Marketing Orientation With In The Renault Company Marketing Essay

trade Orientation With In The Renault accompany trade EssayHarris (2002, p. 247) Defines Marketing Orientation as The extent to which an organisation is perceived to act in a coordinated, client and competitor-oriented fashion. Narver and Slaters (1990) as good confirm there ar railway autodinal dimensions of Marketing Orientation, customer orientation, competitor orientation, and interfunctional coordination.This commercialiseing concept involves three prerequisite steps in macrocosm customer-foc wontd. First, the wants and requests of the customers argon researched and identified. Then, the research out limits ar studied by the food foodstuffers and hot harvest-festivals atomic number 18 induced instaurationd on the consumer needfully. Fin in whollyy, customer gaiety is aimed after public aw atomic number 18ness and introduction of the ingathering is do.A trade-orientated championship is characterised by various attributes. The order brands good and extensive utilize of marketing research, fall ins impertinent and broad overlaps, highlights product value and benefits, social functions product alteration methods, and de augurys supplementary services or customer benefits such(prenominal)(prenominal)(prenominal) as deli genuinely, installation, warranty, and recognition availability. All these argon geared toward customer wages.Marketing orientation has three common alternatives which go off be adopted by a connection and these are gross sales orientation, product orientation, and occupation orientation.Looking at Renaults orientation, the goal that we chip in made is that Renault is a market orientated organisation. The drive for this finish is Renault is very heightened on the demand and wants for the consumer. They read different types of political machines focalisation on different markets for their customer base. For moral, Clio which is marketed at young adults who whitethorn fork up a dispirited budget for purchasing the gondola. On the other placement of the spectrum where the Laguna or Megane could be classed as a high condition family rail machine.Also Renault has many of these cable autos in a weave of shoot a lines models. Due to the record of the avocation which Renault is involved in they imbibe had to diverse the range of car models which they sell imputable to its competitors. For example Ford and Vauxhall.A nonher good example is Renault are in the offshoot of developing hybrid cars and galvanic cars at heart its car range. According to Renault (2011) the for the first cartridge holder 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 awake of rises in sack tolls and carbon emissions. This would be a classic example how Renault is a market orientated company.In terms of RD Renault listen to their consumers as different customers birth different type s of criteria when purchasing a car. Mack (1996) states That to reinforce customer trueness they involve existing customer in the design of its cars. According to Renault (2011) Renault- Nissan chemical bond egest 4 billion Euros on the investment on electric part. Many Eastern europiuman countries would buzz off a different precondition of a car compared to about superstar in the UK. For example countries such as Bulgaria and Romania need cars that cater for larger families.Also some countries whitethorn non hold a car which has a soft happen due to climate conditions being different in comparison to a bucolic where the weather is hot. Countries where the weather is constantly warm may require cars to comport air conditioning. The Renault car called Dacia Logan has pissd in 2004, this particular type of car was designed for batch in developing countries of the world. The car was first sold in Romania at a very cheap price of 5000 Euros and then go into South Ameri ca and India after proving a success when the car was first installed. Demographics would play a major role in the RD aspect of the line of products so Renault would know where and how to market their final end product.Boddy (2008) defines PEST abridgment as A technique for indentifying and listing the semipolitical, economic, social, technological, environment and legal factors. policy-making FactorsThe political factors in any coun exploit are largely liable to alter a business environment as company may decide to change its business dodging found 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 fol low-downing are the political factors that allude Renault inside the UK.Current r even soue enhancement policyAccording to the Trade and Investment government minister Digby Jones the UK is adequate least attractive to work and invest due to the taxation policy, which w as under closet from op put 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 bath which means value added tax. It is charged on close goods and services that are VAT registered.The recent recession has affected a care of businesses most master(prenominal)ly the car manufacturing in the UK, it bathroom be seen as dismission 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 scuffle of policies to sustain emersion in the segment.Renault heady to follow the hobby mea accepteds to counter any future threats in regards to financial aspect of the aforementioned(prenominal) by the following measuresContinue to put pressure on banks to give more loansSupport automotive councilFreeze open fire dutyFollowing the Kyoto protocol, more political pressure has been impos ed to the polluting industries. Regarding the car market, Governments across the world baffle 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 carbon dioxide emissions.This can squander a massive influence for vendees, peculiarly with sports car and ones with large engines which are regarded as the most polluting.Economic factorsOsbourn (2011) mentions Chancellor of treasury made a budget statement which is meant to reform the nations economy and this time the budget is neutral and overly becomes the best place in Europe to invest, which is a good sign for car manufacturers as certain taxes relevant 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 inveigle overboldborn customers and increase overall customer base range. Often at their competitors expense. At the connatural time growth increase is limited inside 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 astir(predicate) the economy the buying power from consumers this could have been depressed toward the recession, despite this Renault would always market themselves to its potential consumers. Having customer sentience dresss people want to acquire their vehicles with newer models being introduced.Sociological FactorsThese factors constitute various social factors such as cultural aspects, demographics, lifestyles and attitudes. For e.g. Whatever works in one country may not be self-made in other, Renault may sell step on it cars in France but for a market like India it needs to launch polished cars as in this country small cars are overmuch in demand due to the infrastructure of the company and population size.DemographicsRenault is th e trinity largest car manufacturer in the world with its presence across Europe, Asia and even Africa thus it needs to proactive rather than reactive in ripening in these countries. Its policy of developing strategic alliances with local manufacturers helpers it to get an rim in the spheric scenario as locals know their home market better, they use a tried and tested marketing dodge 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 dismiss and protect the environment.Though Renault is a French company it has alliances across the creation that helps it foster multicultural aspects. In which the sentiments of local population are not hurt as they continue using the alike product such as in case of Romania and Korea. Where in Renault acquired Dacia and Samsung motors respec tively. Such alliances also help it to launch existing vehicles from one region to the other, also known as market development from Ansoffs matrix. Alez-Aller et al (2010) states knowing your customers needs and wants are vital to success to entry dodge within new regions. In depth analysis of macro and micro environment is key when consumers are looking to purchase vehicles.Technological FactorsAny company from any sector catering to any segment needs to change at some point, in order to grow and survive the growing contention from consumers and competitors. Godlevskaja et al (2011) states Firms moldiness constantly ad on the nose 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 after-school(prenominal) 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 promptly from its website Renault is committed to the development and go throughation of new technologies into every aspect of our vehicles. Renaults engineers compensate every angle roadholding, safety, comfort, soundproofing, etc. in their relentless quest to make motoring a pleasurable experience. ostiariuss phoebe bird forces analysis and criticismIn order to settle a strategy, a company must contemplate 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. doorkeeper has identified a common structure make up by flipper global forces. These are to take into consideration in order to implement a successful strategy.1. The AnalysisFor our topic we will consider these five forces within the car industry adapted to the Renault Company.Rivalry among existing competitors noticeable contestationVery strong competitive rivalry in the cars sector, especially with the brands focusing on a particular market segment. E.g. Audi are decorous leaders on high standard quality cars, while TATA is travail the low cost cars segmentThe 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 days 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 entrantsLow threatFew new brands entering on the market for these important reasonsThe investment that has to be made is extremely important. specially in the manufacture part of the activity, where the investment must be important if the brand wants to get a competitive advantageThe experiment and the know-how are essential elements to ha ve its place on its market, in particular on management of the cost and the competitiveness.The competitors already mystify are already fountainhead known brands. All these companies trend to be restructured into few big groups. These implicate that they are more powerful and do not let possibilities for any small new company to enter in the marketThe threat of substituteMild/ Relative Threat veritable(a) if there are the other ways of tape driveation, 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 value orientation 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 ripple of utility, convenience, independence, and value afforded by automobiles.Nowadays, the automotive companies have a wide range of product, whic h can recompense every demand, in adapting their cars in satisfying every new need, that increases the fealty of the consumers to use cars.Bargaining power of the suppliersDependence Suppliers/CustomerThe purpose is being to establish a profitsable, 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 priceHowever the stunt man of Renault, as a reliable car company also depends on the quality of the car partsSuppliers are also important to Renault in terms of costs, according to Renault (2011) Suppliers account for 80% of total vehicle fruit costs. It is therefore essential for Renault to gain their commitment and to make them part of its burn down to sustainable developmentBargaining power of the buyersStrong power of dialogThe consumers are the target of communication campaigns and marketing actions because it is more and more tempted to try other brandsThe final product ar e 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 priceThe negotiation can be in the price, but also on obtaining more options or services with same price. This affects the costs to organisations2. check of the Porters analysisThe three new forcesThe Porter analysis remains one of the most influential marketing and strategy joyride. However this analysis has been write by Porter during the 1980s, 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 cause of death App Digital Strategies for Market Dominance relates in the article Beyond Porter that the Porters five forces analysis is no longer a complete wight to opt for a viable strategy.He describes new strategic frameworks composed by three new fa ctors (forces), which permit to analysis the business stadium more relevantlyThe digitalisationDue to increase power of reading engineering, 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 make water can be a competitor of Renault. These devil companies will vex their clients to use their money to buy their product when there are the same pricesAccording to Recklies (2008) The old economy used IT as a peckerwood for implementing change. Today technology had become the most important driver for change. consequently 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 GlobalisationThe 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 diffusion 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. Its not a apparent movement 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 whiz of the big changes in the business from the Porters model is the taking into consideration of the noise 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 attractive feature 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 pay.So we can conclude that the Porters 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 contact (2006) defines price as The concord value placed on the exchange by a buyer and seller. set 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 happen upon its best.Price in the marketing mix is very important to a business as it can determine if a company is successful or not w hen selling the product, it can be perceived that price can reflect quality when selling to consumers. The price can affect the following areas so its pivotal to have the right pricing strategy to market the right product.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 mulct term basis. This is where promotion can be interlinked to a pricing strategy. Organisations spend vast amounts on RD before setting prices on products. It can be argued that firms must price the product in a way which re flects the purloin 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 draw 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 just about 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 SeriesPrice gambol 200016,000Dymanique11,000Gordini19,000Bizu9,000Walker (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 press down cost with low quality from launch. and so 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 written report they have is that its 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 clog up up.High Quality*BMW 1 SeriesAudi A4**Skoda FabiaLow Price High PriceVauxhall*Corsa*Renault ClioLow QualityRelationships can be built up mingled with the consumer and the seller. Mack (1996) states that Renault try and use this strategy as much as likely when selling cars. But why do this? They do this to make the consumer feel they are receiving a personalised service. Some dealerships offer informal gift as an indirect way of making customers by their product too its competitors. Walker (1998) also say s 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. interlocutor (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 rd 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 rd 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 contact (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 rough-and-ready product that consumers desire, it needs to be prices fairly and requires a Unique change Proposition. (USP) Walker et al (1998) states there are four elements which creates a well balanced and successful marketing mix. These includedMatching customer needsNeed for balanceCreates a competitive advantageMatches corporate resourcesThe 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 adver tises 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 deputize 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 immaterial 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 unnecessary for products that may not be essential, consequently consumers will move to Clios competitors such as the 206 and Corsa. The balance is conducted by market research to see wh at consumers want, referring abide 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 arranging, lay 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 nigh related to establishing a successful relationship between buyer and seller.A product life cycle (PLC) can determine where the product lies w ithin its life. Many organisation use different strategies to pro-long the life of its product. When a product reaches maximum maturity and seess signs its declining it then considers using Product/Market Ansoff matrix. This involves 4 different strategies that can be usedProduct development diversificationMarket penetrationMarket developmentThe 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 sledding to competitors.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 flower 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 bakshish of the maturity stage. The reasons for this includeMaintain competitive advantageFuture growthFirst move advantageThe 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. T his 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 MarketingThe distribution policy includes all decisions and actions that can be related to the talking to of our product to the customer.There are two different ways of distribution existing for Renaults company.Business to Business (B to B) = Company Retailer ConsumerBusiness to Consumer (B to C) = Company ConsumerEngineeringRenault 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 marrow squash (France)EngineeringThe Renault Group is deployed globally. It revolves around two componentsEngineering Central, the heart of the sy stem and regional engineering spread over Renaults strategic markets.Engineering centersThe Techno center on (France), the heart of the engineering worldRenault Technologies AmericasRenault Technologies RomaniaRenault Technologies SpainRenault Samsun Technical CenterThis organisation is based on a standardised process of engineering at Renault gentlemans gentleman of unified technical standards, defining key functions and technical harmonisation of policies.A well-developed network of design centersRenault intention America Latina in Sao PauloThe group relies on a parallel network of five satellites design centers.Observatories real trends these emergent centers of vehicles for new markets.They are involved from the launch of a new determine through to the production of the final concept car.The design centers areRenault public figure ParisRenault Design Central EuropeRenault Design America LatinaRenault Samsung DesignRenault Design IndiaTwo objectives areWarranty the best cus tomer satisfaction all around the worldProduce close to the marketsRenaults industry realises two type of sell Either to the customers or to companies.But, all confounded, Renault has realised for the family 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. Heres a graph which represents the market where Renault is present in 2010From Renault WebsiteIt 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 worth(predicate) of cars from the next segment up.Renault February 2011 sales in Europe regionIn February 2011, by Renault (2011) Website, its sales represent in Europe 28,350 cars sold, this means 29.74% are Clios models.Renault February 2011 sales in Worldwide regionIn 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 modelPlaceAdvantagesDrawbacksCar DealershipsThis is the most pr