Marketing Essay On Automobile Industry
The automobile industry has become as competitive as the computer industry. Renault Company has not competed well with other car brands like Ford, Volkswagen, Honda, Nissan and BMW. The competition among car manufacturers is very high; various companies come up with different innovations.
The Renault car brand was ranked number twenty in the year 2013, being behind many other car brands. There are many possible reasons that might have made the company perform dismally below, as compared to its competitors.
The level of competition was dismal due to the entry of new brands in the market. Other companies have an aggressive and light touch technology that is very attractive to the consumers. Renault Company has to do a lot of research and come up with the systems that are cheaper and more customer-oriented. The manufactured vehicles are classic and expensive. The company needs to outsource cheaper technology with high performance. There is a possibility that Renault brand is also experiencing growth and needs time to gain more popularity in the market.
The company needs to learn the culture and social attitude of the market in the UK to be able to increase its sales. The manufacturers can also consider looking at cheaper ways of manufacturing their vehicles to attract buyers. Companies like BMW manufacture parts in different locations and assemble them in Germany and US. The company might have done misjudgments in terms of market skimming and penetration price.
The promotion of a product might have been feeble, leading to low sales. There should be a consideration in advertising to capture a large market base. Low public relation strategy is also an impediment. The consideration of public relations could be an important factor to spur the sales up again. Researching and tapping intelligence on the ground level of the market and other producers of cars will help alleviate the impasse in sales. Sales promotions and online advertisements, advertisement in the newspapers will help to hit a breakthrough.
Promotion of the product through cinema advertisements and the use of a car in movies or music performance are some of the areas that will capture the attention of potential buyers. The brand should also be advertised on radio and billboards to reach every possible client. Student sponsorships and projects support the social environment. The company should also organize exhibitions, trade fairs, seminars and conferences to brainstorm and gauge the product position.
Poor distribution strategies can also be corrected by adopting economically viable ways to reduce the costs. Some of the methods that are supposed to be used are exclusive distribution and selective distribution or franchising. Follow on support should be given to clients and insurance for a given period. Locating enough service centers will help promote client confidence and improve the sales. The brands should be custom made to fit the environment and all weather conditions.
Lastly, technologies like radar, computerized braking systems, low fuel consumption technology, airbags, considerable speed, security features, and entertainment gadgets should be current. Color, interior and exterior should be perfect and exemplary. Finally, with a clear consideration of the marketing mix strategy, Renault Company will be able to regain the top position in the number of car sales in the United Kingdom.
The brand failed to satisfy its clients because of poor services, as compared to other cars like BMW and Toyota. The company can reclaim its product glory by equally introducing products with better quality to withstand the European climate and terrain like the rest. The pricing of Toyota cars and BMWs were cheaper than the Renault; it would be prudent for the company to manufacture vehicles with the same ability but cheaper and more affordable. The marketing department should also go out and do market skimming to find a better penetration price, while bringing into market new models of the same brand. Other brands were well advertised, as compared to Renault brand. Promotion of the brand through advertisement would be mandatory to enhance its marketability. The brand also failed to provide proper distribution channels which are to be enhanced to compete favorably.
To sum up, sales promotion is an important strategy that can change the way clients perceive a certain brand. Producers should conduct research that will establish the most effective marketing strategy to achieve success.