Launching a product in a foreign market requires thorough knowledge of that market. The objective is to introduce the Renault Twingo in the Japanese market. Such a venture cannot be successful without rationally assessing the strengths and weaknesses of the product compared to competitors, the realities of the market, and the distribution opportunities.
One needs to know if there is have any chance of success in Japan with this brand if it is to be launched in the Japanese market, which means the company must implement a strategy that will help to reach the goals.
Renault, the big French car company founded by Renault brothers in 1899, has always been present in the segment of small cars.
In the late 80s, the Renault team was looking for the successor to the R4. How can the company create a new small car which is safe, comfortable, and has all the amenities with the minimum standards of the 90s? How can a price which is less than that of the existing low-end models be fixed (R5, Supercinq, Clio), while making a profit for the company? The answer is Twingo.
The history of the project began several years before Twingo. In 1986, the latest project created on the arrival of Patrick Quement Renault was codenamed as W60. The future car was elongated, slightly raised, and especially enlarged making it larger than the Clio. An interim model, almost identical to the future Twingo, was introduced at the year end.
At the end of 1988, the project became the W60, X06 project and four years later, the X06-Twingo made a splash at the Paris Motor Show. However, this model is no longer available.
Twingo measuring 3.43 m long. Its shape allowed better allocation of volumes between the engine compartment and cockpit. The car was wider and its wheelbase close to its overall length could literally push the wheels around the vehicle.
The design of the dashboard was very innovative. It lies at themaximum field of vision of drivers and passengers to the front and to the bottom line of the windshield.Very simple, it lists all the warning lights on a quiet strip in front of the wheel, while other functions were centralized in the axis of the car.
Twingo car would be a cheap, non-diversified, but not a poor car.The quality of detail (drawing doors, windshield wipers, dashboard,air vent cover) shows that
different positioning. The Twingo concept is totally new for a car that did not exist
Under the Sales of Renault: The philosophy of the special series is to deal with competitors rather than to a particular market. There are two categories of special series, those related to the image in association with a name that are generally sold through out Europe and those that incorporate a number of options to boost sales of a particular model for a defined period.
The system is highly decentralized and flexible. There may be, for example, a special series marketed throughout Europe, in contrast a country can create a special series. On average, 15% of the annual volumes of cars are sold as special editions.
Tags: Twingo by Renault, history, product, market
[...] There must be a high level of equipment in the car. The Japanese pays a lot of attention to his car. Women who buy vehicles often use them to get work or to shop. They are attached to the vehicle's appearance, price and ease of maintenance. That is why they are the ones who buy most of small vehicles (Midget), except that they are not happy because they derive no social prestige. The vehicles are often used in cities at a reduced speed; however they must be powerful and have many safety features. [...]
[...] “Thus there is a reservoir of conquest in other regions, whose economic growth boosts the car market," said Georges Douin, Deputy Director General, Director of Planning, Product and international operations of Renault. The target The target customers are active urban women from 20-35 years who belong to the middle class or upper middle class. Note: The majority of imported vehicles are usually directed towards a mainly male and upscale clientele. The target is thus new. Strong points: Attractive products from the West. Weakness: Heavy congestion in large cities. Using public transportation is becoming more and more common. [...]
[...] It lies at the maximum field of view of the driver and passengers to the front and lines the bottom of the windshield. In a very simple design, it includes the warning lights on a discreet bar in front of the wheel, while other functions are centralized in the axis of the car. Twingo should be considered an inexpensive non-diversified car, but not a poor car. The quality of details (drawing doors, windshield wipers, dashboard, air intake cover . ) demonstrates its different positioning. The interior design Twingo offers a lot of room relative to its exterior proportions. [...]
[...] The share of Renault in the Japanese market is Market Analysis Market forces 1. Attractiveness and high consumption of Western luxury goods: French products are often appreciated The economic crisis is accompanied by a shift in values 3. Japanese women are playing a leading role in the current developments in Japanese society According to forecasts, sales of imported vehicles are expected to reach 600,000 vehicles by 2000. The market threats 1. the market of the Japanese automotive industry is experiencing a certain slowdown and a decline in domestic consumption The excessive number of cars makes travel difficult, especially on Tokyo's road network Some manufacturers (Ford Opel, VW, Audi, and Rover) reduce their prices in order to offer products which are more competitive with local products 4. [...]
[...] "The Twingo was contradictory. It did not want to be expensive, but it appealed to expensive solutions (unibody, movable seats). The project was confirmed in mid-90, when it was shown that a cost reduction of 15-20% was possible", says Yves Dubreil, project director of Twingo. It had to find the right balance between profitability and modernity. Renault has therefore turned to outsourcing. Purchases outside Renault accounted for over 70% of total manufacturing costs. According to estimates by the Directorate of cost, this solution would have resulted in a gain of 17%. [...]
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