Renault's presence on the Japanese market dates from the 50s, during which about 50,000 cars were sold. However, the import of cars to the Japanese market declined considerably during the 1960s. Indeed, Renault was forced to ban the import policies of Japan. In 1994, Renault saw its sales increase in Japan, with the signing of a contract with a new importer. In a logical strategic development that caters to Asian countries, Renault will look at the feasibility of launching Twingo in Japan.
Hence our question is: how can Twingo be developed on the Japanese market, taking into account a complex environment? To address this problem, we will first study the Japanese car market and the feasibility of the introduction of the Twingo in this market. In the second part, we will focus on developing the marketing strategy to penetrate the Japanese market and win market share.
Japan has a total area of 377,835 square kilometers, giving it a relatively small territory. Its population density is very high. This population is concentrated on a particular axis Tokyo-Hiroshima. The Japanese life expectancy is longer in the world. The birth rate is very low. GDP per capita is higher than in France. Japan is the second largest economy, behind only the United States.
The Midgets occupy only 16% of the market but are growing: the combination "cars in" utilities and major frustration. The Small cars, divided into 2 segments, K and T: this segment represents the majority of the market, but has declined from 1987 to 1993. The Standard cars, divided into 2 segments, mid and for: this segment represents only
17% of the market but is growing (as the segment of Midgets).
Toyota is the absolute leader, with 36% market share in 1994; Nissan challenger, with 19% market share in 1994; and then Mazda Honda, Suzuki, Daihatsu and Fuji representing market share increasingly important.
As for imported vehicles, there is a sharp increase in MDP between 1998 and 1994 (4% against 7.9%). It said a significant portion is dedicated to the German manufacturers (57% of sales). French manufacturers achieve only 4.4% of sales.
Various opportunities can be detected. Notably, it appears that a global benchmark, Japan has an important place on the automotive market. Indeed, with a fleet of 62 million, and representing the world's largest importer, Japan is a growing market. Thus, forecasts of auto sales promise a nice evolution of this market.
The Japanese fleet is considerably greater than that of France. The Japanese fleet age is low in Japan (4.5 against 6.3 for France). The road network is often saturated, causing traffic problems.
Tags: launch of Twingo in Japan, Renault in Japan, small car market
[...] External diagnostic Opportunities Threats Socio-economic factors: Socio-economic factors: Reference to Western culture Slowdown in economic growth in Japan Attraction of Western products Importance of service French products are valued Unstable political situation Concentration of population on one Perception of French products as axis- Tokyo-Hiroshima unreliable Changes in lifestyles: the woman has Increasing elderly population with an important place in society, a little interest in foreign products reflection of the Western world Traditional values Importance of quality / price ratio Tech Success little known among the French Car market: Car market: Japan, is the largest importer in The import of PDM vehicles is low, the world (PDM growing on imported due to nationalism and entry vehicles) barriers Large fleet Imported vehicles are assimilated Anticipation of higher sales in the German luxury sedans, relative to sector men Number of miles traveled and average Traditionalism among men speed are low Increased utilization rate Differentiation of imported cars Offer: Renault brand reputation Offer: Renault's success in Germany, PDM of Renault relatively low synonymous with quality Increased segment Midgets in 1987 and 19% in 1993), the fastest growing Request: Projected increase in car sales Consumer market downturn Request: Midgets are associated with gadget, Accessories very privileged devaluation Low car ownership Significant level of standard features Customer service highly valued General market trends • Unstable political situation • Attraction to Western culture • Significant traditionalism • The Japanese woman has an increasingly important place in society Different opportunities can be detected. Particularly, we note that in a global repository, Japan has an important place in the automotive market. Indeed with a fleet of 62 million, and representing the world's largest importer, Japan is a growing market. Thus, auto sales forecasts promise a nice evolution of this market. The Japanese fleet is significantly bigger than that of France. The age of the Japanese fleet in Japan is low ( 4.5 against 6.3 for France). [...]
[...] Our target is essentially active and independent women who live in large cities (need to travel), so-called "urban women". Married women with children may also be affected. The income per household will also be a sufficient condition for the purchase of the Twingo. The positioning: After targeting our customers, we must position the NER product on the market. We must give it a precise place in the minds of consumers. This positioning must be precise and should not be ambiguous for the consumer and be confusing. [...]
[...] In a logical strategic development to Asian countries, Renault will look at the feasibility of launching the Twingo in Japan. Hence our question: How to develop the Twingo on the Japanese market, taking into account a complex environment? To answer this question, we see the study of the Japanese car market in the first part and the feasibility of the introduction of the Twingo in this market. In the second part, we will focus on developing the marketing strategy to penetrate the Japanese market and win market share. [...]
[...] Japan is the second largest economy, behind only the United States. The segmentation of the Japanese car market: • The Midgets constitute only 16% of the market but are growing • The Small cars are divided into two segments, K and This segment represents the majority of the market, but has been declining from 1987 to 1993. • The Standard cars are divided into two segments. This segment represents only of the market but is growing (as the segment of the Midgets). [...]
[...] The price is the guarantee of quality in the minds of consumers. • Distribution (place) It is obvious that Renault will initially use its existing distribution network, both exclusive and independent outlets. Japanese distributors are also major players in the marketing of the Twingo. If we look at the figures, we see that sales outlets increased by 17% between 1977 and 1991 while door to door sales represented a significant cost. This solution is cheaper, allows a greater presence in the territory and provides more credibility, because if a Japanese brand sells a French product, it means that it has recognized the quality of the product. [...]
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