Renault – Some Major factors to be adopted by Renault to become Market Leaders

Distribution Network – The company should try to analyse the market on the behalf of the psychology of
the people. For ex. If the people in Himachal want a rough terrain car then they should keep the stock of
their 4 * 4 Duster. So, this will reduce the waiting time for the customer and hence better deliver
management will be processed. More the number of dealers, more will be the sales of the vehicle as
people will be recognizing the brand easily.

Hatchback Market – The firm should focus on Mini SUVs as the firm is already strong in terms of the
Hatchback. It’s Clio’s 365,508 units were sold where the top performer was Volkswagen’s Polo with
502,752 units sold in 2018. The firm is not only dependent but has taken the market for granted. This is
not wrong to say that market is shifting more towards the Mini SUVs. As Hatchback Market of Europe
declined from 25% to 18% in a decade and that’s a huge decline.

Resale Value – The firm should also try to create the demand in the market by giving attractive bonuses.
The psychology of Indian people especially works on this factor that whether after 4-5 years the value of
the car will get depreciated more or not. It fluctuates the mind of the customer and this again gives more
significant impact in changing the market leader. So, if the quality will be focused upon, then people who
are re-selling the product will give them a competitive edge in the market.

Cannibalization – It is being referred to the significant decrease in the volume of sale or decrease in
market share or of sales revenue by introducing the new product in the market by that producer only.
Suppose in case of Renault If, the firm was selling Duster and suddenly it introduced Captur which
decreased the sales volume of Duster. But when you will see to Market the overall share of Renault is
increased. This strategy can also be used by the firm to be the market leader.

Shift on Market – The firm is only focusing upon the Mid-level income people and High Range People.
The firm should instead focus upon some other rural areas or the people of lower income level. The
penetration pricing policy can be adopted by Renault so if they target the people of lower income level
then they’ll definitely try the product. Also, the company should not forget the economies of scale.

Product Diversification and Portfolio – What people love? Variety obviously. What happens when you go
to a luxury perfume shop people tend to get confused that which one to go for. But if you tell them there
are only 4 perfumes to choose from then rejection rate is high. So, to get the market share be the
prominent leader in the market, analyse the need of the customer and one should come-up with the more
cars. If the customer will think then it obvious that they will incline towards your product.