Circumstances faced by Management
Event Situation
1. Renault entered Indian
market with partnership
with Mahindra Ltd in 2005.
Renault introduced a Sedan
called Logan in 2007.
2. Renault launched a Sport
Utility Vehicle (SUV)
known as Duster in July,
2012. Duster featured
modern frame, smart tech,
quality interior and high
fuel efficiency.
3. But Duster alone
contributed to 80% of total
sales of Renault. Over-
dependence of Renault on
Duster was exposed
because other brands of
Renault were hardly
contributing to sales of
Renault.
Decision
Failure of sales of Logan
due to outdated
performance and high
price.
Duster found immediate
success by recording the
highest ever sales in March
2013.
Huge decline of sales in
July, 2013. Thus Duster
was found behind Ford
Ecosport and Chevrolet
Enjoy in terms of sales.
Management wisely decided
to exit from joint venture in
2010. Renault reentered
Indian market on its own.
Management decided to
carry on the business due to
the attained success.
Management needed to
rethink because it was a lot
to worry about.
 Possible Suggestions for Duster

 To focus on one or two feature(s) and make it best in the space:

Duster can focus more on one or two features. For example, Duster can focus on either
interior or exterior and either on handling or speed. Duster has to make sure their focused
feature is better than its competitor. Then the people who cherish the feature focused by
Duster, will become customers of Duster.

 Offline Marketing:
Now Duster has to make sure that they explain their focused feature to the customers.
Then customers will be able to understand the feature where Duster is specialized. For
this, Duster needs offline marketing. We know Duster performs online marketing but it is
imperative that also performs mass offline marketing through generating buzz, publishing
ads, using promotional products, giving business cards, offering trade shows and lunch
etc.

 Offering discounts:
In order to ensure that Duster is affordable to customers, Duster cannot help offering
discounts at regular intervals.

 Improvement of other brands of Renault:

Duster alone contributed to four-fifth of total sales of Renault. It indicates that other
brands of Renault were not performing. Other brands of Renault need to make some sort
of contribution in order to alleviate the high pressure on Duster.