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Renault:
Quick Facts
Renault, the ninth best automobile maker in the world with hundreds of players
in this section of business across the globe has presence in about 118
countries. With an impressive 115 years of experience behind their name in
automobile making, they are now more than one lakh people strong.
"Renault Founders"
They have not confined their innovation to making better cars, but constantly
unveiled new opportunities being created in the market. They frequently
branched out to make what the markets needed at that point in time. They
believed in using scientific mass manufacturing techniques and tailoring, as
early as in the years around 1913. They started making buses and commercial
cargo vehicles before the First World War broke. Eventually, ammunition and
military airplanes were made during the war, and agricultural and industrial
machinery during the post war times.
It was in the late 1930s that the company started to see intense debacles,
though for short periods of time. The brand struggled consistently. The obstacles
came in the form of strikes and labour disputes that sparked across the Fr ench
automobile industry. Renault somehow managed to sail through this via their
tractor, weaponry and railroad businesses.
But situations later intensified to an extent compelling them to sell off a few
divisions, including aircraft engine manufacturing. They then decided to
concentrate and consolidate their complete focus on the core automobile
business.
Just as they seemed to have revived, the big blow came in the form of the Nazi
ire who bombed the manufacturing plant and the surroundings as a revenge on
the company’s refusal to produce tanks for Nazi Germany. It was until the mid -
40s that these bombardments continued for multiple times. Never was Renault
seen to have been intimidated by such extremities.
Renault produced huge number of cars and other automobile products till date,
often revolutionizing the built and engine performance according to the need of
the hour. Never believers of keeping all the eggs in the same basket, they
played by diversifying businesses in making a lot of other products other than
just cars. They have always had their foot firmly on the ground, not shattered or
unshaken for more than a century now. This despite the colossal damages faced
multiple times.
The ‘never give up’ attitude is what makes Renault stand out like a long run
automobile warrior forever.
COMPANY HISTORY
In 1903, Renault began to manufacture its own engines; until then it had purchased them
from De Dion-Button. The first major volume sale came in 1905 when Society des
Automobiles de Place bought Renault AG1 cars to establish a fleet of taxis. These vehicles
were later used by the French military to transport troops during World War I which earned
them the nickname "Taxi de la Marne." By 1907, a significant percentage London and Paris
taxis had been built by Renault.Renault was also the best-selling foreign brand in New
York in 1907 and 1908. In 1908 the company produced 3,575 units, becoming the country's
largest car manufacturer.
The brothers recognised the value of publicity that participation in motor racing could
generate for their vehicles. Renault made itself known through succeeding in the first city-
to-city races held in Switzerland, producing rapid sales growth. Both Louis and Marcel raced
company vehicles, but Marcel was killed in an accident during the 1903 Paris-Madrid
race. Although Louis never raced again, his company remained very involved,
including FerencSzisz winning the first Grand Prix motor racing event in a Renault AK
90CV in 1906.
Louis took full control of the company as the only remaining brother in 1906 when Fernand
retired for health reasons. Fernand died in 1909 and Louis became the sole owner,
renaming the company Societe des Automobiles Renault (Renault Automobile Company).
Renault fostered its reputation for innovation from very early on. At the time, cars were
luxury items. The price of the smallest Renaults at the timhguye were ₣3000 francs; an
amount equal to ten years pay for the average worker. In 1905 the company introduced
mass-production techniques and Taylorism in 1913.
Renault manufactured buses and commercial cargo vehicles in the pre-war years. The first
real commercial truck from the company was introduced in 1906. During World War I, it
branched out into ammunition, military aircraft engines (the first Rolls-Royce aircraft
engines were Renault V8 units) and vehicles such as the revolutionary Renault FT tank. The
company's military designs were so successful that Louis was awarded the Legion of
Honour for his company's contributions. The company exported engines to American auto
manufacturers for use in such automobiles as the GJG, which used a Renault 26 hp or 40 hp
four-cylinder engine.
The Renault 4L, the first “car for living”, was the product of a brilliant idea: to create a
versatile car able to go practically anywhere and prove useful in all circumstances. Unveiled
in 1961, the five-door model featured a tailgate that opened to reveal a modular space in
which the rear bench could be folded down to transform the car into a van. Brilliant! The
Renault 4 would be produced in over 8 million units and exported to over 100 countries
before its career came to an end on December 21, 1994.
.20 Renault 16, Car of the Year in 1965:
Launched in January 1965, the Renault 16 was the first compact family car with a hatchback
opening – a breakthrough at the time. The car was initially criticized for being too original
but quickly became a success through word of mouth. Half-estate car and half-sedan, the
Renault 16 aimed to “show the way forward” as expressed in the advertisement for the
new model. The car’s unusual body styling was quickly imitated by rivals. The first Renault
to be produced at the new Sandouville plant, the Renault 16 would go on to sell in nearly
two million units.
.1996 Privatization:
The privatization of Renault.
.2008 Renault acquires a 25% share in AVTOVAZ:
On 29 February Renault took a 25% share in AVTOVAZ, Russian’s leading
carmaker with the Lada brand.
After Duster Oroch, Renault pursues its conquest of the international pick-up market with
the revealing of the Alaskan show truck.
Product and its positon:
NEW DELHI: French carmaker Renault had mega success with its entry-level car Kwid in
India that placed the Indian subsidiary on the 7th position in the global market in terms of
sales volume in the period of January-August 2016 from 18th in the same period a year
ago.
France, Italy and Germany remain the top three markets for Renault globally. Italy, with the
improving overall market situation, has jumped from the 5th position a year ago in the
same period to the 2nd.
Mindful of the need to maintain the pace, the French carmaker is continuously striving for
innovating and improving the quality of the car.
“We know that there are areas where we need to better Kwid and we are working on
it,” Carlos Ghosn told reporters on the sidelines of Paris Motor Show.
Brazil, placed at the 6th position for Renault car sales, has gone down by 19 percent in
terms of the car sales during the January-August 2016 period while India has leaped by
226 percent during the same period, thus opening enough room for India to become one of
the top 5 markets globally for Renault.
The carmaker, after launching Kwid with a one-litre engine, now is all set tolaunch
automated manual transmission (AMT) which has become a favourite among car buyers in
India due to increasing traffic congestion.
The new variant of the car, is going to be launched on November 7 and on the same day
bookings will also begin. The car, which has already reached to some dealerships, will
certainly enhance the number of buyers for the car.
Bernard Cambier, Renault's chairman for Africa, the Middle East and India, in an
interaction with ETAuto, said: “I think we have shortened the lifecycle of the products to
build continuous excitement around the brand.” Rightly so, the carmaker has launched at
least two new variants of Kwid in just one year. Kwid was first launched in September
2015.
Volkswagen AG, the company that ended 2016 as the world’s largest automaker, continues
to show a lack of follow-through. Three months into the year, the Germans fell back to
place three. It does not surprise that formerly largest automaker Toyota regained the
leadership. The astonishing part is that a dark horse is in second place. With Mitsubishi
under its belt, the Renault-Nissan Alliance has upset the top three, and even more
surprising, it is nipping at the heels of #1 Toyota.
13.1% ahead of the same quarter in 2016, the Alliance is the only contestant on the podium
with double-digit gains. With 7.5% growth in the first quarter, Toyota has found back to its
steady-as-she goes pace. Volkswagen has lost half a percent compared to Q1 2016. All this
according to data release by the automakers.
Probably even more demoralizing, Volkswagen’s perennial volume model, the Golf, lost its
position as Europe’s best-selling car to Ford’s Fiesta, professional car-counter JATO
Dynamics said today. The Golf is nearing a model change, and decreased sales of the
outgoing model are to be expected. However, “there’s also been a general slowdown on
diesel registrations across the continent, which has had a notable impact on the
Volkswagen Golf, but has left smaller segments, where the Fiesta sits, relatively
unaffected,” said Felipe Munoz, Global Automotive Analyst at JATO Dynamics. He thinks
that the “change in position may only be temporary, as we expect the updated Golf model
to reinvigorate sales.”
TECHNOLOGY:
From the Renault 16 to Espace, Twingo and Twizy, Renault has marked
history with its innovative architectural approach, which remains a core focus
Electric vehicles and their ecosystem. In addition to our existing range of four full-
electric vehicles, we are pursuing our efforts in the exploration of new. battery
technologies, extending range and reducing charging times and costs.
Travelling well-being. Our aim is to develop innovations that make car travel a
pleasurable and serene experience. To that end, we have developed onboard
multimedia systems and personalized cabin features. These initiatives are ideally
demonstrated by the autonomous, connected vehicle, NEXT TWO.
New services. We are working to meet the needs of our customers looking to find
on board their vehicles the same possibilities as those offered by electronic and
connected technologies – and smartphones in particular – including real-time
information and harmonious use between the different worlds of drivers and
passengers.
Consistent with its ambition of making electric transport the most attractive
option available, Renault is innovating with a record 400 km travel range
(NEDC) for ZOE with its new ZE 40 battery. The energy payload of 41 kWh is
almost twice that of the standard 22 kWh battery.
The R-Link2 vehicle control centre is overtly inspired by smartphone and tablet
technology. There’s a large-format touchscreen, plus voice control, for
operating an extensive range of vehicle functions, and there’s an intuitive
internet connection interface, enabling you to safely check your email or
download applications from behind the wheel. R-Link2 offers ergonomic
access to vehicle personalization menus, driver assistance systems, services
such as Tom Tom navigation, sound system controls, digital device
connections, and automobile application downloads from R-Link Store.
Correct:
The driver assistance systems from Renault, featuring high end technology, were
designed to compensate for driver error and provide a critical intervention that can
save lives in extreme driving situations. Available on several models, equipment
includes an optimised braking system with ABS and Emergency Brake Assist
(EBA), the ESP (driving) with control and CSV understeer chassis "Four Control"
four wheels, offering outstanding driving precision.
Profitability of industry:
Renault 7.5% increase in net profit in the first half(2016), a result
the French automaker said was a record in terms of profitability.
Net profit came in at 1.5 billion euros on sales of 25.2 billion euros, up 13.5%, as
strong sales of new car models kicked in.
Renault's operating margin was 6.1% of sales, an increase of 1.2 points over the
same period last year.
The Brazilian car market is expected to decline by 15 to 20% and Russia by 12%,
but China and India are both expected to rise.
Renault's home market France is likely to expand by 5%, as is the rest of Europe.
Renault's shareholding in alliance partner Nissan contributed 749 million euros to
profits, while Russia's AvtoVAZ weighed in with 75 million.
STRUCTURES(ORGANISATION STUDY):
Renault holds a 43.4% stake in Nissan, while Nissan owns 15% of Renault shares. Each
company has a direct interest in the results of its partner.
AVTOVAZ
In 2012, Renault-Nissan acquired a majority stake in Alliance Rostec Auto BV, a joint
venture with Russian Technologies which will control 74.5% of AVTOVAZ by 2014.
The board focuses on strategic direction, significant new opportunities for collaboration,
and the progress of the Alliance relative to industry benchmarks.
The Alliance Managing Directors are responsible for the operations of Alliance functions for
both partners.
Alliance Directors advise teams in partner companies and accelerate bestpractice sharing
across the Alliance to help increase synergies. They may oppose any measures taken by
Renault or Nissan that run counter to the development of synergies, referring the matter to
the executive committee of the company concerned or even, ultimately, the Alliance Board.
D.SWOT ANALYSIS
SWOT Analysis
1.Features:
Renault-Nissan’s production surged over 50% to more than 3 lakh units last year, according
to calculations by ET, based on data from the Society of Indian Automobiles Manufacturers.
A year earlier, it was in fifth position. The Franco-Japanese company’s closest rival,
Mahindra & Mahindra, registered a growth of 5% in production. Renault sold 9897 units of
Kwid in July against 9459 units in June registering a month-on-month growth.
Still, Renault-Nissan’s plant in Oragadam, Chennai, which started functioning in May 2010,
accounts for only 3% of the alliance’s global production of almost 10 million units. The plant
has the capacity to build 480,000 cars per year.
ii. Market growth rate:
French auto major Renault’s India market is the company’s fastest-growing turf in the world
with sales increasing 145.6% in 2016, chiefly on the back of the Kwid.
The Indian market has risen five notches to become the company’s eighth-largest
worldwide.
Outside Europe, it reported 15.3% growth, and its product range renewal programme was
successful with the Kwid in India, the QM6 and SM6 in South Korea, the Kaptur in Russia,
the Koleos in China, the Megane Sedan in Turkey and the Oroch in Latin America.
In 2016, the firm sold 132,235 units in India and the Kwid registrations totalled 105,745. The
combines Groupe Renault registrations for Africa, West Asia and India, rose by 36.4% in
2016, giving a market share of 6.2% (up 1.7 points). In Iran, sales rose 110.7% and in
Morocco, registrations were up 22.5%.
In the Eurasian region, registrations rose 2.3% mainly due to growth in Turkey, wherethey
were up 4.4%.
In the Americas region, Groupe Renault (official name of the group) sales rose 0.1%. In
Brazil, the market that shrunk by
19.8%, the market share rose 0.2 percentage points to a record 7.5%, thanks to the Duster
Oroch.
In the Asia-Pacific region, Renault Samsung Motors, subsidiary of Renault in South Korea,
sales rose 38.8% in South Korea. In China, following the release of the Kadjar, sales rose by
50.8%.
The year 2016 has been the most important one for Renault in India, backed by strategic
measures in all key business dimensions such as product, network expansion and steps on
customer satisfaction, Sawhney said.
For 2017, the focus will be on growth and planning to launch at least a product every year in
the next five years.
Renault India said it will expand its dealerships across India to 320 by the end of
this year, from 270 now.
The company will also add 50 outlets for its pre-owned (used-cars business) cars
outlets — Renault Selection — from 20, SumitSawhney, Chief Executive Officer, and
Managing Director, Renault India Operations, told reporters that,
“They are in full network expansion mode. They are getting full advantage —
somewhere while they are growing — they are also catching the depth. For instance,
in Delhi, they have 11 outlets and probably by end of next three months, they will
have 15 and by end of the year, 18 (dealer outlets),” they said, adding that it will be
fair split between rural and urban cities.
On the pre-owned cars, Sawhney said since the company completed five years in
India, it was natural to start that business too since it was achieving the required
numbers and there was demand for some of its older vehicles.
“After-sales is a key business and our dealers are happy because it gives additional
revenue to them. This will have good advantage because the future products that we
will be launching years ahead of time, our existing customers may look for selling
back to our used car outlets,” he said.
The company sold 1.32 lakh units last year, mainly because of the success of its mini
car Kwid, atnd simultaneously launching of variants of the same model.
Meanwhile, the company has launched another variant of its Kwid — called Kwid
Climber — which will be available in both manual transmission (MT) and automated
manual transmission (AMT) modes. While, the manual variant is priced at ₹4.3 lakh,
the AMT trim of the vehicle comes for ₹4.6 lakh (ex-showroom, Delhi).
CONSUMER PURCHASE BEHAVIOUR:
Great welcome to the customer.(It starts from security guard to till the
show room hostage)
Help me to choose. (It means listen and understand needs, helpful and
test drives)
My fair purchase. (It means showing that type of car to the customer
which the customer is able to buy according to his financial status)
Sales Consultant:
Vehicle demonstration according to customer analysis.
Giving finance details.
Test drive.
Booking.
Delivery:
SALES MANAGER:
A sales manager devises strategies and techniques necessary for achieving the sales
targets. He is the one who decides the future course of action for his team members.
It is the sales manager’s duty to map potential customers and generate leads for the
organization. He should look forward to generating new opportunities for the
organization.
A sales manager is also responsible for brand promotion. He must make the product
popular amongst the consumers. A banner at a wrong place is of no use. Canopies
must be placed at strategic locations; hoardings should be installed at important
places for the best results.
Motivating team members is one of the most important duties of a sales manager.
He needs to make his team work as a single unit working towards a common
objective. He must ensure team members don’t fight amongst themselves and share
cordial relationship with each other. Develop lucrative incentive schemes and
introduce monetary benefits to encourage them to deliver their level best.
Appreciate whenever they do good work.
It is the sales manager’s duty to ensure his team is delivering desired results.
Supervision is essential. Track their performances. Make sure each one is living up to
the expectations of the organization. Ask them to submit a report of what all they
have done throughout the week or month. The performers must be encouraged
while the non-performers must be dealt with utmost patience and care.
He is the one who takes major decisions for his team. He should act as a pillar of
support for them and stand by their side at the hours of crisis.
A sales manager should set an example for his team members. He should be a source
of inspiration for his team members.
A sales manager is responsible for not only selling but also maintaining and
improving relationships with the client. Client relationship management is also his
KRA.
As a sales manager, one should maintain necessary data and records for future
reference.
GENERAL MANAGER:
A GM's duties and responsibilities cover a lot of ground, but these are some of the most
common. He must typically:
Planning and delivering CRM strategies across the company encouraging customer
retention and customer loyalty.
Customer Journey Mapping analysing touch points with the organisation and
maximising commercial opportunities.
Working closely with all departments to ensure the CRM works effectively for all
aspects of the company.
Overseeing the migration of all direct communications to lower cost mediums such
as SMS and email.
Developing testing strategies for all aspects of the CRM to ensure the most effective
approach for the company and its products.
CONCLUSION:
From this Summer Internship Project, done here in Renault Showroom Rkl,
we conclude that this company is one of the best automobile company present
in today’s date. After it gets collaborated with Nissan, Renault becomes the 2nd
best largest car manufacturing company in India. Both the company have there
own strength. Renault, the company had succeeded in positioning in Western
European countries. Also it has three pillars which is AIA (Attractive Innovation
Affordable).
(“The ‘never give up’ attitude is what makes Renault stand out like a long
run automobile warrior forever”)