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Marketing Plan For Renault Twingo

Paper Type: Free Essay Subject: Marketing
Wordcount: 5365 words Published: 15th May 2017

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According to our class, MC 600, Business Policy, we have to write a business plan about a product of our company. In this case it is supposed we are working for Renault Car Company, and we prepare the business plan for one of our products, which is Renault Twingo, regarding the Greek market. To develop successful strategies and action programs, we need up-to-date information about the environment, the competition, and the market segments to be served. Often, analysis of internal data is the starting point for assessing the current marketing situation, supplemented by marketing intelligence and research investigating the overall market, the competition, key issues, and threats and opportunities issues. As the plan is put into effect, we will use advertising and other forms of research to measure progress toward objectives and identify areas for improvement, if results fall short of projections. Finally, we will use marketing research to learn more about their customers’ requirements, expectations, perceptions, and satisfaction levels. This deeper understanding will provide a foundation for building competitive advantage through well-informed segmenting, targeting, and positioning decisions. Thus, the marketing plan should outline what marketing research will be conducted and how the findings will be applied.

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In the first section we have to summarize the main goals, recommendations and points of our project in order to be accepted by the managers. Our project will target in reclaiming Renault’s superiority in Segment A by positioning Twingo as one of the best overall proposals in the segment. It will be placed between mainstream, e.g. Fiat Panda and “trendy” cars such as Smart, and FIAT 500, targeting mainly style-oriented, younger customers, who are more willing to buy a 3-door car. Moreover we can get a competition advantage by differentiate the target groups by multiple versions.

Authentic to Expression: Refers to a mainstream target group, practical.

Dynamic: Refers to female group with several dynamic characteristics.

GT: More Sporty and masculine profile.

We will exploit connectivity and customization features to enhance youth appeal and “trendy” factor (Dynamic, GT).We will promote practicality and versatility to enhance its mainstream appeal (Authentic, Expression).Systematically attract first-time-buyers and exploit opportunities to “up-sell” them within the brand.

Finally we will use competitive fleet policy (10% discount on retail price) to support retail sales (despite lack of 5 doors). Generally we will exploit limited editions for conquest sales and for maintaining “trendyness”.

By these actions we target at about 1500 sales, both retail and fleet, for the year 2010 in Greece. This is a partition of 7, 6% and 1, 4%, respectively, as shown in the image below.


In order to analyze the current marketing situation, we will discuss about the overall Greek Market, identify the market segments we will target and provide information about the company’s current situation.

Renault: The Company (briefly)

In 1899 Renault Frères is founded by Marcel and Fernand Renault. In 1903 the sales network expands and the first subsidiaries are set up outside France. In 1975 managed by Bernard Vernier-Palliez, Renault comprises the state-owned Régie (104,000 employees) and the subsidiaries set up through diversification (118,500 employees) and by 1980 Renault was Europe’s leading vehicle manufacturer. In 1997 Twingo arrives in the market.

Range Segmentation


We will examine the target segments and provide context for the marketing strategies. We will examine the economic position and the general situation of Greek Market, MAVA which is the official Renault’s representatives, the Purchase Behavior of the target group in which we are interesting in and the current situation of the Competition.

EXTERNAL ENVIRONMENT: Greek Market Situation

Real GDP average growth 4,1% (10yr), 4.2% (3yr). Slowing growth in 2010 reflects weakening growth in fixed investment and exports, due to strong Euro.

Consumer spending – even if slower growing – retains its momentum and will continue to be the main contributor to 2010 GDP growth driven by real wage growth (4%) and employment growth. Spending on consumer durables, in particular, remains strong (sales of household equipment increased by 5.6%, as did car sales).

Household debts account for 37.8% of GDP vs 61.6% for EU-13. Consumer credit growth remains strong at a (stabilized) 20%. Deposit growth reached 14.4% in 2007 vs 10.5% in 2006

Greek economic climate index in rise from mid-2005 to September 2007, decreasing slightly in October; remains higher than European index.

Greeks more willing to buy a car in 2010 than EU-27 or EU-13 average.

The positive effect of direct tax reductions is expected to be compensated by the increase of VAT by 1-2 percentage units in 2010 or 2011.

Internet penetration at 40% of ages 13-70 years old (13-24: +60%, 25-44: +30%). Broadband connection penetration currently at 6.9% of households (EU-27avg at 16.2%).Average monthly cost at €28.3 (vs €25.4 in France and €46.8 in Spain). Average speed at 6,6 Mbps (vs 44,1 in France and 6.9 in Spain).

A change in the registration tax is not considered feasible for the time being.

Liberalization of diesel car market (in Athens and Thessaloniki) remains stagnant, AMVIR (Greek Association of Importers) now pushes for freeing up the diesel LCV market.

AMVIR’S (Greek Association of Importers) current position to the Government is for a gradual and mid-term alignement of the taxation system with the emissions norms.

All data: European Commission, Eurostat, National Bank of Greece, except Internet data (independent surveys).

All data: European Commission, (*) Ministry of Economics & Finance.


Implement ready, in-house software to track real-time MAVA/Dealer stock, order, invoice and registration data.

Based on the above, specify and implement a new monthly marketing reporting system, specified with and covering the needs of Management, Renault and Marketing.

Exploit Renault-specified PER4 Dealer training program (analytic proposal to be submitted by end of March 2010) to provide a business case for dealers to endorse change, total customer satisfaction and a new culture vis-avis Renault’s forthcoming product assault. Budget 50.000€.

Starting from 2011 (along with new Megane), consider an extensive communication plan to change current perceptions of Renault and gradually establish it among top-of-mind brands in Greece. Given approval, Marketing will provide a comprehensive “route map” by end of June 2010 to be finalized by end of 2010 and be implemented starting from 2011. This will include a thorough proposal on the approach and process leading to an action plan by end of 2010.

Deployment of the new brand identity graphic guidelines within the company and to the dealer network (core elements, stationery, printed forms, advertising, local communication -publications, events etc), starting with the new Twingo launch campaign, including follow-up and evaluation on the extent of deployment, according to time-plan imposed by Renault (12 months).

The PURCHASE BEHAVIOR of the target group

Stage 1: Initial interaction with the brand

At this stage, customer has not fully developed the need to purchase a new car and “collects” information / perceptions / impressions by various channels that result in top-of-mind awareness of specific brands. Brand Influence at this stage comes from creating impressions and emotional territories through:

Advertising: emotional positioning.

Press relations: word of mouth is especially important for the “small” Greek society and especially women, who mostly turn to friends and family for advice.

B-T-L Promotions: help relate the brand to values and behaviors.

Stage 2: Actual investigation

At this stage, customer “assesses” technical and tangible factors (however still through an emotional process), identifying possible solutions to his/her needs. This results to the shortlist.

Provided that the brand has “passed the test” of the first stage, the choice criteria are:

Performance (20-28)

Roominess and reliability (29-45),

with price and equipment as common denominators.

Customers first choose a brand and, subsequently, the model it offers in the segment they need. French Cars in general provides to their customers:



Focused in comfort & Luxury



Weak USP




Customer’s Character – Twingo Characteristics

Renault Twingo differentiates its target group depending on the version:

Twingo Authentic to Expression

Mainstream, practical

Twingo Dynamic


Twingo GT

Sporty, masculine

In general its target group is men and women 20 – 35 years old. Twingo means fan, joy, entertainment combined with all the above characteristics of a French Car.


In continue, we have to outline the main characteristics and summarize extra information needed about our product, Renault Twingo.

Renault Twingo is characterized by:

Modern, Pleasing Design

Roomy, practical and occupant-friendly

An assertive personality underpinned by dynamic styling

Communicative and occupant-friendly: New Twingo features an Audio Connection Box (in UK we will be calling this system ‘multi-functional Tune Point’) which enables personal music collections stored on USB keys, portable MP3 players or iPods® to be played through the car’s audio system and operated via the steering wheel-mounted controls.

‘My Twingo’ philosophy: buyers can customize their new car – inside and out – thanks to a range of decorative decals for the exterior and a selection of innovative accessories such as the Organizer Box and Makeup Box for the interior.

Appeal to young clientele, essentially urban-dwellers hooked on new technologies

Chassis derived from the B-segment and a power train range featuring the new TCE (Turbo Control Efficiency) 100hp petrol engine, which offers class-leading performance and fuel consumption, New Twingo’s superior dynamics, set it apart from its predecessor.

Optimizing cabin space and interior versatility, by making full use of the car’s compact dimensions (length: 3.60m).

Interior is extremely modular thanks to its four independent sliding seats.

Safety was at the forefront of the New Twingo design team’s priorities.

New Twingo is the first model to be renewed within the framework of Renault Commitment 2011 and had to meet an extremely exacting brief in terms of quality and profitability.

Supplementary information about models:


Twingo’s agile handling makes it perfect for nipping in and out of city traffic. With its compact length of just 3.60 m, Twingo is a cinch to park and a delight to drive. It also stands out with its pure, contemporary styling. Twingo brings drivers a dynamic and pleasant drive. Our primary consumer target is middle- to lower-income people who need a car with pleasing desing but also comfortable and easy to use. All versions of Twingo carry the Renault eco² signature. They emit less than 140 g/km of CO2, contain renewable materials and recycled plastic, and are produced at the ISO 14001 certified Novo Mesto plant in Slovenia.


Renault has produced an affordable high-performance car which sits alongside Clio and Mégane Renault Sport in the Renault Sport range.

Renault Twingo’s existing lines are underpinned by a more curvaceous, athletic stance and the newcomer’s sporty calling is further emphasized by its wider front and rear wings, profiled sills and spoiler.

Twingo Renault Sport is the response of Renault Sport Technologies’ experts to a two-pronged challenge, namely to deliver sports performance while at the same time ensuring that the new car is easy to use on a day-to-day basis.

Twingo Renault Sport’s chassis is both responsive and finely tuned to provide precise, balanced sports handling, while specific work on the pitch of its new 133hp 1,598cc engine reveals its punchy temperament.


The return of the Gordini name is to be marked by the introduction of a new chic and sporty version of Renault Sport’s pocket rocket which takes a current-day stance on the cues long associated with the Gordini world.

Twingo Gordini R.S. features a gleaming Malte Blue lacquered metallic finish, plus two white racing stripes, in keeping with tradition. The front and rear bumpers are enhanced by gloss black details, while the fog lamp surrounds, exterior mirror housings and lip spoiler are all picked out in a contrasting white finish.

‘Gordini Series’ badging either side refers back to the heyday of the Gordini Cup when the qualifying heats of the different meetings were known as séries. This exclusive exterior styling package is rounded off by a choice of either blue or black diamond-effect 17-inch aluminum alloy wheels.

To ensure that it befits Gordini’s glorious motor sport heritage, the latest addition to the Twingo range is based on the same performance/equipment package as the Renault Sport version:

‘Sport’ chassis with 17-inch wheels for outstanding road-holding performance that is equally suited to everyday motoring,

a feisty, responsive 1.6-litre 133hp petrol powerplant with a distinctive, specially-tuned engine pitch under acceleration,

precise, incisive steering for even greater fun at the wheel,

powerful, durable braking performance.

The fashionable and sporty label of the Renault Sport range with its elegant finish and strong design codes, the Gordini label builds on the renowned expertise of Renault Sport, and offers a fresh interpretation of its values.

Renault naturally opted to build on the reputation of Renault Sport Technologies (RST) in order to transform the Gordini legend into a reality. Renault’s sports branch has prolonged the Gordini heritage through its renowned expertise in motor sport and the development of its sports models.


The direct completion for Renault Twingo in Greece is FIAT Panda, CHEVROLET Matiz, HYUNDAI Atos, PEUGEOT 107, SMART ForTwo, TOYOTA Aygo, KIA Picanto, CITROEN C1, VOLKSWAGEN Fox, DAIHATSU Cuore, FORD Ka, OPEL Agila.

The Total Market Sales are showed below:

As we can see, the segment dominated by Panda & Koreans (low price models, therefore strong in fleet sales) followed by TPCA trio (Toyota, Peugeot, Citroen Automobile), upward indication for ForTwo and Cuore and downward indication for Matiz, Atos and Fox.

The 3-Door Sales – Direct Competitors VS Renault Twingo

3-door versions appeal to first-time buyers, seeking for looks and style, who are willing to spend more for differentiation.

Fleet Sales VS Retail Sales – Direct Competitors VS Renault Twingo

Segment leaders retain significant contribution on both fleet and retail sales. The ForTwo, Fox and TPCA trio appeal more to retail buyers.

Despite drop of fleet sales, Picanto compensated with strong retail sales.


As a volume carmaker, Renault has long been recognised for the quality and inventiveness of its products in the small car segment and New Twingo is no exception. Since its unveiling at the 1992 Paris Motor Show, Twingo has revolutionised the world of city cars.

In response to shifts in customer demand across the span of its 14-year life, Twingo took the form of seven different collections and a long list of striking special and limited editions.

The European small car market has been reasonably stable since 2000, yet that hasn’t prevented it from being extremely competitive, owing to the presence of the traditional European makes and, more recently, the advent of newcomers from Asia. Even so, Renault stands out as a major player in the segment and New Twingo reinforces the brand’s line-up with a view to optimising its coverage of this end of the market. With a length of 3.60 metres, New Twingo is a practical, communicative, compact car.

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New Twingo’s mission is twofold, the first being to build on its ever-growing reputation as Twingo owners were loyal to the car and replaced it with another Twingo. The second aspect of the model’s mission involves reaching out to a new clientele seeking a safe, versatile, practical and feisty package with compact dimensions. One-third of European small car buyers are aged under 35, including 11 per cent who are under 25. Amongst its new targets, New Twingo seeks to appeal to this young clientele, essentially urban-dwellers hooked on new technologies and for whom the car is seen as a symbol of freedom, as well as an extension of the world in which they live. New Twingo covers all these criteria thanks to its unique personality and unprecedented connectivity for its segment, not to mention its inherent versatility, driver appeal, travelling comfort and dynamic, reassuring handling.

Strategy and Marketing employs 150 people from diverse backgrounds, including 12 different nationalities.

The five key functions in Renault’s Marketing Department

1. Marketing product and services manager

Their role is to develop the most attractive selection of products and services for a given range of vehicles. They adapt their choice to each national market without overlooking the brand’s identity and sales targets.

They help elaborate marketing strategy, analyse sales figures for their models, and constantly look for ways to sell more.

2. Product positioning consultant

They draw on different surveys and studies to propose ways to improve the brand’s positioning and image. Working with the different range managers, they decide how a model should be positioned and what audiences to target. They then adapt this positioning to each country.

3. Price consultant

They draft a price strategy for each model in every country. Another of their functions is to examine across-the-board pricing methods and procedures. Strong interpersonal skills are important as they are in daily contact with the markets and other marketing experts.

4. Trend forecaster

Their task is to analyse market trends and sales forecasts for each vehicle in a range of countries. Their conclusions help the factories plan production in line with the dealerships’ probable needs for vehicles to satisfy customer demand.

5. Planning studies manager

They pilot the sales and marketing planning system, assess Market Areas’ needs for economic modelling, and adapt planning tools accordingly. They train the national plan coordinators in the use of planning tools and methods. They also analyse each country’s budget and strategy plans to then compile a group-wide synthesis.


The new Renault Twingo hopes to appeal to the small car segment and the initial first car buyer segment while also appealing to families who wish to acquire a second car, or to those using their car in urban or city areas. This car interests distinct and different groups of car buyers so there is a need for careful product positioning in the mind of the consumer. Some considerations when positioning a new car might include:

first car or small car users who expect specific design qualities from a car

families who want a second car to get them from A to B or to complete the school run twice a day and who will also want different features

young people looking for ‘personality’ from their car – perhaps more

sporty features or individual and distinctive design finishes.

New Twingo’s key target market is young dynamic people. Renault has a marked advantage in this area because it is known for its keen pricing and is also an established, highly recognisable brand that young people can relate too.

Price Strategy

Renault has a clear understanding of its key target market (young people and

other price-conscious car buyers) and has designed pricing strategies to best address their needs and the positioning of the New Twingo. In the case of the New Twingo it is imperative that it be keenly priced and also that running costs are low.

The price quoted by Renault is the price you will pay at the dealership. The starting price is 8790€ and it can reach the 13100€ depending to the model and the equipment included. All the dealers provide the option to buy the car with a small amount in advance and then with monthly installments.

Price Positioning by Model – Direct Competitors VS Renault Twingo

8k: Koreans (high contribution of fleet sales).

9k: Panda (has also the widest coverage).

9-11k: Twingo’s core competition.

12k: Smart.

13-14k: Twingo GT’s main competition (Panda 100 & C2 VTS).

Distribution Review

In this level we have to analyze Renault’s distribution network around the world and specifically in Greece. Renault it’s an international industrial organization with 38 industrial sites in 17 countries which ensure that production occurs close to markets and unique standardization which guarantees the same level of quality throughout the world. International production capacities are expanding rapidly. Major projects of development are in Russia (a partnership signed with the AvtoVAZ automaker), and Morocco (work began on a new industrial complex in Tangiers).

A launch to the dealers is different to launching a car to the public. Increased demand for a car is also known as a ‘pull factor’ as it essentially pulls the product through the distribution channel from the manufacturer toward the consumer. In order to succeed at getting the product to the consumer, Renault has an International network of ‘agents’ or dealers who carry its cars in the companies stable. This means that support is given to the Renault dealers around the world to promote the new model in a way that generates demand for the new car. Our channel strategy is to use selective distribution all over Greece. During the first year, we will add channel partners until we have coverage in all major greek markets and the product is included in the major car catalogs and even Web sites.

The Renault Production Way:

Guarantees the same quality standards throughout the world,

Enhances Group performance (plant specialization according to car segment, development of plant capacity to produce different vehicles on the same production line, continuous improvement of the workstation, etc.),

Ensures the Group’s commitments to the environment (100% of Renault’s production sites are committed to ISO 14001 (environmental management standard) certification processes),

Reinforces safety throughout the world.

Renault has a distribution network all over the world-Americas, Europe, Eurasia, Asia and Africa. The official sales partnership in Greece is PGA motors at Marousi, Athens. Moreover Renault motors are sold by almost 31 agents-sales points all over the country.


In the next step of our marketing plan, is the SWOT analysis. SWOT analysis is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in our project. It involves identification of the internal and external factors that are favorable and unfavorable to achieve our objective.

Strengths: Strengths and strong points of our car.

Weaknesses: Internal weaknesses of Renault Twingo.

Opportunities: external conditions which are helpful to achieving our objective.

Threats: external conditions which could do damage to the objective.

Identification of SWOTs is essential because subsequent steps in the process of planning for achievement of the selected objective may be derived from the SWOTs.


“My Twingo” philosophy-Modern, Pleasing Design

Roomly, Vertisile interior

1.2-litre TCE (Turbo Control Efficiency) engine.


Evidence of cost cutting

Thrashy, and engine noise is intrusive at motorway speeds.

Disputed wheel positioning


Increase fleet sales

Are there emerging trends on which we can capitalize?

Increased demand in segment A


Pure fleet sales

Extreme competition in segment A- Fiat 500, C2, Smart

Many offers and uprising Car industries with cheap products

Marketing Communication Strategy

Pre-publicity in the form of motoring reviews and test drives are critical to

the success of a trade launch as this activity must generate sufficient consumer curiosity and interest in the new model. In this way, we will give the opportunity to experts and driving correspondents or journalists, to assess the merits of the new Twingo before the rest car-buying public. We will also try to hold ‘open weekends’ in dealers’ garages where customers can come along to test drive the new car. By getting potential car buyers to test drive a car, product usage increases. This will have a knock on sales of the new car.

The primary above the line medium we are going to use to promote and communicate the new car is through advertising. In the case of the New Twingo, the main advertising mediums going to be used, aside for those used when communicating with the trade, are outdoor billboard advertising and TV and radio advertising. New Twingo advertising themes and images include ideas of surprise, independence, spontaneity and versatility. Key factual messages that need to be also included are the smart design of the car, the value for money and cost of the car and the low running costs.

Advertising Expenditure Evolution

During Jan-Oct 2010, the advertising expenditure of the segment has decreased by 33,3% since all major competitors’ launches have been conducted before 2010.

Share of Spending

Chevrolet Matiz is, by far, the leader of the segment.

Smart has no TV investment (only magazines and BTL activities).


TV and Magazines are the main media during Jan-Oct 2011

Large increase of TV against Magazines in 2011 is due to launches having taken place in 2010, reflects tactical advertising in 2010.

Share of Voice – Adults 18-34


Matiz acquire, by far, the highest SOV due to small average duration of spots.



Create a “buz” among young potential customers to support Twingo’s positioning as a “trendy” choice.

Differentiate creative and media mix according to target group ( mainstream, women, men).

Draw on the values of Twingo I to retain existing customers (modular design, simplicity of entry versions).

Implement an integrated launch campaign (adaptation of international launch) to fight clutter by competitors’ launches and spice-up brand image.

Media Use

Use of TV as main medium (MAD TV included as the only youth music channel).

Use short TVCs to increase SOV.

Creative use of magazines (lifestyle advertorials – photo shootings etc): lifestyle, women’s, youth titles.

Creative use of radio (lifestyle testimonials).

Joint events (Asterix movie sponsorship).

Use of Internet and New Media with creative penetration (ambient media).

Use of outdoor at urban regions (5 major cities).


Communicate the accessories’ youth-targeting features (personalization & connectivity).

Communicate price affordability.

Use GT version to communicate TCE USPs.


Maintain a Press test-drive fleet of 2 cars (Dynamique GT).

2011: Communicate RS and limited editions (ATL and Press).

2012: Introduce tactical communication.

Competition Launching Media Plans

2010 – 2012 Media Plan

Marketing research

Using research, we are identifying the specific features and benefits that our target market segments value. Feedback from market tests, surveys, and focus groups will help us develop the next model of the new Twingo. We are also measuring and analyzing customers’ attitudes toward competing brands and products. Brand awareness research will help us determine the effectiveness and efficiency of our advertising and promotion. Finally, we will use customer satisfaction studies to provoke positive reactions to future buyers.


There is no planning without control. Marketing control is the process of monitoring the proposed plans as they proceed and adjusting where necessary. If an objective states where you want to be and the plan sets out a road map to your destination, then control tells you if you are on the right route or if you have arrived at your destination.

Control involves measurement, evaluation, and monitoring. Resources are scarce and costly so it is important to control our marketing plans. Control involves setting standards. We are planning tight control measures to closely monitor quality and customer service

satisfaction. This will enable us to react very quickly in correcting any problems that may



Quality and profitability at the core of the X44 project

As part of the new model offensive set out in Renault Commitment 2009, New Twingo had to meet an extremely specific brief in terms of quality and profitability. Renault’s latest small car will be produced at the Novo Mesto factory in Slovenia.

Upon his arrival as President of Renault in May 2005, Carlos Ghosn instructed engineers to optimise the cost effectiveness of the X44 project. Twingo’s replacement needed to meet a raft of quality- and appeal-related targets at an extremely competitive cost. Initially delayed to ensure it responded even more closely to customer demand, the project then picked up speed and the car’s development was completed within 21 months of the new design’s approval.

Controlled production-related costs

The technique of carry-over served as a powerful lever in achieving this feat. Certain components from previous projects noted for their reliability and effectiveness were incorporated into the new vehicle. In addition to being a pledge of quality, this approach also eliminated unnecessary design costs and lead-times. Although an entirely new car in its own right, New Twingo incorporates parts from the chassis used for Clio II whose quality earned it recognition in 2006.

Constraints associated with the adaptation of production plant were similarly m


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