In this assignment we'll put together an international marketing plan for the launch of an electric car by the French car manufacturer Renault in the US market. I chose Renault because it's the French company which is the most in advance in the field of electric cars. Indeed, Renault has for objective to be the first car manufacturer to offer zero emission vehicles accessible to everyone. The electric cars market is booming, more and more car manufacturers are considering the electric engine as the most serious option to reach the zero emission level, and the recent technological advancements in this area could be the solution to the current environmental issues due to Carbon Dioxide emissions. Renault doesn't sell yet Renault-branded car in the US. However, the Renault group has already some serious landmarks on this market with its brand Nissan, which is very successful over there. The US could offer tremendous opportunities for the company in the electric cars market.
Indeed, apart some cities like New York where public transportation is very developed; most people use their cars for their daily commute, and it's a necessity because very often the distance is too big to be done walking, cycling and the public transportation is not developed over there. I've been studying in California for one year and I've seen that without a car you can't do anything, it takes hours just to go walking from downtown Los Angeles to the beach.
[...] International Marketing International Marketing Plan for a French car manufacturer Introduction In this assignment we'll put together an international marketing plan for the launch of an electric car by the French car manufacturer Renault in the US market. I chose Renault because it's the French company which is the most in advance in the field of electric cars. Indeed, Renault has for objective to be the first car manufacturer to offer zero emission vehicles accessible to everyone. The electric cars market is booming, more and more car manufacturers are considering the electric engine as the most serious option to reach the zero emission level, and the recent technological advancements in this area could be the solution to the current environmental issues due to Carbon Dioxide emissions. [...]
[...] American and other international car manufacturers are starting to launch their own electric cars too. The recent development of this sector, and the last advancements on the electric engine technology made the product lifecycle of electric cars getting shorter, it means that the product development times for new products has been greatly reduced, and that the time for R&D and marketing to pay off has also been reduced (approximately 2 years now). Explain how exchange rates and inflation may affect the way you price the product. [...]
[...] Power distance: Hierarchy is fundamental in the United States, and the decision making process is done according to the degree of inequality between people (rank, educational background French culture is pretty similar so the cultural differences concerning this point wouldn't really impact on the international marketing strategy of Renault in the US. Uncertainty avoidance: Uncertainty avoidance can be associated with risk aversion. It's pretty low in the US. Indeed, Americans are entrepreneurs; entrepreneurship is more developed than in France. Entrepreneurship involves risk, that's just part of the game. This cultural difference could influence Renault's internationalization strategy in the US. Individualism: This concept is more present in the US than in France. [...]
[...] What type of market entry modes should the French car manufacturer consider? Explain your reasons. Renault can consider several options to enter the US market for the launch of its electric car: Simple exportation: Exportation means that the product is not both manufactured and marketed on the same market. Renault would produce its electric car in one of its numerous factories in Europe, Eastern Europe, Brazil, Mexico and then would export it to the US market. To evaluate if this solution will be profitable or not, Renault has to calculate what costs will increase and decrease with this method. [...]
[...] To get a real competitive advantage, Renault will have to continue to invest on to keep a technological advance and be the first manufacturer to offer zero emission vehicles accessible to everyone. Thanks to its core competences and its mastery of the value chain, Renault seems to have all the resources to enjoy success selling electric cars in the US market. However, the company will have to choose the right method for entering the US market, minimizing the risk and maximizing the potential return on investment. The company will have to be it means thinking global but acting local, taking into consideration the cultural differences of the foreign market. [...]
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