ABSTRACT

To examine the
shift in customer
insights in the Indian
Automotive Market
based on Renault Kwid
success. Also, to
describe the Market
Mix strategy of
Renault Kwid which
worked well to gain
the substantial market
share of the Indian
Automotive Market.
THE RENAULT KWID Indian Market Strategy
Akshat Bansal
Contents
Introduction.....................................................................................................................................2
Customer’s Insights..........................................................................................................................2
Pricing Strategy............................................................................................................................3
Competitive Analysis....................................................................................................................4
Porter’s 5 Force Analysis..............................................................................................................4
Threat of New Entrant – (LOW)...............................................................................................4
Competitive Rivalry – (HIGH)...................................................................................................4
Bargaining Power of Buyer – (HIGH).......................................................................................4
Bargaining Power of Supplier – (LOW)....................................................................................5
Threat of Substitute – (LOW)...................................................................................................5
SWOT Analysis.............................................................................................................................5
.....................................................................................................................................................5
Marketing Mix Strategy...................................................................................................................6
Product:.......................................................................................................................................6
Price:............................................................................................................................................7
Place :...........................................................................................................................................7
Promotion :..................................................................................................................................8
Conclusion:......................................................................................................................................8

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Introduction
Renault Kwid marks a praiseworthy launch and an adaptive strategy towards success. The
French Automaker Renault began their activities in India in the year 2005. Renault followed the
comparative Business Strategy in India as of Tesla. Renault India started their operations with
premium items like Fluence (premium Sedan) and Koleos (Premium SUV) to construct the
superior brand picture. Even though, Renault India was always unable to acquire the Indian
Automobile Industry Market Share with their top-notch items. Today, Renault is a mass-market
automobile manufacturer in India with a major market share of entry-level hatchback and
crossover.

Customer’s Insights

Figure
Figure 1. Target Market for Renault 1. Target Market for Renault Kwid
Kwid
The objective market that Renault set to Capture with its Kwid was the section level portion
which represented almost half of the Indian vehicle market. The lower working class, working-
class families are the objective clients for Renault Kwid. Renault likewise focused on the first-
run through purchasers and female purchasers with their item offering of Kwid.

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Renault Kwid was sure about the intended interest group. It was significant for the organization
to comprehend what the target customer is searching for and expecting to accomplish with the
acquisition of the Kwid.

Pricing Strategy

Figure 2. Pricing Strategy

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Competitive Analysis

Figure 3. Competitive Analysis

Porter’s 5 Force Analysis

Threat of New Entrant – (LOW)
Renault Kwid was dispatched at cutthroat value offering a larger number of highlights and
worth than contenders. Renault had the option to accomplish the low pricing with the
localization of parts. It is hard for a new participant to enter in cutthroat entry-level hatchback
segment at a lower cost with comparable or more highlights and advantages.
Competitive Rivalry – (HIGH)
The entry-level hatchback segment is extremely competitive. Because of the high market share
of the overall industry, each manufacturer needs to catch the developing business sector.
Different manufacturers attempted to catch the cutthroat portion of the overall industry
through mergers and acquisitions to cut down the finished product cost. Although Renault Kwid
is getting a charge out of the market chief position even after a half-decade of dispatch. Renault
can contend with contenders by refreshing the Kwid consistently to stretch the PLC.
Bargaining Power of Buyer – (HIGH)
The buyers have numerous choices and there is a high chance of switching to a competitor
product. Renault positioned Kwid as a feature-rich hatchback with new SUVish looks to pull in
and attract more buyers.

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Bargaining Power of Supplier – (LOW)
The parts suppliers don't have a lot of haggling powers. Because of the huge number of
suppliers accessible in India, Renault has the edge to choose from numerous suppliers. This
made it feasible for Renault to offer a better overall product at a low price.
Threat of Substitute – (LOW)
Motorbike, bicycle, and public transportation are the substitute alternatives accessible to
customers of Kwid. The substitute doesn't offer solace and has satisfactory constraints.
Henceforth, the threat of substitutes is low for Renault Kwid.

SWOT Analysis

Innovative SUVish design Renault Brand penetration in India.

Feature-rich No words on Renault reliability
Competitive Pricing High Investment cost
Best Fuel Economy
Variety of varients Strength Weakness

Presence of competitior
Increase in Distribution Network.
High bargaining power of buyer
After Sales service to build strong relationship
Opportunities Threat
Product Differentiation from competitor
Change in trends

Figure 4. SWOT Analysis

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Marketing Mix Strategy
Product:
 With its exuberant design and features, the KWID establishes a new dimension to the
hatchback segment.
 Renault KWID has a lot to offer to its aspiring customers with its SUV like design
inspired by its previous successors DUSTER. 
 In terms of product marketing KWID approaches the Indian market with features such as
7’’ Inch infotainment systems with Bluetooth and Navigation, Power Steering, Digital
Speedometer, 300Liters boot spaces, Driver airbags, etc., which is quite unheard of in a
in the segment
 KWID is also powered by  800cc 3-cylinder petrol engine, delivering fuel efficiency of
25.17Kms.
 With its cool new features and distinctive looks, Renault KWID became a game-
changers in the hatchback segment and clearly distinguishes itself from its rival competitors,
Maruti Suzuki Alto 800 & Hyundai EON.

Figure 5. Renault Kwid Price Marketing Mix 1

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Figure 6. Renault Kwid Marketing Mix 2

Price:
 Renault Waged a price war in the entry level segment by launching KWID starting at
2.56 Lacs, challenging rivals such as Maruti Suzuki Alto and Hyundai EON.
 In comparison with pricing Kwid offers 30k – 60K lower price at base than its Segment
leaders. 
 In addition to this aggressive pricing strategy Kwid also offer benefits such as Corporate
discount, Exchange discount to its customers. 
 They also have flexible loan option with a tenure up to 7years. 
 The company is perceived to be competitor price taker and value for money by the
customers.
Place : 
 The First Manufacturing unit in India was started at Chennai with a production of
400,000 cars per year.
 A large part of credit for the Kwid’s Success goes to sourcing of local components rather
than procuring it from abroad.
 Kwid became the first car to achieve 98% localization with its launch . even the market
leaders were not able to reach that degree of localization. Maruti Suzuki’s Alto has a
localization 97%.  
 Renault gave its local component suppliers the flexibility to design and innovate to bring
down the costs. 
 With help of 400+ suppliers all over India , Renault was able to cut down cost and set  a
aggressive pricing strategy for the Indian market.

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Promotion :
 Renault Kwid recorded a total booking of 100,000 within its initial launch in September
2015 due to aggressive pricing and SUV like design.
 By implementing clever marketing strategy, Renault was able to promote Kwid as
successful and a promising product in the Indian market.
 Few days prior to launch, Renault introduced an app as well as virtual showroom for
prospective buyers. The company received more than 21,600 bookings
through application. They can also learn more about specifications, features, colors and
variants.
 It also helps consumer to make comparison with other cars and explore the car in a better
way.
 Renault has tied up with PAYTM, which enabled customers to book online or pay the
booking amount at dealerships with their Paytm wallets.
 In terms of market growth, Renault hopes to achieve a 5% market share in the hatchback
segment by 2016 and make it to the top as one of the market leaders and also challenging
established segment leaders.

Conclusion:
The launch of Renault Kwid gave a whole new makeover to the hatchback segment. With
98% localization, aggressive pricing, and differentiated marketing of Kwid, Renault
emerged as one of top three market leaders in the hatchback segment with an achieving
5% market share. The successful impact of Kwid in the Indian market influenced aspiring
customers to expect more in terms of innovation and design. Renault premium hatchback
stormed the Indian market and challenged the segment leaders, Maruti  Suzuki and
Hyundai as a strong competitor. With new technology developing every day, Renault
promises to come up with a new variant every year with stylish design and concept
challenging their rivals with competitive response.

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