Renault Duster: dusting away competition or facing a dust storm?

Abstract

Subject area

The major issues discussed in the case are related to first-mover advantage, segmenting, targeting and positioning and marketing strategy.

Study level/applicability

The case could be discussed in a postgraduate program for marketing and brand management and also for strategic management. It could also be used for an executive development program for marketing and business strategy.

Case overview

The present case is on the Renault Duster, a compact SUV (sports utility vehicle) launched by Renault India in 2012. Equipped with attractive design, innovative features and smart technology, the company used buzz marketing and social media marketing to promote the brand. Competitive pricing of Duster attracted both premium hatchback and sedan buyers in India as the company realized both sales and awards. However, sales started declining from the second half of 2013, and competition used both pricing strategy and exhaustive mass media advertising to compete with the Duster. The other cars from Renault India could not replicate the success of the Duster, which was contributing to around 80 per cent of the total sales of the company in India. Renault thus faced the challenge of losing their ground in the Indian market if they could not revive the sales of the Duster.

Expected learning outcomes

Product differentiation and brand positioning (the case is a good example of first-mover advantage); market segmentation and creating a new segment; branding strategy and the role of marketing communications in the same; analyze the role of a long term growth strategy and how it influences product/marketing strategy (business strategy course); understand the probable threats of business due to overdependence on one product (business strategy course); understand the impact of inter-firm rivalry on brandsuccess (business strategy course).

Supplementary materials

Teaching notes areavailable for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.

Citation

Mohapatra, S. and Roy, S. (2015), "Renault Duster: dusting away competition or facing a dust storm?", , Vol. 5 No. 3. https://doi.org/10.1108/EEMCS-04-2014-0080