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exampleinternationalmarketing-130123115307-phpapp01

exampleinternationalmarketing-130123115307-phpapp01

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Published by: bhawanachitlangia on Jan 06, 2014
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01/06/2014

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Introduction In today's competitive environment, developing an international marketing strategy is common and used by many companies to open business perspective, remain competitive and fulfill customer needs across the globe. According to Catero and Ghauri (1999) International Marketing is the flow of a company's good to consumers in more than one nation with the objective of profit. International marketing allows enlarging the company's target and increase the number of potential customers and probable sales. Nevertheless, international marketing can be source of success or failure if wrongly managed or implemented. All products cannot be marketed on an international level, the potential demand has to be effective, the product has to provide an added value for the customer and be well marketed according to cultural, economical and many other factors. This paper will develop the implantation of an electric/hybrid car by the French manufacturer Renault in the U.S. Renault
is the French leader of the car industry in France, with a turnover of €38
billion and more than 3 million car sold in 2010 , the company recently launched a new range of electric cars in France. The car market is strongly developed internationally for the production as well as for the marketing and selling process. Thanks to international marketing, several brands have developed a brand strong recognition, increased market shares and it benefited the company. However, implementing an international marketing strategy is a long and expensive process, especially in a competitive market such as the car market of the United States. According to the US Bureau of Transit Statistics (2004), the number of registered passenger vehicles in the US is 243,023,485. Indeed, Americans are important car consumers; the proprietorship and quality of the car are in the social standards. The social status can be defined as the type of car and model of one's and it plays an important
 
role in the social and professional representation. With the environmental issues such as global warming, gas emissions and limits of oil resources, car companies started developing hybrid and electronic cars. This change in product development allows providing innovative cars with an added value of gas consumption efficiency and other environmental friendly aspects. In this paper, we will assume that the French company Renault is expecting to launch its ZE electric product range in the United States. We will discuss the reactive and proactive motives to this decision, the influence of culture and its importance in international marketing. We will then study the company's international competitiveness at the macro, meso and micro level. Based on this analysis, we will propose a market entry strategy and a marketing plan. Reactive and Proactive Motives We can assume that launching of an electric car in the U.S is a business decision based on series of proactive and reactive motives that could benefit the company and make the product a success abroad. Proactive Motives (firm initiated) The launch of the French manufactured electric car in the U.S has several proactive motives, the first one being, the opportunity to generate profits by capturing a new market and generating additional sales. The company's growth would increase the company's market share as well as its competitiveness on a national and international perspective. Moreover, the French manufacturer can benefit from the technological competence and knowledge of French engineers and its experience. Renault and its expertise of the market and technological advancement
 
will help the process of implementing a product and marketing diversification on an international level. The company has already developed the product and faced technological issues: the product is today available in France. (see picture below of Renault's electric range.) Moreover, the company's success in Europe, and its market positioning of leader in France allows the company to benefit from the economy of scale to produce Electric cars destined to the U.S as the French supply chain is already developed and implemented. Reactive Motives (caused by the environment) The market opportunity of electric and hybrid cars in the US has already been adopted by Toyota, resulting in a type of competitive pressure that Renault could respond to. If the company is not responding, it is losing a market opportunity. The Japanese car manufacturer Toyota announced that one million cars were sold in the U.S in April 2011, eleven years after the Hybrid model of Toyota was introduced in the U.S. With 3 million cars sold around the world, the U.S market represents more than 30% of sales for the Toyota Prius. As a consequence of the above example of Toyota, we can easily deduce that launching a hybrid car in the U.S is a foreign market opportunity. Indeed, the American car market is strongly developed and many foreign car manufacturers are already implanted. This highly developed market can be explained by the social importance of cars, the accessibility of the driver license and the abundant and currently renewed offer. Moreover, if we assume that Renault's recent launch of electric cars is not a success as planned the company can still aboard the American market with a different approach. However, this is an assumption based on the

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