Marketing Plan For Renault Twingo

Marketing Plan For Renault TwingoAccording to our class, MC 600, Business Policy, we befool to write a business plan round a reaping of our company. In this case it is supposed we atomic number 18 progress toing for Renault Car Company, and we bring in the business plan for one of our reapings, which is Renault Twingo, regarding the Greek mart. To develop victorful strategies and execution programs, we film up-to-date information ab expose the environment, the arguing, and the market segments to be served. Often, synopsis of internecine data is the starting point for assessing the current merchandising situation, supplemented by selling intelligence and query investigating the overall market, the competition, key issues, and threats and opportunities issues. As the plan is put into effect, we go a mien l annul oneself advertising and other forms of research to measure progress toward butts and identify argonas for improvement, if results fall short of deviseions . Finally, we bequeath intent marketing research to learn more than about their guests requirements, expectations, perceptions, and satisfaction levels. This deeper judgement get out provide a foundation for come oning matched wages through well-informed segmenting, laughingstocking, and positioning decisions. Thus, the marketing plan should outline what marketing research exit be conducted and how the findings leave behind be applied.EXECUTIVE outlineIn the eldest section we concord to summarize the chief(prenominal) goals, recommendations and points of our project in order to be accepted by the managers. Our project will behind in reclaiming Renaults superiority in Segment A by positioning Twingo as one of the best overall proposals in the segment. It will be placed between mainstream, e.g. Fiat panda and trendy go cable railway simple machines such as clean, and FIAT 500, targeting mainly style-oriented, cleanborner guests, who atomic number 18 more unstrained to buy a 3-door cable cable car. Moreover we can get a competition advantage by contrastiveiate the target groups by multiple versions.dependable to Expression Refers to a mainstream target group, practical.Dynamic Refers to female group with some(prenominal) propellent characteristics.GT More playy and mannish profile.We will operation connectivity and customization features to provoke youth compendium and trendy factor (Dynamic, GT).We will promote practicality and versatility to fire its mainstream appeal (Authentic, Expression).Systematically attract rootage-time-buyers and exploit opportunities to up-sell them inside the blur.Finally we will role competitive egest policy (10% discount on retail cost) to stick out retail gross sales (despite lack of 5 doors). Generally we will exploit limited editions for conquest sales and for maintaining trendyness.By these actions we target at about 1500 sales, two retail and flash, for the year 2010 in Greece. This is a partition of 7, 6% and 1, 4%, respectively, as shown in the image below.CURRENT MARKET stakeIn order to analyze the current marketing situation, we will demonstrate about the overall Greek Market, identify the market segments we will target and provide information about the companys current situation.Renault The Company (briefly)In 1899 Renault Frres is founded by Marcel and Fernand Renault. In 1903 the sales meshwork expands and the first subsidiaries are piece up outside France. In 1975 managed by Bernard Vernier-Palliez, Renault comprises the state-owned Rgie (104,000 employees) and the subsidiaries set up through diversification (118,500 employees) and by 1980 Renault was Europes leading vehicle manufacturer. In 1997 Twingo arrives in the market.Range SegmentationMARKET DESCRIPTIONWe will assay the target segments and provide context for the marketing strategies. We will examine the economic position and the general situation of Greek Market, MAVA which is the of ficial Renaults representatives, the procure Behavior of the target group in which we are interesting in and the current situation of the Competition.EXTERNAL ENVIRONMENT Greek Market situationReal GDP average growth 4,1% (10yr), 4.2% (3yr). Slowe growth in 2010 reflects weakening growth in fixed investment and exports, due to potent Euro.Consumer spending even if slower growing retains its momentum and will keep plunk for to be the main contributor to 2010 GDP growth driven by real wage growth (4%) and employment growth. Spending on consumer durables, in particular, remains squiffy (sales of household equipment increased by 5.6%, as did car sales).Household debts account for 37.8% of GDP vs 61.6% for EU-13. Consumer credit growth remains strong at a (stabilized) 20%. Deposit growth reached 14.4% in 2007 vs 10.5% in 2006Greek economic climate index in rise from mid-2005 to folk 2007, decreasing slightly in October remains higher than European index.Greeks more willing to bu y a car in 2010 than EU-27 or EU-13 average.The positive degree effect of direct tax income reductions is expected to be correct by the increase of VAT by 1-2 percentage units in 2010 or 2011. cyberspace penetration at 40% of ages 13-70 years old (13-24 +60%, 25-44 +30%). Broadband connection penetration currently at 6.9% of households (EU-27avg at 16.2%).Average periodical cost at 28.3 (vs 25.4 in France and 46.8 in Spain). Average speed at 6,6 Mbps (vs 44,1 in France and 6.9 in Spain).A change in the registration tax is not considered feasible for the time being.Liberalization of diesel motor car market (in Athens and Thessaloniki) remains stagnant, AMVIR (Greek Association of Importers) now pushes for freeing up the diesel LCV market.AMVIRS (Greek Association of Importers) current position to the Government is for a gradual and mid-term alignement of the revenue system with the emissions norms. totally data European Commission, Eurostat, National Bank of Greece, boot out Int ernet data (independent surveys). each(prenominal) data European Commission, (*) Ministry of Economics Finance. inside ENVIRONMENT Renault in Greece MAVAImplement ready, in-house software to track real-time MAVA/ school principal stock, order, invoice and registration data.Based on the above, specify and implement a new monthly marketing reporting system, specified with and covering the postulate of Management, Renault and Marketing.Exploit Renault-specified PER4 Dealer training program (analytic proposal to be submitted by end of March 2010) to provide a business case for dealers to indorse change, total customer satisfaction and a new culture vis-avis Renaults extraverted ingathering assault. Budget 50.000.Starting from 2011 (a wish with new Megane), consider an extensive communion plan to change current perceptions of Renault and gradually establish it among top-of-mind crisscrosss in Greece. minded(p) approval, Marketing will provide a comprehensive route symbolise b y end of June 2010 to be finalized by end of 2010 and be implement starting from 2011. This will include a thorough proposal on the approach and process leading to an action plan by end of 2010.Deployment of the new commemorate identity graphic guidelines within the company and to the dealer network ( centre elements, stationery, printed forms, advertising, local communication -publications, events etc), starting with the new Twingo launch campaign, including implement and evaluation on the extent of deployment, agree to time-plan imposed by Renault (12 months).The acquire BEHAVIOR of the target groupStage 1 Initial interaction with the brandAt this stage, customer has not fully developed the need to purchase a new car and collects information / perceptions / impressions by diverse channels that result in top-of-mind awareness of peculiar(prenominal) brands. Brand bring at this stage comes from creating impressions and emotional territories through advertizement emotional p ositioning. force relations word of mouth is especially important for the abject Greek society and especially women, who mostly turn to friends and family for advice.B-T-L Promotions inspection and repair relate the brand to values and behaviors.Stage 2 Actual investigationAt this stage, customer assesses technical and tangible factors (however still through an emotional process), identifying possible solutions to his/her inevitably. This results to the shortlist.Provided that the brand has passed the test of the first stage, the choice criteria arePerformance (20-28)Roominess and dependableness (29-45),with price and equipment as common denominators.Customers first choose a brand and, subsequently, the sticker it offers in the segment they need. French Cars in general provides to their customers cultivationAlternativeFocused in comfort LuxuryFeminine punicWeak USPDesignProgressionAffordabilityCustomers Character Twingo CharacteristicsRenault Twingo antitheticaliates its ta rget group depending on the versionTwingo Authentic to ExpressionMainstream, practicalTwingo DynamicFeminineTwingo GTSporty, masculineIn general its target group is men and women 20 35 years old. Twingo means fan, joy, entertainment combined with all the above characteristics of a French Car.PRODUCT REVIEWIn continue, we have to outline the main characteristics and summarize extra information needed about our product, Renault Twingo.Renault Twingo is characterized byModern, amiable DesignRoomy, practical and occupant-friendlyAn assertive spirit underpinned by dynamic stylingcommunicatory and occupant-friendly novel Twingo features an Audio Connection Box (in UK we will be concern this system multi-functional Tune Point) which enables personal music collections stored on USB keys, portable MP3 players or iPods to be played through the cars audio system and operated via the steering wheel-mounted controls.My Twingo ism buyers can customize their new car inside and out thank to a scarper of decorative decals for the exterior and a selection of forward-looking accessories such as the Organizer Box and Makeup Box for the interior. address to young backup, essentially urban-dwellers hooked on new technologiesChassis derived from the B-segment and a power train draw featuring the new trichloroethylene (Turbo Control Efficiency) 100hp throttle engine, which offers class-leading performance and fuel consumption, impudently Twingos superior dynamics, set it apart from its predecessor.Optimizing confine space and interior versatility, by making full use of the cars drumhead dimensions (length 3.60m).Interior is extremely modular thanks to its four independent glide seats.Safety was at the fore scarecrow of the New Twingo programme teams priorities.New Twingo is the first model to be renewed within the framework of Renault Commitment 2011 and had to put up an extremely exacting brief in terms of quality and profitability. appurtenant information about m odelsA. TWINGOTwingos agile handling makes it perfect for nipping in and out of city traffic. With its compact length of just 3.60 m, Twingo is a picnic to park and a delight to drive. It withal stands out with its pure, contemporary styling. Twingo brings drivers a dynamic and pleasant drive. Our primary consumer target is middle- to lower-income hatful who need a car with pleasing desing but besides comfortable and easy to use. All versions of Twingo carry the Renault eco signature. They emit less than 140 g/km of CO2, bring renewable materials and recycled plastic, and are produced at the ISO 14001 certified Novo Mesto plant in Slovenia.B. TWINGO gasRenault has produced an affordable high-performance car which sits a coherentside Clio and Mgane Renault Sport in the Renault Sport range.Renault Twingos vivacious lines are underpinned by a more curvaceous, acrobatic stance and the newcomers trashy calling is further emphasized by its wider front and rear wings, profiled sill s and spoiler.Twingo Renault Sport is the response of Renault Sport Technologies experts to a two-pronged challenge, namely to interpret sports performance while at the akin time ensuring that the new car is easy to use on a day-to-day basis.Twingo Renault Sports chassis is both responsive and finely tuned to provide precise, balanced sports handling, while specific work on the legal transfer of its new 133hp 1,598cc engine reveals its punchy temperament.C. TWINGO GORDINI R.S.The return of the Gordini name is to be marked by the introduction of a new chic and sporty version of Renault Sports pocket rocket which takes a current-day stance on the cues long associated with the Gordini world.Twingo Gordini R.S. features a gleaming Malte Blue lacquered metallic finish, plus two etiolated racing stripes, in keeping with tradition. The front and rear bumpers are deepen by gloss black details, while the fog lamp surrounds, exterior reverberate housings and lip spoiler are all picked out in a contrasting white finish.Gordini Series badging either side refers back to the heyday of the Gordini Cup when the qualifying heats of the different meetings were known as sries. This exclusive exterior styling package is rounded off by a choice of either blue or black diamond-effect 17-inch aluminum admixture wheels.To ensure that it befits Gordinis glorious motor sport heritage, the latest addition to the Twingo range is based on the same performance/equipment package as the Renault Sport versionSport chassis with 17-inch wheels for outstanding road-holding performance that is equally fit to everyday motoring,a feisty, responsive 1.6-litre 133hp petrol powerplant with a distinctive, specially-tuned engine pitch under acceleration,precise, incisive steering for even greater fun at the wheel,powerful, durable braking performance.The fashionable and sporty label of the Renault Sport range with its soigne finish and strong design codes, the Gordini label builds on the reno wned expertise of Renault Sport, and offers a fresh interpretation of its values.Renault naturally opted to build on the character of Renault Sport Technologies (RST) in order to transform the Gordini legend into a reality. Renaults sports peg has prolonged the Gordini heritage through its renowned expertise in motor sport and the development of its sports models.COMPETITIVE REVIEWThe direct completion for Renault Twingo in Greece is FIAT Panda, CHEVROLET Matiz, HYUNDAI Atos, PEUGEOT 107, SMART ForTwo, TOYOTA Aygo, KIA Picanto, CITROEN C1, VOLKSWAGEN Fox, DAIHATSU Cuore, FORD Ka, OPEL Agila.The Total Market gross revenue are showed belowAs we can see, the segment dominated by Panda Koreans (low price models, therefore strong in fleet sales) followed by TPCA threesome (Toyota, Peugeot, Citroen Automobile), upward indication for ForTwo and Cuore and downward indication for Matiz, Atos and Fox.The 3-Door Sales Direct Competitors VS Renault Twingo3-door versions appeal to first-ti me buyers, seeking for looks and style, who are willing to spend more for differentiation.Fleet Sales VS Retail Sales Direct Competitors VS Renault TwingoSegment leaders retain epoch-making contribution on both fleet and retail sales. The ForTwo, Fox and TPCA triple appeal more to retail buyers.Despite drop of fleet sales, Picanto compensated with strong retail sales.MARKETING STRATEGYAs a passel carmaker, Renault has long been recognised for the quality and inventiveness of its products in the small car segment and New Twingo is no exception. Since its unveiling at the 1992 Paris aim Show, Twingo has revolutionised the world of city cars.In response to shifts in customer consume across the span of its 14-year life, Twingo took the form of seven different collections and a long list of striking special and limited editions.The European small car market has been reasonably stable since 2000, yet that hasnt prevented it from being extremely competitive, owing to the presence of the traditional European makes and, more recently, the advent of newcomers from Asia. Even so, Renault stands out as a major player in the segment and New Twingo reinforces the brands line-up with a view to optimising its coverage of this end of the market. With a length of 3.60 metres, New Twingo is a practical, communicative, compact car.New Twingos mission is twofold, the first being to build on its ever-growing reputation as Twingo owners were loyal to the car and replaced it with another Twingo. The piece aspect of the models mission involves reaching out to a new clientele seeking a safe, versatile, practical and feisty package with compact dimensions. ternion of European small car buyers are aged under 35, including 11 per cent who are under 25. Amongst its new targets, New Twingo seeks to appeal to this young clientele, essentially urban-dwellers hooked on new technologies and for whom the car is seen as a symbol of freedom, as well as an extension of the world in which th ey live. New Twingo covers all these criteria thanks to its unique personality and unprecedented connectivity for its segment, not to mention its inherent versatility, driver appeal, travelling comfort and dynamic, reassuring handling. outline and Marketing employs 150 people from diverse backgrounds, including 12 different topicities.The cardinal key functions in Renaults Marketing Department 1. Marketing product and gain manager Their role is to develop the most attractive selection of products and work for a given range of vehicles. They adapt their choice to each national market without overlooking the brands identity and sales targets. They help elaborate marketing strategy, prove sales figures for their models, and constantly look for ship canal to sell more. 2. result positioning consultant They draw on different surveys and studies to propose ways to improve the brands positioning and image. Working with the different range managers, they decide how a model should be p ositioned and what audiences to target. They then adapt this positioning to each country. 3. hurt consultant They draft a price strategy for each model in every country. Another of their functions is to examine across-the-board pricing methods and procedures. conceptive interpersonal skills are important as they are in perfunctory contact with the markets and other marketing experts. 4. Trend forecasterTheir task is to analyse market trends and sales forecasts for each vehicle in a range of countries. Their conclusions help the factories plan production in line with the dealerships probable needs for vehicles to satisfy customer demand. 5. Planning studies managerThey pilot the sales and marketing grooming system, assess Market Areas needs for economic modelling, and adapt mean tools accordingly. They train the national plan coordinators in the use of formulation tools and methods. They also analyse each countrys budget and strategy plans to then compile a group-wide synthesis .PositioningThe new Renault Twingo hopes to appeal to the small car segment and the sign first car buyer segment while also appeal to families who wish to acquire a second car, or to those using their car in urban or city areas. This car interests distinct and different groups of car buyers so there is a need for careful product positioning in the mind of the consumer. Some considerations when positioning a new car might includefirst car or small car users who expect specific design qualities from a carfamilies who want a second car to get them from A to B or to complete the school run twice a day and who will also want different featuresyoung people looking for personality from their car perhaps moresporty features or individual and distinctive design finishes.New Twingos key target market is young dynamic people. Renault has a marked advantage in this area because it is known for its swell pricing and is also an established, highly recognisable brand that young people can rela te too.Price schemaRenault has a clear pinch of its key target market (young people andother price-conscious car buyers) and has designed pricing strategies to best address their needs and the positioning of the New Twingo. In the case of the New Twingo it is imperative that it be keenly priced and also that run costs are low.The price quoted by Renault is the price you will apply at the dealership. The starting price is 8790 and it can reach the 13100 depending to the model and the equipment include. All the dealers provide the option to buy the car with a small measuring rod in advance and then with monthly installments.Price Positioning by Model Direct Competitors VS Renault Twingo8k Koreans (high contribution of fleet sales).9k Panda (has also the widest coverage).9-11k Twingos spirit competition.12k Smart.13-14k Twingo GTs main competition (Panda 100 C2 VTS).Distribution ReviewIn this level we have to analyze Renaults dispersal network more or less the world and speci fically in Greece. Renault its an world(prenominal) industrial organization with 38 industrial sites in 17 countries which ensure that production occurs close to markets and unique standardization which guarantees the same level of quality throughout the world. International production capacities are expanding rapidly. major projects of development are in Russia (a partnership signed with the AvtoVAZ automaker), and Morocco (work began on a new industrial complex in Tangiers).A launch to the dealers is different to launching a car to the public. Increased demand for a car is also known as a pull factor as it essentially pulls the product through the diffusion channel from the manufacturer toward the consumer. In order to succeed at getting the product to the consumer, Renault has an International network of agents or dealers who carry its cars in the companies stable. This means that support is given to the Renault dealers around the world to promote the new model in a way that drives demand for the new car. Our channel strategy is to use selective distribution all over Greece. During the first year, we will add channel partners until we have coverage in all major greek markets and the product is included in the major car catalogs and even Web sites.The Renault Production demeanorGuarantees the same quality standards throughout the world,Enhances Group performance (plant specialization according to car segment, development of plant capacity to produce different vehicles on the same production line, continuous improvement of the workstation, etc.),Ensures the Groups commitments to the environment (100% of Renaults production sites are committed to ISO 14001 (environmental management standard) certification processes),Reinforces safety throughout the world.Renault has a distribution network all over the world-Americas, Europe, Eurasia, Asia and Africa. The official sales partnership in Greece is PGA motors at Marousi, Athens. Moreover Renault motors are sol d by almost 31 agents-sales points all over the country.SWOT ANALYSISIn the next whole tone of our marketing plan, is the SWOT analysis. SWOT analysis is a strategic mean method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in our project. It involves identification of the internal and external factors that are favorable and unfavorable to achieve our objective.Strengths Strengths and strong points of our car.Weaknesses versed weaknesses of Renault Twingo.Opportunities external conditions which are helpful to achieving our objective.Threats external conditions which could do damage to the objective. naming of SWOTs is essential because subsequent steps in the process of planning for feat of the selected objective may be derived from the SWOTs.STRENGHTSMy Twingo philosophy-Modern, Pleasing DesignRoomly, Vertisile interior1.2-litre TCE (Turbo Control Efficiency) engine.WEAKNESSESEvidence of cost cuttingThrashy, and engine noise is meddling at mot orway speeds.Disputed wheel positioningOPPORTUNITIESIncrease fleet salesAre there emerging trends on which we can gain?Increased demand in segment ATHREATSPure fleet salesExtreme competition in segment A- Fiat 500, C2, SmartMany offers and uprising Car industries with cheap productsMarketing Communication StrategyPre-publicity in the form of motoring reviews and test drives are critical tothe success of a trade launch as this activity must generate sufficient consumer curiosity and interest in the new model. In this way, we will give the opportunity to experts and driving correspondents or journalists, to assess the merits of the new Twingo in front the rest car-buying public. We will also try to hold open weekends in dealers garages where customers can come along to test drive the new car. By getting potential car buyers to test drive a car, product usage increases. This will have a knock on sales of the new car.The primary above the line medium we are sledding to use to promote and communicate the new car is through advertising. In the case of the New Twingo, the main advertising mediums going to be used, aside for those used when communicating with the trade, are exterior billboard advertising and TV and radio advertising. New Twingo advertising themes and images include ideas of surprise, independence, spontaneity and versatility. Key genuine messages that need to be also included are the smart design of the car, the value for money and cost of the car and the low running costs.Advertising Expenditure EvolutionDuring Jan-Oct 2010, the advertising expenditure of the segment has decreased by 33,3% since all major competitors launches have been conducted before 2010.Share of SpendingChevrolet Matiz is, by far, the leader of the segment.Smart has no TV investment ( lone(prenominal) magazines and BTL activities).MediaMixTV and Magazines are the main media during Jan-Oct 2011Large increase of TV against Magazines in 2011 is due to launches having taken pl ace in 2010, reflects tactical advertising in 2010.Share of section Adults 18-348Matiz acquire, by far, the highest SOV due to small average duration of spots. converse OBJECTIVES2010Create a buz among young potential customers to support Twingos positioning as a trendy choice.Differentiate creative and media mix according to target group ( mainstream, women, men).Draw on the values of Twingo I to retain existing customers (modular design, simplicity of entry versions).Implement an integrated launch campaign ( adjustment of international launch) to fight clutter by competitors launches and spice-up brand image.Media UseUse of TV as main medium (MAD TV included as the only youth music channel).Use short TVCs to increase SOV.Creative use of magazines (lifestyle advertorials photo shootings etc) lifestyle, womens, youth titles.Creative use of radio (lifestyle testimonials).Joint events (Asterix depiction sponsorship).Use of Internet and New Media with creative penetration (ambient media).Use of outdoor at urban regions (5 major cities).ContentCommunicate the accessories youth-targeting features (personalization connectivity).Communicate price affordability.Use GT version to communicate TCE USPs.PressMaintain a Press test-drive fleet of 2 cars (Dynamique GT).2011 Communicate RS and limited editions (ATL and Press).2012 Introduce tactical communication.Competition Launching Media Plans2010 2012 Media PlanMarketing researchUsing research, we are identifying the specific features and benefits that our target market segments value. Feedback from market tests, surveys, and focus groups will help us develop the next model of the new Twingo. We are also measuring and analyzing customers attitudes toward competing brands and products. Brand awareness research will help us determine the effectiveness and efficiency of our advertising and promotion. Finally, we will use customer satisfaction studies to provoke positive reactions to future buyers.ControlsThere is no pl anning without control. Marketing control is the process of monitoring the proposed plans as they proceed and adjusting where necessary. If an objective states where you want to be and the plan sets out a road map to your destination, then control tells you if you are on the right route or if you have arrived at your destination.Control involves measurement, evaluation, and monitoring. Resources are scarce and costly so it is important to control our marketing plans. Control involves setting standards. We are planning tight control measures to closely monitor quality and customer servicesatisfaction. This will enable us to react very quickly in correcting any problems that mayoccur. GLOBAL Quality and profitability at the core of the X44 projectAs part of the new model offensive set out in Renault Commitment 2009, New Twingo had to meet an extremely specific brief in terms of quality and profitability. Renaults latest small car will be produced at the Novo Mesto factory in Slovenia. Upon his arrival as President of Renault in May 2005, Carlos Ghosn instructed engineers to optimise the cost effectiveness of the X44 project. Twingos switch needed to meet a raft of quality- and appeal-related targets at an extremely competitive cost. Initially delayed to ensure it responded even more closely to customer demand, the project then picked up speed and the cars development was completed within 21 months of the new designs approval.Controlled production-related costsThe technique of carry-over served as a powerful lever in achieving this feat. Certain components from previous projects noted for their reliability and effectiveness were incorporated into the new vehicle. In addition to being a pledge of quality, this approach also eliminated unnecessary design costs and lead-times. Although an alone new car in its own right, New Twingo incorporates parts from the chassis used for Clio II whose quality earned it recognition in 2006.Constraints associated with the adaptati on of production plant were similarly m