Presentation of the Renault Group

The Renault group is a large French company specializing in the design, construction,
marketing, leasing and even financing of several types of vehicles in over 133 countries.
This French car manufacturing giant was founded by brothers Louis, Marcel and Fernand
Renault in 1898. Today, the Renault group has factories and subsidiaries all over the world.

For this presentation, I will focus on the Renault Clio, which is the best-selling vehicle of the
Renault brand. You will have understood, today my marketing plan scenario will be the
development of customer loyalty.

So in this Pestel Renault, I will present you the main results on the automotive market
worldwide.

Concerning the Pestel analysis of the automotive market and more specifically of the Renault
Clio, we can mention the following points:

Political factors
In terms of opportunities from the political environment, we have noticed that several
governments of environmentally conscious developed countries have put in place fiscal and
financial incentives for their citizens to purchase electric cars.

Examples of incentives: ecological bonus for the replacement of diesel vehicles, important
tax credits, premiums for the purchase of electric cars.

In short, all these incentives have a positive influence on the production and sales of electric
cars by the Renault group in developed countries, and therefore on the Renault Clio.

In addition, the political stability of emerging countries is a good opportunity for the
development of Renault's activities in very promising markets such as Turkey, Brazil,
Indonesia, etc.

Also, the partnerships and free trade agreements signed between the French government and
several countries allow Renault managers to easily access markets with high potential for the
French company.
Economic factors
It is clear that the recent and continuous increase in fuel prices during the year 2022 has
strongly contributed to the worsening of the inflation rate at the global level and the
deterioration of consumers' purchasing power.
As a result, consumers are not hesitating to seek and test alternative travel options
(carpooling, public transport, cycling, etc.) to avoid the use of more expensive fuel
consuming vehicles in recent months.
Alternative products and solutions therefore represent a major potential threat for Renault!
The number of low-cost vehicles manufactured and sold worldwide has dropped considerably
during this health crisis of covid 19.
In addition, Renault's financial and economic performance depends on the fluctuations of the
exchange rates of the main currencies worldwide. Let's not forget that Renault is present in
all continents of the world.

Socio-cultural factors
In the case of Renault, it is undeniable that consumer attitudes and buying behavior in the
automotive market are currently undergoing significant changes. Here are the main
conclusions:

- The world's population, and that of developed countries in particular, has a growing interest
in ecological concerns and the current demand trend is towards electric or hybrid vehicles;
- According to recent studies, many European consumers do not hesitate to buy low-cost
vehicles. Consumers with modest and middle incomes are constantly looking for ways to
reduce their car budget;
- Consumer demands have changed significantly. However, expectations are still focused on
safety and reliability of vehicles;
- Increased development of public transport such as carpooling is a major threat to low cost
car manufacturers like Renault;

Technological factors
The technological factors are the following:

- Development of new models of ecological and less polluting vehicles. This is

the case of electric and hybrid cars;
- Design and production of new technologies to ensure greater road safety and
maximum protection for motorists.
Major car manufacturers such as Renault do not hesitate to invest huge amounts of money in
research and development of new technologies in order to maintain their market positions and
ensure their sustainability.
Companies in the automotive sector that miss out on these technological innovations risk
seeing their market share shrink. The technological stakes are really high!

Legal factors
In the automotive sector, we have noted the growing number of safety and pollution
standards.
Thus, and given its international dimension, Renault's management must constantly ensure
that the laws and regulations of the countries in which the company operates are taken into
account. This includes labor laws, company laws, etc.

Environmental factors

For Renault and its Clio, ecology is a crucial issue. They must constantly design less
polluting models in order to reduce CO2 production.
In addition, some countries are even considering banning combustion engine vehicles by
2025. In addition, a large proportion of consumers are adopting "responsible" purchasing
behaviors by favoring environmental protection and renewable energy.

Competitive Rivalry – High

Renault competes with several other automobile manufacturers.

The industry continues to grow as mergers and alliances are formed
between various manufacturers to pool their resources for better
performance. All brands offer different products which continues to
fuel competition.

The Threat of New Entrants - Low

Renault has established a performance and cost advantage through
its experience. Its products are also exclusive and it is an
established brand in the automotive industry. The capital required
to enter the automotive industry is very high. Companies already in
the industry have gained a competitive advantage in terms of
performance and cost through research and development. Thus, the
threat of new entrants is low for Renault.

Bargaining Power of Suppliers - Low

The raw materials Renault needs include plastic, glass, paint,
aluminum and various other components. All these products are
standardized and not unique. Contracts with suppliers are also
short-term, making it easy to switch to other suppliers. Once
relationships are established with a supplier, new suppliers cannot
easily enter the business, as quality and other factors require trust
that is built over time and experience.

Bargaining Power of Buyers - High

The number of buyers in the market is large, but each buyer makes
an expensive purchase and may also buy in installments that last
for several years. The customer can get the necessary information
about the product from various third-party sources and does not
have to rely on the seller. Buyers cannot make their cars. Buyers
are also price sensitive and tend to purchase vehicles that fit within
their budget. The products offered by each brand are unique and
customized offers are provided for each customer based on their
ability to pay.This gives buyers excessive bargaining power.

The Threat of Substitutes - Moderate

Substitutes for the car include railroads, public transport, bicycles,
motorcycles, etc. Each of these is an appropriate substitute that is
often used by consumers. Each of these is an appropriate substitute
that is often used by consumers.
Customers may not opt for these substitutes once they are
accustomed to using their vehicles and the variety available makes
vehicles available to almost everyone. Therefore, the threat of
substitution is moderate for Renault.

Strategy
Renault must strike a balance between short-term cost savings and protecting its
fundamental competitive advantage. In its drive to win market share by fighting on
price, Renault must avoid cutting costs, which could result in inferior products and
services.

Structure
The pandemic has challenged the company's current supply chain structure and
management. To become a more resilient organization and prepare for future
disruptions of similar magnitude, Renault should focus on geographic diversification of
its suppliers so that climatic, geopolitical and other disruptions do not affect the
company's long-term survival.
Systems
Renault needs to focus on the following areas: - Improving internal processes, such
as risk management, customer relationship management (CRM), web application
optimization, and data visualization across the enterprise.

Staff
Some of the steps Renault can take to improve its human resources include

Remote recruitment and integration - Due to the pandemic, many employees are
working remotely. To make the environment more inclusive for new employees,
Renault should implement a remote onboarding system.

Open chats allowing employees to approach people at different levels of the

hierarchy. All this will allow for better communication.

Skills
Renault can set up a structured training and development program for people
working remotely.

Renault can recruit new talent because more and more people are leaving their
current jobs because they are not stimulated enough.

Shared Values
The organization has built a successful business model based on its core values,
vision and mission. It does not have to change much in the shared values segment.