Renault is a famous French vehicle manufacturer, which produces cars, buses, tractors and trucks. Previously known as Société Renault Frères, the company was founded in 1898. Since 2000, the group signed an Alliance with Nissan, the Japanese automaker. Indeed, Renault now holds a stake of 44.4% in Nissan. Each company kept its own corporate culture and brand identity. The alliance Renault-Nissan today represents approximately 10% of the worldwide market placing them after Toyota (the first), General Motors (now the second) and Ford (the third). The aim of this alliance was to help Nissan return to profit and also allow the group to become more competitive and more profitable in the international market, thanks to the reduction of costs and the increase of investments in research and development. Indeed, thanks to Carlos Ghosn, the “Cost-Killer”, the group succeeded in improving its situation durably.
[...] However, the Twingo must be competitive but not only the cheapest. The price must not be too low otherwise customers will think that there is something wrong with it. On the other hand, if the price is too high, people may think that it is too expensive for the benefits it provides. In fact, the group must calculate the cost represented by the Twingo. After that, it can apply a percentage of margins by respecting the competitiveness of the product. [...]
[...] The ad focuses on the idea that the Twingo is percent serious”. In this commercial, we see for instance the car slaloming through garden gnome cones or negotiating roads covered in water or in banana peels. This ad really reminds the security features of the car. The strategy would be to keep this kind of commercial but also making other advertising on billboards, newspaper, radio, on the Internet (as young people are attracted by technologies) etc. which will stress on the other features of the car: trend and fashion, environment protection etc. [...]
[...] Indeed, these are Japanese habits. Moreover, as people's minds are changing in terms of ecology, they tend to require cars that do not consume too much fuel and which protect the environment without polluting the atmosphere. In this country, the repartition of the demand is really specific. First, old people drive less and less. Indeed, they feel in danger when driving that is why they are more and more renouncing to cars. Then, young people are less attracted by cars than before. [...]
[...] It also wants to be luminous and to give the sensations that both drivers and passengers have a lot of space in it. A lot of things are done automatically in this car and it really helps the driver to feel comfortable when driving the Twingo. One advantage of the Twingo is the connectivity. Indeed, Renault has fitted a system called “Tune Point” which gives the possibility to Twingo owners to play music previously stored on USB keys or MP3 players into the car. [...]
[...] As explained, wealthy people will be interested in brands with a high reputation. This is the reason why several companies are specialized in luxurious cars (Lamborghini, Ferrari, Porsche other automakers targets middle-class people (Wolkswagen, Audi, Toyota ) and finally, other car manufacturers are more famous for their little cars (Renault, Fiat ) There is a strong rivalry between companies of a same segment, which is why some are trying to differentiate by proposing several range of products bound to several segments. [...]
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