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1. Benaouidat Fathallah, IDRAC Grenoble.
27 Mars 2014.
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INTERNATIONAL MARKETING
PERSPECT.
Fathallah BENOUIDAT, IDRAC Grenoble. INTERNATIONAL MARKETING PERSPECT RENAULT

2. Indeed, the adaptation to the Japanese market depended on this alliance and we will
study the development of the company in Japan through the alliance RENAULT-NISSAN.
I have chosen the Japan market because Renault was strong in Europe and Amarica
latina but not in Asia where Nissan was facing to some trouble. The main objectives
of these two companies was to attack mainly China and Japan.
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Introduction :
For this report, I’ve decided to present the company Renault which is one of the
biggest company in France but also all over the world. I’ve decided to extend my
analysis to the automobile sector and not to be focused on a specific product.
What is interesting with the study of Renault is chiefly the second part because we
will analyze Renault in Japan and this study brings us directly to the alliance
RENAULT-NISSAN.
Fathallah BENOUIDAT, IDRAC Grenoble. INTERNATIONAL MARKETING PERSPECT RENAULT

3. Renault S.A. is a French multinational vehicle manufacturer established in 1899. The
company produces a range of cars and vans, and in the past, trucks, tractors, tanks,
buses/coaches and autorail vehicles. In 2011, Renault was the third biggest
European automaker by production behind Volkswagen Group and PSA and the
ninth biggest automaker in the world by production in 2011.
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I) The company:
A) History & presentation of Renault
The Renault group is a French automobile manufacturer founded in 1898 and linked
to the Japanese automaker Nissan since 1999. This group has subsidiaries and
groups worldwide. Founded by brothers Louis, Marcel and Fernand Renault in 1899,
he quickly distinguished himself by his innovations. It was nationalized after World
War II because of the collaboration with the Nazi leaders. It is privatized since the
90s.
Today the company Renault am part of the Renault group which includes several
subsidiaries such as DIAC, DACIA, RENAULT SPORT. Renault owns 80.1% of the
automotive arm of Korean Samsung.
The Renault-Nissan group was created in the 2000s to cope has giants like General
Motors and Toyota.
Renault is the eleventh in the world rankings of the largest automotive groups.
B) Executive committee
The government of France owns 15.7 per cent of the company. The company is
administered by a board of directors composed of 19 members (10 of them being
independent). As of April 2010, members of the board of directors include:
Fathallah BENOUIDAT, IDRAC Grenoble. INTERNATIONAL MARKETING PERSPECT RENAULT

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 Carlos Ghosn, Chairman and chief executive officer (and also Director of
Alcoa, AvtoVAZ; President and chief executive officer of Nissan Motor Co.,
Ltd.; and Chairman of the Alliance Board: Renault-Nissan b.v.)
 Yves Audvard
 Patrick Biau
 Alexis Kohler, Director appointed by the French State
 Marc Ladreit de Lacharrière
 Philippe Lagayette
 Franck Riboud
 Luc Rousseau, Director appointed by the French State
 Hiroto Saikawa Executive Vice President Purchasing of Nissan
 Pascale Sourisse
 Carlos Tavares is the company's chief operating officer
 Thierry Moulonguet is chief financial officer
 Louis Schweitzer was Chairman and CEO from 1992 to 2005, in succession
to Raymond Lévy
C) Renault in some figures
Fathallah BENOUIDAT, IDRAC Grenoble. INTERNATIONAL MARKETING PERSPECT RENAULT

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D) Micro-Environment
 Competitors in France :
 PSA :
Founded in 1810 by the Peugeot brothers, this company has its origins in a small
steel foundry that provides springs local watchmaking industry. During the 72 years
following the creation of new plants emerge. Production is diversified and the
company began producing springs, tools, buscs corset, coffee grinders, sewing
machines.
Fathallah BENOUIDAT, IDRAC Grenoble. INTERNATIONAL MARKETING PERSPECT RENAULT

6. Volkswagen is today Europe's leading automotive group. The group consists of brand
such as Volkswagen, Audi, Seat, Skoda, Lamborghini, Bugatti, Bentley, Scania.
Unlike PSA and Renault, Volkswagen is a global player because the group operates
in all markets. However as PSA, despite the group is a risk of cannibalization at the
disposal of all its brands its various global platforms. The group's policy is technical
excellence and upmarket brands. Thus offering the possibility of competing brands
such as Mercedes and BMW offering but, turning away from the bulk of motorists the
opportunity for French manufacturers to strengthen their positions constructor public.
DaimlerChrysler is itself the first German industrial group. The group has built world
around two axes: luxury cars and trucks. Here we focus only the luxury automotive
brand of Daimler Chrysler Mercedes-Benz. The strategy of Mercedes-Benz is
extending the range, global expansion and diversification down on promising
segments its range. In fact, the brand is aware that the market for luxury car is
approaching saturation, the marketing of small cars sober allows the brand to
continue to sell luxury sedans. However, despite a downward extension of the brand,
Mercedes-Benz targets only the most lucrative part of the market. Regarding the
expansion, the brand has a real desire to be a major player in the United States and
Japan.
The Fiat group is Fiat, Lancia, Alfa Romeo, Ferrari, Maserati, Iveco, Magetti Marelli
(OEM) and Teksid (foundry), a diversification that has its particularity. It is this feature
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It was in the 1970s that Peugeot became the "General Motors " in French by taking
under his wing Citroën and Chrysler Europe , whose models were renamed Talbot
Samba, Solara ...
Despite numerous collaborations always balanced with various manufacturers such
as Fiat , Ford, Renault , Toyota , Mitsubishi, Peugeot defends its independence
fiercely . The strategy of the manufacturer based on three points: growth, innovation
and profitability to satisfy the greatest number of European drivers .
That is why long folded over the "old continent" , Peugeot continues past few years,
its development of new high growth continents . To improve the Group's profitability ,
the manufacturer shall jointly plants , platforms , political products of the two brands.
Finally , as regards the innovation , it is mainly around the engines ( engines ,
particulate filter ) and concepts
 Competitors in Europe :
 Volkswagen :
 Daimler Chrysler :
 Fiat :
Fathallah BENOUIDAT, IDRAC Grenoble. INTERNATIONAL MARKETING PERSPECT RENAULT

7. Ford is the second largest American manufacturer and the third largest manufacturer.
This company is responsible for the mass production and democratization of the
automobile. This family company but not least World consists of the following brands:
Lincoln, Mercury, Aston Martin, Jaguar, Volvo, Land Rover, Mazda. The strategy of
the manufacturer was from the late 90s, a diversification strategy in the parallel
services to the automobile such as credit, leasing and rapid repair. However this new
investment effort hampered those invested in the revival of models: contributing to
the darkening of the brand Ford.
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and the excessive centralization of activities on which heavily penalized the
automaker Italy. Mismanagement of these brands: Fiat having a too low-end image,
Lancia is too little known, Alfa Romeo is not profitable enough and Ferrari, Maserati
being only low attendance, forcing the manufacturer to adopt a strategy rescue and
not of development. However, the alliance with General Motors will allow it to benefit
from significant financial benefits for redeployment.
 International Competitors :
 Général Motors :
General Motors has long been the leading manufacturer worldwide, it remains the
number one American manufacturers and the world number two. The group includes
many brands such as Cadillac, Buick, Pontiac, Chevrolet, GMC, Hummer, Holden,
Saturn, Isuzu, Suzuki, Subaru, Daewoo, Opel, Vauxhall, Saab, Fiat Auto. Unlike
Fordism, GM's strategy is the diversity of supply by standardizing the technical
bases. General Motors is a "giant" considered uncontrollable due to the distance
between its head (Detroit) his feet (various markets). However, its size is a huge
financial asset to the group for years to loss of growth.
 Ford :
 Toyota :
World's leading manufacturer since 2007, the group control four brands: Toyota,
Lexus, Daihatsu and Hino. The strength of the manufacturer lies in its production
model called the "Toyota way". Conservative original company, it was able to show
over time as innovative technically and conceptually. The group is present over the
entire range of scales: from the city to the luxury sedan and on all continents
microphone. Toyota represents a serious competitor, as its financial strength with its
qualitative and technical production for all manufacturers in the world.
Fathallah BENOUIDAT, IDRAC Grenoble. INTERNATIONAL MARKETING PERSPECT RENAULT

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 Suppliers : 7 companies
 Faital : speakers
 Sanden corporation : compressors
 Axson France SAS : sealants and anti-gravelling
 Gris Découpage : bearings
 Componente Auto S.A. : stabilizer bars
 Denso Manufacturing Argentina SA : air conditioning system
 Hanjoo Metal Co ltd : wheels
E) SWOT :
Strengths :
the brand awareness
successful development in Asia and the usa
synergies platforms group
planned investments eleven billion
the development of distribution networks in emerging countries
record sales and strong operating profitability
Weaknesses :
the European market weighs more than half of its revenues
production too centralized in Europe, away from growth markets
after sales services too expensive
Opportunities :
the development of superior middle classes in emerging countries
the difficulties of some European manufacturers
favorable regulations for hybrid engines
the further positioning on small formats
Fathallah BENOUIDAT, IDRAC Grenoble. INTERNATIONAL MARKETING PERSPECT RENAULT

9. The quality of production processes of enterprises, their ability to regenerate, but also
unwavering commitment to putting the customer at the center of their approach, are
strengths that enable the greatest Japanese groups to be among the most powerful
companies world.
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diversification in the bike after buying Italian DUCATI
Threats :
a reluctant European market.
competitive pressure is increasing everywhere.
regulations on emissions.
growing protectionism.
few competent suppliers in emerging countries
II) RENAULT-NISSAN IN JAPAN
A) Japan : an open market
The Japanese are affluent consumers who set trends in Asia. Behavior and the
provisions of consumers in Japan are so well developed that market differs
significantly from the other Asian countries.
 Japan is the second largest economic power.
127 million Japanese are all consumers high purchasing power attached to the label
«France " and with a personal savings among the highest in the world . GDP /
Inhabitant: $ 34,000. Main gray area is the inability of Japan to establish a pro-natalist
policy
 The innovation leader in Japan
Fathallah BENOUIDAT, IDRAC Grenoble. INTERNATIONAL MARKETING PERSPECT RENAULT

10. The quality and abundance of Japanese industrial fabric, the excellence of its
research centers, make Japan a paradise of innovation, especially in manufacturing.
Japan is a leader in R & D as illustrated by the myriad of patents filed each year.
Japan is the second largest economic power. Today despite the rapid growth of its
Chinese neighbor for 20 years. The quality of production processes of enterprises,
their ability to regenerate, but also unwavering commitment to putting the customer at
the center of their approach, are strengths that enable the greatest Japanese groups
to be among the most powerful companies world.
Too often, these giants are merely the domestic market and the vastness of its
middle class. But a new era: the population ages, the purchasing power of stagnant
consumption habits evolve and Japanese companies, whatever their size, must turn
to foreign markets. This implies a rethinking of their working methods, an adaptation
of their production, but also increased staff training to international trade issues.
Note, the main employers' association and the Japanese Ministry of Economy and
Finance are calling for the opening of negotiations on compliance standards between
Europe and Japan. Such an agreement would have a real and positive impact on the
Franco- Japanese trade relationship. Moreover, the global economic recovery will
almost mechanical stimulus of Japanese exports. In the shorter term, the government
injected massive money to revive the economy should be positive
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 Japanese economic trends
Japan was hit by the current crisis. Unemployment rises and the country became
aware that its social homogeneity is jeopardized. The country did not have a social
protection system adapted to the new contours of a society where insecurity is
gaining ground. On this point too, Japan is facing a considerable challenge.
Ultimately, the strength of domestic demand depends.
Fathallah BENOUIDAT, IDRAC Grenoble. INTERNATIONAL MARKETING PERSPECT RENAULT

11. Concluded in March 1999, the alliance of Renault and Nissan responded to a double
objective: Renault wanted to become a global player and Nissan, which had
accumulated billions in debt and saw its market share shrink every year , looking for
a partner to inject capital. Carlos Ghosn, CEO of Renault then helped the recovery of
Nissan reducing costs, streamlining procurement, dismissing and closing factories.
Renault says that the French group has provided € 6.4 billion to Nissan and the
Japanese accounted for more than 11 billion euros to Renault.
The main features of the Alliance are cross-participation (Renault owns 44.3% of
Nissan and Nissan holds 15% of Renault ), a collaboration through group work cross
; pooling purchases via Renault -Nissan Purchasing Organization (which supports
100 % of purchases on or after April 1, 2009, against 30% in 2001 ), the share
components (engine, gearbox ... ), a directorate composed of 50-50 executives of the
two companies , a model that allows both sides to keep their identity and
independence and geographic complementarity (Renault was strong in Europe ,
North America and South Africa, while the historical territories of Nissan were Japan,
North America, Mexico, China and the Middle East).
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B) A useful alliance
Fathallah BENOUIDAT, IDRAC Grenoble. INTERNATIONAL MARKETING PERSPECT RENAULT

12.  Second largest manufacturer (16.4% market share) behind the United States
important for manufacturers to be present near the factories manufacturers in
Japan.
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C) Characteristics of the Japanese automarket
 The Japanese automotive industry in figures:
(18.7%).
 First industry in Japan (13% of industry turnover).
 First employer (4.91 million direct and indirect jobs, 7.7% of the workforce).
 The first fleet in Asia with 75 million vehicles (9.4% of the world fleet).
 A domestic market dominated by Japanese manufacturers :
 The Japanese domestic market is stabilizing after 10 years of uninterrupted
growth. Toyota unquestionably dominates the market with record results for
fiscal year (FY) 2006, with a market share of 44.3%
 Foreign car manufacturers settled successively in Japan
 Sales of Japanese vehicles are increasing in the world, it is increasingly
 Japanese automakers boost their expansion abroad
Fathallah BENOUIDAT, IDRAC Grenoble. INTERNATIONAL MARKETING PERSPECT RENAULT

13.  Manufacturers continue to shift production to lower their dependence vis-à-vis
 The overseas production vehicles Japanese automakers were for the first time
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the exchange, to globalize their operations and enhance their international
presence and market share, and benefit from growth markets of emerging
countries.
than domestic production in fiscal year 2010 (April 2009 to March 2010).
Indeed, their overseas production reached 11 million units in fiscal year
against a domestic production stood at 10.89 million units.
Fathallah BENOUIDAT, IDRAC Grenoble. INTERNATIONAL MARKETING PERSPECT RENAULT

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D) Porter Model
III) An unavoidable presence
Fathallah BENOUIDAT, IDRAC Grenoble. INTERNATIONAL MARKETING PERSPECT RENAULT

15. As we see, Renault is present worldwide despite high competition. It is very hard
to imagine new opportunities of implementations. But it could be two new
opportunities in Canada and Australia but needs are not the same and we need to
study these ones as we did with Japan.
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Fathallah BENOUIDAT, IDRAC Grenoble. INTERNATIONAL MARKETING PERSPECT RENAULT