Renault-Dacia Case Study
University ‘Alexandru Ioan Cuza’, Iasi, Romania, 2006
CASE STUDY DACIA-RENAULT
Students: Ramona Halarescu Olivia Leu
CONTENTS
1. 2.
Background The Marketing Strategy 2.1. People 2.2. Product 2.3. Price 2.4. Promotion 2.5. Place Goals and Objectives Conclusion
3. 4.
2
1. Background In today’s rapidly changing environment products and markets have a limited life expectancy. A company which does not update and change its products and markets is unlikely to be successful for long. This was at the core of Renault’s decision to take over Dacia, a long established car producer in Romania, the heart of Romania's automotive industry. Renault has been present in Romania since 1966 and forged the country's automotive industry. Close ties have existed between Renault and Automobile Dacia for 35 years, with various Renault models being assembled by Dacia, under licence through to 1978, thereafter independently. Excluding the SupeRNova, the vehicles currently produced by Dacia are based on former models of the Renault range. On September 29, 1999, Renault acquired 51% of the capital of the Romanian car maker Dacia, amounting to $50 million. Renault has since increased its equity stake to 92.72% and put the entire company on track for rapid, wide-reaching modernization. Built in 1966, Dacia's Pitesti plant covers some 2.9 million sq. meters. More than 2.2 million vehicles have rolled off the production line since 1968. The plant has an annual production capacity of 120,000 vehicles, plus 120,000 engines and gearboxes, with operators working in two shifts. Fully computerized, Dacia is now hooked up to the Renault-Nissan Alliance networks. To meet demand, the company has developed a monthly programming system that adapts production to demand forecasts. The modernization of production facilities and assembly lines is an ongoing process. The new Logan launching marked the Dacia brand revival. Once this was launched Dacia could run in its industrial
CASE STUDY DACIA-RENAULT
Students: Ramona Halarescu Olivia Leu
CONTENTS
1. 2.
Background The Marketing Strategy 2.1. People 2.2. Product 2.3. Price 2.4. Promotion 2.5. Place Goals and Objectives Conclusion
3. 4.
2
1. Background In today’s rapidly changing environment products and markets have a limited life expectancy. A company which does not update and change its products and markets is unlikely to be successful for long. This was at the core of Renault’s decision to take over Dacia, a long established car producer in Romania, the heart of Romania's automotive industry. Renault has been present in Romania since 1966 and forged the country's automotive industry. Close ties have existed between Renault and Automobile Dacia for 35 years, with various Renault models being assembled by Dacia, under licence through to 1978, thereafter independently. Excluding the SupeRNova, the vehicles currently produced by Dacia are based on former models of the Renault range. On September 29, 1999, Renault acquired 51% of the capital of the Romanian car maker Dacia, amounting to $50 million. Renault has since increased its equity stake to 92.72% and put the entire company on track for rapid, wide-reaching modernization. Built in 1966, Dacia's Pitesti plant covers some 2.9 million sq. meters. More than 2.2 million vehicles have rolled off the production line since 1968. The plant has an annual production capacity of 120,000 vehicles, plus 120,000 engines and gearboxes, with operators working in two shifts. Fully computerized, Dacia is now hooked up to the Renault-Nissan Alliance networks. To meet demand, the company has developed a monthly programming system that adapts production to demand forecasts. The modernization of production facilities and assembly lines is an ongoing process. The new Logan launching marked the Dacia brand revival. Once this was launched Dacia could run in its industrial