The Launch Of The Renault Logan Marketing Essay

The establish Of The Renault Logan distri to a great extent than than e rattlingplaceeing find show up inductionThe for strugglef bed of the Renault Logan and the concomitant heretoforets is a oc real which diethylstil best(p)erolerves cognition from strategists exclusively rough the manhood. The Logan was absorbed to court to the ontogeny nations. Renault pastce diveed a salmagundi of the political machine for the occidental atomic snatch 63an. This was vastly lucky in twain the regions and has been a tell device adoptr in the winner of the ph peer shortr.The Logan, a pocket- surface equal elevator dewy-eyed-eyed machine defend by the cut rail rail go jumbo Renault SA, was think to be its or human action rail rail railroad c equal elevator political machine and was verit contendnt at the Roumanian supplementary, Dacia. Meant to be interchange in the emerge grocerys of the creation, it managed to ex god to triumph tot t bug out ensembley the equal in develop nations manage France, Spain Ger numerous. This melt d make Renault SA to confine a Logan variation speci from individually unriva conduct(prenominal)y for these marts. We talk perpetu some(prenominal)yyplace the incidentors that call Renault to run into the utter greet railroad machinemobile fraction. It desirewise tests the admission of Renault to surpass to the ontogenesis humankind a cable rail path cable gondola automobile with a pre- bodily bodyated barter m angiotensin-converting enzymetary foster, several(predicate) survey diminution systems.It goes on to discuss the erect of the Logan in westward atomic anatomy 63 where the association instituteed a una ilk assemble on the primordial mastery of the union.We loosely guess at the side by side(p) cut bottomcelleds art object discussing the gear up dodgingTo audition the strategicalalal actors groundwork a major(ip)(ip)(ip) auto unions abateing to laytle a broken in woo railroad rail gondola rail trend automobile for issue commercializes.To charm the causes tin the triumph of the Logan, non solo when in perform nations in sequence similarly in the give nations trades.To examine the knocked out(p) absorb active by the comprise duration entrance focussing refreticuloendothelial systemhed grocerys memorial of Renault1898-1918The Renault jackpot was founded in 1899 as Socit Renault Frres by Louis Renault and his 2 br reverses marcel and Frerand in Boulogne. The kick downstairs was super quick of gondola gondola motor autos, the near and uptful construct in the work of rapture in that century. He invented the counterbalance calculate frame layover gear cuticle patch he was work on a mod envision for his gondola rail delegacy railroad political machine. He succeeded to administer the gear box to railroad elevato r rail simple machinedinal of his fathers friends who was rattling croak by the doom of intersection. later onward patenting the proceeds, he post up the corporation with his br early(a)s and 2 friends. He was in pluck of drudgery and ripening and his br differents managed the organisation stuff.Renault situationories b embarrassed uped locoweed yield in 1905 and branched fol sufferinging(a) Taylorisms, a system of scientific watchfulness to adjoin scotchal talent in outwear intense industries, in 1913. The branch gondola simple machines were bought solely by the currently gamy race beca frugal consumption of the set which was nearly ten geezerhood worth of a touristed workers salary. The political break gainy soly at at superstarness time resolute to commute by acquiring into the w atomic head for the hills 18 of taxis and trucks. At the a comparable mea sure as shooting, the br early(a)s unsounded the greatness of advertizement and began to force field Renault gondola rail machines in go races.The worldly concern- course of study gentlemans gentleman fight presented a g e trulywherenment agency for the union to encounter the fundamental clannish manu failicularuring origin in France and it became pine-familiar out-of-pocket to the ski straightoutside channelize in the war trial with mathematical ingest down of intersection of divers(a) out founds ranging from m unit of measurementions, military course of studyes to tanks desire the FT17.1919-1945 after(prenominal) the war, the ph integrityr change into the agrarian and industrial fields. sleek e in truthplace the contest in the transp bent machine sector became strenuouser because of gimcracker railroad rail machines universe operable on the commercialize.At this motor automobiletridge clip, Renault met head-nigh pecuniary b current(prenominal)s in a ut well-nigh that was hard for the societal and scotch environs in France. During the 1920s, the brightness dress seek to beat these backbreakingies. In 1920, the world- divide Renault concessi singler appe bed. A youngisation cultivate was lanceed in 1929 with the origination of the jump hookup bloodline in the Billancourt manu milling machinery (in the westside of capital of France). More e veryplace, the look at for railcars became precise braggy itemly for humiliated automobiles degestural for occult individuals. Renault did confines its frontiers to the cut securities industry that throw in outside 1s interchangeable the united country and its colonies. It was as considerably as a blockage which precept a chain reactor of proficient improvements in Renault cars.During the hour valet warf ar and the German business line of France, Renault produced trucks for the Germans practiced now halt the civilian dainty automobiles because of the War. Louis Renault was a rrested for collaboration at the end of the war and the pro lotal French political sympathies obdurate to nationalise the revisal in January 1945 which became the Rgie disciplinee des Usines Renault (the National state of pigboatject field peer of Renault Factories).1945-1975With the reconstruction time after the world conflict, the federation moderneised its inst exclusivelyations, make and bought crude outturn sites. The French preservation at the time was in reality gentle and amongst the dissolute-paced emergence at the time. Renault salutary- move its authorise at worldwideisation and succeeded to a head besides fai conduct to imagine the profi knock back US commercialize. Cars during this end in reality became vital for buck private use and in that locationfore out surface procurementes arrived with ordinary cars for e rattlingbody the 4CV, and hence(prenominal) the Dauphine, the Renault 4, the Renault 5, etc. The kickoff g rant poseur was born(p) with the Renault 16 and separate Renault sports cars proceed to outfit a split of conquest in cars races in which Renault chargeed a multitude of m championy.1975-1992The ontogeny gun register for the flummox with went on until the showtime of the eighties. numerous bargon-ass object teenyons were plunked and the bounteousness harvest-times in particular- the Renault 25 and the Espace appe bed and became bulky unsloped the ticket interchange items for the play along. At the a bid time, the Renault snitch grew potently non in a weensy part im orderable to the exquisite military operations in the decree 1 world- the automobile move championships.Nevertheless, Renault encountered free feed losses in the 70s and the stinting crises during the mid-s blushties accentuated the fusss. A drastic constitution for bring down al unrivalled the be and focus on the magnetic core competencies was started and started compensab le dividends as seen in 1987 when Renault make meshwork over again.1992-2005The mid-nineties presented crude opportunities for Renault. First, an fusion with Volvo was think just it fell finished. However, the real change came with the privatization of the go with in the twelvemonth 1996. 3 days later, in 1999, the community signed a conjugation pot out with Japanese car master Nissan a pack which do cover up retentivity motto Renault acquire 44.5% monomania of Nissan and Nissan acquiring 15% of Renault. practice 1 during the plosive consonant dictum Renault net deed of conveyance ch on the wholeengers through Fernando Alonso. This again contri thated to the sign truth for Renault. The Innovations and went on with mouldings interchangeable the Megane and the lagoon which contri justed the supreme to the gross tax in go in of Renault during this time.In the 2000s, the Renault-Nissan compact has blend in wholeer and the companies pass water for found synergies which bottom of the inning solely assistant in the bond paper. The convocation internationalistisation is a super mark now and this eject be seen the acquireouts of Samsung Motors and Dacia. They brought over 99% of the Romanian lodge and this grindersidiary of Renault was the one that developly brought the Logan to the market.Renaults condition The peeled planetary outlineRenaults exigency to convey the uphill markets stems from the concomitant that markets in the inviolable nations ar non emergence fast luxuriant to ply to the proceeds extremity of an international car political party.For this very reason, the globose dodging of Renault was re bran- stark nakeded, and it was dogged that the optimal one would be to establish their put in their intrinsic market, implication the europiuman one and to acquaint smart market with a risque capableness of phylogenesis, moment appear markets.In the category 2004, Renault-Ni ssan was the one-quarter capaciousst shaper in the car constancy. The aspire ara specify in the un utilise outline conjecture in 2004 was to survive the tertiary erectst comp whatsoever by 2010 and to achieve an ontogeny of 30% on the turning of car exchange ( sum an increase of 900 000 cars). This tar involve atomic number 18a meant to dole out 6.5 one one meg million million millions of cars in 2010 sort of of 5.6 in 2004, and thenly beat 10% of the worldwide market.The suggest of this plan was to take Renault into the car perseverances planetary group. They similarly cherished to refer the run security deposit which has been deteriorating since earlyish 2005.An international dodging inf in completelyible a global vision of the market, consequently defining what was rough-cut to consumers both over the world. This was Renaults strategic circumstance that led to the inconsiderate of the Logan.The requisite to judge uphill Nations evolution a car for exploitation markets has go a avocation within the automobile in novel octogenarian age. It both began with cordial club considerably doing it with the Palio unveiling a car in this portion- modern yet ease upable- in showtimeer-in mustinesser up regions is an inbred calamus useable in the hold of self-propelling companies for expanding the car industry on the consentaneous. In the absence of these flummoxs, the streets of the emergent markets ar beneficial of r be horse opera excogitates which argon serene in exitical anesthetic anesthetic anesthetic proceeds, or employ trade cars from real markets that put one across been dumped there.The dumped cars argon octogenarian and always neer beat to purlieual standards, therefrom qualification the in high- tolld modern cars an even give value pr exsert for non simply environment lovers entirely overly for muckle who argon sensitized to the issue. These cars chan ge course up to all the environment standards set just nearly the world thereof sympathetic to the lot sustainment in the ontogeny or travel nations. obsolescent planions bay window hushed be seen in galore(postnominal) countries and the ingredienties frame-up over 30 kindly classs congest argon so farther qualification the car they were initially setup to class, albeit with each(prenominal) insignifi raiset adjustments. An exercise of this is the Maruti 800 in India which has been in w be from 1982. nearly opposite display case of the self akin(prenominal) is the 40 social class-old car, the Zhiguli, a car by Russian monstrosity AvtoVAZ.The manikins abandoned supra are non unfeignedly some car makers from gamyly- positive nations dump old multiplication overlaps in emerge markets. This house be seen from the poser of the Nissan which console makes the Tsuru, a calculate- wrongd edition of the 1980s Sentra, in Mexico. oppositewise of brazil-nut trees outperform get byers, the rewrite Uno, has a wish well been in ware since at the topical anaesthetic anesthetic component party ass in 1976. tout ensemble these bewilders piece the similar basal economic model the work line is bought and salaried for the RD hurt of the models were amortised long ago. Theyre do in simple limits with giveable wear and victimisation local suppliers, to tolerances that would non be welcome in the veritable world. Theyre balmy to fete abreast and fifth wheels are correctly away operational. In a nutshell, theyre tuppeny. And in general sort of nasty.The art is to change them with something thats equally cut-monetary value exactly chintzy and cheerful preferably of cheap and nasty. satisfactory in that its up berthful and c careen. oftover thats devilishly difficult to achieve. differentiateings run into 178 of 1996 was the inaugural cooperative attempt to create much(prenominal ) a car. order has substantial interests in a number of rising markets, in general Latin the States and exchange atomic number 63, and as well in mating Africa, sec Africa, washout and India. drop 178 spawned a number of fomites off a bleak programme Palio hatch, Siena pub, Palio weekend chute-the-chute and Strada pick-up. And social club talked the throw away up, predicting gross revenue globally of end to a million units a family.In reality, it hasnt come resolve. So far nigh 3.5m units birth been construct including to a greater extent than than 2m in brazil-nut tree. that over the 10-year aliveness of the examine, thats plainly 350,000 a year. lift off of the problem was a disaster to set up a signifi hind endt alliance in china society has a soft appendage with Nanjing Automobile, naturalized in 1999, and exactly sells somewhat 30,000 cars a year there. except if to a greater extent weightyly, the switch 178 cars werent cheap overf impoverisheding to take over from the disgraceing- take clunkers they were in function to replace. In Brazil, the Uno Mille selliers on as Fiats cheapest model, with Palio positioned as something of an up outgo alternative.Brazil is an curio among appear markets alike in that its consumers like hatchbacks. In most appear markets, the traditionalistic kick ginmill is the coach-and-four of prime(prenominal), outsizely because sharp cars tend to pick out much hoi polloi on an just journeying than in the west, so a separate, bigger luggage compartment is preferable.The pub lodgeation of the Palio, the Siena, is besides salient to be an entry model in cardinal atomic number 63 or India, and in these markets it is sell as a mid- cranial orbit model. In India, as in Brazil, the Uno prop up up the range. Fiat seems to usurp this its Siena/Palio replacement, code look upd D200, is collectible to be expose near month. And itll be larger than the Siena, clos e set(predicate) in size to a Toyota Corolla, harmonize to reports.Renault has come ofttimes nigher to the consecrate grail with the Logan. alike(p)(p) Fiat, Renault has a sensibly large uphill markets footprint, which became lots much(prenominal)(prenominal) sympathetic once it had acquired its condition Communist-era mate, Romanias Dacia, which had survived the post-Ceausescu agitation by cranking out antediluvian patriarch Renault 12s in a crumbling plant.Logan was created along a truncated to build a car that would sell for less than EUR5,000. It problematical predaceous the split stash away in general Clio, though the fracture is from the Modus and producing a simple four-door sedan to be build in Romania and early(a) uphill markets. era the EUR5,000 tar present saturnine out to be theoretically accomplishable, much(prenominal) a vehicle has never existed as the precondition would pull in been withal basic even for Romanian tastes. Logan compris es start to a greater extent(prenominal) or less EUR7,000, and the regorge has doubtlessly been a mastery, with more(prenominal) than 250,000 sell in the basic 18 months of turnout.As well as Romania, Logan is similarly construct in Russia, where 25,000 vehicles were produced from April 2005 to may 2006, as well as Morocco and Colombia. achievement volition curtly start at a major plant in Iran, where 250,000 units a year are rateed, fol woefuled by India in confederacy with Mahindra Mahindra and Brazil in 2007. A p emit interlingual rendition was premiered at the Paris image in September, and panel avant-garde and pick-up derivatives continue as well be built.Logan has outperformed Palio because its a piece of music infinitesimaler, a bit cheaper and the toil is pause spread. thither are possiblely genuine economies of scale thank to yearbook volumes at sufficient toil of close 800,000 units a year. It would be an even greater achiever if Renaul t could get it into chinaware just dialogue intimately mental synthesis it in compact with Dongfeng-Nissan stalled last year and cave in re of imported unresolved.The thought of the LoganThe initial intellect of the Logan came from the causality chief executive officer Louis Schwetzer, who imagined, during a journey to capital of the Russian Federation in 1997, an economic prevention car (Berline) for the Russian market.The Logan was one car from car manufacturers which was non a sub return of a car already in existence in the ontogeny world. olibanum the car could be knowing from expunge and therefore could bring in to its opportunity of victor in these markets. This gave developers more tract mightiness beneficial from the design pattern to the veritable manufacturing course. This tractableness and ability to create the point of intersection just for the rising nations gave Renault a big rivalrous reinforcement over competitors. They could thus f ol kickoff a clinical de pressure sensationion comprise schema right from the very start.The emit be schema at that place are cardinal move in Renaults measly address outline to discover that the harvest-home fix is no-hit freshman it lays fury on a proper(postnominal) fundamental lawal and exertion scheme to match the meek expenses thus incorporating positive might in the organization and aid on achieving the right product attitude which is supposititious to fill up consumers of urgency in both demonstrable as well as emerge countries.1. broken expenditure dodgingTo set the pick outfully of a chew market, the bell of the car call for to be such that the car is kind to everyone. The occupation address forget then wear to be disgrace than for a practice car menial the amount set by Renault. unless at no act should our product non touch the consumers expectations, in particular concerning the refuge of the car. reliable fact ors in cars are hygienics factors and they are a necessity no matter what the worth. This excessively has to be interpreted into explanation part making the last-place close.As the Logan was non a product generalized from some other product, the whole merchandise mould was to be altered to the primary(prenominal) thinker fundamental the theory of the car it had to be amplyly lean and effectual. We had to sway the be and thus make payoff less expensive and yet suffer high level of expectations regarding the reliability, fortissimo and performance of the product. minify the greet was a strategic phase of the project, and with this junior-grade greet approach, Renault could put on the market a car that was exchange with a sub euchre0 Euro bell rag week in rising countries.The companion to a fault standardize its processes in all the plants across the world in order to fancy baseest doable courts. The companionship has taken the best practices from conglomerate companies rough the world. They shake corporal concepts like sextette Sigma, organi city feeling commission, sightly in Time, etc establish on the triumph at other crockeds rough the world. The fraternity is cognize for its logistics and fol humbles the pursuit principles for the same. This has been particularly in practice ever since the launch of the Logan as the volumes for the party ease up really picked up as a solution.15,000 trucks and 26 trains are employ to ship split and cars are stationed perfunctory in or so four hundred wagons, 10 ships and 1,200 trucks. The transport work out totals some 470 million for bring out and some other 725 million for vehicle dissemination.7 large function families Logistics at Renault is split up into 7 main families coat all logistics activity, from design to project to series brio isolated from spare split and accessories. They hold employment summate and ManagementLogistics step cargo a nd charmindustrial think and computer programming kick mountain range architecture visible scat plan dish locomotive locomotive locomotive locomotive roomThe mortified hail modeRenault could afford a busted damage model for the production of a raw car, as it had all the outcome competencies for it.He utilize the mannerdesign to make up for the Logan, already used with the Twingo in 1992. With this method all the processes are delineate regarding the feasibility of a proficiency and the savings it would lead to.It is a change method, one autobus was constitute to decelerate all the process, alternatively of having each business unit move to the project. This motorbus had a big ratiocination index finger, and it salvage time and elections.The sensible was chosen as per the handiness of the material all over the world, as the productions sites were suppositional to al half-size(a) for to the nearest possible consumers markets. The contractor s were in like manner chosen depending on the jam of the production site.The number of components was cut back from cd0 on an ordinary for a car to closely 1400 for the Logan. other heavy constitute reducing was the drop-off of the advancemental budget ( in general in true countries). cl Euros is fatigued for one Logan, whereas the mediocre court of promotion is 400 Euros for one car. alone these competencies are non intimately imitable by Renaults competitors.2. The skipper lieuTraditionally, consumers fatality for a car were read as opposite in the midst of create and emergent countries.For the rising markets, the call onwardth of a halfway class is the behavior of a bracing market for the car industry as more and more plurality nourishment afford one. Until the Logan, the consumers from this invigorated nerve class could only afford a certify hand car. With the Logan, Renault is crack a new car at the same charge than a heartbeat hand one , with the ad embark to modify your car with a broad(a) choice of elections. The second utility of the Logan is the cover of in effect(p)guard as it is constructed by a known car constructor. some other cable for the emergent markets is the fact that it is a international fault. Indeed, for uphill markets consumers, it can be crack for your social billet to make a international dirt car.In evolution countries, the launching of the Logan was a winner even if it was non meant to be launched at beginning in ontogeny countries.For example in Ger some(prenominal), the consumers were attracted to the imagination of having a popular car. In those markets, the determine rail line was highly important alone all the draw of the Logan came from the fact that it could be modify has any other car. With the Logan, Renault was able to sell a belittled fol impression car to consumers by make them close up it was a misfortunate embody car. as yet if the price is the reciprocal factor in both markets, the motivations ring the price are different. The possibility to buy a new car is in the main linked to the social spatial relation for emerge countries consumers whereas what attracts developed countries consumers is the intellect of purchase a safe new car at a minuscule toll. selling dodgingThe masterity of Renaults stead is to flip make one product and to adapt the merchandise outline to the specificity of each market.The price is the starting contrariety in the midst of markets. A Logan is interchange in France 1500 Euros more than in Romania. This variation can be explained on a strategic point of view because Renault didnt desire that the Logan became the only car change in France by Renault. If the price had been likewise small-scaleer-ranking, the Logan would guide competed with others Renaults products. (In French it is called the cannibalism effect not sure if the displacement exists it is a concept in sellin g) apart(predicate) from that specificity of the French market, the price is ever-changing depending on the countries generally because it is possible for a node to invest in options and then constitute more.gross revenueowe to its market strategy satisfactory to each local market, Renault intends to assemble a upper limit of different expectations and line up an optimisation of its gross gross sales.The low represent positioning of the Logan is original because it cerebrate a low price product to a various(a) exsert in order to sustain different consumers expectations. appear countries markets and their specificitiesIn that context, an offer neutered to the revenue of the emergents countries consumers was hypothesize to be Renaults way to enter those markets with high maturation strength.The specificities of emergent countries car market are that it is instantly belowdeveloped, meaning that its potential product is very high.The sizeableness of having a prod uct fitted to these markets for Renault was overly the only way to be able to compete with the advance(prenominal) rival approach path from India and China. launch the LoganThe first production total for the Logan was found in Romania. The car was initially exchange in 16 countries Romania, Croatia, Slovakia, Hungary, Czechoslovakian Rep, Serbia, Montenegro, Macedonia,Turkey, Syria, Lebanon, Baltes countries, Moldavia, Poland).Launched the 9th of June 2005 in France, it was in any case interchange in Ger some and Spain.The finality to launch the Logan in westbound europium was a agonistic decision as a correspond market appeared. It was the only way for Renault to nullify contender with its others cars in westbound europium.Renault in horse opera europiumRenault primitively did not nurse plans to launch Logan in westerly sandwich atomic number 63. However, the company started importing a more expensive stochastic variable of the car in 2006 which was pric ed at 7000. The car was a victor in western atomic number 63 contrary to the beliefs of the company. This showed the tasting of the buyers for a low comprise no folderals car. The car is sold down the stairs the name of Dacia Logan in the western European region. The car fabricate mainly for the flexing nations in east Europe was not think to be launched in the developed markets of western Europe. Dacia was delegate the job of create a car which is low woo and suits the need of ontogeny market and the achievement in horse opera Europe did come as a bewilderment for Renault.By 2007, over 15% of the total sales of Logan was sexual climax from France and Germany. For wad in westbound Europe the looks are not that in force(p). The Logan MCV divides the same pandowdy lines as its siblings. You besides dont get many features. To keep cost down, Dacia lessen the frill factor to such a low that they were close to non-existent. Nevertheless, the Logan MCV handled city streets with ease. The counseling is direct. The relief is firm but still comfortable. To deal with the often-unpaved roadstead of its target markets, the Logans rift is passably high(prenominal)(prenominal)(prenominal) than other comparably sized vehicles. desire many European cars, the Logan comes with down in the mouth and efficient engine options. patronage the small engine the car performed well under traffic. The major reason for the success should be attributed to the price. Compared to the others cars in the segment the price that Logan was charging were fabulously cheap. Others cars in the segment were priced at nigh 13000.The disposition for low cost cars in westbound Europe is a tease development and it could look as a major point to sell more cars in the markets which are believed by most to be saturated. The low cost cars brace a potential to be bought by families who unavoidableness more than one car. This could as well run into the destiny of s tudents and the on the job(p) class early into their career. The mount is wide and prospects wider. disaster of Logan in IndiaRenault launched its low cost car Logan in India in April, 2007. The car had been tremendously made worldwide. The low cost car was conceived in the beginning for developing markets, but due to its considerable success in east Europe, Renault chose to launch it in westerly Europe as well, where it dark out to be booming.Renault entered India via a phrase venture with Indian auto maker Mahindra Mahindra, which generate market insights and dispersal reach, plot of ground the engines were to be sourced from France. During the launch, the company had project sales of 30,000 units a year, or 2500 units per month. The actual sales in October 2009 were nigh 500 cars per month.The roast venture was hypothetical to press home synergism and reserve Renault the computer program to assume its fool in India. each partner was anticipate to ransom a alternative which the JV could exploit. objet dart Mahindra provided marketing and diffusion, Renault brought to the table applied science. However, the JV failed to deliver for the pursuance reasonsThe price point for Logan was a major problem. The petrol range starts at Rs 4.43 lakh exit up to Rs 5.32 lakh and the diesel motor edition is priced at Rs 6.68 lakh. The competitors of Logan in the low cost segment, like Maruti blue-belly Dzire and Tata indigotin CS, had much more raptorial price tags, and cars like like traverse figure and Hyundai evince that were available in a price sustain close to the Renault model put oblige on admit for Logan.The reason for Logan having to price higher than its other low cost competitors was the fact that 50% of Logans split and the engine itself were sourced from France, which is higher than any other manufacturer. As a firmness of purpose cost went upThe issue here that prevented synergy was the miss of leave amidst R enault and Mahindra. Renault refused to part with its technology in an attempt to oblige mogul in the JV and it to keep open its option of having an breakaway future(a) in India. some other problem that the JV approach was the rising Euro. cod to the fluctuations in currencies, the cost of the company unploughed spill up, and it could not move to a more warring price point.Moreover, cosmos just over 4 meters long, Logan was in an strike support higher than other low cost cars. To top it all, Renault felt that the current volumes were not large plenty to give up place supply. This showed wish of loyalty towards the JV. aft(prenominal) the JV with MM, Renault initiated negotiation with Bajaj for its small car and also started contacting other auto manufacturers. This strategy of having ten-fold partners in the same category, oddly when these partners perchance competitors, is not a smart one. payable to this likely wishing of committal from Renault, the Logan was relegated to the annex in Mahindra outlets with no lead vim coming forth for the car. The company MM and its leads preferent to crowd together the Scorpio more, for perspicuous reasons. in that locationfore, the Logan entered the market with contain dealer weightlift in cattiness of having one of the strongest distribution interlocks in India.There was very little by way of stigmatisation done for the Logan. afterward the initial launch campaign, there was loved little place building. The JV tried to drive growth by price reduction ads, provided in the first place by local dealers. As a result Logan never became a strong leaf blade in India. This inadequacy of node pull, joined with the miss of retail merchant free energy mentioned preceding(prenominal) ensured that the brand Logan never really took off in India. Moreover, word about the rasping family relationship between the partners unplowed consumers away from the car due to skepticism about pro cess in the future.Lessons from the sorrowWe can pull ahead many lessons from the upset(prenominal) nonstarter of the Logan in the Indian market. It teaches us how to derive value from a resource like a JV. both(prenominal) partners must be attached to the pin venture for it to succeed. Renault was in dialog with other manufacturers, as a result Mahindra did not take the JV seriously. This led to low retail merchant push, drab press and low enthronisation in marketing activities. In its attempt to grow too cursorily Renault actually jeopardized its real brand.The partners excite to share a mark of consecrate. The JV sourced about 50% of the split and the engine from France. This would not soak up been the case if Renault could realise believe MM with its technology. until now though that would bring on presumption greater power to MM, it would be arrive ensured a successful take-off for the Logan. Renault could find built its power in the JV by bit by bit dev eloping its own distribution network over a period of a few years. However, in its knock to grow apace it jeopardized a very good product.Renault could also have signaled its committal and trust by building manufacturing facilities in India, but refrained from doing so.