BRAND DEVELOPMENT:
Being heard amid the roar of your competitor’s voices is a daunting task in today’s crowded marketplace. We find this to be shockingly true each time we read a magazine, watch the television, or surf the web. As a result, businesses are now seeking new and more effective ways of increasing brand awareness and more importantly, create brand loyalty. One of the most important tasks involved in ensuring a brand’s success, is to develop an effective branding strategy.
To successfully position your brand above your competitor’s continuing fight for your customers, you must develop a brand proposition that when conveyed in marketing and advertising campaigns, will provide an attractive, unique, and relevant message to current and potential customers. In addition, this proposition must be realized and consistently echoed by senior executives, customer support, R&D teams, marketing staff, sales staff, and strategic partners.The purpose of this is to provide an overview of an effective brand development process and is not meant to be comprehensive or represent strategic brand development in its entirety.
BRAND DEVELOPMENT STRATEGIES;
LINE EXTENSION: A new product marketed by an organization that already has at least one other product being sold in that product/market area. Line extensions are usually new flavors, sizes, models, applications, strengths, etc. Sometimes the distinction is made between near line extensions (very little difference) and distant line extensions (almost completely new entries).
Of course Renault produces new models of its current cars.Every year new models are launched to the market.By doing this,the renewal of Renault’s mainstream models will reach its full potential.For example in 2007 Renault has launched new Laguna to the market.
BRAND EXTENSION: A company introduces a brand line extension by using an established product’s brand name to launch a new, slightly different item in the same product category. brand extension is usually aimed at another segment of the general market for the overall brand.Every year new models of the existing cars are launched to the market under the same brand name.
MULTIBRANDS: In this strategy, the company has more than one brand of product, competing with each other, in a given market. This contrasts with the strategy of family brands where the separate items are given a common line identity and are usually each directed to one segment within the market. Under multibrand strategy there may not even be manufacturer identification, unless required by law.
Renault uses this strategy. Renault has established multibrand group. The group brands includes Renault, Dacia and Samsung as well as the Renault-Nissan Alliance. In 2005 the global sales amount to 5.9 million vehicles and represent 9% of the worldwide market. The Renault-Nissan Alliance ranks among the world's leading four automakers. It includes five brands: Nissan and Infiniti for the Nissan group and Renault, Dacia and Samsung for the Renault group.
From May 2001, Renault products will be sold in Australia with the support of Nissan. The aim is to sell 3,500 units in 2001 and 5% market share in 2007 with the introduction of an innovative product range. Thanks to the Alliance synergies, Renault will strengthen its presence in Asia Pacific region to reach 200,000 annual sales in 2010. In order to support Renault's return to Australia, Nissan Motor Australia (NMA) established 'Vehicle Distributor Australia' (VDA) as a 100% subsidiary to distribute Renault vehicles. The company will launch the Clio Renault Sport, the Megane Cabriolet, the Scenic, and the Scenic RX4 in May. And other models, such as Laguna II, will be added to complete its products range later in 2001.
Fifteen dealers -- four in Sydney, three in Melbourne, two in Brisbane and one each in Canberra, Adelaide, Hobart, Perth, on the Sunshine Coast and in Geelong - mainly selected from the current Nissan sales network, will start to sell Renault vehicles from May 2001. The network will gradually be increased. Nissan recorded a sales volume of 45,278 and a market share of 5.8% in Australia in the year 2000. Renault's plans to expand its sales in Asia Pacific are in line with its objective of selling four million vehicles annually worldwide by year 2010. Thanks to the Alliance, the Renault Asia Pacific Division development plan is supported by Nissan's knowledge of Asian Pacific markets and Nissan's strong and long established commercial position in the region.
The development plan will mainly rely on the marketing of four passenger cars (Clio, Kangoo, Scenic and Laguna) and three light commercial vehicles (Kangoo Express, Trafic and Master) to which additional models could be proposed depending on market opportunities.
Asia Pacific CCT (Cross Company Team), gathering specialists from both Renault and Nissan, has identified growth opportunities resulting from the perspectives of AFTA (ASEAN Free Trade Agreement) to be implemented from 2003 among Malaysia, Philippines, Indonesia and Thailand and the WTO progressive application to Taiwan and China. With the new ambitions of Renault's brand in Australia, and after the announcement of close co-operation between Renault and Nissan in Japan (announced in April 2000) and Taiwan (in December 2000), the Asia Pacific region is another strong example of the commercial synergies achieved by the Alliance.
Nissan has a historically strong presence in the Asia Pacific region. Including Japan, Nissan sold 951,571 units in the region in 2000. To leverage this experience, Renault decided to establish the new Asia Pacific Division as of June 1st 2000 and to transfer its headquarters from Singapore to Tokyo at the same time for better cooperation with Nissan. Renault Asia Pacific is a division of Renault, which covered six markets in 2000 - Japan, Malaysia, New Caledonia, New Zealand, Singapore and Tahiti. Sales in 2000 accounted for 7,500 units. Australia and Taiwan will be added in 2001.
In keeping with the Alliance spirit, the brand identities of both Nissan and Renault products will remain completely separate. The marketing of Renault vehicles enables the Nissan distribution network to attract new customers by extending its product offering and to improve efficiency by increasing total sales volume
In line with this plan, Renault is finalizing its comeback in Indonesia. According to upcoming study results, additional markets will be progressively added to this scope.
In order to become one of the leading brand in terms of after sales and service to customers and to provide high quality after sales training, Renault last year invested 500,000 USD in a new 9000 square feet after-sales Regional Training Center in Singapore, with training sessions in English, Chinese, Malay, Thai and Japanese. In order to achieve LCV sales and customer satisfaction, "business centers" will be created to take care of professional and fleet clients. In terms of industrial strategy, Renault owns 15% of Inokom in Malaysia, with an annual capacity of 20,000 units. This CKD facility assembles the Permas, based on the Renault Trafic. Renault is studying to eventually increase the CKD capacity, thanks to Malaysian market development and the future AFTA implementation.
In year 2003,the extension of the ranges of the group’s other brands is also on the horizon.It began with Renault Samsung Motors at the end of 2002 and is scheduled to continue with Dacia in 2003.The contribution of these new products and the group’s ongoing international development had made 2003 a year of further progress and achievements on Renault’s markets.
NEW BRANDS:This strategy is also not used.Renault does not have the belief that the power of its existing brand name is waning or a new brand name is needed.
NEW PRODUCT DEVELOPMENT STRATEGIES:
The overall process of strategy, organization, concept generation, concept and marketing plan evaluation, and commercialization of a new product. It occasionally is restricted in meaning to that part of the process done by technical (research and development) departments. New product development concerns activity within an organization, in contrast to the acquisition of finished new products from outside. There are 8 steps in new product development.These are;idea generation,idea screening,concept development and testing,marketing strategy,business analysis,product development,test marketing,commercialization.
Renault uses ideas in new product development from both inside and outside.It uses ideas from its own employees such as,executives,branch managers,engineers,manufacturing staff etc. On the other hand,it uses the ideas which are generated by the observation of customers.It analyses the complaints and questions from customers to make the products better.
Concept Testing: Concept cars demonstrate Renault’s spirit of innovation.At the vanguard of design and technology, they transform today’s dreams into tomorrow’s reality.
From dreamlife…
Veritable distillations of ideas, with new and breathtaking lines, concept cars are the substance of which dreams are made.The dreams of the public that suddenly glimpses the future.The dreams of designers who let their imagination and creativity reign free, creating new horizons of possibility and inventing the cars of the future.
… to the future
A dream made real through the uncommon status of concept cars. Freed from industrial constraints necessary for the production of vehicles on the assembly line, these one-of-a-kind prototypes are at the very heart of the Group’s strategy.They express Renault’s anticipation of and response to the evolution in lifestyles.They provide the public with the opportunity to experience new forms of expression and to test reactions.Concept cars are precious accelerators of innovation.
The various stages in the birth of a concept car are: project initiation, preliminary sketches, scale models, engine design, colour and materials studies, technical studies, assembly and presentation to the general public.After these concept cars are designed they are presented to the general public.A market in which companies sell their products through normal distribution channels when testing these products or the marketing efforts supporting these products After this Standart Test Markets are used.Representative cities are initialized,for example in Turkey İstanbul,Ankara and İzmir are used in test marketing.
When testing is successful and a product is decided to be commercialized , strong advertising is needed.Launched in 2005 the new « World Series by Renault »was an immediate hit accross Europe.The 2005 calendars eight events attracted more than 655000 spectators who represented a far broader audience than traditional race-going fans. »World Series by Renault » events have emerged as an effective marketing tool which not only generates interest in the brand but also plays a positive role in enhancing the image of Renault products.Indeed more than %40 of visitors received their invitation through their renault dealership,while media coverage represented the equivalent of advertising valued at €43.9 million.In the future new partnerships will be developed at local level and efforts to consolidate customer bases will be stepped up.
Simultaneous product development is used in Renault.Because various company departments such as R&D,marketing department,financing etc. work closely together,overlapping the steps in the product development process to save time and increase effectiveness. Renault works in close liaison with many other functions in the company, such as Product Planning, Design, Production, Aftersales and the sales subsidiaries. It is vital to have a thorough understanding of both the products and customer expectations.
INNOVATION IN RENAULT
Renault innovates to provide its customers with the very best motoring has to offer, in design, comfort, technology, safety, and environment-friendliness.
Innovation across the range
Innovation at Renault has three deep and powerful roots:
- Renault R&D, covering in-house work and projects run in partnership with public and private organizations such as laboratories and research centers;
- Cooperation with suppliers and automotive equipment manufacturers;
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Interchange with Nissan under the , founded in 1999.
Since Renault believes everyone should benefit from innovation, it introduces the best in modern technology across the whole range rather than restricting it to luxury models.
Renault Modus, released in 2004, brought in a number of innovations:
- Rear bench configurable for two or three seats;
- Upmarket safety features such as dual-range xenon headlights, additional cornering lights, and variable-assist electric power steering.
Innovation for safety
Renault today sets the benchmark for safety, with eight vehicles achieving top five-star rating in the Euro NCAP tests. Though it is very difficult for a small car to score so highly, both the Modus and the Clio III were awarded five stars in 2004.
Proven safety performance owes much to Renault’s three-point integral safety approach:
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Prevention, with driver support and information systems;
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Correction, with assistance to ensure the driver responds effectively in emergency situations;
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Protection, to minimize the risk of injury if an accident does happen.
Maximizing driving pleasure
Renault is constantly improving vehicle features to make motoring the most pleasurable experience possible:
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Acoustics: Renault’s soundproofing work covers all interior and exterior noise sources (engine noise, vibration, tire rolling noise, body resonance, etc.). In 2004, the Modus became the fifth Renault to achieve an outside noise level of 71dB, which is 3dB lower than stipulated by European standards.
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Air conditioning: Many cars today offer air conditioning as a standard feature, much appreciated for safety as well as comfort reasons. (For example, it prevents the windows from misting up.)
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Visibility and roominess: Sunroofs are being extended across the Renault range.
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Ergonomics: Automatic systems reduce the risk of driver distraction by taking charge of certain routine operations such as switching on the headlights. Then advanced design runs hand in hand with technological innovation to produce controls that are intuitive to operate and pleasant to the touch. A good example is the user interface for the Carminat Navigation and Communication System.
Protecting the environment
Carbon dioxide (CO2) emissions and energy consumption
CO2 is the main culprit behind the greenhouse effect that threatens . In consuming large amounts of fossil fuel, motor vehicles release large amounts of CO2 into the atmosphere. Renault pursues a number of major research initiatives to reduce these emissions.
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To start with, Renault strives to minimize CO2 emissions from its gasoline and diesel engines. This problem is tackled from many different angles, including optimized fuel combustion, lightweight vehicle design, and reducing friction between moving parts. Improvements in all these areas help reduce fuel consumption, and thereby CO2 emissions.
- Vehicle aerodynamics also have a bearing on fuel consumption. Recent developments in digital aerodynamic modeling provide engineers with valuable insights into the impact of design choices on fuel consumption.
- Renault takes part in ambitious research programs on alternative energies capable of eventually taking over from classic petroleum fuels, either in the near future (for biomass fuels) or within a longer time-frame (for fuel cells to power electric vehicles).
Air quality
Automobiles discharge various pollutant gases and particulates into the atmosphere. Thanks to consistent efforts by automotive industry research teams, pollutant emissions are constantly falling (by around 50% every five years). Under its sustainable development policy, Renault is committed to achieving further reductions, and runs in-depth studies into the causes and effects of atmospheric pollutant discharges.
Modern cars already benefit from recent developments – such as direct injection and exhaust gas recirculation – capable of bringing emission levels down. Many other developments are under way, including alternative fuels (produced from biomass) and new technologies for conventional engines (such as stratified loading and camless camshafts).
With a longer-term outlook, Renault is also working on fuel cells, which discharge nothing more dangerous than water vapor into the atmosphere. Here, Renault is particularly interested in reformer technology, which involves direct on-board production (using a choice of fuels) of the hydrogen needed by the fuel cell.
Recycling
Renault targets a vehicle recyclability rate of 95%, an ambitious objective that requires full allowance for recycling right from the initial vehicle design phase. To pursue this goal, Renault practices a to vehicle development.
R&D AT RENAULT
Four research focuses
Renault has set four main research focuses:
Safety: Pursue one of Renault's strategic goals to further widen its lead in safety,
Environment and energy: Ensure Renault cars and Renault business operations are ever more respectful of the environment,
Traveling comfort: Push ahead to further enhance the sensation of traveling comfort and driving pleasure afforded by Renault cars,
Mobility and services: Improve access to mobility for all and develop services to make motorists’ lives easier.
All Renault’s R&D projects follow a highly structured process governing smooth transition from research to development then through to implementation. Program results are systematically examined, step by step, to verify technical and economic feasibility and make sure work stays on track with respect to functional specifications.
Research cooperation
Renault takes part in many French and European research programs.
Joint programs of this type bring many advantages:
- Pooled costs;
- Broader understanding and expanded skills base;
- Insights into other approaches;
- Opportunities to learn from and benchmark with other major industrial groups.
In 2005, Renault took part in 61 research programs on a wide range of topics, including fuel cells, accidentology, acoustics and multimedia. These programs fielded working groups varying in size from 5 to 50 partners!
Consistent with its own in-house R&D policy, Renault contributes to cooperative research programs in four main areas.
Environment and energy. Renault is involved in 20 or so projects, including:
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European NICE project, on new technologies for internal combustion engines (homogeneous-charge engines, camless engines, etc.);
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RESPIRE project, on development of a power module for fuel-cell vehicles.
Safety: Renault is involved in 13 projects, including:
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European TRACE project, on European accidentology database;
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PREVENT project, on new accident-avoidance systems (pre-crash systems, inter-vehicle communication systems, etc.).
Vehicle features (acoustics, ergonomics, air conditioning, etc.): Renault is involved in several projects, including:
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MIMOSA, on innovative methods for modeling of aeroacoustic sources;
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SILENCE, on mapping of noise sources in urban areas.
Engineering services, for optimizing vehicle design and development. Renault is involved in several projects, including:
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ODAS, on optimizing distortion in welded assemblies;
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ALUMOPLA, on aluminum injection moulds for plastic parts
PRODUCT-LIFE CYCLE STRATEGIES :
The Product Life Cycle (PLC) is based upon the biological life cycle. After a period of development it is introduced or launched into the market; it gains more and more customers as it grows; eventually the market stabilises and the product becomes mature; then after a period of time the product is overtaken by development and the introduction of superior competitors, it goes into decline and is eventually withdrawn.However, most products fail in the introduction phase. Others have very cyclical maturity phases where declines see the product promoted to regain customers.
Strategies for the differing stages of the Product Life Cycle.
Introduction
The need for immediate profit is not a pressure. The product is promoted to create awareness. If the product has no or few competitors, a skimming price strategy is employed. Limited numbers of product are available in few channels of distribution.
In the introduction step,when Megane was first launched to the market,market skimming strategy is used.The sales were low and the profits were negative.The customers were innovators because they are venturesome who tries new ideas at some risk.
Growth
Competitors are attracted into the market with very similar offerings. Products become more profitable and companies form alliances, joint ventures and take each other over. Advertising spend is high and focuses upon building brand. Market share tends to stabilise.
The sales of Megane in the growth stage,The sales have rised rapidly.And the profits have rised also.Early adopters were the customers who are opinion leaders in their community.
Maturity
Those products that survive the earlier stages tend to spend longest in this phase. Sales grow at a decreasing rate and then stabilise. Producers attempt to differentiate products and brands are key to this. Price wars and intense competition occur. At this point the market reaches saturation. Producers begin to leave the market due to poor margins. Promotion becomes more widespread and use a greater variety of media.
The sales of Megane are at its maximum point with higher profits.Customers are middle majority because they have seen the early adopters trying it and adopted the new ideas before the average person.
Decline
At this point there is a downturn in the market. For example more innovative products are introduced or consumer tastes have changed. There is intense price-cutting and many more products are withdrawn from the market. Profits can be improved by reducing marketing spend and cost cutting.
For example in Renault,Broadway cars have been very popular in the 90s.But today they are not manufactured.They are in the decline stage.Their sales are made as second car hand cars for the people at a lower income level.
Renault chose the life cycle approach in order to reflect both its vision and its practices in the area of sustainable development. This animation demonstrates how Renault takes into account the 3 main facets of sustainable development – economic profitability, environmental protection, and employee and societal well-being – right from the design phase and throughout the vehicle life cycle.
PRICING
Dynamic pricing is not used in Renault.Because Renault does not charge different prices depending on indiviual customers and situations.For every different model the prices are fixed.For example for Renault’s Megane Cabriolet the prices are below depending on different attributes. the prices are in the same range but when the car becomes more luxurious,the prices also increase.
INTERNAL AND EXTERNAL FACTORS AFFECTING PRICING STRATEGIES:
INTERNAL FACTORS:
First of all,the company decides on its pricing strategy based on its product.In our case,the product is automobiles.Renault has created its pricing strategy for customers in its target market which includes both high and low levels of income.
Marketing Objectives,Marketing Mix Strategy,Costs,Organizational Considerations;
Also Renault’s strategic achievement includes “being the leader in the market permanently”.So according to this objective,the prices are set to keep the current level of loyalty and support to maintain the current position in the market.It does not include the pricing strategies to enter new markets.To prevent competition in the market and to remain the leadership,the firm sometimes lowers its prices.Profit maximization is also another goal of the firm so they estimate what the demand and costs will be at different prices and choose the price that will produce the maximum profit or return.Renault tries not to charge lower price,but to differentiate the marketing offer to make it worth a higher price.Renault’s quality level requires higher prices than some of its competitors,but not so high like Volvo or some other firms like that.More quality requires more expensive prices.
And lastly as any other firm,Renault sets the floor for the price as costs.Renault's Finance Department covers all the company's needs in terms of financing, taxation and customs, cost control, audit, and investor relations. All corporate functions are mobilized to meet this profitability target, in line with clear and structured guidelines. The objectives in terms of growth and competitiveness are detailed and based on precise figures. Actions are organized at all levels, starting with management, which is made responsible for contributing to the profitability of the company. The profitability target is a long-term objective. It cannot be reached to the detriment of the ongoing investments in research and development that will keep Renault at the leading edge of technology. Some of these guidelines include;
Precise, ambitious targets for cutting costs
• purchasing costs: - 14% in three years
• production costs: - 12% in four years
• logistics costs: - 9% in four years
• overheads: less than 4% of revenue in 2009 (compared with 5.1% in 2005)
• distribution costs: - 8% per car in Europe
Optimizing investment costs
• Investment costs will be optimized. The aim is to cut spending by 50%, in order to place Renault on a par with the best in the automotive industry. The aim is not to halve investment, but to achieve twice as much with the same amount.
• R&D expenses:
R&D has a role to play in efforts to optimize costs, by aiming to cut the number of parts required by each programme by 20%.
R&D remains an essential investment item for Renault, particularly as part of its Alliance with Nissan. Renault's Automobile Division devotes significant resources to renewing and expanding its range, setting high standards for its customers and remaining active in the fields of road safety and the environment
In year 2006,Renault has achieved a backdrop of higher material costs than in 2005.Renault is aiming for a significant reduction of all costs between now and 2009.As we implied before objectives include reducing purchasing costs by %14 in three years and manufacturing costs by %12 in four years,with the latter to be achieved mainly through productivity gains and the increase in the capacity utilization rate from %60 in 2005 to over %75 in 2009.Logistics costs will come down %9 over four years despite very high energy prices that erode productivity gains,with improved international performances a main focus.General and administrative costs will be reduced from %5.1 of revenues to less than %4 by the end of the plan.Total distribution costs per unit,including incentives, are come down to %8 in Europe.In addition to these operating cost reductions,Renault will optimize the cost of its investments.The objective is to reduce the cost of invesments by %50 to reach the best level in the automative industry.
Also the prices in Renault are set by Finance Department.
EXTERNAL FACTORS:
The market and demand,Competitors and Other Factors;
It is obvious that as the costs set the lower limit of prices,the market and demand set the upper limit.Currently in Turkey,the automative market has managed to pass over the leading industry textile.So the current situation in Turkey is really good and hopeful for automobile manufacturing firms.Turkey is now not only the importer but also the exporter of cars.And this situation has changed the balances in the foreign trade.So the market is in a good and available condition.Renault shall set its prices based on these assumptions and also the current situation in the competitive market.Because it has a lot of competitors who are equally successful and managing.Renault has been successful in Turkey in the automative sector by using different pricing,distribution and product policies.It has used strategies which are connected with its slogan “Creator of Cars”.
Top 10 Car Brands in Europe in 2005 (passenger and light commercial)
These are the competitors of Renault in Europe.
Top 20 Passenger Car Brands in France in 2005 by registrations
Top 20 Passenger Car Brands in the UK in 2005 by market share
Top Car Brands in Other European Markets in 2005 by market share (passenger and light commercial)
As being seen there are lots of competitors of Renault all around the world.
GENERAL PRICING APPROACHES
VALUE-BASED PRICING
The goal of value-based pricing is to align price with value delivered. Price for any individual customer can be customized to reflect the specific value delivered. Examples could include metrics such as number of users, number of annual transactions, size of revenues, cost savings, or other measurements.Value-based pricing is dependent upon an understanding of how customers measure value, through careful evaluation of customer operations or feedback
Customers→ Value→Price→Cost→Product
When a purchase is made in Renault,the firm collects feedback from its customers.According to these feedbacks the employees evaluate the negative and positive aspects of the feedbacks and change where it is necessary.They value customers’ ideas and set the price that overcomes the costs and values the customers’ perceptions.
NEW PRODUCT PRICING STRATEGIES
MARKET SKIMMING PRICING
Market skimming pricing is used in Renault.Because it sets a high price for a new product to skim maximum revenues layer by layer from the segments willing to pay the higher price;it makes fewer but more profitable sales.For example when Renault had first launched Megane in 2004 its starting price was 48000 YTL but in the following years the price has declined to 40000 YTL in average.
PRODUCT MIX PRICING STRATEGIES
PRODUCT LINE PRICING
It sets the price steps between various products in a product line based on cost differences between the products,customer evaluations of different features and competitor’s prices.
For example Megane Sedan has four different product lines;authentique,expression,extreme,privilige.For these different product product lines different prices are used.Authentique models are averagely 31000YTLs.Priviliges are 47000YTLs,Extremes are 38840YTLs and expressions are 36750 YTLs approximately.Different lines have different prices based on their special attributes.
OPTIONAL PRODUCT PRICING
The pricing of optional or accessory products along with a main product.This strategy is also used.In the previous example-Megane Sedan- we can also see that in the Privilige line for instance,if the model has electrical opening ceiling(sun roof) we can say that the prices increase.If the standart model is 45000 YTL,with this attribute it becomes 46000YTLs.So the prices of additional aspects are included.
PRICE ADJUSTMENT STRATEGIES
DISCOUNT AND ALLOWANCE PRICING:
Discounts and allowances are reductions to a basic price. They could modify either the manufacturer's list price (determined by the manufacturer and often printed on the package), the retail price (set by the retailer and often attached to the product with a sticker), or the list price (which is quoted to a potential buyer, usually in written form). The market price (also called effective price) is the amount actually paid. The purpose of discounts is to increase short-term sales, move out-of-date stock, reward valuable customers, or encourage distribution channel members to perform a function. Some discounts and allowances are forms of sales promotion.
For example Renault uses seasonal discounts.In April 2007 Megane Sedan which is the most selling car in Turkey is being presented with prices beginning at 31.550YTLs.Or Renault Lagunas are being sold at 39.360 YTLs.With this campaign the importance of safety is emphasized also.A lot of campaigns like this are presented in different months of the year.
Also when used Renault cars are being sold,allowances are used.A certain amount is reduced from its current selling prices.Trade in allowances are used when a second hand Renault is being bought.Price reductions occur.
PROMOTIONAL PRICING:
Promotional pricing which is the temporarily pricing products below the list price ans sometimes even below cost to increase short run sales.We can say that in Renault,promotional pricing is used.For instance,there are end of the season promotions at the end of the year.In 2006 December Renault sold its Megane HB, Wagon, Scenic, Modus and Laguna models without any interest rate in 12 months after the tax payments are made.When there is an exchange in these models,2000 YTL reduction is made.
Between 1-30 November,as a precaution for winter conditions,Renault has made a campaign in its services by %20 reduction.
GEOGRAPHICAL PRICING:
Renault uses a geographical pricing strategy in which the seller designates some city as a basing point and charges all customers the freight cost from that city to the customer.Renault has chosen İstanbul,İzmit and Bursa as basing points in Turkey .It quotes freight charges from these basing point cities nearest to the customers.
INTERNATIONAL PRICING:
The prices of Renault’s products change internationally such as:in Turkey Kangoo is sold at a price of 30650 YTL,in United Kingdom Kangoo is 10160£,in Japan 2140000, and in France it is 16000 €.
SUPPLY CHAINS AND THE VALUE DELIVERY NETWORK
Working with suppliers upstream
Renault works upstream with pilot suppliers to develop solutions that will create a better balance between economic, social and environmental objectives.
Three working groups bring together pilot suppliers, Renault buyers, and representatives from other areas of activity (for example, engineering or logistics).
The “Innovative Purchasing Solutions” group focuses on:
- logistics,
- energy,
- innovative contracts,
- economic management.
The “Deployment of Human and Employee Rights” group works on:
- child labor, forced labor, working conditions and human rights,
- checks and certifications.
The “Recycling” group concentrates on four purchasing families:
- steel,
- plastics,
- glass,
- mats and soundproofing.
In addition, all suppliers are encouraged to submit suggestions in bring further progress in sustainable development.
The conclusions of these working groups will lead to improvements in the current purchasing process. They will also contribute towards the development of the purchasing activity with respect to sustainable development in the 3 years to come.
But Renault knows that the firm’s success depends not only on how well it performs but also on how well its entire supply chain and marketing channel competes with competitors’ channels.
CHANNEL LEVELS
Renault uses indirect marketing channel which contains one or more intermediary levels.
Renault uses Channel 2 among consumer marketing channels.
Renault is the manufacturer.The Bursa factory produces and sends to its retailers then the consumers buy from those retailers.
Among the business marketing channels,Channel 2 again is used.It produces commercial vehicles and distrbutes to the firms via business distributors.
VERTICAL MARKETING SYSTEMS
Renault uses vertical marketing system in which a single firm sets up two or more marketing channels to reach one or more customer segments.Contractual VMS is used.Independent firms at different levels of production and distribution join together through contracts to obtain more economies of sales impact than they could achieve alone.We see in Renault the manufacturer sponsored retailer franchise system,Renault and its network of independent franchised dealers.
Renault produces itself in Bursa in Turkey and then sends the cars via distributors to retailer and dealers .Finally to the consumer and business segments.In Turkey in every city there are selling points which are more than 300 all around Turkey.
This is the list of several selling points in Ankara.
ANKARA ÇETAŞ OTOM. A.Ş. - YENİMAHALLE
MAİS A.Ş. ANKARA ŞUBE MÜDÜRLÜĞÜ - ÇANKAYA
NEZİROĞLU MOT. ARÇ. TİC. LTD. ŞTİ. - ÇANKAYA
NEZİROĞLU MOT. ARÇ. TİC. LTD. ŞTİ. - ÇANKAYA
BEKTAŞLAR OTOM. SAN. VE TİC. A.Ş. - YENİMAHALLE
ÇELİK OTO KOLL. ŞTİ. - ALTINDAĞ
MEZSAN İNŞ. TAAH. NAK. TRM. ÜRN. SAN. TİC. LTD. ŞT - POLATLI
ÖZOK OTOM. TİC. İTH. İHR. LTD
Also you can find the dealer from the websites very quickly and easily .
EXCLUSIVE DISTRIBUTION: The distributors of Renault are exclusive because the producer gives only limited number of dealers the exclusive right to distribute its products in their territories.Some of Renault’s distributors are;
- Sole Agent
- Bernard Co.
- Auto Euro Indonesian
- Raffinage
- Plate Mate
- Şark Oto
- Mono Distributor
- Çelik Motor
MARKETING LOGISTICS:
Marketing logistics with the other name of physical distribution involves tasks in planing,implementing and controlling physical flow of materials,final goods and related information from points of origin to the points of consumption to meet customer requirements at a profit.
Renault uses both inbound (from suppliers to company)and outbound(from company to resellers) logistics.
Renault works with these suppliers in the inbound logistics system.
- Magee Rieter General Motors
- Uysal Otomotiv
- Alta Yedek Parça
- Baykal Makine Sanayi
- Berk Otomotiv
- Beyçelik Kalıp ve Oto Yan Sanayi
- Durmazlar Makine Sanayi ve Ticaret A.Ş.
- TMS Türker Makine Sanayi
These are some examples of retailers in the outbound logistic system.
- ANKARA ÇETAŞ OTOM. A.Ş. - YENİMAHALLE
- MAİS A.Ş. ANKARA ŞUBE MÜDÜRLÜĞÜ - ÇANKAYA
- NEZİROĞLU MOT. ARÇ. TİC. LTD. ŞTİ. - ÇANKAYA
- NEZİROĞLU MOT. ARÇ. TİC. LTD. ŞTİ. - ÇANKAYA
- BEKTAŞLAR OTOM. SAN. VE TİC. A.Ş. - YENİMAHALLE
- ÇELİK OTO KOLL. ŞTİ. - ALTINDAĞ
- MEZSAN İNŞ. TAAH. NAK. TRM. ÜRN. SAN. TİC. LTD. ŞT - POLATLI
- ÖZOK OTOM. TİC. İTH. İHR. LTD
Renault’s logistics’ aim is to present its products to customers conveniently at a fair price in order to keep the brand image at a high,important level. Three central warehouses plus a European network of warehouses staffed by 2,800 people list, supply, store, package and distribute the products to customers around the world.
These are some of the logistic firms Renault works with:
- Aba Lojistik
- Eyüp Logistik
- Mopaş NetLog
- Horoz Lojistik
- Borusan Lojistik
- Omson Lojistik
- Bağdatlılar Otomotiv
- ASF Otomotiv
The extent of Renault’s range enables it to satisfy the very varied expectations of its customers, whom it knows well through feedback from the dealer network and the market surveys it carries out.
Next, its teams of product managers decide how the models should be positioned in accordance with the specific expectations of each customer target segment.
Finally, it devises communications tools (advertising, sales brochures) for each category of customers
COMMUNICATION PROCESS
Sender:Renault is the sender.
Encoding:Renault’s advertising agency asembles words and illustrations into an advertisement that will convey the intended message.
Message:The actual Renault copier ad.
Media:The specific magazines that Renault selects.
Decoding:A consumer reads the Renault copier ad and interprets the words and illustrations it contains.
Receiver:The home office or business customer who reads the Renault copier ad.
Response:Any of the reactions from the receiver who reads or sees the Renault ads.
Feedback:Renault’s receiver’s response communicated back to Renault.
Noise:The consumer it distracted while reading the magazine amd misses the Renault ad or its key points.
STEPS IN DEVELOPING RENAULT’S COMMUNICATION
IDENTIFYING THE TARGET AUDIENCE:
Renault’s target audience consists of people from all around the world with different income levels and in different age groups.Teenagers can use Renault sports cars.Government uses Renault cars for transportation-Presidents,ministers etc.- as formal vehicles.Ambulances are also included.So the hospital managers are in the target audience.Children are a key factor.They can manipulate their parents into buying a car.
DETERMINING THE COMMUNICATION OBJECTIVES:
The stages consumers normally pass through on their way to purchase ,including awareness,knowledge,liking,preference,conviction and purchase.Renault is a well known brand,awareness stage is trivial.When a new car is launched knowledge is important.Attributes of the new product are explained.It tries to make the product favorable,it is made to be prefered to the other brands.Conviction is the stage that believing Renault is the best car for the consumers.And when all these are completed purchase comes up.
DESIGNING A MESSAGE:
Message Content:In year 1980 Sinan Çetin has directed a commercial for Renault which was his first shoot.The content of the message was like this:the basic component of the commercial was a woman.The woman’s energy,power and dynamism was consistent with the car’s properties.In the commercial,the woman photographer was following the car .The woman symbolised the new ,rapid,dynamic lifestyle of 1980s.Those years were the years that the housewives were trying to turn into productive,free and brave people.This idea was trying to be emposed.This commercial had proved that women are not only housewives but also they are able to do other jobs as photographing,journalism.
This commercial reflected the emotional appeals which attempts to stir up either negative or positive emotions that can motivate purchase.This commercial aimed men but also it affected ladies.This commercial was awarded by TRT as the “Best Commercial of the Year”.
Message Structure:Renault uses the strenghts of itself(one sided argument) and tries to show the other firms as weak ones.For example in a commercial sausage,sushi and French baguette are used. They are made to have a crash test.All other items except baguette have crashed which means the French cars are safer than the others.The sausage is supposed to represent German cars while the sushi piece is supposed to represent Japanese cars. The baguette is supposed to represent French cars, namely Renault. The fact that the bread took the brunt better is supposed to suggest that Renault is safer than, say, Audi or Honda.
They reached the conclusion in the commercial with the slogan as “ The safest cars are French.”They presented the arguments at last.
Message Format: The music is always in Renault commercials.In that specific commercial a French song is used.Colors are consistent,the fonts are suitable,eye catching pictures are used.
CHOOSING MEDIA:
Personal communication channels are used because the sales people in the selling points communicated directly with the customers including face to face or through the mail or telephone.Word of mouth influence is used.When a person is satisfied with the car he/she bought they tell the people around them to buy it.
SELECTING THE MESSAGE SOURCE:
Renault used Fernando Alonso as a convincing figure in the commercials.He is an F1 champion.Because the messages coming from trustworthy sources are more persuasive.
COLLECTING FEEDBACK:
The target audience are asked whether they remember the message,how many times they saw it,what points they recall,how they felt about the message and their past and present attitudes toward the product and company.
SETTING THE PROMOTIONAL BUDGET AND MIX
Objective-and-task method is used.First the company defines the specific objectives for the promotion,secondly the company determines the tasks that must be performed to achieve these objectives and lastly the costs are estimated and the sum of these costs is the proposed promotion budget.
Launched in 2005 the new « World Series by Renault »was an immediate hit accross Europe.The 2005 calendars eight events attracted more than 655000 spectators who represented a far broader audience than traditional race-going fans. »World Series by Renault » events have emerged as an effective marketing tool which not only generates interest in the brand but also plays a positive role in enhancing the image of Renault products.Indeed more than %40 of visitors received their invitation through their renault dealership,while media coverage represented the equivalent of advertising valued at €43.9 million.In the future new partnerships will be developed at local level and efforts to consolidate customer bases will be stepped up.
Renault is using both the push and the pull strategy as promotion mix strategy.Renault uses mass-media advertising and consumer promotions to pull its products and a large sales force and trade promotions to push its products through distribution channels to final consumers.Renault directs its marketing activities toward channel members to induce them to carry the product and to promote it to final consumers.We see the effects of pull strategy-Renault directs its marketing activities(primarily advertising and consumer promotion)toward final consumers to induce them to buy their products.So the consumer demand generally pulls the product through the channels.Also we see the effects of retailers( as listed above) so there occurs push strategy.
ADVERTISING:
Renault is well-established as the best-selling car and light commercial vehicle brand in Western Europe, but until recently it had only a minimal presence outside that region. However in a few key deals in 1999 and 2000, Renault transformed itself into a global force with substantial operations in Asia and a strong footprint in North America. Where once there was only the Renault brand, the group now controls Japanese marque Nissan, as well as Dacia in Eastern Europe and Samsung Motors in Korea. Advertising Age estimated global measured advertising expenditure of $825m in 2005, making Renault the world's 36th advertiser.
SETTING ADVERTISING OBJECTIVES:
Three primary purposes are used in Renault to achieve the classified advertising objectives: To increase sales volume,to remind the old products which provides consistency and to persuade the customer to purchase that brand.
Informative advertising is used in Renault when a new product is introduced.The aim of such advertising is to tell the market about a new product,suggest new uses for that product,inform the market of a price change,explain how the product works,describe available services,correct false impressions,reduce consumers’ fears and build a company image.
Persuasive advertising is used when the competition increases.The aim is to build brand preference-which we emphasized before on the commercial about Renault being the safest car.-,encourage switching to Renault brand,change customers’ perception of product attributes.
Reminder advertising is used for mature products.It helps the consumers to remember the products for example Megane commercials are in this category..
SETTING THE ADVERTISING BUDGET:
Renault tends to rely too heavily on their sales forces to ring in orders.It underestimates the power of company and product image in preselling industrial customers.thus they do not spend much on advertising to build customer awareness and knowledge because it is a well known brand.
DEVELOPING ADVERTISING STRATEGY:
Renault uses different agencies in different countries to make its commercials more effective.In Turkey,Yorum Agency is the main agency used by Renault.Today three dimensioned 3D advergame commercials are being created.And in France PUBLICISNET AGENCY is creating Renault commercials.It has achieved a lot of awards.For example with Clio commercial W3 award is won as Silver Winner-Automotive.With Modus commercial Click D’argent is won as Categorie Communiquer.
For instance,Renault used a strategy like this in its Clio commercials.The slogan of this commercial is “Makes You Look Good”.This is the big idea of the commercial.
The man with the motorcycle was a loser at the beginning of the commercial but after he uses Clio he becomes popular and he attacted women.
In the Renault Espace commercial the importance of the conformity and wide space is emphasized.It is an outcome of a clever,creative idea.The big idea is” Unlimited Space,Unlimited Comfort”.
Advertising strategy defines how Renault talks about its products and its brand, and ensures that media investment is as cost-effective as possible.
MESSAGE EXECUTION:
Slice of Life:An ordinary man with a motorcycle is used.
Musical:An English song is used.
Suitable tone,format and memorable words are used for radio commecials.Renault uses more creative and higher impact phrasing.
The font and the slogan and the color of the ad is effective as you can see on the picture above.
SELECTING ADVERTISING MEDIA:
People can see all Renault commercials on newspapers,TV,radio,magazines,internet as banners.
EVALUATING ADVERTISING:
Renault uses these questionnaires to measure the communication affects of an ad.
The advertising in Renault has both the communication and sales effects.As a result of an ad the sales can rise or decline.In the previous years,Renault made such a resarch.They tried to test the effectiveness of an ad before it was broadcasted.They decided whether to do it or not with the results of that research.They used a sample of customers to measure the effects of the ad.
SALES PROMOTION TOOLS:
Among the various consumer promotion tools,Renault uses “contests,sweepstakes and games”. In 2005 Boyner organized a sweepstake among its customers.The prize was a Renault Clio.Also in some Christmas sweepstakes Renault cars are again are used as a prize.
BUSINESS PROMOTION TOOLS:
It is obvious that Renault has taken part on the auto shows to promote their products.In 2007 Renault has participated in Bursa Auto Show as Renault Mais A.Ş. Bursa Şube Müdürlüğü.
PUBLIC RELATIONS:
Renault builds good relations with the company’s various publics by obtaining favorable publicity,building up a good corporate image and handling or heading off unfavorable stories and events.For example according to an article broadcasted on 9 January 2007 Renault has been the leader in automotive sector in Turkey for 9 years with the market share of %15,9.It has sold 59400 vehicles in 2006.The endorsement of Renault in 2006 has been 2.2 billion Euros.And its partnership with Dacia has increased the product line of Renault.It still modernizes its commercial vehicle product line.In Europe it has been the leader for 8 years in commercial vehicles.So an article like this has increased Renault’s esteem and credit in the market.
Renault is a French car manufacturer.So in Turkey after the acceptence of Armenien so-called genocide ,there has been strong reactions against Renault.But it did not have a huge effect to manipulate its sales and profits.
It uses news,speeches,special events,written materials,corporate identity materials and press releases.
Approximately 500 people work in Corporate Communications and across the entire Renault communications network. Their functions are many, and span from general positions to highly specialized ones. Jobs in communications are constantly changing to adapt to - and even to anticipate - the rapid evolutions taking place in society, the media and in technology.
There are eight major specific functions in Communications:
Subsidiary communications directors: take into account local particularities when establishing their communications plans and promote the brand's image on their markets. With their teams, they deploy communications operations in the subsidiary. They are in constant contact with Corporate Communications.
Communications managers for industrial sites or departments: all plants, departments and functions have a communications manager, who concentrates mainly on internal communications. Along with their team, they organize the communications strategy specific to their entity and deploy that of the group as a whole. Site communications managers are also in constant contact with the local press.
Internal printed and electronic media managers: in charge of providing personnel with full information about the life of the company and its environment. They determine the contents of the publications they handle, define the editorial line and coordinate a team of writers. Trained journalists, they are capable of prioritizing information and presenting it in a way which reflects the particularities of their readership.
Financial and corporate press officers: handle information concerning non-product based group news, especially financial results and strategic orientation. They are in contact with the international financial press. To be successful in this job, one must have a perfect knowledge of the company and its players as well as an excellent understanding of how the press functions. Financial and corporate press officers combine synthetic skills with the ability for quick analysis. They usually are journalism school graduates or have degrees in political science.
Product and brand press officers: are responsible for promoting the brand vis-à-vis the international, general-interest and automotive media. They decide on the best ways of informing journalists about the brand's products and values. They either have scientific training, have graduated from a business school or have a political science background. The job requires a passion for the product, highly creative skills, strong devotion to the work and very good interpersonal skills.
Product and brand project managers: organize presentations of new models and theme files (R&D, for example) for the international press: press conferences, vehicle test drive operations, etc. They also prepare the communications media which are made available to journalists: press kits, photos, videos, etc. The job requires great precision and excellent organizational skills.
Public relations officers: promote the Renault image to the external non-media public: motor shows, events organization, partnerships, vehicle loans for the cinema, Formula 1, etc. Among their various tasks they establish proposals, create concepts, manage projects and evaluate operations after deployment.
Communications media officers: specialists who advise, suggest and coordinate communications projects concerning both printed and multimedia publications and audiovisual and photographic resources. They choose the agencies suitable for each project, manage budgets and perform quality control checks on the finished product.
CUSTOMER-SALESPERSON RELATIONSHIP
To personalize the customer-salesperson relationship, Renault has created an innovative sales tool called the "sales workstation."
With this software program, salespeople can:
• present the entire selection of new vehicles and services;
• configure a vehicle according to the customer's needs;
• arrange a trade-in for the customer's present vehicle;
• devise a personalized financing solution;
• propose service contracts.
Each salesperson can thus create a personalized customer file that specialists in the Renault network can consult whenever necessary later on for maintenance, repairs, and so on.
In 2005, this Renault service was already available in 11 European countries. In 2006, all dealerships in Europe should have this valuable sales tool.
The first service is the pleasant welcome that visitors receive. Renault's comfortable showrooms are designed so that potential buyers can look over the vehicles easily. The salespeople are trained to advise customers according to their needs and to inform them about the special features of each model. Customers are also urged to take vehicles for a test-drive.
MANAGING THE SALES FORCE:
DESIGNING SALES FORCE STRATEGY AND STRUCTURE
An 800-strong sales force, including 500 people in France, proposes Renault parts and accessories to dealers, agents and garage-owners. They are all young and energetic, with a well-developed sense of contact. They also relay customers' needs back to the department.
We identified that Renault uses a complex sales force structure.Each salesperson is assigned to exclusive geographic area and sells the company’s full line of products or services to all customers in that territory.For example a salesperson in Bursa focuses on the customers in Bursa.The salespeople with product sales force structure specializes in selling only a portion of the company’s products or lines.For instance Renault parts and accessories are proposed by a special salesperson.
RECRUITING AND SELECTING SALESPEOPLE:
Recruitment of at least 20% of employees with an international profile (managers, engineers, etc.)Balanced recruitment of male and female employees.
Career development
- Forward career planning driven by the Human Resources careers committees, the Human Resources steering committees and the employee's annual performance and development review
- Creation of the JobAccess software application used to consult open positions in the Group and to promote staff mobility
- Provision of advice on the intranet to assist employees with their internal job applications (covering letters, CV, procedures, self-appraisal, etc.)
- Launch of the new "Careers@Renault" tool on the intranet to provide more information on the different disciplines and possible career paths.
- Creation of Basic Work Teams (UET) to promote the development of group skills.
- Development of short lines of command. For example, in a manufacturing entity Director / Department Head / Workshop Supervisor / Unit Supervisor / operator)
- Support for initiatives for progress in the shape of operational action plans.
Skills
- Make sure that Renault has the skills it needs in all areas to pursue its strategic ambitions – today and over the next ten years.
- Identify the technological, socio-demographic and regulatory changes that will impact these functions.
- Identify the critical skills that could create a risk for the company through their scarcity, either internally or externally.
- Define ways to create skills, by managing the following processes:
- recruitment
- career paths
- training
- organization
- standardization
- skills-sharing.
Since 1995 Wizard Solutions have delivered Negotiation Skills, Presentation Skills, Effective Communication workshops and Graduate programmes on behalf of Renault (UK) Limited. Training programmes involve pre-course work for the delegates designed to prepare effective use of classroom time and structured follow-up programmes. Recent training coaching sessions have been developed on individual personal development programmes delivered over a structured period of time on a 1:1 basis. The short (two hour) modules build into a complete management development programme specifically tailored to personal requirements.
The diversity of its business means it has to bring together different kinds of expertise in functions as varied as pricing, advertising, product planning, forecasting and scheduling. Generally speaking, it appreciates open-mindedness and the ability to plan ahead and keep moving forward. Renault encourages a mix of cultures and experiences: it employs people of more than 12 nationalities whose backgrounds combine work at headquarters and work in the field.
TRAINING SALESPEOPLE
Training seminars
"Product, projects and customer requirements"
Six months after joining Renault, 400 young recruits are invited to the two-day "Product, projects and customer requirements" seminar. The goal of the seminar is to present the various stages of the vehicle design and development process, and to explain how the company as a whole contributes to it: the transition from the abstract product concept to the product itself, project organization, fulfilling customer expectations, etc. The seminar is also an opportunity to meet with the different people who contribute to Renault's projects, who are there to share their knowledge and their experience with new recruits.
"Day-to-day task management" and "Together at Renault"
At the end of their first year with Renault, the young recruits meet in small groups to review their performance and share their experiences as part of the company. This gives them the resources to handle different work situations and prepares them for their assessment interview. It also reinforces their understanding of their role within the company.
Training:
- Rate of access to training 97%
- % of actual expenditure/payroll 6.7%
- Average number of hours of training per employee 48 hours
COMPENSATING SALESPEOPLE
• Retirements and CASA take-ups fell by 25% year on year. The average age of staff fell in all personnel categories, by more than 18 months on average.
• Departures (early retirements, mobility) were compensated by recruitments from outside and by internal transfers.
SUPERVISING SALESPEOPLE
Renault knows that its employees or salespeople need more than a territory,compensation and training-they need supervision.
Through supervision, the company directs and motivates the sales force to do a
better job.
The extent of the involvement of sales management in helping salespeople manage
their territories depends on a variety of factors:
1). Developing customer targets and call norms by dividing accounts into
categories.
2). Developing prospect targets.
3). Using sales time efficiently. Aids can come from:
a). An annual call plan.
b). A time and duty analysis.
c). Technological equipment aids (such as cell phones, computers, and
sales force automation systems).
d). The fastest growing technology tool used by the sales force is the Internet.
Motivating salespeople is one of sales management’s most important tasks.
Factors that should be considered in preparing a motivation plan and strategy
include:
1). The organizational climate. This describes the feeling that salespeople have
about their opportunities, value, and rewards for a good performance within
the company.
2). Sales quotas are standards set for salespeople, stating the amount they should
sell and how sales should be divided among the company’s products.
Compensation is many times tied to quotas.
3). The company can use several positive incentives to increase the sales force
effort.
a). Sales meetings provide social occasions, breaks from routine, chances to
meet and talk with company managers, and opportunities to air feelings and
to identify with a larger group.
b). Sales contests can also be used to spur the sales-force to make a selling
effort above what would normally be expected. Incentives could be:
1]. Honors.
2]. Merchandise and cash awards.
3]. Trips.
4]. Profit-sharing plans
Briefly,motivating and supervising salespeople includes organizational climate,sales quotas and positive incentives( sales meetings,sales contests,recognition and honors, Cash awards, trips, profit sharing
EVALUATING SALESPEOPLE
Evaluating salespeople is an important process in the sales force management
function. This process requires good feedback.
Renault gets information about its salespeople in several ways.
1). An important source of information is the sales report(including call reports
and expense reports). Additions to this report can come from:
a). Personal observation.
b). Customer surveys.
c). Talks with other salespeople.
2). Salespeople are generally evaluated on their ability to “plan their work and
work their plan.”
DIRECT MARKETING
Direct marketing is a sub-discipline of marketing focused on driving purchases that can be attributed to a specific "call-to-action". Direct marketing is distinguished from other marketing efforts by its emphasis on trackable, measurable results (known as "response" in the industry) regardless of medium.
Direct marketers use a variety of media including catalogs, postcards, statement inserts, card packs, magazines and other mail. Direct marketers also use media such as door hangers, package inserts, magazines, newspapers, radio, television, email, internet banner ads, pay-per-click ads, billboards, transit ads, etc. If the ad in the medium asks the prospect to take a specific action--call an 800 number, visit a website, return a response card, place an order, complete a survey, etc.--then the effort is considered to be direct marketing.
For example by WWAV Rapp Collins for Renault UK a direct mail and print campaign was prepared to launch the new Renault Megane Hatchback to prospective car buyers in the lower medium car segment. This segment is the largest and most competitive in the UK's auto market.
Besides communication tools like sales brochures,catalogs and advertising are used as direct marketing tools.
QUESTIONS FOR THE PROJECT
1-What are the levels of product and services?
2-Classfiy the products and the attributes of those products.
3-What are the product line and product mix decisions?
4-Specify the brand’s equity and valuation.How did the brand occur?
5-Which strategies are used in the brand development process?
6-Which strategies are used in the new product development process?How is the innovation and the research and development?
7-Explain the product life cycle stage.
8-What are the factors affecting the pricing strategies?Explain.
9-Which pricing approaches are used in general,in producing a new product and in the product mix?
10-Which strategy is used as a price adjustment?
11-How is the supply chain and the value delivery network in the company?
12-Specify the channel levels and explain the marketing systems usd.
13-What kind of distribution channel is used?
14-Explain the logistics,retailers,suppliers working with the firm.
15-How is the communication process and explain the steps in the development of communication in the firm.
16-How does the promotion budget is set?
17-Explain advertising and its steps in the firm.
18-What are sales&business promotion tools used in the firm?
19-Explain the public relations.
20-How is the relationship between the customers and the salespeople?
21-Explain how the salespeople are manages,supervised,recruited,evaluated,compensated and trained in the company.
22-How does direct marketing take place in the company?
REFERENCES:
Kamel Layouni -OYAK-RENAULT BURSA Factory Export Quality Manager
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