International Marketing Plan for a French car manufacturer, Renault: The launch of an electric car in the United States market

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International Marketing Plan for a French car manufacturer, Renault: The launch of an electric car in the United States market

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Abstract

Renault makes it clear on its website; that they have the ambition to be the first carmaker to offer zero emission cars to use, accessible to everybody. Electric cars are the ultimate answer to current problems related to environmental issues and noise pollution in cities. Technical innovations can now make possible a mass electrical supply at a reasonable cost. In addition, the electric car suits very well the changes in road use. Today, 87% of Europeans drive less than 60 km per day .

The purpose of this assignment is to create an international marketing plan of Renault's electric cars for the North American market, the United States of America. Renault insists a lot on his alliance with Nissan, already present on the North American market. This situation would allow the French car manufacturer to have some landmarks on this market with high potential in terms of car sales. Americans are known to use their cars very often, either for long or short trips. This cliché promises great potential for the introduction of electric cars on the market.

The best place to launch an electric car would be undeniably California, the world laboratory in new technologies. Sustainable development is a big concern in this state and implementing electric cars would be well received from people. Furthermore, price of oil and cost of maintenance is a huge budget for car users. That's why the opportunity for Renault to launch an electric car in the US market is very attractive in the current context.

Introduction
Company's international competitiveness
Economic and political barriers with respect to export of cars to the US
Cultural influence on the international marketing strategy
The type of market entry modes that the French car manufacturer should consider
The limitations of acquisition as an entry strategy
The exchange rates and inflation with respect to the price of the product
The type of international marketing controls that will be required by the company
Conclusion

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[...] Exportation would be a bad choice if Renault wants simply to export its electric car to the United States. There are too many risks regarding the fluctuations between euros and dollars and the higher cost of production that Renault should support. Maybe if Renault manages to produce in a country close to the United States, Mexico for example, then it is possible to reduce these risks. The better option for Renault is to consider the foreign direct investment or acquisition method as a real potential to enter with market. [...]

[...] Nevertheless, the US market is quite different from other countries as no French manufacturer is currently exporting to the United States. The electric car can change this situation. Question 2: Examine the company's international competitiveness at the macro, meso and micro levels. What are the characteristics of the benchmarking program needed to measure performance, key success factors and core competences against competitors? The Renault's international competitiveness consists of three levels: the macro, meso and micro levels. For the macro level, we'll use the Porter Diamond to analyze Renault's national competitiveness. [...]

[...] International marketing plan for a French car manufacturer, Renault: The launch of an electric car in the United States market Introduction Renault makes it clear on its website; that they have the ambition to be the first carmaker to offer zero emission cars to use, and that is accessible to everybody. Electric cars are the ultimate answer to current problems that are related to environmental issues and noise pollution in cities. Technical innovations can now make it possible for the mass electrical supply at a reasonable cost. [...]

[...] In the same time, US car manufacturer are launching their own electric cars on their market. That is to say Renault will have to face strong competition when entering the American market. Question 8: Explain how exchange rates and inflation may affect the way you price the product? Exchange rates changes can increase or lower the price of a product sold abroad because there is a change in demand for holding that currency. For example, if the exchange rate increases, it means that prices abroad go up and sales decline. [...]

[...] When talking to somebody, communication and sense of self and space are more informal compared to other developed countries. The way of managing business, hierarchy, etc. is part of this low-context. Question 5: What type of market entry modes should the French car manufacturer consider? Explain your reasons? The first thing to do is to show the different types of market entry modes that Renault could use in order to launch electric cars in the United States. Then, we will be able to recommend one or two types that Renault should select. [...]

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