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Which markets and segments does Renault aim to reach for the Logan?
In 1995, Renault, under the direction of the former CEO Louis Schweitzer, made a strategic decision to expand the company’s presence in markets outside of Western Europe. Schweitzer’s focus was to take advantage of central and Eastern Europe. These emergent markets cover a huge geographical area and were deemed to have great growth potential, as they are made up of countries with high economic growth rates. In order to enter each of these markets Renault had to produce a car that would meet the needs of the consumers whose main concern was price, reliability and durability. This resulted in the production of the Renault Logan.
The market industry in which Logan entered was the low cost/passenger automobile market. Renault segmented its market for the new Logan automobile geographically, focusing on emerging markets and capitalizing on the opportunity of high growth in the middle-class markets internationally. For example the ownership of cars in Turkey is 70 per thousand. Currently the Logan has entered the following emerging markets Romania, Croatia, Slovakia, Hungary, the Czech Republic Serbia, Macedonia, Turkey, Poland, Slovenia, Bosnia, Bulgaria, Moldova, the Baltic regions and Algeria.
Major target segments in these new emerging markets are young couples and new career starters, middle class families with stable revenues, large families (5 or more), first time buyers, and people who desire to purchase a car.
Logan’s market segment within the low cost/passenger automobile market was in the entry mid-size segment. The mid-size segment, as described by anwers.com, is the term used for an automobile with a size betw ...