communicate to consumers. Renault use several ways to market its product

itself, the most appropriate would be seen within car dealerships. When

promoting the Clio the PLC can be looked at, when new models are

launched marketing is in the introduction phase to gain consumer

awareness and during the course of its life will start to decline so marketing

decreases so Renault may create new models and attract customer

attention away from the older models and persuade them to buy the newer

model.