Harris (2002, p. 247) Defines Marketing Orientation as "The amount to which an company is perceived to do something in a coordinated, customer and competitor-oriented fashion. " Narver and Slater's (1990) also validate there are three sizes of Marketing Orientation, customer orientation, rival orientation, and interfunctional coordination.
With marketing orientation, an enterprise revolves its proper decisions around the needs and needs of the target market, including prospective customers. A company that is marketing-orientated gets the dedication to valuing customers and the customers' needs. Actually, it can even contribute to the transformation of an company's business culture.
This marketing concept will involve three essential steps in being customer-focused. First, the wishes and needs of the customers are explored and recognized. Then, the study outputs are studied by the marketers and new products are created predicated on the consumer needs. Finally, customer satisfaction is targeted after public awareness and launch of the merchandise is made.
A marketing-orientated business is characterised by various features. The business makes good and extensive use of marketing research, develops new and broad products, features product value and benefits, uses product technology methods, and designs supplementary services or customer benefits such as delivery, unit installation, guarantee, and credit supply. Each one of these are geared toward customer gain.
Marketing orientation has three common alternatives which may be adopted by way of a company and they are sales orientation, product orientation, and production orientation.
Looking at Renault's orientation, the final outcome that we have made is the fact that Renault is a market orientated organisation. The reason behind this conclusion is Renault is very centered on the needs and would like for the consumer. They have different types of cars concentrating on different markets for their customer base. For example, Clio which is marketed at adults who may have a low budget for purchasing the automobile. On the other side of the spectrum where in fact the Laguna or Megane could be classed as a high specs family car.
Also Renault has many of these cars in a variety of sports activities models. Because of the nature of the business which Renault is involved in they experienced to diverse the number of car models which they sell because of its competitors. For instance Ford and Vauxhall.
Another good example is Renault are in the process of developing cross types autos and electric vehicles within its car range. Corresponding to Renault (2011) the first electric car will be sold in Israel in 2011 and then far away. The reason behind this has come from customer demand, consumers are more aware of rises in fuel prices and carbon emissions. This might be a common example how Renault is market orientated company.
In terms of R&D Renault listen to their consumers as different customers have different kinds of standards when investing in a car. Mack (1996) claims 'That to reinforce customer commitment they require existing customer in the look of its autos'. Matching to Renault (2011) Renault- Nissan Alliance spend 4 billion Euros on the investment on electric parts. Many Eastern Europe would have another type of specification of an automobile compared to someone in the united kingdom. For example countries such as Bulgaria and Romania need automobiles that appeal to larger households.
Also some countries may not need a car which has a soft top due to climate conditions being different in comparison to a country where in fact the weather is hot. Countries where in fact the weather is constantly warm may necessitate cars to own air-con. The Renault car called 'Dacia Logan 'has created in 2004, this specific type of car was created for people in producing countries of the world. The car was first sold in Romania at a very cheap price of 5000 Euros and then shifted into South America and India after demonstrating successful when the automobile was initially launched. Demographics would play a major role in the R&D aspect of the business so Renault would know where and exactly how to market their final end product.
Boddy (2008) defines PEST evaluation as 'A way of indentifying and listing the political, economic, social, technical, environment and legal factors'.
Political Factors:
The politics factors in any country are basically responsible to improve a business environment as company should change its business strategy based on the political situation of the spot it is situated in. The government of any country regulates power supply, telecom and postal services and finance.
The following are the politics factors that influence Renault within the UK.
Current taxation insurance policy:
According to the Trade and Investment minister Digby Jones the united kingdom is now least attractive to work and make investments due to the taxation policy, which was under great pressure from opposition to tax rich foreign investors doing business in the united kingdom. Thus the labour get together proposed a lower on taxing traders who are non-UK domiciled.
Also a worthy of mention is VAT this means value added duty. It is recharged of all goods and services that are VAT recorded.
The recent tough economy has influenced a great deal of businesses most of all the car production in the UK, it can be seen as going right through a bad period for the automobile industry. Thus UK motor unit agency dished up a budget to the present Government in the UK and urged it to make a right mix of policies to preserve development in the portion.
Renault made a decision to follow the following steps to counter any future hazards in regards to financial aspect of the same by the next measures:
Continue to place pressure on banking institutions to provide more loans
Support motor vehicle council
Freeze petrol duty
Following the Kyoto standard protocol, more politics pressure has been imposed to the polluting sectors. Regarding the car market, Governments around the world established some environmental fines and bonus products to manufacturers and consumers.
For customers, they have to pay a taxes to the federal government according to the level of CO2 emissions.
This can have a massive influence for customers, especially with sports vehicle and ones with large motors which are thought to be the most polluting.
Economic factors:
Osbourn (2011) mentions Chancellor of Exchequer made a budget statement which is meant to reform the nation's economy which time the budget is neutral and also becomes the best place in Europe to invest, which really is a good indication for car manufacturers as certain taxes relevant have been lower and import duty has been significantly reduced, which is a sign of pain relief for car manufacturers.
Godlevskaja et al (2011) state governments: Many OEMs are extending their model lines to lure clients and increase overall customer foundation range. - Often at their competition' expense. At the same time growth increase is bound within the auto mobility industry all together. - in the EU new car demand fell 7. 8 % to 14. 7 million systems in 2008 that displays consumer concerns about the market' the buying electricity from consumers this may have been down toward the recession, not surprisingly Renault would continually market themselves to its potential consumers. Having customer awareness makes people want to buy their vehicles with newer models being unveiled.
Sociological Factors:
These factors constitute various sociable factors such as ethnic aspects, demographics, standards of living and behaviour. For e. g. Whatever works in one country might not exactly achieve success in other, Renault may sell race vehicles in France but for market like India it requires to start small cars as in this country small autos are much popular because of the infrastructure of the business and human population size.
Demographics:
Renault is the 3rd largest car supplier on earth with its presence across European countries, Asia and even Africa thus it needs to proactive somewhat than reactive in development in these countries. Its plan of developing proper alliances with local manufacturers helps it to get an edge in the global circumstance as local people know their home market better, they use a tried and tested marketing strategy of focusing on the right market segment to see if it works markets. Such alliances aside from fostering industrial harmony also helps in sharing of technological areas of each organization, and helps develop new products including the concept of electro-mechanical cars to save energy and protect the environment.
Though Renault is a French company it includes alliances throughout the world that helps it foster multicultural aspects. In which the sentiments of local inhabitants are not harmed as they continue using the same product such as in case of Romania and Korea. Where in Renault received Dacia and Samsung motors respectively. Such alliances also make it to establish existing vehicles from one region to the other, also called market development from Ansoff's matrix. Alez-Aller et al (2010) state governments knowing your visitors needs and needs are essential to success to access strategy within new parts. In depth research of macro and micro environment is key when consumers are looking to buy vehicles.
Technological Factors:
Any company from any sector catering to any section needs to change sooner or later, in order to develop and survive the growing competition from consumers and competitors. Godlevskaja et al (2011) says: 'Businesses must constantly adapt their service portfolios because "it's important for companies to truly have a dynamic service portfolio that is designed to various customer needs'.
Consequently companies that fail to do it lose in the long-term as the outside world is very competitive and brutal to acquiring a position on the market. Companies worldwide spend an incredible number of money just to make certain that they do not lag behind if they lack the technical expertises. Renault (2011) rates straight from its website: "Renault is committed to the development and execution of new systems into every aspect of your vehicles. Renault's designers cover every viewpoint - roadholding, protection, comfort, soundproofing, etc. - in their relentless search to make motoring a pleasurable experience".
Porter's five causes examination and criticism
In order to settle a strategy, a corporation must analyse its industry. However the evaluation of its competition is not enough to understand all the areas of the business enterprise. The types of companies are various and numerous. But in almost all the industries, Michael E. Porter has discovered a common structure made up by five global causes. These are to consider to be able to implement an effective strategy.
1. The Analysis
For our topic we will consider these five makes 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 concentrating on a specific market portion. E. g. Audi have become market leaders on high standard quality cars, while TATA is executing the low cost automobiles segment
The Asian manufacturers have a very strong growth thanks to their low priced automobiles and their quality car is very reliable. E. g. KIA and their 7 years warrantee.
The composition of the motor vehicle industry is now increasingly more powerful because of all the merges and the joint projects, so the competition is strong and extreme.
The threat of new entrants
Low threat
Few new brands joining on the marketplace for these important reasons:
The investment that needs to be made is really important. Especially in the make area of the activity, where in fact the investment must be important if the brand wants to obtain a competitive advantage
The experiment and the know-how are crucial elements to acquire its place on its market, in particular on management of the expenses and the competitiveness.
The competition already present are already popular brands. Each one of these companies trend to be restructured into fewer big organizations. These implicate that they are more powerful and don't let possibilities for any small new company to type in the market
The threat of substitute
Mild/ Comparative Threat
Even if there will be the different ways of transportation, the car remains essential nowadays. It is true that sometimes changing the travel way can involve some advantages as the price (with the reduced 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 metropolitan areas (with the underground), nothing of the transfer way offer a good mix of "utility, convenience, freedom, and value afforded by automobiles".
Nowadays, the automotive companies have an array of product, which can satisfy every demand, in adapting their autos in fulfilling every new need, that increases the devotion of the consumers to make use of cars.
Bargaining vitality of the suppliers:
Dependence Suppliers/Customer
The purpose has been to establish a profitable, reliable connection for both parts. However the parts suppliers are occasionally small manufactures so Renault has more pressure to put up its distributor in terms of price
However the image of Renault, as a reliable car company also depends on the grade of the automobile parts
Suppliers are also important to Renault in terms of costs, matching to Renault (2011): "Suppliers account for 80% of total vehicle production costs. It is therefore essential for Renault to get their commitment and make sure they are part of its method of sustainable development"
Bargaining vitality of the buyers
Strong electricity of negotiation
The consumers are the target of communication promotions and marketing activities because it is increasingly more tempted to try other brands
The final product are standardised, customers can put the pressure on the various distributors insisting on the fact that an equivalent car can be find from another company for about the same price
The negotiation can be in the price, but also on obtaining more options or services with same price. This affects the expenses to organisations
2. Criticism of the Porter's analysis
The three new forces
The Porter examination remains one of the most influential marketing and strategy tool. However this research has been compiled by Porter during the 1980's, and the monetary world has noticeably changed during the last decades. Especially due to the Internet and all the e-business that produce evolved most of the market sectors.
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 an entire tool to opt for a viable strategy.
He describes new proper frameworks composed by three new factors (forces), which enable to analysis the business area more relevantly:
The digitalisation
Due to increase ability of it, new business models will be blessed from the marketplace. This allowed the global knowing of the consumers on the global market. The rivals will now not only be part of the same industry. Now the travel operator Thomas Make can be a rival of Renault. Both of these companies will drive their clients to utilize their money to buy their product whenever there are the same prices
According to Recklies (2008) "The old market used IT as a tool for employing change. Today technology experienced become the most important drivers for change".
Therefore mindsets have altered for organisations and exactly how they operate; the ultimate end product will require an aspect of technological improvements for this to successful in modern society due to sociable factors.
The Globalisation
The globalisation of the marketplace is nowadays something a company cannot manage to ignore. The effects of the globalisation on businesses are betterment in the areas of syndication logistics and communication. The Global companies have to conform their strategies in function of the global network. These strategies continue to be more complex than what Porter illustrate. It's not a question of price or quality for the customers, but trying to reach a kind of loyal romance with a network of lovers and consumers.
The deregulation
One of the best changes in the business from the Porter's model is the taking into consideration of the intervention of the government authorities in the business and in the companies. Because of the action of the areas (new laws, new quality requirements, new importation/exportation quotas) the companies and the organisations have to change their strategies, finding new alternatives with their business models.
These factors became important nevertheless they rarely appear into the Porter evaluation. So an important Company like Renault cannot focus on this tool to make a solid and successful plan. The goal of the five makes model is to determine the elegance of an industry in relationship with theses 5 causes. But matching to Dagmar Recklies: "In economics, the constellation of factors establishes issues like profit maximisation or supernormal profits. "
So we can conclude that the Porter's five pushes analysis is a strategy tool that can be used only knowing its restrictions and among others tools to be the bottom of a correct strategy.
Place
Jobber (2006) defines price as 'The decided value positioned on the exchange by a buyer and seller'. Price is one of the preset key factors in the marketing blend and really should be blended together with all aspect of the marketing combination, to set-up customer value. It could be argued then that price interlinks with the other elements of the marketing combine and must be attained by source and demand to accomplish its best.
Price in the marketing mix is vital to a business as it can determine if a company is successful or not when reselling the product, it can be perceived that price can echo quality when advertising to consumers. The purchase price can affect the following areas so it's pivotal to have the right pricing technique to market the right product.
Pricing Goals - Marketing Blend Price
Price range from the price of production to an company and the strategy they use to advertise the product at a competitive price so consumers decide to use you, rather than your competition. The price of something can be sold at a cut-price to improve volume of sales. This is often a strategy used by organisations to get market share which can have its positives and negatives. Walker (2006) says 'Having low prices may be identified by consumers to be low quality'. Company may market themselves so they may be viewed as obtain earnings on a short term basis. That's where campaign can be interlinked to a prices strategy. Organisations spend huge volumes on R&D before arranging prices on products. It could be argued that 'firms must price the merchandise 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 constant amount of sales. Marketers utilize this strategy as they maybe price orientated within the marketing mixture. This is where product development would arise and knowing your marketplace well.
Renault uses price within the marketing combine very well. Throughout its selection of cars they have luxury cars including the Laguna all the way right down to the Clio which is targeted on price with low maintenance costs. In terms of price to the Renault Clio it can be viewed as being priced a lot like its major competitors. Considering the Vauxhall Corsa, Ford Fiesta and also Peugeot 206.
The prices strategy of the Renault Clio new ranges from around 9, 000 to 19, 000 plus. There are many factors that can effect the prices of just one particular type of car. For instance engine size, motor sport version etc. . . The Clio range has the sport 2000, Dymanique, Gordini and also Bizu. This demonstrates the merchandise has been diversified to accomplish maximum price when retailing the merchandise to consumers.
Clio Series
Price
Sport 2000
16, 000
Dymanique
11, 000
Gordini
19, 000
Bizu
9, 000
Walker (1996) shows that all the 'challengers i. e. Corsa and Fiesta are structured surrounding the same pricing strategy'. It is because the car industry is large and production costs are not so important and creating the major profit is much less necessary as it might be for a smaller organisation. The reason behind Clio having the same charges strategy as its competitors is because it is the only model in Renault range to predominately give attention to lower cost with low quality from launch. Therefore it needs to be competitive with its competitors. The Clio model did this perfectly as new models for the Clio are designed every few years. The Clio has been on the market for over 15 years showing its successfulness to its consumers who are aware of other markets open to them.
The pursuing is a perceptual map of small commercial automobiles sold and its comparability with the Renault Clio. It can be seen that the Clio and Corsa can be located in the same category as one another, as both give attention to price mainly. Other small cars including Audi and BMW focus on both high quality and price as the reputation they may have is that it's a 'long term investment'. The Skoda Fabia is a minimal priced car due to reputation it presented from its unreliable past, but its reputation has slow-moving been built regress to something easier.
High Quality
*BMW 1 Series
Audi A4*
*Skoda FabiaLow Price High Price
Vauxhall*
Corsa
*Renault Clio
Low Quality
Relationships can be built up between your consumer and the seller. Mack (1996) state governments that Renault try to utilize this strategy as much as possible when selling vehicles. But why do this? They do that to make the consumer feel they are simply receiving a personalised service. Some dealerships offer free present as an indirect way of making customers by their product too its rivals. Walker (1998) also says 'This has been a vital part in our strategy in helping to persuade customers that we can meet their needs especially concentrating on smaller vehicles'. However it can be argued this strategy possibly might not work in modern society. As many people are aware the automotive industry is very competitive, it is now quickly cost orientated in particularly marketplaces, indirect costs such as fuel, insurance and duty.
Trade-off analysis could be applied to the Renault Clio. Jobber (2006) says 'Features such as quickness, petrol usage, brand and price are placed before consumers and asked which combinations they prefer'. As the Clio Mk 3 was being designed it could have consulted audience, they might have used r&d because of 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 research can have its limits. When r&d is occurring respondents may ask for a lot of things but each one of these additions may not be feasible. When asked to buy the car consumers might not exactly be willing to switch money.
Product
Jobber (2006) defines product as "An excellent service offered or performed by and company or person, which is with the capacity of gratifying customer needs".
To have an effective product that consumer's desire, it needs to be prices pretty and takes a Unique Offering Proposition. (USP) Walker et al (1998) states there are four elements which creates a sensible and successful marketing combination. These included:
Matching customer needs
Need for balance
Creates a competitive advantage
Matches corporate and business resources
The product Renault Clio has historically been directed at the younger older populace who maybe on a budget. The product is an inferior model in comparison to other runs in Renault yet also delivering nearly all luxury that other models offer. Including air-conditioning, environment control, Bluetooth and dish navigation, this makes Clio very positive when it advertises the model to its consumers. The Clio then however complies with the criteria established to have a highly effective marketing mixture.
Jobber (2006) claims that 'Product development is important. As technology and likes change, products become outdated and inferior compared 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 experienced to come to an agreement to include the satellite navigation to combine this within the models. It has given Clio a competitive benefit over external opponents. Creating a competitive advantage allows them to charge reduced price.
However in few circumstances charging a premium price for products can have its down fall. Many consumers might not exactly be willing to pay extra for products that might not exactly be essential, therefore consumers will move to Clio's competitors such as the 206 and Corsa. The total amount is conducted by market research to see what consumers want, referring back to trade off research.
According to Renault (2011) Clio is its most successful range of car across Europe. It is because the product caters for a broad range of markets. The explanation for can be considered when looking at the anatomy of the Clio. The central product (I) would be the automobile itself and the way it is strategically costed, to be a low value priced car in comparison to its other cars within its range. The next level would be products that add value to the entire product. Making it match customer needs and making a competitive advantage. This could be as mentioned above, tom-tom, Bluetooth, keyless entry system, parking assist receptors and warranties. The outer layer includes extras which maybe indirectly related to the car including after sales support and credit deal. 'Many augmenting features are carefully related to establishing a successful marriage between buyer and seller'.
ImageAnatomy of a product model
A product life cycle (PLC) can determine where in fact the product is placed within its life. Many organisation use different ways of pro-long the life span of its product. Whenever a product grows to maximum maturity and sees's signals its declining after that it considers using Product/Market Ansoff matrix. This involves 4 different strategies that can be used:
Product development
Diversification
Market penetration
Market development
The reason behind this is to maximise revenue for Clio. Renault Clio mainly uses product development to change its model throughout years so customers possess the opinion of replacing and keeping up with trends somewhat than heading to opponents.
When the Clio was first launched it obviously commences in the release stage of the PLC and it is strategically costed high. Jobber (2006) states that 'the Tactical marketing purpose is to generate sales by increasing the market for the product'.
The growth level is next to check out, there is increase of sales and income growth. The reason behind this is because of increase in campaign by creating understanding. Renault Clio use Television set advertising predominately to penetrate the market. They also have their own Renault Television channel.
The maturity level is where the product sales are at its top whilst time is increasing. That's where the company may make discounts available or extra such as warranties. This is also the main point where product improvements take place at the optimum of the maturity stage. The reasons for this include:
Maintain competitive advantage
Future growth
First move advantage
The decline level is the ultimate procedure for the PLC, the reason behind this according to Walker (1998) is because of 'technical superior substitutes' and also consumers change in personal preferences credited to competition.
The Renault Clio was an innovation that Renault developed scheduled to competition from its competition. Matching to Bloomberg Businessweek (2006) Renault was at number 49. Its opponents didn't even reach the very best 100 of innovated companies. Other automotive companies included within the list lower than quantity 49, Nissan and Volvo. This information could now be argued because companies such as Ford, Volkswagen and Toyota are a lot more innovated in 2010 2010 as they have developed autos whilst considering external factors including the environmental factors. (Development of the Hybrid car)
Distribution Combination Marketing
The distribution coverage includes all decisions and activities that can be related to the delivery of our own product to the client.
There are two various ways of circulation 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 primary car business 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; nearer to the market segments.
The Techno Centre (France)
Engineering:
The Renault Group is deployed globally. It revolves around two components:
Engineering Central, the heart of the machine and regional executive propagate over Renault's tactical markets.
Engineering centers:
The Techno Middle (France), the heart of the executive world
Renault Technology Americas
Renault Solutions Romania
Renault Technologies Spain
Renault Samsun Tech Center
This organisation is dependant on a standardised procedure for executive at Renault World of unified technical standards, determining key functions and technical harmonisation of regulations.
A well-developed network of design centers
Renault Design America Latina in Sao Paulo
The group uses parallel network of five 'satellites' design centers.
Observatories real tendencies these appearing centers of vehicles for new markets.
They are participating from the unveiling of a new project to the production of the final strategy car.
The design centers are:
Renault Design Paris
Renault Design Central Europe
Renault Design America Latina
Renault Samsung Design
Renault Design India
Two aims are
Warranty the best customer satisfaction all around the world
Produce near the markets
Renault's industry realises two kind of sell: Either to the clients or even to companies.
But, all confounded, Renault has realised for the entire year 2010 reporting record sales quantities 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 signifies the market where Renault exists in 2010:
It is important to understand that the Clio is one of the best vehicles brand for Renault.
In about 20 years, it has gained more than 10 million customers throughout the world (100 countries). This success is thanks to a styling, comfort, safe practices, versatility and different equipment package worth cars from another portion up.
Renault February 2011 sales in European countries region
In February 2011, by Renault (2011) Website, its sales stand for in European countries 28, 350 cars sold, this implies 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 vehicles sold, exhibiting 27. 15% are Clio models.
In the next table will be the most popular diverse ways to market the Clio model
Place
Advantages
Drawbacks
Car Dealerships
This is the most profitable circulation channel for the car market.
Customers, generally, come in this type of sales area because they have, before them, any professionals.
The car Dealerships can ensure a warrantee on the automobile during one area of the life circuit.
There a wide range of small garage which sell, also, the same cars but less costly.
The occasion's sales are more benefit for customers.
There is a need in productive logistic.
Internet
This way is not popular as the buyer prefers to start to see the tangible product before exchanging money.
Industry
We will offer a good price because the client will be straight at point of sales.
Few customers use this way
Car show
Good location to connect on the services: 'New Clio'
Good way to show our presence to advertise.
Don't understand any sales but we can merely to take any contacts.
We can see that the most practical method to advertise automobiles is to dealerships. This presents the majority of sales from Renault's industry, about 95%.
For the future, maybe the sales by internet will be most significant. This plan would be great for both the organisation and consumer as cost benefits methods could be allocated. Currently customers can view Clio's online and reserve try and show up at dealership to agree the sale contract.
PROMOTION Combination MARKETING
To achieve a good technique 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 best way to promote its car if it is in one country or another.
The communication policy really helps to:
Improve the image and reputation of the company or the style of car
To affect the people's attitude and behavior towards cars
To enhance a competitive advantage
The communication combination offers several different instruments to achieve the goals from above. But there only effective if they are being used in the right stage of the product life routine. (PLC)
Reminder
Advertising
Persuasive
Advertising
Informative
Advertising
Clio is in the maturity stage of the merchandise Life Cycle. The main focus on in this phase is to improve the price and campaign to improve the life of product. If we summarize it in the form of the AIDA communication we must obtain the attention and interest of the folks.
Communication Model AIDA
We have to create a position on which we offer our vehicles to the car dealerships, that will catch the attention and interest of individuals. The best way to accomplish that is showing a higher picture of the animal trapped in a cheap bag on our position which get underlined by our marketing message: Quality rescues the environment!!!!
The picture will generate an outrage at people and will cause an over considering their current shopping behaviour. That is all you want to achieve to get attentions and hobbies about environmental issues.
Another way to receive the attention of men and women is to get dominant people to use our shopping carrier. Of course we know that maybe it's difficult to persuade well known visitors to do this, but there are different characters that get excited about the environmental debate. They could be convinced easier because our carrier will support their behaviour towards the environment and we'd get an optimistic advertising without spending huge money. It really is a win win situation for both factors.
Celebrities can support our cars to become prestige car. Because of them we can capture the interest of consumers.
Sponsoring Support
Another chance to catch the interest of people will be with advertising in mags, papers and with posters. Renault, because of its automobiles, uses the ways to capture the attention of individuals. For instance, for the new Clio, Renault is in the Release level in the Promotion through Product PLC. Renault has to create a good advertising campaign to increase car sales.
When the car 'Clio' will maintain the Growth Stage of the PLC, then, Renault must do persuasive advertising to boost the brand loyalty of customers. In the AIDA this might create desire and drive the visitors to action.
Communication Mix
We can select the various advertising channels; Renault has to consider advantages and disadvantages of every media before release.
Below, you will see a summary table of cons and advantages for the Media and None Multimedia, which will be the basement of Renault's decisions.
Support
Advantages
Disadvantage
Media
Press
- Potential customer
- Audience Loyalty
- High price
- Low impact, subject matter needs to be repeat whole lot of times
Radio
- Good targeting for Clio
- Big test of people tuning in in the worldwide
- People are not concentrated
- High price
- Low impact, meaning has to be repeat, also, lot of times
Cinema
- Great attention of the spectators, good impact
- High price
- Small test of people
Outdoor advertisement
- Important sample of people touched
- Large selection of support
- High price
- Difficulty of targeting
- Weak measurable impact
None Media
Point of purchase
- Powerful image
- Quick return on investment
- Creation of a data foundation of prospects
- Low price
- Need to be creative with good support
- Well organised
- Cooperation with retailer
Internet
http://www. renaultshop. com
- Creates interactivity
- Gives lot of information
- Touched a big sample of people
- No geographic limits
- 39% of home in UK don't possess internet for example
Public relations
- Nearly free of charge
- Impact on tons of customers
- Expensive
- Difficult to have a good relation with journalist but the Prestige of the brand can bring to succeed
Sponsoring
- Great way to launch a product with a relatively low budget
- Importance to choose well your sponsor as a result of effect on image brand
Direct Marketing
- Quick go back on investment
- Create a web link with the customer
- Have to have a good data bottom part (good information)
- Make a good follow-up
We have analysied the various stations of communication and on this basic Renault uses for Clio about all these channels.
Budget:
Renault's headquarter gives to all its car dealerships a budget to talk the Clio. It really is, in general, the communication's service from headquarter which communicate on a national point of view. But each year, and in advertising equation with the result of sales for each period (quarterly or annually), the headquarter helps the automobile dealerships to connect on the merchandise, giving a budget, pretty much important to succeed to acquire good consequence for another periods.
We can tell that the three mains helps of communication are Television set with advertising, Outdoor ads with billboards, and the Papers. About all costs is consecrated for these programs.
The mains channels
As the problems continued to hit with full push the automobile industry, Renault has released, it would retain its around 600 million euros assigned to communication for 2010 2010.
In 2008, Renault has launched for its media car 20 marketing campaign in more than 80 countries, with a new slogan for Clio. Since this period, Renault has substantially increased his brand's image in Europe.
TV ads
Renault communicates on this channel because we can capture a lot of folks through these advertisements.
This channel signifies for Renault this year 2010 about 65%.
And by Renault website, we realize that Renault has used about 20% of budget to connect on the new CLIO, including 13% with Tv set ads and the rest with other ways. This performance brings Clio in top of the rank of sales for the first calendar months of 2010, and the same for 2011. From the world, Clio stays on the vehicles the most sold follow by Megane. In Europe, Megane is merely in front of Clio in the rating.
http://www. youtube. com/watch?v=B0tkN8WQDvA
http://www. youtube. com/watch?v=_r8LHP4nY30
These links are few types of advertising with Television support.
The goal of Renault is to give attention to TV multimedia because more than the 1 / 2 of acquisitions has been focused on this canal. Also, Renault has launched a web-based Tv set route translated in French and English. It's the first brand which launches its channel across the world, provided on the channel Sky Guide 883 in UK. The program includes a large choice of home elevators the Renault's range and undoubtedly the Clio.
Sponsoring
Renault uses different varieties of sponsoring to connect on its vehicles. The stars are a good target to convey a good image and raise the brand, and the car's value. This is important for a business like Renault because famous movie star equally quality brand.
And, also, targets the image in sportive happenings like the Formulation 1 for example. Observed by millions of men and women through the entire world, you can, because of the sponsoring, speak immediately with people.
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Launched in the sport like here with the Formula 1, Renault spends much money however in 2010 they have elected the winners of world cup. It needs to keep the pressure for 2011. This image, this prestige will allow to Renault to build up a fascinating communication over its whole range of autos.
And indirectly, Renault communicates on the Clio, because people who want to buy Renault, they'll visit the others models.
Other partnerships have been agreed upon. 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 Coup in one position of the most famous car race video games. Thanks to that, you can give attention to new customer sections.
Each year as well as for the 11th consecutive, Renault can be an official spouse of the Deauville North american Movie Festivity. The brand provides a fleet around 15 Laguna to escort jury customers and celebrities on the red carpet. It really is a large event showing its existence.
Internet
Renault, since 2007, tries to develop its strategy on internet. Between 2007 and 2009, Renault has doubled its investment in web advertising. Which means that The Group starts off to have a fine place, a good position on the net market. Renault, in 2009 2009, has launched the first shop website in France and Spain and at the end of 2010; it was the convert of UK, Italy and Germany.
This way is much easier to take a first contact and to see the several range of products.
Example of Advertisings on internet for Turkey
In final result to Renault Clio's product phase in the marketing blend, it can be seen as being truly 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 cordless connectivity, making it technological advanced. This regular change in technology bring healthy competition for the consumers as they can check around to see which vehicle best meet their personal standards. From personal interpretation on Clio's model it been seen at the peak stage of maturity, which frequent adaption getting product improvements to stay competitive. Price is one of the major factors as it pertains to delivering the product to the consumer, without having the right rates strategy the merchandise may not achieve success on introduction. Renault Clio can general be observed as a car marketed at an inexpensive and poor, (in terms of extras) so when retailing the car client satisfaction plays an important part of the supply chain when reselling the Clio. Promoting the merchandise as the right price is key, as this is essential to talk to consumers. Renault use several ways to advertise its product itself, the most likely would be observed within car dealerships. When promoting the Clio the PLC can be regarded, when new models are launched marketing is in the advantages phase to gain consumer consciousness and during the course of its life will start to decrease so marketing decreases so Renault may create new models and catch the attention of customer attention away from the more mature models and persuade them to choose the newer model.
