The document provides an overview of the automobile industry in India. It discusses key aspects of the industry including market analysis, investments, employment opportunities and trends. The industry is growing rapidly due to factors such as increased affordability, demand for fuel efficient vehicles, and government support. The industry employs over 80 lakh people currently and is expected to provide employment to over 25 million people by 2016. Major global automakers are investing heavily in India and see it as an important future market.
An Analysis of Automobile Industry of India as a Market StructureMuhammad Anowar
Automobile industry is a symbol of technical marvel by human kind. Being one of the fastest growing sectors in the world its dynamic growth phases are explained by nature of competition, product life cycle and consumer demand. Today, the global automobile industry is concerned with consumer demands for styling, safety, and comfort; and with labor relations and manufacturing efficiency. The industry is at the crossroads with global mergers and relocation of production centers to emerging developing economies.
Asia has become the major consumer as well as supplier of automobiles. India is concentrating on Middle East and south Asia beside traditional developed country destinations. With the gradual opening up of the component sector, now the challenge is for individual governments to support the development of domestic critical component and sub-system suppliers through, improvement in the investment environment, stronger patent regimes and incentives for R&D.
Mahindra Report : Analysis of Mahindra & Mahindra ScorpioAnand Tomar
Analysis of Mahindra as a part of my final 1st semester project report of my PGDM course.
Analysis is on following topics : Sector, Company,, Product, Services, Marketing Strategies, Financial Analysis ,Human Resource Management of Mahindra.
a project report on MAHINDRA & MAHINDRA . Here you will get all the data of product of MAHINDRA & MAHINDRA. made by me , best helpful for BBA student forn intership report.
An Analysis of Automobile Industry of India as a Market StructureMuhammad Anowar
Automobile industry is a symbol of technical marvel by human kind. Being one of the fastest growing sectors in the world its dynamic growth phases are explained by nature of competition, product life cycle and consumer demand. Today, the global automobile industry is concerned with consumer demands for styling, safety, and comfort; and with labor relations and manufacturing efficiency. The industry is at the crossroads with global mergers and relocation of production centers to emerging developing economies.
Asia has become the major consumer as well as supplier of automobiles. India is concentrating on Middle East and south Asia beside traditional developed country destinations. With the gradual opening up of the component sector, now the challenge is for individual governments to support the development of domestic critical component and sub-system suppliers through, improvement in the investment environment, stronger patent regimes and incentives for R&D.
Mahindra Report : Analysis of Mahindra & Mahindra ScorpioAnand Tomar
Analysis of Mahindra as a part of my final 1st semester project report of my PGDM course.
Analysis is on following topics : Sector, Company,, Product, Services, Marketing Strategies, Financial Analysis ,Human Resource Management of Mahindra.
a project report on MAHINDRA & MAHINDRA . Here you will get all the data of product of MAHINDRA & MAHINDRA. made by me , best helpful for BBA student forn intership report.
A Microeconomics focused presentation of Tata Motors - 2 Wheeler Era. Discussed in detail on how TATA can introduce a new 2 wheeler in an already existing competitive market and try to gain a market share. All strategies including Finance, Marketing and Sales have been briefly discussed with a 5-year growth plan.
A comparative study of customer satisfaction towards performance of Hero, Baj...hasnain2
MBA marketing project report on
A comparative study of customer satisfaction towards performance of Hero, Bajaj, Honda and Tvs bikes(A Case of Malegaon City)
Study on customer satisfaction with special reference to Mahindra & MahindraAshish Gupta
This project is a part of our university dissertation and shows the appreciation and satisfaction level, tastes and preference of consumer towards Mahindra & Mahindra and how the company be a common name is Indian.
A Microeconomics focused presentation of Tata Motors - 2 Wheeler Era. Discussed in detail on how TATA can introduce a new 2 wheeler in an already existing competitive market and try to gain a market share. All strategies including Finance, Marketing and Sales have been briefly discussed with a 5-year growth plan.
A comparative study of customer satisfaction towards performance of Hero, Baj...hasnain2
MBA marketing project report on
A comparative study of customer satisfaction towards performance of Hero, Bajaj, Honda and Tvs bikes(A Case of Malegaon City)
Study on customer satisfaction with special reference to Mahindra & MahindraAshish Gupta
This project is a part of our university dissertation and shows the appreciation and satisfaction level, tastes and preference of consumer towards Mahindra & Mahindra and how the company be a common name is Indian.
Una pequeña introducción al concepto de CRM, las maneras de aplicar el Social CRM y las caracteristicas de las nuevas estrategias en las redes sociales para alcanzar mas mercado
Summary
- All LEDs are dimmable, the issue is how the driver is designed to be dimmed
- Legacy wall dimmers present a unique set of compatibility issues and challenges
- New standards are being established like NEMA SSL7 to support new dimmer and bulb designs
- “Smart dimmers” can enable dimming for any application without legacy interface issues
Presentation by Sri Jandhyala
Outline:
1. LED Driver Requirements and Regional Standards
2. Topology Overview
3. Meeting Power Factor/Harmonic Content Requirements
4. Comparison of Switching Topologies
5. Conclusions
CRM proviene de la sigla del término en inglés customer relationship management, y puede poseer varios significados: Administración basada en la relación con los clientes. CRM es un modelo de gestión de toda la organización, basada en la satisfacción del cliente (u orientación al mercado según otros autores).
Presentation slides from Customer Relationship Management (CRM) workshop as part of Destination Digital business support programme from Connecting Cambridgeshire.
Want more information? Small businesses across Cambridgeshire and Peterborough can currently get free business support on using digital technology until March 2015.
More information here: http://destinationdigital.info/advice/
Global and china automotive seating industry report, 2014 2015ResearchInChina
The seemingly simple automotive seating actually reflects a country's machining ability. In the world, at most 20 companies are capable of producing automotive seating whose frames are made of precision metals via stamping, while nearly a thousand companies have the capability to produce automotive engines.
SWOT Analysis Covid-19 Impact on Indian Automotive IndustryRahman A
SWOT Analysis Post Covid-19 Impact on Indian Auto Industry.Automobiles represent freedom and economic growth. Automobiles allow people to live, work and travel in ways that were unimaginable a century ago. Automobiles provides access to markets, to doctors, to jobs. Nearly every automobile trip ends with either an economic transaction or some other benefit to the quality of life
Car market in India has evolved a lot since our Independence, but for the last few years the Indian automobile industry has witness testing time and COVID 19 attack has proved to be the worst. That doesn't mean it is the end. The auto sector of India has started showing signs of recovery but it will take a long time. These stats and facts of the Indian automobile industry will surely help you to get a clear understanding of that.
Analysis of Automobile Industry through marketing and economic factorsDivyansh Kaushik
The report uses economic and marketing factors to analyze the industry performance over the past years.it uses micro economic factors and porter's five force model for proper understanding of the concepts.It also talks in detail about Maruti Suzuki as the market leader of the industry.
Presentation on two wheeler industry with different 4 major players of this industry and analysis of PEST,SWOT & STP about industry and also about 4 players.
10 Video Ideas Any Business Can Make RIGHT NOW!
You'll never draw a blank again on what kind of video to make for your business. Go beyond the basic categories and truly reimagine a brand new advanced way to brainstorm video content creation. During this masterclass you'll be challenged to think creatively and outside of the box and view your videos through lenses you may have never thought of previously. It's guaranteed that you'll leave with more than 10 video ideas, but I like to under-promise and over-deliver. Don't miss this session.
Key Takeaways:
How to use the Video Matrix
How to use additional "Lenses"
Where to source original video ideas
Mastering Multi-Touchpoint Content Strategy: Navigate Fragmented User JourneysSearch Engine Journal
Digital platforms are constantly multiplying, and with that, user engagement is becoming more intricate and fragmented.
So how do you effectively navigate distributing and tailoring your content across these various touchpoints?
Watch this webinar as we dive into the evolving landscape of content strategy tailored for today's fragmented user journeys. Understanding how to deliver your content to your users is more crucial than ever, and we’ll provide actionable tips for navigating these intricate challenges.
You’ll learn:
- How today’s users engage with content across various channels and devices.
- The latest methodologies for identifying and addressing content gaps to keep your content strategy proactive and relevant.
- What digital shelf space is and how your content strategy needs to pivot.
With Wayne Cichanski, we’ll explore innovative strategies to map out and meet the diverse needs of your audience, ensuring every piece of content resonates and connects, regardless of where or how it is consumed.
When most people in the industry talk about online or digital reputation management, what they're really saying is Google search and PPC. And it's usually reactive, left dealing with the aftermath of negative information published somewhere online. That's outdated. It leaves executives, organizations and other high-profile individuals at a high risk of a digital reputation attack that spans channels and tactics. But the tools needed to safeguard against an attack are more cybersecurity-oriented than most marketing and communications professionals can manage. Business leaders Leaders grasp the importance; 83% of executives place reputation in their top five areas of risk, yet only 23% are confident in their ability to address it. To succeed in 2024 and beyond, you need to turn online reputation on its axis and think like an attacker.
Key Takeaways:
- New framework for examining and safeguarding an online reputation
- Tools and techniques to keep you a step ahead
- Practical examples that demonstrate when to act, how to act and how to recover
Monthly Social Media News Update May 2024Andy Lambert
TL;DR. These are the three themes that stood out to us over the course of last month.
1️⃣ Social media is becoming increasingly significant for brand discovery. Marketers are now understanding the impact of social and budgets are shifting accordingly.
2️⃣ Instagram’s new algorithm and latest guidance will help us maintain organic growth. Instagram continues to evolve, but Reels remains the most crucial tool for growth.
3️⃣ Collaboration will help us unlock growth. Who we work with will define how fast we grow. Meta continues to evolve their Creator Marketplace and now TikTok are beginning to push ‘collabs’ more too.
Top 3 Ways to Align Sales and Marketing Teams for Rapid GrowthDemandbase
In this session, Demandbase’s Stephanie Quinn, Sr. Director of Integrated and Digital Marketing, Devin Rosenberg, Director of Sales, and Kevin Rooney, Senior Director of Sales Development will share how sales and marketing shapes their day-to-day and what key areas are needed for true alignment.
The Secret to Engaging Modern Consumers: Journey Mapping and Personalization
In today's digital landscape, understanding the customer's journey and delivering personalized experiences are paramount. This masterclass delves into the art of consumer journey mapping, a powerful technique that visualizes the entire customer experience across touchpoints. Attendees will learn how to create detailed journey maps, identify pain points, and uncover opportunities for optimization. The presentation also explores personalization strategies that leverage data and technology to tailor content, products, and experiences to individual customers. From real-time personalization to predictive analytics, attendees will gain insights into cutting-edge approaches that drive engagement and loyalty.
Key Takeaways:
Current consumer landscape; Steps to mapping an effective consumer journey; Understanding the value of personalization; Integrating mapping and personalization for success; Brands that are getting It right!; Best Practices; Future Trends
Videos are more engaging, more memorable, and more popular than any other type of content out there. That’s why it’s estimated that 82% of consumer traffic will come from videos by 2025.
And with videos evolving from landscape to portrait and experts promoting shorter clips, one thing remains constant – our brains LOVE videos.
So is there science behind what makes people absolutely irresistible on camera?
The answer: definitely yes.
In this jam-packed session with Stephanie Garcia, you’ll get your hands on a steal-worthy guide that uncovers the art and science to being irresistible on camera. From body language to words that convert, she’ll show you how to captivate on command so that viewers are excited and ready to take action.
The digital marketing industry is changing faster than ever and those who don’t adapt with the times are losing market share. Where should marketers be focusing their efforts? What strategies are the experts seeing get the best results? Get up-to-speed with the latest industry insights, trends and predictions for the future in this panel discussion with some leading digital marketing experts.
Is AI-Generated Content the Future of Content Creation?Cut-the-SaaS
Discover the transformative power of AI in content creation with our presentation, "Is AI-Generated Content the Future of Content Creation?" by Puran Parsani, CEO & Editor of Cut-The-SaaS. Learn how AI-generated content is revolutionizing marketing, publishing, education, healthcare, and finance by offering unprecedented efficiency, creativity, and scalability.
Understanding
AI-Generated Content:
AI-generated content includes text, images, videos, and audio produced by AI without direct human involvement. This technology leverages large datasets to create contextually relevant and coherent material, streamlining content production.
Key Benefits:
Content Creation: Rapidly generate high-quality content for blogs, articles, and social media.
Brainstorming: AI simulates conversations to inspire creative ideas.
Research Assistance: Efficiently summarize and research information.
Market Insights:
The content marketing industry is projected to grow to $17.6 billion by 2032, with AI-generated content expected to dominate over 55% of the market.
Case Study: CNET’s AI Content Controversy:
CNET’s use of AI for news articles led to public scrutiny due to factual inaccuracies, highlighting the need for transparency and human oversight.
Benefits Across Industries:
Marketing: Personalize content at scale and optimize engagement with predictive analytics.
Publishing: Automate content creation for faster publication cycles.
Education: Efficiently generate educational materials.
Healthcare: Create accurate content for patients and professionals.
Finance: Produce timely financial content for decision-making.
Challenges and Ethical Considerations:
Transparency: Disclose AI use to maintain trust.
Bias: Address potential AI biases with diverse datasets.
SEO: Ensure AI content meets SEO standards.
Quality: Maintain high standards to prevent misinformation.
Conclusion:
AI-generated content offers significant benefits in efficiency, personalization, and scalability. However, ethical considerations and quality assurance are crucial for responsible use. Explore the future of content creation with us and see how AI is transforming various industries.
Connect with Us:
Follow Cut-The-SaaS on LinkedIn, Instagram, YouTube, Twitter, and Medium. Visit cut-the-saas.com for more insights and resources.
5 big bets to drive growth in 2024 without one additional marketing dollar AND how to adapt to the biggest shifting eCommerce trend- AI.
1) Romance Your Customers - Retention
2) ‘Alternative’ Lead Gen - Advocacy
3) The Beautiful Basics - Conversion Rate Optimization
4) Land that Bottom Line - Profitability
5) Roll the Dice - New Business Models
The What, Why & How of 3D and AR in Digital CommercePushON Ltd
Vladimir Mulhem has over 20 years of experience in commercialising cutting edge creative technology across construction, marketing and retail.
Previously the founder and Tech and Innovation Director of Creative Content Works working with the likes of Next, John Lewis and JD Sport, he now helps retailers, brands and agencies solve challenges of applying the emerging technologies 3D, AR, VR and Gen AI to real-world problems.
In this webinar, Vladimir will be covering the following topics:
Applications of 3D and AR in Digital Commerce,
Benefits of 3D and AR,
Tools to create, manage and publish 3D and AR in Digital Commerce.
Mastering Local SEO for Service Businesses in the AI Era is tailored specifically for local service providers like plumbers, dentists, and others seeking to dominate their local search landscape. This session delves into leveraging AI advancements to enhance your online visibility and search rankings through the Content Factory model, designed for creating high-impact, SEO-driven content. Discover the Dollar-a-Day advertising strategy, a cost-effective approach to boost your local SEO efforts and attract more customers with minimal investment. Gain practical insights on optimizing your online presence to meet the specific needs of local service seekers, ensuring your business not only appears but stands out in local searches. This concise, action-oriented workshop is your roadmap to navigating the complexities of digital marketing in the AI age, driving more leads, conversions, and ultimately, success for your local service business.
Key Takeaways:
Embrace AI for Local SEO: Learn to harness the power of AI technologies to optimize your website and content for local search. Understand the pivotal role AI plays in analyzing search trends and consumer behavior, enabling you to tailor your SEO strategies to meet the specific demands of your target local audience. Leverage the Content Factory Model: Discover the step-by-step process of creating SEO-optimized content at scale. This approach ensures a steady stream of high-quality content that engages local customers and boosts your search rankings. Get an action guide on implementing this model, complete with templates and scheduling strategies to maintain a consistent online presence. Maximize ROI with Dollar-a-Day Advertising: Dive into the cost-effective Dollar-a-Day advertising strategy that amplifies your visibility in local searches without breaking the bank. Learn how to strategically allocate your budget across platforms to target potential local customers effectively. The session includes an action guide on setting up, monitoring, and optimizing your ad campaigns to ensure maximum impact with minimal investment.
For too many years marketing and sales have operated in silos...while in some forward thinking companies, the two organizations work together to drive new opportunity development and revenue. This session will explore the lessons learned in that beautiful dance that can occur when marketing and sales work together...to drive new opportunity development, account expansion and customer satisfaction.
No, this is not a conversation about MQLs and SQLs. Instead we will focus on a framework that allows the two organizations to drive company success together.
Marketing as a Primary Revenue Driver - Lee Levitt
Renualt crm blackbook
1. 1
TABLE OF CONTENTS
CH.1EXECUTIVE SUMMARY…………………………………………………………………………….(3 )
CH.2INDUSTRY ANALYSIS……………………………………………………………………….….……( 5 )
2.1 Customer profile of the industry
2.2 Supplier profile of the industry
2.3 Competitors profiling of the industry
2.4 Industry financials
2.5 Challenges based by the industry
2.6 Government regulations
CH.3ABOUT THE COMPANY….…………………………………………………..……………..…( 18 )
3.1 Genesis of the company and its vision and mission
3.2Product and services
3.3Position in the industry
3.4Stake holder’s detail
3.5Locational and operational details
3.6Company Financials
3.7Challenges faced by the company
3.8SWOT Analysis of the company
CH.4ON THE JOB TRAINING…………………………………………………………………………(54 )
4.1 Key Results Areas
4.2 Target Assigned
4.3 Target Achieved
4.4 Technical/Soft skills acquired
2. 2
CH.5RESEARCHON THE CHALLENGES FACED BY THE
COMPANY………………………………………………………………………………….…………..( 60 )
5.1 Problem identification
5.2 Doing literature review on the problem being investigated
5.3 Data collection from secondary sources
5.4 Data collection from primary sources
CH.6RESULTS AND RECOMMENDATIONS…………………………………………...( 64 )
6.1 Results/Learnings
6.2 Limitation and Future scope
6.3 Conclusion and Recommendations
CH.7ANNEXURE ……………………………………………………………………………..…( 71 )
7.1 Exhibits
7.2 Forms & Questionnaires
7.3 Scripts &Advertisement
3. 3
Chapter 1
Executive summary
he project was to review the overall business performance of Renault in India with specific
insights in to the product offerings,approach to the market challenges, what‘s not working
well & a going forward approach on being commercially successful along with a satisfied
customer base.
With a growing youth population in India and the rich range of automobile offerings , India provides
the perfect platform for a successful business model.WithMaruti& Hyundai having their strong
presencewith a high credibility quotient, its imperative for Renault to deep dive into its own portfolio
and lay emphasis on product differentiation & also innovative customer offerings.
Industry Review & Findings:
This section provides insights into the landscape of the automobile industry & looks at the possible
avenues of market penetration, better customer connects & innovative product offerings.The market has
avenues of line extensions & probable overlaps of the market segmentation.Quality remains the key
distinguishing factor in ensuring broader customer base & availability of extensive after sales services
& product spare parts adds to the expansion potentials.
Delivery lead time especially for the lower value cars is key in expanding the customer base & having
an opportunity to lead the volume game.Professionalism in terms of sales offering & product
understanding cements the place in the minds of the customer.Finally trying out various shades of
product differentiation & integrated marketing campaigns seems to be the success factor in this
industry.
Objective & Finding of the Project:
The project tries to evaluate the working & performance potential of Renault in the backdrop of the
Indian automobile industry & analyses the key performance indicators that sets the market leader from
the rest.Right from the product offerings, customer base, price points, store layouts, Go to Market
propositions & future potentials , an attempt has been made to do a critically analyse& draw
meaningful business inferences.
T.
4. 4
Some of key findings revolve around the following parameters:
Waiting period
Strong competitors
Globalization& presence of well established brands:
Lack of many service centres :
Management and customer service
Lack of familiarity & reliability in the Indian market
OBEJCTIVE OF STUDY
The objective of study is to enable us to understand the actual working of the business processes
and in depth study of automobile industry and its perks.65
Understanding the importance of managing relations with existing customers and retaining
them, as well as attracting new customers to constantly expand consumer base and market
share.
Coming in terms with the actuality of businesses and practical working of internal departments
their coordination and functioning.
Understanding the difficulties that may be faced in day to day operations.
Along with that learning the importance of decision making and communication.
5. 5
Chapter 2
Industry analysis
he AUTOMOTIVE INDUSTRY IN INDIA is one of the largest in the world with an annual
production of 23.37 million vehicles in FY 2014-15, following a growth of 8.68 per cent over
the last year. The automobile industry accounts for 7.1 per cent of the country's gross domestic
product (GDP). The Two Wheelers segment, with 81 per cent market share, is the leader of the Indian
Automobile market, owing to a growing middle class and a young population. Moreover, the growing
interest of companies in exploring the rural markets further aided the growth of the sector. The overall
Passenger Vehicle (PV) segment has 13 per cent market share.
India is also a prominent auto exporter and has strong export growth expectations for the near future. In
FY 2014-15, automobile exports grew by 15 per cent over the last year. In addition, several initiatives
by the Government of India and the major automobile players in the Indian market are expected to
make India a leader in the Two Wheeler (2W) and Four Wheeler (4W) market in the world by 2020.
The automobiles sector is compartmentalized in four different sectors which are as follows:
Two-wheelers which comprise of mopeds, scooters, motorcycles and electric two-wheelers
Passenger Vehicles which include passenger cars, utility vehicles and multi-purpose vehicles
Commercial Vehicles that are light and medium-heavy vehicles
Three Wheelers that are passenger carriers and goods carriers.
The automobile industry is one of the key drivers that boost the economic growth of the country. Since
the de-licensing of the sector in 1991 and the subsequent opening up of 100 percent FDI through
automatic route, Indian automobile sector has come a long way. Today, almost every global auto major
has set up facilities in the country.
Austria based motorcycle manufacturer KTM, the established makers of Harley Davidson from the US
and Mahindra & Mahindra have set up manufacturing bases in India. Furthermore, according to internal
projections by Mercedes Benz Cars, India is set to become Mercedes Benz‘s fastest-growing market
worldwide ahead of China, the US and Europe.
As per the data published by Department of Industrial Policy and Promotion (DIPP), Ministry of
Commerce, Government of India, the cumulative FDI inflows into the Indian automobile industry
during April 2000 to October 2013 was noted to be US$ 9,079 million, which amounted to 4% of the
total FDI inflows in terms of US $. The production of compact superbikes is also expected to take place
T
6. 6
in India. The country has a mass production base of 16 million two-wheelers and the several global as
well as Indian bike makers are looking forward to use it as an advantage in order to roll out sports bikes
in the 250 cc capacity.
The world standing for the Indian automobile sector, as per the Confederation of the Indian industry is
as follows:
Largest three-wheeler market
Second largest two-wheeler market
Tenth largest passenger car market
Fourth largest tractor market
Fifth largest commercial vehicle market
Fifth largest bus and truck segment
However, the year 2013-2014 has seen a decline in the industry‘s otherwise smooth-running growth.
High inflation, soaring interest rates, low consumer sentiment and rising fuel prices along with
economic slowdown are the major reason for the downturn of the industry.
Except for the two-wheelers, all other segments in the industry have been weakening. There is a
negative impact on the automakers and dealers who offered high discounts in order to push sales. To
match the decline in demand, automakers have resorted to production cuts and lay-offs, due to which
capacity utilization for most automakers remains at a dismal level.
Despite the comprehensive market being under extreme burden, the luxury car market has observed a
robust double-digit hike during the year 2013-2014, as a result of rewarding new launches at
compelling lower price points. Further, with the measured increases in the price of diesel, the overall
market continues to shift towards petrol-fuelled cars. This has lead to the growth in sales of the 'Mini'
segment of the PV market by of 5.5%
FACTORS DETERMINING THE GROWTH OF THE INDUSTRY
Fuel economy and demand for greater fuel efficiency is a major factor that affects consumer purchase
decision that will bring leading companies across two-wheeler and four-wheeler segment to focus on
delivering performance-oriented products.
Sturdy legal and banking infrastructure
Increased affordability, heightened demand in the small car segment and the surging income of the
Indian population
India is the third largest investor base in the world
The Government technology modernization fund is concentrating on establishing India as an auto-
manufacturing hub.
Availability of inexpensive skilled workers
Industry is perusing to elevate sales by knocking on doors of women, youth, rural and luxury
segments
Market segmentation and product innovation
7. 7
EMPLOYMENT OPPORTUNITIES
There are a wide range of jobs available in the automobile industry in 2016. With the number of
vehicles available on the road today, the need and requirement for people who can fix these machines is
fast increasing. Careers like automobile technician, car or bike mechanics are a great option. Becoming
a diesel mechanic is also a significant alternative. Diesel mechanics are responsible for repairing and
servicing diesel engines. As they are also required to repair engines of trucks and buses, other than cars,
they are provided with hefty wages.
If communication with people instead of repairing cars is what interests you, then you have the
opportunity of becoming a salesperson or sales manager in an automobile company. Career
opportunities in automobile design, paint specialists, job on the assembly line and insurance of vehicles
is also available.
EMPLOYMENT TRENDS
The Automotive Mission Plan for the period of 2006-2016 aims to make India emerge as a global
automotive hub. The idea is to make India as the destination choice for design and manufacture of
automobiles and auto components, with outputs soaring to reach US$ 145 billion which is basically
accounting for more than 10% of the GDP. This would also provide further employment to over 25
million people by 2016 making the automobile the sunrise sector of the economy.
According to the Confederation of Indian Industry, the automobile sector currently employs over 80
lakh people. An extension in production in the automobile industry is forecasted, it is likely to rise to
Rs. 600000 crore by 2016.
FUTURE TRENDS IN THE AUTOMOBILE INDUSTRY
As the auto-shows starts in February 2016, the industry promised a blend of technology and
automotive. With the recession trend breaking its leashes form the past two years, 2016 is expected to
get back on track with the sales of automobiles in the country.
Almost Self-governing cars are predicted to be on the streets by 2020
More than half the cars on the streets are going to be powered by diesel by 2020
Industry watcher Gartner indicates that 30 percent of motorists want parking info. The facility is
likely to come up after glitches in the infrastructure catch up.
High Performance Hybrid cars are likely to gain greater popularity among consumers.
The Indian automobile industry has a prominent future in India. Apart from meeting the advancing
domestic demands, it is penetrating the international market too. Favoured with various benefits such as
globally competitive auto-ancillary industry; production of steel at lowest cost; inexpensive and high
skill manpower; entrenched testing and R & D centres etc., the industry provide immense investment
and employment opportunities
8. 8
MARKET ANALYSIS
he industry produced a total 14.25 million vehicles including PVs, commercial vehicles (CVs),
three wheelers (3W) and 2W in April–October 2015, as against 13.83 in April–October 2014,
registering a marginal growth of 3.07 per cent, year-to-year.
The sales of PVs grew by 8.51 per cent in April–October 2015 over the same period in the previous
year. The overall CVs segment registered a growth of 8.02 per cent in April–October 2015 as compared
to same period last year. Medium & Heavy Commercial Vehicles (M&HCVs) registered very strong
growth of 32.3 per cent while
sales of Light Commercial Vehicles (LCVs) declined by 5.24 per cent during April–October 2015,
year-to-year.
In April–October 2015, overall automobile exports grew by 5.78 per cent. PVs, CVs, 3Ws and 2Ws
registered growth of 6.34 per cent, 17.95 per cent, 18.59 per cent and 3.22 per cent, respectively, in
April–October 2015 over April–October 2014.
INVESTMENTS
n order to keep up with the growing demand, several auto makers have started investing heavily in
various segments of the industry during the last few months. The industry has attracted foreign
direct investment (FDI) worth US$13.48 billion during the period April 2000 to June 2015,
according to data released by Department of Industrial Policy and Promotion (DIPP).
Some of the major investments and developments in the automobile sector in India are as follows:
Global auto maker Ford plans to manufacture in India two families of engines by 2017, a 2.2 litre diesel
engine code-named Panther, and a 1.2 litre petrol engine code-named Dragon, which are expected to
power 270,000 Ford vehicles globally.
The world‘s largest air bag suppliers AutolivInc, Takata Corp, TRW Automotive Inc and Toyoda Gosei
Co are setting up plants and increasing capacity in India.
General Motors plans to invest US$1 billion in India by 2020, mainly to increase the capacity at the
Talegaon plant in Maharashtra from 130,000 units a year to 220,000 by 2025.
US-based car maker Chrysler has planned to invest Rs 3,500 crore (US$525 million) in Maharashtra, to
manufacture Jeep Grand Cherokee model.
T
I
9. 9
Mercedes Benz has decided to manufacture the GLA entry SUV in India. The company has doubled its
India assembly capacity to 20,000 units per annum.
Germany-based luxury car maker BayerischeMotorenWerke AG‘s (BMW) local unit has announced to
procure components from seven India-based auto parts makers.
Mahindra Two Wheelers Limited (MTWL) acquired 51 per cent shares in France-based Peugeot
Motorcycles (PMTC).
CUSTOMER PROFILE OF AUTOMOBILE
INDUSTRY
he automobiles sector is compartmentalized in four different sectors which are as follows:
Two-wheelers which comprise of mopeds, scooters, motorcycles and electric two-wheelers
Passenger Vehicles which include passenger cars, utility vehicles and multi-purpose vehicles
Commercial Vehicles that are light and medium-heavy vehicles Three Wheelers that are
passenger carriers and goods carriers. The automobile industry is one of the key drivers that
boost the economic growth of the country. Since the de-licensing of the sector in 1991 and the
subsequent opening up of 100 percent FDI through automatic route, Indian automobile sector has come
a long way. Today, almost every global auto major has set up facilities in the country.
The customer profile of this industry is influenced by the following key factors determining the growth
of the industry:
Fuel economy and demand for greater fuel efficiency is a major factor that affects consumer purchase
decision that will bring leading companies across two-wheeler and four-wheeler segment to focus on
delivering performance-oriented products.
Sturdy legal and banking infrastructure Increased affordability, heightened demand in the small car
segment and the surging income of the Indian population
India is the third largest investor base in the world The Government technology modernization fund is
concentrating on establishing India as an auto-manufacturing hub.
Availability of inexpensive skilled workers
Industry is perusing to elevate sales by knocking on doors of women, youth, rural and luxury
segments
Market segmentation and product innovation
T
10. 10
With an increasing youth population some of the following future Trends in the Automobile
Industry will influence the influx of a wide variety of customers into this industry fold:
This industry promised a blend of technology and automotive. With the recession trend breaking its
leashes form the past two years, 2016 is expected to get back on track with the sales of automobiles in
the country. Almost Self-governing cars are predicted to be on the streets by 2020More than half the
cars on the streets are going to be powered by diesel by 2020Industry watcher Gartner indicates that 30
percent of motorists want parking info. The facility is likely to come up after glitches in the
infrastructure catch up. High Performance Hybrid cars are likely to gain greater popularity among
consumers.
2.2 SUPPLIER PROFILE OF AUTOMOBILE
INDUSTRY
he automotive industry in India is one of the largest in the world with an annual production of
23.37 million vehicles in FY 2014-15, following a growth of 8.68 per cent over the last year.
The automobile industry accounts for 7.1 per cent of the country's gross domestic product
(GDP). The Two Wheelers segment, with 81 per cent market share, is the leader of the Indian
Automobile market, owing to a growing middle class and a young population. Moreover, the growing
interest of companies in exploring the rural markets further aided the growth of the sector. The overall
Passenger Vehicle (PV) segment has 13 per cent market share.
India is also a prominent auto exporter and has strong export growth expectations for the near future. In
FY 2014-15, automobile exports grew by 15 per cent over the last year. In addition, several initiatives
by the Government of India and the major automobile players in the Indian market are expected to
make India a leader in the Two Wheeler (2W) and Four Wheeler (4W) market in the world by 2020.
To augment the supply of the automobile industry,Govt. of India has initiated the following initiatives
to support the growth plan of this industry
The Government of India aims to make automobile manufacturing the main driver of "Make in
India" initiative, as it expects the passenger vehicles market to triple to 9.4 million units by
2026, as highlighted in the Auto Mission Plan (AMP) 2016-26.
In the Union budget of 2015-16, the Government has announced plans to provide credit of Rs
850,000 crore (US$127.5 billion) to farmers, which is expected to boost sales in the tractors
segment.
T
11. 11
The government plans to promote eco-friendly cars in the country—i.e. CNG-based vehicles,
hybrid vehicles, and electric vehicles—and also to make mandatory 5 per cent ethanol blending
in petrol.
The government has formulated a Scheme for Faster Adoption and Manufacturing of Electric
and Hybrid Vehicles in India, under the National Electric Mobility Mission 2020, to encourage
the progressive introduction of reliable, affordable, and efficient electric and hybrid vehicles
into the country.
The Automobile Mission Plan (AMP) for the period 2006–2016, designed by the government is
aimed at accelerating and sustaining growth in this sector. Also, the well-established Regulatory
Framework under the Ministry of Shipping, Road Transport and Highways, plays a part in
providing a boost to this sector
13. 13
The automobile industry is ever growing with its wide range of segmented car categories providing
features and suitability to each and every profile of customer in the world. The major threat to the
newbie Renault is its competitors. Automobile industry being an Oligopolistic competition, the industry
(in India) is dominated by 2-3 major players who are the leaders who capture the major part of the
market share. The biggest player in Indian market is the Maruti Suzuki who are and established brand,
they have a market share of almost 47% being the leads in the automobile sector with efficient trained
salesmen and highly attractive promotional tools, maruti Suzuki are very well known for their
widespread reach of service networks and easy availability of parts, spares, they are known for their
friendly Crm bases and thus have created brand penetration
Hyundai is the next leader in this industry with market share of 17.3% share with its widespread range
of products and variety in terms of features and innovation, Hyundai also is a great competitor which
strives to compete fiercely with maruti to reach the topmost position. Hyundai and maruti both aim for
strong dominant stand in the industry in order to leave behind their mark
Renault‘s other competitors are Mahindra,Honda, Volkswagen, Toyota, ford,Tata, Nissan etc
Renault is an amateur in the Indian market and thus has to keep a check on its competitors to survive
and sustain
14. 14
2.4 INDUSTRY FINANCIALS
he auto manufacturing industry is considered to be highly capital and labour intensive. The
major costs for producing and selling automobiles include:
Labour - While machines and robots are playing a greater role in manufacturing vehicles,
there are still substantial labour costs in designing and engineering automobiles.
Materials - Everything from steel, aluminium, dashboards, seats, tires, etc. are purchased from
suppliers.
Advertising - Each year automakers spend billions on print and broadcast advertising; furthermore, they
spent large amounts of money on market research to anticipate consumer trends and preferences.
The auto market is thought to be made primarily of automakers, but auto parts makes up another
lucrative sector of the market. The major areas of auto parts manufacturing are:
Original Equipment Manufacturers (OEMs) - The big auto manufacturers do produce some of their
own parts, but they can't produce every part and component that goes into a new vehicle. Companies in
this industry manufacture everything from door handles to seats.
Replacement Parts Production and Distribution - These are the parts that are replaced after the purchase
of a vehicle. Air filters, oil filters and replacement lights are examples of products from this area of the
sector.
Rubber Fabrication - This includes everything from tires, hoses, belts, etc.
In the auto industry, a large proportion of revenue comes from selling automobiles. The parts market,
however, is even more lucrative. For example, a new car might cost $18,000 to buy, but if you bought,
from the automaker, all the parts needed to construct that car, it would cost 300-400% more.
Over and above the labour and material costs we mentioned above, there are other developments in the
automobile industry that you must consider when analyzing an automobile company. Globalization, the
tendency of world investment and businesses to move from national and domestic markets to a
worldwide environment, is a huge factor affecting the auto market.
In evaluation of industry financials the following key points are relevant for determining the financial
viability of running a successful automobile business:
Threat of New Entrants :
Power of Suppliers: The automobile supply business is quite fragmented (there are many firms).
Many suppliers rely on one or two automakers to buy a majority of their products. If an
T
15. 15
automaker decided to switch suppliers, it could be devastating to the previous supplier's
business.
Power of Buyers : The capacity of the consumer in terms of financing options & purchasing
power is crucial in the growth
Availability of Substitutes :The higher the cost of operating a vehicle, the more likely people
will seek alternative transportation options
Competitive Rivalry: Highly competitive industries generally earn low returns because the cost of
competition is high. The auto industry is considered to be an oligopoly, which helps to minimize the
effects of price-based competition
2.5 CHALLENGES FACED BY INDIAN
AUTOMOBILE INDUSTRY
ver the last few years the face of the Indian automobile industry has undergone a sea change.
The growth of the industry has surpassed all previous records. However there are certain
factors that stand as challenges before the Indian automobile industry.
The development of the industry has been attributed to a couple of factors. One of these was the
liberalization of the economy in the early 1990s and the rise in disposable income and standard of
living. Liberalization of the economy meant a decrease in import tariffs, equity regulations,
liberalization in banking norms and relaxation of the foreign exchange. Since then there has been no
looking back and the automobile industry has continued to grow at a consistent rate of 25%. These
positive steps led to globally renowned auto brands to invest in the Indian market. Some of the leading
automobile manufacturers from Europe and the United States collaborated with Indian brands to create
customized vehicles for each section of the population. Companies like MarutiUdyog were formed as a
result of collaboration between Suzuki of Japan and the Indian government.
With each passing year, the number of automobile manufacturers willing to take the plunge into the
Indian market has risen considerably while most of the international brands have entered into joint
ventures; there are exceptions like Hyundai which is keen on setting up its own manufacturing units.
However, there are numerous challenges before Indian automobile industry. One of the major problems
faced by this sector is the poor condition of the roads. The road infrastructure is not properly
developed. The condition of the highways is not up to the mark. A large number of the roads are single
lane roads built almost 50 years ago. They hardly match the rapid pace at which the automobile
industry is developing. Moreover, they are mostly used by bullock carts and two wheelers. It is
believed that the condition of the roads would worsen with the introduction of bigger and increasing
number of vehicles. Repair work is expected to incur expenses up to$30 billion. The privatization of the
O
16. 16
road infrastructure is not enough to solve the problem which has attained large proportions. The Road
Development Program and its progress are expected to be a key factor in the growth of the auto
industry in India.
Though numerous foreign companies have entered the Indian automobile market, the tariffs on
imported components and products and the frequent alterations in the currency exchange rates have
made localization an absolute necessity for these companies. Daewoo-DCM and GM Astra have
already begun the process of localization and plan to expand it. However, it there is an obstacle in the
path of localization with respect to the limited number of component suppliers. The policies and
programs of the government in power also play a crucial role in the growth of this sector.
The major players in the Indian automobile industry include MarutiUdyog, Mahindra& Mahindra,
Hindustan Motors and Telco. They can be divided into four major sections namely Multinational
Assemblers, Indian Assemblers, Multinational Component Makers and Indian Component Makers.
While the Indian Assemblers boast of a proper distribution network, at the same time they fall short in
with respect to product development and a known brand. The multinational assemblers, on the other
hand, have a well developed production system and financial resources but are not well acquainted with
the intricacies of the Indian market.
Despite these challenges, the Indian automobile industry has managed to carve a niche for itself in the
global auto sector. It continues to grow in the face of some stiff competition from other Asian auto
markets
2.6GOVERNMENT INITIATIVES
he Government of India encourages foreign investment in the automobile sector and allows
100 per cent FDI under the automatic route.
Some of the major initiatives taken by the Government of India are:
The Government of India aims to make automobile manufacturing the main driver of "Make in
India" initiative, as it expects the passenger vehicles market to triple to 9.4 million units by 2026, as
highlighted in the Auto Mission Plan (AMP) 2016-26.
In the Union budget of 2015-16, the Government has announced plans to provide credit of Rs
850,000 crore (US$127.5 billion) to farmers, which is expected to boost sales in the tractors
segment.
The government plans to promote eco-friendly cars in the country—i.e. CNG-based vehicles,
hybrid vehicles, and electric vehicles—and also to make mandatory 5 per cent ethanol blending in
petrol.
T
17. 17
The government has formulated a Scheme for Faster Adoption and Manufacturing of Electric and
Hybrid Vehicles in India, under the National Electric Mobility Mission 2020, to encourage the
progressive introduction of reliable, affordable, and efficient electric and hybrid vehicles into the
country.
The Automobile Mission Plan (AMP) for the period 2006–2016, designed by the government is
aimed at accelerating and sustaining growth in this sector. Also, the well-established Regulatory
Framework under the Ministry of Shipping, Road Transport and Highways, plays a part in
providing a boost to this sector
The Automotive Industry Standards are the automotive technical specifications of India.They are
based on the UNECE norms.
2.6.1 REGULATORY FRAMEWORK
he automotive regulations in India are governed by the Ministry of Road Transport and
Highways (MoRT&H) which is the nodal ministry for regulation of the automotive sector in
India
In India the Rules and Regulations related to driving license, registration of motor vehicles, control of
traffic, construction & maintenance of motor vehicles etc. are governed by the Motor Vehicles Act,
1988 (MVA) and the Central Motor Vehicles rules 1989 (CMVR).The CMVR - Technical Standing
Committee (CMVR-TSC) advises MoRT&H on various technical aspects related to CMVR. This
Committee has representatives from various organisations . The major functions of the committee are
as follows:
Preparation of new standards for automotive items related to safety.
To review and recommend amendments to the existing standards
Recommend adoption of such standards to CMVR Technical Standing Committee
Recommend commissioning of testing facilities at appropriate stages
Recommend the necessary funding of such facilities to the CMVR Technical Standing
Committee
Advise CMVR Technical Standing Committee on any other issues referred to it
The Automotive Industry Standards are published by the Automotive Research Association of India on
behalf of the Automotive Industry Standards Committee. Under Rule 126 of the CMVR, various test
agencies are established to test and certify the vehicles based on the safety standards and emission
norms prescribed by the Ministry. Every manufacturer of motor vehicle has to submit a prototype of the
vehicle to be manufactured to any of the test agencies mentioned hereafter. After testing the vehicle for
compliance of all standards and norms, the test agency shall grant a certificate to the manufacturer.
T
19. 19
ABOUT THE COMPANY
enault India Pvt Ltd is a wholly owned subsidiary of Renault S.A., France and currently
offers seven models in the Indian market: the premium sedans Scala and the Fluence, the
luxury SUV Koleos, the SUV Duster, the compact MPV Lodgy, the premium compact car,
Pulse and the latest budget car, KWID. Renault India also exports the Duster to a growing
number of right-hand drive markets.
Renault cars are manufactured at the manufacturing facility located in Oragadam, Chennai, with a
capacity of 480,000 units pa with 3 shifts per day.
In September 2008, Renault India opened its fifth global vehicle design studio in Mumbai.
In March 2010, Renault India and Nissan India opened a production facility in Chennai. Established
with an initial investment of Rs 45 billion, the plant has a combined annual capacity to produce
480,000 vehicles.
As of September 2015, Renault India has 175 dealerships in 16 cities across 9 states and 2 Union
Territories, targeting 210 outlets at the end of 2015. It rapidly expanded to 190 dealerships in December
2015, thanks to the Renault Kwid success. Renault has also developed an innovative approach with
some virtual showrooms and some specific phone App.
3.2 MARKET ANALYSIS OF RENAULT
rench automobile major Renault is keen to maintain more than 4 per cent market share in the
passenger car segment in India during the year.
"In the first quarter of calendar 2016, the market share was 4.1 per cent, with 4.9 per cent in
March alone", Renault India VP (sales and marketing),Tithe company was keen to maintain that
level of market share during the entire 2016.
Renault was the first European brand in India and relatively new brand
During 2015 Renault had a market share of 2% and thereby had a growth rate of over 20%
PRODUCT AND SERVICES OF RENAULT
enault sales commenced in May 2011 with the Fluence sedan. This was followed in
September by the Koleos SUV.In 2012 Renault launched three further models;
the Pulse hatchback in January, the Duster in July 2012, and the .Renault launched Lodgy, its
R
F
R
20. 20
compact MPV in Delhi 2015. Renault also unveiled its first sub Rs 4 lakh segment car KwidSUV. The
press measured that the Kwid is the best in class on interior space, boot, mileage, and offers some
features usually associate with cars in the premium segment of the Indian market, like USB, Bluetooth,
music, AC, power steering, air bags, and GPS navigation. Let‘s have a detailed look at the products.
25. 25
3.2.1SERVICES OF RENAULT
1. EXCHANGE AND UPGRADE:
2. RENAULT SELECTION:
enault Selection is the Pre-owned car brand of Renault, which was launched in 2015 and
is now expanding in major markets. Under this program, only vehicles fitting the
Renault quality standards are certified and sold with warranty along with Road Side
Assistance (RSA). The warranty + RSA is offered on Renault as well as on other brands
like Maruti, Hyundai, TATA, Chevy, Honda, Toyota etc. for up to 1 Year or 20,000 KM.
199 Quality Verifications:
Selection through 199 checks – Only 1 out of 10 cars makes it to the standards.
This ensures quality and satisfaction to the buyers
Exchange and upgradation, appraisal of cars are done. The company follows
the policy of accepting any vehicle, any model, for exchange with a brand new car.
The only condition is all documents need to be presented
R
26. 26
3. SERVICE AND MAINTANENCE:
Treat each appointment with you as an opportunity to prove we are the right people when it comes
to Renault genuine parts and service.
Listen to your needs, as you are the reason that we exist as an organization.
Provide an estimate for all work requested and to seek your authorization to proceed in case of any
additional work required prior to commencement.
Take care of your vehicle by fitting protection devices such as seat covers and floor mats.Use
trained technicians with special tools to work on your vehicle and to use genuine Renault parts.
Conduct a thorough quality control check on your vehicle before handover and issue a quality
control certificate.
Conduct a full and detailed explanation of each service invoice.
RENAULT DEALERSHIP
egular servicing ensures the long-term reliability and safety of the car. To provide
ongoing driving enjoyment and total satisfaction, provision of maximum satisfaction
through experience, including servicing. The use of improper parts, lubricants and
chemicals may result in the lower performance of the vehicle. Proper maintenance and
care of the vehicle is indispensable for safe driving and lower overall running costs.
Only Renault dealerships have Renault trained technicians (COTECHS) who are continually
trained by Renault service division trainers to perform all factory recommended servicing and
repair operations on Renault vehicles
4. WARRANTY
xtended warranty for new vehicles is designed by Renault to provide with ongoing
protection from mechanical and electrical failure, under the same terms and conditions of
Renault new vehicle warranty, after the Renault new vehicle warranty term has ended.
Extended warranty term:
Renault also offers optional extended warranty. Please contact your nearest dealer for details.
Renault extended warranty for new vehicles is not available once your Renault warranty has
expired.
Transfer of warranty:
R
E
27. 27
If you sell your Renault vehicle sooner than expected, you can transfer the benefits of extended
warranty for new vehicles completely free of charge to the new owner (as long as it's a private
sale). This can add significantly to the resale value of your Renault
5. RENAULT INSURANCE:
1. Streamlined process for customer convenience
2. Standard add-on cover
3. Near-cashless accident repairs at all Renault dealer workshops
4. Faster claim settlement
5. Seamless service across nation
6. Quality repair with genuine spare parts and trained mechanics
7. Online printout of motor vehicle insurance certificate cum policy generated through POS
6. RENAULT SECURE:
1. You can be rest assured because the Renault Secure covers mechanical & electrical breakdown
of a host of parts like the engine, gearbox, steering, electrical, brakes, air conditioning etc*.
2. Extended warranty is inclusive of 24x7 road side assistance including accidental towing at no
extra cost*.
8. CUSTOMER SERVICE:
28. 28
Customer Demands
Today customers have become more aware because of increasing number of world brands and global
advertising. Customers prefer global companies due to increased travel and reliability. Also foreign
customers want local supplies to reduce logistical problems and improve the flow of production.
8. RENAULT CORPORATE SALES:
Corporate
Large & mid-sized corporate and their employees
Leasing companies
Renault vendors & suppliers
Government employees
PSUs
IKA (International Key Account)
Doctors
Tours & travels
Rent-a-car services
Employee transportation
Commercial extended warranty up to 4 years / 1.5 lakh km
Customized maintenance contract Attractive finance offers
Government & Institutional Sales
DGS&D sales
All departmental purchases for Central & State Government departments and PSUs are
eligible for DGS&D rates through a rate contract by a centralised agency of Government of
India - Directorate General of Supplies & Disposal (DGS&D). Invoicing is directly from the
manufacturing plant. Select variants of Renault cars are available on DGS&D rate contract.
CPC (Central Police Canteen) sales
Central Armed Police Forces / Central Police Organization personnel from BSF, CRPF,
CISF, ITBP, and SSB etc. are eligible for a special ex-showroom price through CPC sales.
Certain state governments do offer partial/full Sales Tax/VAT exemption for sales through
CPC. Select variants of Renault cars are approved in CPC.
29. 29
CSD (Canteen Stores Department) sales
Defence personnel are eligible for a special ex-showroom price through CSD sales. Certain
state governments do offer partial/full Sales Tax/VAT exemption for sales through CSD.
Select variants of Renault cars are approved in CSD.
Diplomatic sales
Government of India on the principle of reciprocity gives Embassies, Foreign Diplomats,
Ambassadors, International Organizations and its members Excise Duty waiver & Sales Tax
waiver on car purchase. Invoicing can be done both through dealer stock and directly from
the manufacturing unit. All models of Renault India are available at special prices with these
benefits from Government of India.
9. RENAULT COMPLETE CARE
31. 31
3.2.2 DETAILS ABOUT THE STORE
LAYOUT:
Renault uses ‗Free Flow‘ layout in its showroom.
Fixtures and merchandise grouped into free-flowing patterns on the sales floor – no defined
traffic pattern
Works best in medium to large sized stores in which customers wish to browse through the
merchandise present in the store
Works best when merchandise is of the same type, in a car showroom where in the customer
can freely move on the shop floor and have a feel for all the merchandise being displayed
In this showroom, the open window displays are an attraction to the customers who can have a
look of the newly launched products and offers being available at the store along with its
products, which prove to be an attraction factor
In order for a business to be successful and earn revenue, it must know its customers.
Two things that go hand-in-hand in helping a store do that are implementing the correct store
layout and understanding customer flow.
Store layout is the design of a store’s floor space and the placement of items within that
store.
Store layout helps influence a customer‘s behavior, which means when done right, it‘s a key
strategy to a store‘s prosperity.
Store owners choose where the best spots are to place their merchandise, and this helps them
design their customer flow, as well as the ambiance (ambiance also plays a huge role in
restaurants as well!) within their store.
Customer flow is the number and pattern of customers coming into or passing through a
store.
There are a few ways a store can monitor its customer flow
34. 34
3.2.3 DESIGN
his showroom is located on highly visible site with good access to main transport routes and
an eye-catching frontage.
Display of the car range is paramount and the layout and orientation of sites and display areas
will have a major impact on sales. .
The building services standard is also high. Comfort cooling in customer areas is required to control
solar gains in highly glazed areas. Showroom lighting – which reinforces brand identity, displays cars
in the best light and creates the right mood – is a useful sales tool.
Use of roof lights/skylights to provide basic levels of illumination
standardised fixtures, fittings and equipment specified to meet corporate identity standards
Showrooms have comprehensive access control, alarms and sophisticated CCTV. CCTV is
located internally and externally.
Availability of servicing centres at the end of the store keeps the on floor sales area separated
from the service department
The back office is enclosed area which includes the sales, accounts and admin departments.
3.2.4 STORE IMAGE
long with this the store also has banners and posters stuck regarding other services and
products that it has as part of its visual merchandising and some stores even have hanging
pamphlets/ honing tags
Full Service Merchandise Presentation pattern is used in the store wherein the most running
model of the bike is displayed and all the other models are kept outside the store and can be
viewed by asking the salesperson
and the model can be booked directly after seeing it
And it displays the Most Recent Launch in its Store as to excite the customer and this is placed
just after the entrance of the store along with some information and also the best feature about
the product
The Store operates through a Centralized Booking and Delivery system of procurement wherein
the order is placed only when the customer requires it.
T
A
35. 35
3.2.5 HOW RENAULT IDENTIFIED CUSTOMER
REQUIREMENT
o other car in recent times has created the sensation the Renault Duster has done in the
Indian automotive industry. This predominantly European car has won over the Indian
consumer. It has turbo-charged the compact sport-utility vehicle segment and revived the
fortunes of Renault India.
When French automotive giant Renault first entered India through a joint venture with Mahindra &
Mahindra, it placed high hopes on its maiden product offering Logan - a mid-sized sedan launched in
2007. But the car with its dated looks and high pricing failed to strike a chord with Indian consumers.
Such was the scale of the failure that it ended up killing the joint venture in 2010.
Renault's brand name took a massive hit in India. Ironically, the Logan's failure laid the foundation for
the success of Renault's compact sport-utility vehicle (SUV) Duster.
After its break-up with Mahindra & Mahindra, Renault chose to go alone. It set up anRs 4,500 crore
factory at Oragadam near Chennai along with its global partner Nissan Motor Company. The facility
caters to the needs of Nissan and Renault. But the Logan debacle continued to haunt the company. The
first few products it rolled out from the new plant were positioned as "image drivers".
It launched premium sedan Fluence in May 2011 and premium SUV Koleos that September. Both were
assembled at the Oragadam plant from imported kits. Its next offering was the Pulse, a compact car
launched in January 2012. The Pulse was a cross-badged version of Nissan's Micra, and was also
positioned as a premium offering. Renault's focus on resurrecting its image in India and consequent
premium offerings meant poor volumes in a country that prefers value for money.
Renault desperately needed a "volume driver" to shore up its operations. It identified a gap in the SUV
segment. "There were SUVs costing Rs 20 lakh and above manufactured by global players and those
priced from Rs 6 lakh to Rs 10 lakh produced by Indian companies. The company launched the Duster
priced between Rs 8 lakh and Rs 12 lakh in July 2012
The Duster took the Indian market by storm. It fuelled the segment of compact SUVs and grabbed a 23
per cent market share within a year. The Duster's success was such that Renault had to triple production
within months of its launch from seven per hour to 20 per hour. Today, one in three cars produced at
the Oragadam plant is a Duster
The answer lies in what Renault India did in the 24 months following its decision to bring the Duster to
India. The Duster was Renault's first 'real' offering in India after the Logan. "The Logan's failure
reminded us of the importance of understanding the customer, getting the product right and positioning
the Duster correctly at the time of the launch
N
36. 36
The company went back to the drawing board to understand the Indian customer. It identified a focus
group of about 200 people whose profile matched the potential buyer of the Duster. It then short-listed
30 families from this focus group across five Indian cities for an ethnographic study spread over two
months. During this period members of the product development team lived with their target customers
to observe them, understand their lives and needs.
3.2.6 PRICING STRATEGY OF RENAULT
ricing is a major element of marketing any product, and it is vitally important to set the right
price. A price that is too high or too low for the target market can seriously affect sales.
Elements such as target market, profit margin needed growth strategy for the company and
market share all play a role in what pricing strategy is used. Premium pricing is used by Renault
to capitalize the following areas:
P
37. 37
PREMIUM PRICING
A premium pricing strategy is adopted where the price of a product is higher than similar products. This
strategy is sometimes also called skim pricing because it is an attempt to ―skim the cream‖ off the top
of the market. It is used to maximize profit in areas where customers are happy to pay more for the
product owing to its unique features, sturdiness, and ordeal to cater to the typical Indian customer
PRICE-QUALITY SIGNALING
Premium pricing can also be used to improve brand identity in a particular market. This is called price-
quality signalling, because the high price signals to consumers that the product is high in quality.
Renault uses this strategy to give their product an aspirational image.
COMPETITION
Premium pricing is often a short-term strategy for Renault as they face direct competition. They need to
hold longer their competitive advantage, so that the longer they can charge a premium price.
BRAND AWARENESS
One of the reasons why Renault uses such a pricing strategy because it‘s a very well recognized
European brand and it wants to categorise its products in the luxury segment
UNIQUE PRODUCT
Unique products usually have the best chance of commanding premium prices. Because Renault cars
are designed in such a way with their unique looks and features that they stand out in the market thus
this type of pricing is really beneficial to them
38. 38
SWOT ANALYSIS OF RENAULT WITH USP,
COMPETITION, STP OF RENUALT
RENAULT SA
Parent Company Renault SA and French Government
Category Sedan, Hatchback, SUV
Sector Automobiles
Tagline/ Slogan Drive the change
USP Strong Hold on European markets
STP
Segment SUV, Hatchback, Sedan Segment of Car users
Target Group Businessmen, Young executives, Families
Positioning Positioned as a car manufacturing company which
offers wide range of cars to select form starting from
super-mini car to MPVs
PRODUCT PORTFOLIO
BRANDS
1. Renault Koleos 2. Renault Scala
3. Renault Fluence 4. Renault Pulse
5. Renault Lodgy 6. Renault Kwid
7. Renault Duster
39. 39
COMPETITION
COMPETITORS 1. TATA MOTORS
2. MARUTI
3. TOYOTA
4. NISSAN MOTORS
5. HONDA
6. FORD
7. CHEVROLET
8. HYUNDAI MOTORS
SWOT ANALYSIS
STRENGTHS 1. Wide customer base and loyalty in European markets
2. One of the Largest automobile groups with Nissan Motors collaboration
3. International market presence with stronghold in the European market
4. Offers wide variety to choose from including sedan, SUV and hatchbacks
5. Available in over 110 countries with a workforce of over 125,000
6. Actively involved in global motorsport events as teams and sponsors
7. Strong brand associations with Nissan Motors , Mahindra etc helped in
global reach
WEAKNESSES 1. Despite European popularity, lacks penetration in Asian and growing
markets
2. Cases of recall of cars slightly affected brand image
OPPORTUNITIES 1. Invest in hybrid and future cars
2. Develop and sustain strong partnership with national car manufacturers
3. Extend the distribution and servicing network to increase market
penetration
THREATS 1. Competitive car manufacturers
2. Innovative features introduced in competitive care which leads to product
differentiation
3. Competition with national car manufacturers who enjoy increased market
penetration as well as brand awareness
40. 40
PESTEL ANALYSIS OF RENAULT
Political Factors: Political decisions have a strong effect on automotive companies and especially a
company as Renault. French public authorities have granted cash for clunkers and Bonus / Malus on
low emission cars which have particularly foster Renault. In addition, some loans have been granted by
the French government to French brands (3 billion for Renault).
Economic factors: Renault‘s environment is competitive and oligopolistic. The business climate and
the economic situation are unfavourable. We can watch a deterioration of householders‘ purchasing
power and the lower growth market. The French automotive market suffers from overcapacity. In terms
of economy, the development of emerging countries is an opportunity. Nevertheless, this development
corresponds also with the appearance of new competitors.
Sociocultural factors: Customers seem to have modified their attitude against the automobile.
Increasingly European people are ready to buy a low-cost car. The automobile seems to be popularized
but expectations have also evaluated. Renowned cars have now less and less looked for and standing,
style and comfort are not wanted. Expectations are especially the security and reliability. Customers are
looking for reduce their budget in the automotive field. The search for products more thrifty in terms of
energy is also becoming a priority. (Journal, no date)
Technological factors: Technological environment is constantly changing. R&D takes an important
place in this field. Main evolutions and progresses concern the engine of the future. Renault made the
choice of electric cars. These evolutions concern as well as the mode of production than products
themselves.
Environmental factors: The environmental deterioration, the crude oil scarcity, the emission of
greenhouse gases is problems that Renault and other automotive brands have to confront the situation.
Legal factors: Automobile companies face up to legal constraints relating to safety standards,
pollution... Employment law is also a constraint. However, it may be different according to the country
of implantation.
41. 41
CHALLENGES FACED BY RENAULT
TECHNOLOGICAL DEVELOPMENTS
owadays technology serves as a nucleus for organizations strategic moves. The fast
technological innovations have forced the organizations to globalization. Organizations aim
to improve productivity and market competitiveness by updating themselves according
to the technological advancements, which are taking place at very fast rate. The emergence of improved
vehicles and equipments has made the shipment and movement of goods very easy. Globalization
offers them a convenient and cost effective way to achieve their objectives. Latest technology has
allowed easy and speedy information sharing, greater capital mobility with very low costs.
GLOBALIZATION OF COMPETITORS
lobalization of competitors is also one of the main reasons for globalization. An organization
has to keep an eye on the movements of its competitors to successfully flourish. Whenever
the direct competitors globalize by adopting some way of expansion overseas, the companies
quickly have to react as they do not want to take risk of letting the competitors to stabilize in new
promising venture. This could affect their future investments and various foreign operations in the
pipeline.
N
G
42. 42
Similarly different companies from other parts of the world can more conveniently introduce their
products or services across borders. Now the market competitors are not only the local ones but from
throughout the world. This coerces every organization to improve quality, offer innovative products
and services, and cut down the costs through globalization.
SOCIAL AND POLITICAL FACTORS
he country specific external factors also contribute towards the phenomena of globalization.
For instance in developing countries the poor economy, bankruptcy, World Bank, World
Trade Organization, IMF (International Monetary Fund), local bodies and other financial
institutes suggest globalization as a way to boost economy. The demands and priorities of customers
are unpredictable. They are also influenced by various kinds of social and political pressures. So
business organizations have to be flexible and knowledge to address these issues.
TRADE REGULATIONS
ften there are different types of trade barriers, tariff, fiscal policies, and export quotas. This
reduces the organization's profits, increase costs, and lowers its tendency to establish itself in
the foreign market. Also some countries with tremendous growth opportunities resist foreign
products and impose inconvenient and expensive restrictions. The governments support local
manufactures by preferring company made products. For instance Indian government has traditionally
been supportive of buy local policy. To avoid this, the organizations tend to shift their manufacturing
operations across different suitable countries instead of exporting their goods to those countries and
facing confrontation.
GLOBALIZATION FRIENDLY ENVIRONMENT
ith the passage of time there has been an increased awareness about the positive outcomes
of globalization among different industries and countries. This has lowered the traditional
hindrance and uncertainty against the phenomena of globalization. Now the governments'
stereotypical hold of local producers and consumers is declining and they tend to support market
liberalization and privatization. Growth of various global networks has made countries interdependent
in particular industries. Most companies are becoming internationally oriented rather than traditional
approach of being nationally cantered.
T
O
W
43. 43
GROWTH OPPORTUNITIES
ometimes the markets in the local country can mature and there exist rare chances of further
expansion. Globalization offers promising new ventures for such companies who want to
expand and invest in new ventures to gain profitability. Similarly Renault opted for
globalization as it wanted to expand other than the European markets and solidify its market position.
The brand awareness of Renault in Japan was very low. The alliance between Nissan and Renault set a
trust worthy ground for Renault in Japan.
INCREASED OPERATIONAL EFFICIENCY
lobalization allows the organizations to increase their efficiency in different ways. This is
achieved by fully utilizing the available organizational resources and ability to get them at
the lowest possible costs. So, these companies, in addition to investing their excess profits,
also try to maximize efficiency by employing their underutilized resources in human and capital assets
such as management, machinery, and technology.
RESEARCH AND DEVELOPMENT
he research and development costs are increasing day by day. Organizations have to leverage
their monetary resources in quest of coming up with new innovative quality products. Global
over-capacity and rising costs has made it increasingly important for firms to seek size through
strategic partnerships or mergers to achieve profitable growth. Globalization lowers the expenses of
research and development by developing joint teams and centres.
ECONOMIES OF SCALE
lobalization facilitates economies of scale for organizations. The costs of product
development have increased as compared to expected returns and market life. Globalization
allows them to lower these costs by achieving a higher level of output spread over large fixed
costs and maximizing the use of their manufacturing facilities.
Developing countries are emerging as newly industrialized countries with productive capability and
low labour costs. These countries offer certain benefits e.g. as infrastructure, subsidies, low tariffs, and
cheap competent manpower to encourage foreign direct investment.
GLOBALIZATION AND SOURCING
ourcing describes the full fledge procedure of spotting all those sources that are mandatory for
product development. They range from infrastructure, raw materials to the personnel
management. Initially Renault and other auto manufacturers resisted globalization thinking that
S
G
T
G
S
44. 44
getting the supplies from the countries like China and India might undermine their quality and
efficiency, but this changed after a few years.
SAFETY AND PRIVACY OF KEY ISSUES
ourcing from different parts of the world has raised the issue of security of corporate secrets.
Different countries have different setup and legal constraints so physical security and protection
of intellectual property and trade secrets has become tough for Renault. Renault has responded
by firing the executives who were involved in leaking secrets about the upcoming electrical cars and by
limiting it‘s sourcing to locations that can guarantee flawless security.
CHALLENGES:
THREATENING INDIVIDUALITIES
lobalized marketing strategies usually consider the whole world as one territory and often
undermine the differences in consumer needs, perceptions, and usage patterns for products in
different parts of the world. For instance Nissan's cars were initially not successful in the
United States because they were designed according to Japanese weather. The customers in many parts
of the United States had severe problems in starting their cars during the cold winter months.
MARKETING MIX ELEMENTS
ifferent consumers respond differently to various marketing mix elements. Globalization has
made it difficult for marketers of Renault to choose among various elements of the
marketing mix the one to highlight on.
CULTURAL ISSUES
ulture represents the shared values, norms, life styles and socially accepted behaviours in a
particular place. Globalization has made fast amount of resources available to the masses
which have made strengthening of new multicultural relationships difficult for Renault. It has
responded by adopting global marketing strategies with some local tailoring. Renault also prefers to
recruit the talent from different cultural backgrounds so as to maintain adaptability and prosperity. At
the time of alliance between Renault and Nissan 300 employees were chosen from each company and
were trained about French and Japanese cultures to overcome this complex problem.
S
G
D
C
45. 45
ADVANCED INFORMATION TECHNOLOGY
he advanced technology in microprocessors, Internet, wireless communications, and
transportation has actually accelerated the spreading of globalization. Information technology
has made it possible for organizations to easily take part in global economic activities. A
Internet has emerged as a global collaboration tool for extensive information sharing and trade
discussions with out the traditional limitations of time and space. The traditional boundaries of
distance, time and location no longer exist because of technological advancements.
IMPROVED COMMUNICATION
he key contributor of technology is the advancement in the communication technologies that
have improved globalization. Modern communication alternatives have changed the way
many companies do business. Latest information technology tools e.g. internet, video and web
conferencing has not only lowered but almost removed geographical barriers between countries. Thus
latest technology has fostered more accurate understanding of local attitudes in different countries. A
The good thing is that the speed, processing capacity and quality of technology has improved and the
cost has become low with the passage of time. This has increased the response time for global
organizations. If the lower cost of communication does not exist, organizations around the world would
not have so many chances to connect with others and business would not be willing to put money to
widen their markets.
ELECTRONIC BANKING
igital technologies have opened the way towards global networks. Another driving
contributor towards globalization is the system of electronic banking. Electronic banking is
at the heart of the global networks system. Now financial funds and assets can easily be
transferred across the globe. Also a global system is there to keep a check on the transfer. The Society
for Worldwide Interbank Financial Telecommunication (SWIFT) monitors the reliable global electronic
financial system.
E-MARKETING
-Marketing is another gift of technological advancements which has positively contributed
towards globalization of marketing and production. It encompasses information sharing;
growing public relations, thus enhancing customer services and sales. It has successfully
placed the global production networks on the internet. Now customers can view and order the product
within seconds with no location and time boundaries. This has reduced the lead time and production
and purchase cycles as customers' reactions can now be quickly sorted.
T
T
D
E
46. 46
CUSTOMER PRESSURE
he customers actually force the organizations to globalize by demanding products that are
technologically latest and sound. The technological innovations will infact continue to serve as
future drivers for globalization. Same is true for automobile industry where competition is
always extremely intense. The customers want new innovative products that could meet latest
technological advancements.
ERP CONTRIBUTIONS
arlier a major problem for organizations to globalize was the complexity to handle inventory
transactions and complicated information dispersed in different international territories.
Technology has resolved this issue by introducing interactive ERP Electronic Resource
Planning packages. Global organizations can now easily handle supply chain management, payrolls,
consolidate financial reports, inventory records and can also come up with local government reporting
requirements, labour laws, and trade tariffs in different countries.
IMPROVED PRODUCTION PROCESSES
ertain production technologies have positively contributed in the creation of a global business
set up. This has improved the efficiency, production capacity and manufacturing quality
which are must for globalization. Robotic technologies and factory lines have enhanced the
speed at which materials and products are manufactured. Now, production and marketing processes are
revolutionized by various forms of technology. This way latest technology is significantly contributing
in the acceleration of productivity growth.
IMPROVED TRANSPORTATION FACILITIES
he increasing trend of globalization demand flawless transportation system which could
efficiently ensure the shipment of raw materials and finished products. Latest transportation
technologies again show up to rescue global organizations here by offering safe, efficient and
cost effective options. The technology has resulted in creation of improved transportation alternatives
in the form of cargo ships, railways and jet planes. As a result organizations are able to easily transfer
raw materials and other supplies to different parts of the world.
TRACKING SYSTEMS
nother blessing of technology in stimulating globalization is the creation of global
positioning systems and technology-based distribution channels. Using this, the goods
location can be exactly traced. This has enhanced the linkages with customers and suppliers.
T
E
C
T
A
47. 47
SHAREHOLDERS/ STAKEHOLDERS OF RENAULT
ANUFACTURES AND DISTRIBUTES AUTOMOBILES AND
OTHER MOTOR VEHICLES
Manufactures and distributes automobiles and other motor vehicles
Renault SA is a French multinational vehicle manufacturer, which engages in the design and
manufacture of automobiles and other motor vehicles.
The company also offers tractors, farm machinery, and construction equipment.
It provides passenger cars and light commercial vehicles; electric vehicles; sports vehicles; and power
train components.
The company also offers financing and insurance services; maintenance and repair services; car hire
services; vehicle assistance services; consulting services; and vehicle customization services.
It sells its vehicles under the brand names of Renault, Dacia, and Renault Samsung Motors.
The company operates its business through the following segments: Automotive and Sales Financing.
M
48. 48
The Automotive segment comprises the production, sales, and distribution for passenger and light
commercial vehicles.
The Sales Financing segment involves Renault Credit International Banque and its subsidiaries for the
distribution network and final customers.
Renault was founded by Louis Renault in 1898 and is headquartered in Boulogne-Billancourt, France.
Number of employees: 120 136 persons.
SALES PER BUSINESSES
2014 2015 Delta
EUR (in Millions) % EUR (in Millions) %
Automobile 38,874 94.7% 43,108 95.1% +10.89%
Sales Financing 2,181 5.3% 2,219 4.9% +1.74%
SALES PER REGIONS
2014 2015 Delta
EUR (in Millions) % EUR (in Millions) %
Europe 15,875 38.7% 18,822 41.5% +18.56%
France 9,836 24% 10,154 22.4% +3.23%
Americas 4,827 11.8% 4,173 9.2% -13.55%
Eurasia 4,441 10.8% 4,045 8.9% -8.92%
Africa-Middle East-India 3,391 8.3% 3,782 8.3% +11.53%
Asia-Pacific 2,685 6.5% 4,351 9.6% +62.05%
49. 49
MANAGERS
Name Age Since Title
Carlos Ghosn 62 1996 Chairman, President & Chief Executive Officer
Clotilde Delbos 59 2012 Chief Financial Officer
Gaspar GasconAbellan 51 1990 Executive Vice President-Engineering
HirotoSaikawa 63 2006 Director
Franck Riboud 61 2000 Independent Director
Philippe Lagayette 73 2007 Lead Independent Director
Dominique de la Garanderie 73 2003 Independent Director
Marc De Lacharrière 76 2002 Independent Director
Jean-Pierre Garnier 68 2008 Independent Director
Thierry Desmarest 71 2008 Independent Director
SHAREHOLDERS
Name Equities %
Government of France 58,387,915 19.7%
Nissan Motor Co., Ltd. 44,358,343 15.0%
Norges Bank Investment Management 11,265,761 3.81%
Daimler AG 9,167,391 3.10%
Renault SA Employee Stock Ownership Plan 6,157,300 2.08%
Capital Research & Management Co. (Global
Investors)
4,850,501 1.64%
Alken Asset Management Ltd. 3,748,718 1.27%
50. 50
Renault SA 3,573,737 1.21%
The Vanguard Group, Inc. 3,530,151 1.19%
Henderson Global Investors Ltd. 2,959,072 1.00%
HOLDINGS
Name Equities % Valuation
Nissan Motor Co Ltd (7201) 1,962,037,000 43.7% 18,073,303,826 USD
Daimler AG (DAI) 16,448,378 1.54% 1,143,347,973 USD
Renault (RNO) 3,573,737 1.21% 344,973,154 USD
Northern Iron Corp. 19,048,000 19.9% 190,480 USD
Northern Iron Limited 19,048,000 3.93% 135,431 USD
53. 53
LOCATIONAL AND OPERATIONAL ANALYSIS:
LOCATIONAL
LOCATION AND OPERATIONS:
n September 2008, Renault India opened its fifth global vehicle design studio in Mumbai.
In March 2010, Renault India and Nissan India opened a production facility in
Chennai. Established with an initial investment of Rs 45 billion (US$750 million), the plant has a
combined annual capacity to produce 480,000 vehicles.
As of September 2015, Renault India has 175 dealerships in 16 cities across 9 states and 2 Union
Territories, targeting 210 outlets at the end of 2015. It falsely expanded to 190 dealerships in December
2015, thanks to the Renault Kwid success. Renault has also developed an innovative approach with
some virtual showrooms and some specific phone App.
I
54. 54
Chapter 4
ONJOBTRANNING
TECHNICAL AND SOFT SKILLS REQUIRED
COMMUNICATION
ommunication moves beyond sending emails, texts, and Instagram‘s. Everyone inside
companies must be able to effectively engage people face-to-face. Nowhere is this more
critical than for salespeople who must engage a wide variety of customers across a varied set
of situations.
TEAMWORK
2B sales increasingly are moving away from salespeople as the lone wolf to sales teams –
whether multiple salespeople, technical specialists, etc. This means salespeople must develop
the skills required to both lead and to participate insales teams.
FLEXIBILITY
lexibility provides some unique challenges for salespeople. Beyond simply being flexible about
schedules and responsibilities, salespeople increasingly are being called on to marshal internal
resources and to be part of – or manage – sales teams. In today‘s environment salespeople are
required to play different roles at different times during the sales process.
C
B
F
55. 55
POSITIVITY
his one is no surprise – people like to be around positive people. And, this is certainly true for
salespeople. Salespeople need to learn how to leverage praise from people for what they do
and avoid overreacting to criticism and bad news. But, salespeople have a special challenge –
not only do they have to work with colleagues, they also have to work with prospects and customers
where it‘s easy to say ―yes‖ – but yes is not always the right answer. Salespeople must learn how to
effectively say ―no‖ or disagree or present a different view to prospects and customers and have the
customer view that interaction positively.
TIME MANAGEMENT
hether new to sales or a veteran, time management is an obstacle all salespeople must
tackle. Learning how to prioritize and manage time is important for all salespeople. A
good idea for any salesperson is to periodically assess the percentage of their time they
are actually selling vs. doing something else. If one can increase that number by 10%, which in
most cases is very likely, a whole lot of good things happen.
CONFIDENCE
onfidence is an underpinning of every salesperson‘s success. Salespeople must learn to
display confidence – it‘s at the heart of building their credibility and credibility is a key for
success. When someone is new to a company or new to sales, building confidence and
credibility can be tough to do. One answer is leveraging your company‘s capabilities and success
stories until you develop your own tales of success.
INFORMATION MANAGEMENT
nformation management is the ability to organize and use data typically collected and maintained
in a software program. Sales organizations commonly use customer relationship management, or
CRM software. CRM programs allow you to collect and store profile details on prospects and
record notes and track buying histories with customers. You can also track your progress in the
sales cycle. Solid computer literacy and the ability to collect, update and use data is critical to sales
efficiency. Many organizations require salespeople to use CRM software and keep updated records.
T
W
C
I
56. 56
PERSUASIVE COMMUNICATION
ommunication is usually considered a functional skill category. In fact, it is one of the skills
desired most by employers across various career areas, according to an April 2013 study by
Hart Research Associates. However, sales are one job in which persuasive communication is
essential. Salespeople need to ask good questions and listen to their prospects' needs and
interests. Sales success results when you effectively communicate product benefits overcome
objections and persuade a prospect that you offer the best value proposition.
RESEARCH AND PLANNING
esearch and planning are generally functional skills. Sales representatives need to research
prospects prior to initial contact. A business-to-business seller, for instance, should spend time
on a company's website and become familiar with its buying processes and needs before
attempting to reach the decision-maker. Once you get an appointment, you need to prepare
effective presentations that respond to the needs of customers.
PROBLEM-SOLVING
wenty-first century salespeople are problem-solvers, at least those with the goal of building
long-term customer relationships. Prospects come with problems. A consumer with a broken
down car goes to the dealership with a need for transportation. A business needs office supplies
to perform basic office activities. Listening to understand the distinct nature of each prospect's
situation and showing genuine empathy for helping not only contributes to sales, but it leads to
customer retention and referrals. Each customer has a specific need or problem and you must pay close
attention and take notes to make the right recommendation in each situation.
C
R
T
57. 57
KEY RESULT AREAS:
PROFILE OF DEPARTMENT (SALES) : WOKRING AS A SALES
CONSULTANT
ales operations is a set of business activities and processes that help a sales organization run
effectively, efficiently and in support of business strategies and objectives. Sales operations
may also be referred to as sales, sales support or business operations.
1. Responsible for obtaining profitable results through the sales team by assisting the team
2. Manage the sales administration and customer relationship
3. Assist in the development of the annual marketing plan, specifically advising on: realistic
forecasts for each product and territory (based on historical data, market trends, competitive
activity, promotional strategy and sales effort), realistic costs of operating the sales force; and
sales promotion programme plans.
4. Ensure that all sales representative activities are in accordance with the guidelines of company‘s
code of conduct
5. Responsible for the completion of tasks as per specified time to accomplish specific objectives.
6. Responsible for dealing with on floor sales of product and accessories and personally observe
the flow of customers and sales executives on the floor.
7. Responsible for follow up of customer feedback, review, solving query of customer, assisting
customer with company process
8. Responsible for preparing report of customer data base and necessary information about the
customer
9. Collecting information and seeking more and more knowledge about the varied products of the
company
DETAILS OF WORK CONDUCTED BY SIP
Database of potential customers, corporate and clients through walk-ins, references,
past data, feedbacks, blind calls, and professional database was provided. Analyzing
the data to make calls to these customers and assist them with their purchases. also
provide them with detailed information about the product feature( engine, make, price,
taxes and additional charges, accessories etc) was the main work conducted
S
58. 58
Following up on the customers with their valuable feedbacks, reviews, whether they
are satisfied with the car, solve their queries and maintain database of each customer
with all important information .Help from sales executive was sought to, when required
Arranging meetings with potential clients and takingtheir appointments
Assisting the walk-in customers with briefing about the product, assisting them with
full service in accessories and half service in cars, making the customer comfortable
and aware of the company and it‘s service and products
WORK TO BE DONE IN THE PROJECT
MON-WED: on floor sales, attending walk-in customers briefing them about product and
accessories
THURS-SAT: call out potential customers, follow up on their purchases, take appointments,
arrange meetings with them, make sales records and maintain database
EXPECTED METHODOLOGY TO BE ADOPTED:
Use of computerized databases, calls were telephonic and mails were also used to brief the
customer and solve his query. Personal contacts used in walk-ins
TARGET ASSIGNED:
fixing appointments with potential customers and getting tentative dates and availability
Going on corporate visits and making customers and corporate understand the various features
of our products and accessories, new developments in the products, pricing, offers, valuation etc
Would be assigned to other projects as directed by team leader
Making feedback calls to customers, getting their reviews, suggestions, complaints
Taking calls for enquiry and complaints
Creating leads for customers to buy cars and accessories
Target Assigned
(Average)
Profiles Worked On Target
Achieved
Duration
250 Calls Per Day CRM 100% 60 Days
250 Calls Per Day SALES CONSULTANT 100% 60 Days
59. 59
TARGETS ACHIEVED:
FOLLOWING WERE THE LEADS CREATED DURING THE COURSE OF
INTERNSHIP:
CAR NO
DUSTER 54
KWID 158
LODGY 27
PULSE 12
SCALA 0
CAR DEKHO 265
TOTAL 516
60. 60
Chapter 5
RESEARCH ON THE CHALLENGES
FACED BY THE COMPANY
WAITING PERIOD :
o Issue :Most vehicles of Renault have relatively long waiting period for delivery. This has an
impact on the impending sales booking. Kwid used to have a waiting period of 6 months.
Though the premium segment has a smaller delivery window, the hatchback segment takes a
beating
o Steps to be taken : Renault need to prop up their production capacity & stay connected with
the consumers w.r.t. delivery commitments. Since Kwid has a high localization, they should
align with the suppliers to ramp up their capacity in line with the requirements.
STRONG COMPETITORS :
o The automobile space in India is flooded with a range of options offering a variety of value
propositions to the consumers along with attractive financing options. Be it the hatchback,
sedan or the premium segment there are some strong & established players and Renault will
feel the heat
o Steps to be taken : In line with the competitive landscape , the Govt has launched lots of
schemes to attract foreign investment in this space. The company should embark a wide
range of product differentiation initiatives so the offerings of the company reaches the
consumers.
SOCIAL MEDIA REVIEW :
o Thanks to social media, the general awareness of the features of the cars has increased
manifold. The value proposition barometer has been made more transparent & people are
able to relate the benefits in terms of performance & cost efficiency as well.
o Steps to be taken : Renault should ride the platform of innovation and highlight
differentiated product features for media to take note. Also there needs to a comprehensive
corporate strategy to address this need.
61. 61
GLOBALISATION & PRESENCE OF WELL ESTABLISHED BRANDS:
o India has been swept by the waves of globalization & the automotive industry is no
exception. In line with this, all established global brands have made a bee line to India.
There has spates of JVs to leverage local partnership as well. For Renault this will be a
challenge in terms of defining their marketing & sales strategy & their after sales offerings.
o Steps to be taken : Need to have the marketing strategy well tuned into their corporate
strategy of where to be present , which offerings to provide & enhancing customer
satisfaction
LACK OF MANY SERVICE CENTERS :
o Emanating from the previous point, the after sales infrastructure is as important as the sales
off takes .Renault has its own challenges on the service front in terms of reach, promptness
and enhanced customer engagement
o Steps to be taken : The Company should explore the whole suite of after sales & service
offerings to firm up the most suited one for the companies vehicles across various price
points. They could tie up with ancillary service offerings to provide customer repeats.
MANAGEMENT AND CUSTOMER SERVICE :
o Renault faces challenges on this front.
o Renault requires aggressive customer service initiatives in order to corner market share. The
responsiveness of the company personnel to customer complaints has to be proactive and a
pleasant one as well.
LACK OF FAMILIARITY & RELIABILITY IN THE INDIAN MARKET
o There are some very well established players in the market & their pulse & feel of the
Indian consumer is very profound. This will certainly have challenges to Renault in being
familiar with the customer attitudes &behaviour and in addressing the needs.
o Steps to be taken : Duster has been a success in India thanks to the exhaustive marketing
campaign and the product positioning. However in the small car segment it faces excessive
pressure from Maruti / Hyundai. They need to counter the excellent distributorship of these
entities thru intense customer connect & probably use the social media tools effectively.
62. 62
REVIEW OF PROBLEM BEING INVESTIGATED
ased on the above observations there needs to be a holistic approach in addressing the overall
market scenario, understand specific consumer behaviour across price segments, evaluate the
customer connect initiatives and have a long term business plan in place.
The success of Duster is a testimony of some of the right steps being taken by the company. They need
to replicate the same in the economy segment and be open to customer feedback and suggestions.
Also there needs to be concerted efforts on the after sales and service area and specific steps to propel
repeat off takes.They need to explore the social media space and have integrated initiatives that will
help build the brand image and credibility quotient in a big way.
DATA COLLECTION
PRIMARY DATA:
ISTORICAL DATA : Based on the past data of customer connects in the archives, able to
understand the genuine inputs from the consumer in terms of product specificity. These open
feedbacks help in understanding the customer sentiments & provide a rich platform for
understanding the genuine concerns of the product & its related areas.
Customer Relationship: Calls with prospective customers & related call backs also provided a great
source of understanding the consumer perspective about the product. Direct connect also established a
means of dialogue wherein the issues raised by the consumers could be understood correctly thru
proper questioning.
Connect with the sales personnel: Formal & informal connects with the sales personnel also helped
understand the consumer issues in greater details & the sales personnel‘s inputs also added more
credibility to the issue on the table.
Reviews : Product reviews in public domain is another source of understanding the issues from various
perspectives. Also inputs from industry experts provides genuineness to the issues &also help find
possible solutions.
B
H
63. 63
SECONDARY DATA:
hey collect the statistical data in different fields like national income, population, prices,
employment, wages, export, import etc. These reports are published on regular basis i.e.,
annually, quarterly, monthly, fortnightly, weekly, daily and so on. These published sources of
the secondary data are given below:
1. GOVT. PUBLICATIONS:
The Central Statistical Organization (CSO) and various state govt. collect compile and publish data on
regular basis. Some of the important such publications are:
Indian Trade Journals
Statistical Abstract of India, Reserve Bank of India Bulletin, Indian Foreign Statistics Economic Survey
and so on.
2. INTERNATIONAL BODIES:
All foreign govts and international agencies publish regular reports of international significance. These
reports are regularly published by the agencies like;
3. PRIVATE PUBLICATIONS:
Some commercial and research institutes publish reports regularly.
4. NEWSPAPERS AND MAGAZINES :Various newspapers as well as magazines also do collect data
in respect of many social and economic aspects. Some of them are as:
(i) Economic Times
(ii) Financial Express
(iii) Hindustan Times
(iv) Business Standard
5. UNPUBLISHED SOURCE
There are certain records maintained properly by the govt, agencies, private offices and firms. These
data are not published.
T
64. 64
Chapter 6
RESULT &RECOMMENDATION
LEARNINGS:
BETTER UNDERSTANDING OF BUSINESS PROCESSES-Getting A
Fair Idea Of How The Business And Its Processes Are Interconnected And How They
Actually Work And How Each Department Plays A Vital Role In Smooth Operation
Of Business Processes
INSIGHTS INTO CUSTOMER CENTRICITY-Importance Of Doing
Business That Focuses On Providing Positive Customer Both At The Point Of Sale
And After The Sale In Order To Drive Profit Margins And Keep A Competitive Edge
NUANCES ABOUT CUSTOMER BEHAVIOR-Importance Of Customer
Feedback And Reviews To Better And Improve The Services And Products And Get
A Clear Idea Of Actuality Of Product And Its Performance In The Market
FUNDAMENTALS OF COMMERCIAL NEGOTIATIONS-Creating Win-
Win For Both The Parties Is Essential, Also Learnt How To Negotiate Without Being
At Loss, Or Without Asking For Too Much
FOCUS ON AFTER SALES SERVICES- Help To Retain Customer And Thus
Help To Build A Bond With The Customer And Is Beneficial In Long Term
EXPANDING CUSTOMER BASE- Catering To Maximum Number Of
Customers And Trying To Understand And Satisfy Each Of Their Needs And
Requirements
IMPORTANCE OF STORE DESIGN AND LAYOUT- Store Design Create
The First Impression On The Customer As Soon As He Enters The Store, Easy And
Free Flow Of Layout Helps The Customer To Have A Look At All The Products On
Display
65. 65
UPHOLDING BRAND IMAGE- creating and maintaining brand image is
critical because the brand personifies the products and thus remains in the minds of
the people for years to come
CONCLUSION AND RECOMMENDATION
FUTURE SCOPE OF RENAULT
MAXIMIZATION OF REVENUE SOURCES:
apitalizing on potential revenue sources is the aim for everyone. Discovering hidden
and potential revenue sources outside and within the business unit can be capitalized
on more by learning about everything from outlet point of sale incentive programs to
comprehensive retail strategies and the marketing concepts that drive them. Every
retailer should take advance steps to achieve the overall goals.
COST REDUCTION:
C
66. 66
ost reduction is the process used by companies to reduce their costs and increase their profits.
Depending on a company‘s services or product, the strategies can vary. Every decision in
the product development process affects cost. Companies typically launch a new product
without focusing too much on cost. Cost becomes more important
when competition increases and price becomes a differentiator in the market.
FREE CASH FLOW MANAGEMENT:
he management and analysis of a company's cash flows. Careful cash flow management
allows a company to estimate the amount of cash that it will have on hand at any one
time, project trends in cash inflow and cash outflow, and evaluate whether a shortfall
or surplus in cash could potentially occur
RECOMMENDATIONS
C
T
67. 67
Monitoring the environment:
Automobile industry is susceptible to gas emission & eco- friendly parameters. One of the key
distinguishing factor is the high score on these variables. Renault should strive in having their vehicles
meet the environment standards & should have elaborate programs to make it a way of life. It also
props up the socially sensitive indicator & could be a great motivator in ensuring expanded customer
base.
Research & Development:
Constant R&D efforts resulting in better offerings is the key to success in today‘s competitive world. A
great blend of innovative thinking resulting in cohesive R&D efforts is the key to success. There should
be product innovation across product range & price points & that could supplement the overall efforts
in staying current in the market place.
Cost cutting:
Emerging out of R&D efforts is a constant endeavour towards cost cutting measures. They could be in
better product design using latest technology or process improvements that lead to enduring cost
savings. There should be a culture of cost optimization throughout the organization which will be able
to thwart the perils of inflation & help in maintain a healthy P&L & result in healthy cash generation:
Seize opportunity
Keeping the eyes & ears open to any perceptible opportunity is the new marketing mantra & Renault is
no exception. Whether it‘s the product range / delivery lead time or customer service, there should be
no stone unturned in seizing all the opportunities. End to end market research, robust on the ground
marketing strategies, listening to the customer needs, having a continuous improvement mind-set and a
motivated employee base are the key factors that can set Renault in a good position to seize the market
opportunities
Conclusion
Renault has been struggling to establish its brand identity in India amongst the Titans of the
Automobile industry – Maruti& Hyundai. They have established product presence across all the various
product segments & price points as well. Though there is no significant Pan India presence they are still
present in key metros of India.Each product seems to have a distinct USP & has been able to garner
specific customer endorsements – Kwid is popular amongst new entrants & the millennial as well.
Scala&Fluence seem to be spreading their wings in the Sedan & Upper Premium segment.The spread
seems to be complete with Lodgy taking care of the MUV space & Duster the SUV segment.
There seems to be growing brand identification of each of these thru customer connects as well as
brand marketing & advertising.
Quality has proved to be game winner across all product ranges. However delivery lead time & a robust
after sales &service program are the key areas which needs immediate attention.The throughput can be
optimized only when the front end piece is in sync with the back end deliverables.
68. 68
The company needs to have a motivated line function including both customer development
&marketing.A solid communication program weaving all aspects of the 360 degree marketing
campaign needs be formulated & implemented at the earliest.
In conclusion, Renault seems to have the right products with good quality parameters to deliver.
What the success formulae is a much more integrated Go to Market Campaign & a sustained after sales
model which will repose the customer faith to its fullest.
69. 69
REFERENCES
SITES:
http://info.shine.com/industry/automobiles-auto-ancillaries/3.html
http://www.siamindia.com/statistics.aspx?mpgid=8&pgidtrail=9
www.ibef.org/industry/india-automobiles.aspx
www.strategyand.pwc.com/perspectives/2015-auto-trends
https://www.autonews.com/assets/pdf/ca92618116.pdf
https://en.wikipedia.org/wiki/renault
www.referenceforbusiness.com › company histories › qu-
rogroup.renault.com › homepage › learn more about our
commitments › human capital
caseseries.thunderbird.edu/case/renault-nissan-challenge-sustaining-
change
https://www.ukessays.com/essays/marketing/benefits-and-challenges-of-
the-globalisation-strategy-of-renault-marketing-essay.php
www.iesaonline.org/downloads/esa_vs2013_arai_rashmi_urdhwareshe.pdf
https://en.wikipedia.org/wiki/automotive_industry_standards
www.mbaskool.com › brand guide › automobiles
www.hoovers.com/company.../cs/revenue-
financial.renault.83fe2947c314fe73.html
www.slideshare.net/tayyablhr/presentation1-29640587
BOOKS:
Customer Relationship Management: a strategic approach to marketing- By Kaushik
Mukherjee
Strategic Customer Relationship Management – By Kumar. V