Marketing Plan For Renault Twingo

Published Date: 23 Mar 2015 Last Modified: 15 May 2017

According to our class, MC 600, Business Policy, we have to write a business plan about a product of our company. In this case it is supposed we are working for Renault Car Company, and we prepare the business plan for one of our products, which is Renault Twingo, regarding the Greek market. To develop successful strategies and action programs, we need up-to-date information about the environment, the competition, and the market segments to be served. Often, analysis of internal data is the starting point for assessing the current marketing situation, supplemented by marketing intelligence and research investigating the overall market, the competition, key issues, and threats and opportunities issues. As the plan is put into effect, we will use advertising and other forms of research to measure progress toward objectives and identify areas for improvement, if results fall short of projections. Finally, we will use marketing research to learn more about their customers' requirements, expectations, perceptions, and satisfaction levels. This deeper understanding will provide a foundation for building competitive advantage through well-informed segmenting, targeting, and positioning decisions. Thus, the marketing plan should outline what marketing research will be conducted and how the findings will be applied.

EXECUTIVE SUMMARY

In the first section we have to summarize the main goals, recommendations and points of our project in order to be accepted by the managers. Our project will target in reclaiming Renault's superiority in Segment A by positioning Twingo as one of the best overall proposals in the segment. It will be placed between mainstream, e.g. Fiat Panda and "trendy" cars such as Smart, and FIAT 500, targeting mainly style-oriented, younger customers, who are more willing to buy a 3-door car. Moreover we can get a competition advantage by differentiate the target groups by multiple versions.

Authentic to Expression: Refers to a mainstream target group, practical.

Dynamic: Refers to female group with several dynamic characteristics.

GT: More Sporty and masculine profile.

We will exploit connectivity and customization features to enhance youth appeal and "trendy" factor (Dynamic, GT).We will promote practicality and versatility to enhance its mainstream appeal (Authentic, Expression).Systematically attract first-time-buyers and exploit opportunities to "up-sell" them within the brand.

Finally we will use competitive fleet policy (10% discount on retail price) to support retail sales (despite lack of 5 doors). Generally we will exploit limited editions for conquest sales and for maintaining "trendyness".

By these actions we target at about 1500 sales, both retail and fleet, for the year 2010 in Greece. This is a partition of 7, 6% and 1, 4%, respectively, as shown in the image below.

CURRENT MARKET SITUATION

In order to analyze the current marketing situation, we will discuss about the overall Greek Market, identify the market segments we will target and provide information about the company's current situation.

Renault: The Company (briefly)

In 1899 Renault Frères is founded by Marcel and Fernand Renault. In 1903 the sales network expands and the first subsidiaries are set up outside France. In 1975 managed by Bernard Vernier-Palliez, Renault comprises the state-owned Régie (104,000 employees) and the subsidiaries set up through diversification (118,500 employees) and by 1980 Renault was Europe's leading vehicle manufacturer. In 1997 Twingo arrives in the market.

Range Segmentation

MARKET DESCRIPTION

We will examine the target segments and provide context for the marketing strategies. We will examine the economic position and the general situation of Greek Market, MAVA which is the official Renault's representatives, the Purchase Behavior of the target group in which we are interesting in and the current situation of the Competition.

EXTERNAL ENVIRONMENT: Greek Market Situation

Real GDP average growth 4,1% (10yr), 4.2% (3yr). Slowing growth in 2010 reflects weakening growth in fixed investment and exports, due to strong Euro.

Consumer spending - even if slower growing - retains its momentum and will continue to be the main contributor to 2010 GDP growth driven by real wage growth (4%) and employment growth. Spending on consumer durables, in particular, remains strong (sales of household equipment increased by 5.6%, as did car sales).

Household debts account for 37.8% of GDP vs 61.6% for EU-13. Consumer credit growth remains strong at a (stabilized) 20%. Deposit growth reached 14.4% in 2007 vs 10.5% in 2006

Greek economic climate index in rise from mid-2005 to September 2007, decreasing slightly in October; remains higher than European index.

Greeks more willing to buy a car in 2010 than EU-27 or EU-13 average.

The positive effect of direct tax reductions is expected to be compensated by the increase of VAT by 1-2 percentage units in 2010 or 2011.

Internet penetration at 40% of ages 13-70 years old (13-24: +60%, 25-44: +30%). Broadband connection penetration currently at 6.9% of households (EU-27avg at 16.2%).Average monthly cost at €28.3 (vs €25.4 in France and €46.8 in Spain). Average speed at 6,6 Mbps (vs 44,1 in France and 6.9 in Spain).

A change in the registration tax is not considered feasible for the time being.

Liberalization of diesel car market (in Athens and Thessaloniki) remains stagnant, AMVIR (Greek Association of Importers) now pushes for freeing up the diesel LCV market.

AMVIR'S (Greek Association of Importers) current position to the Government is for a gradual and mid-term alignement of the taxation system with the emissions norms.

All data: European Commission, Eurostat, National Bank of Greece, except Internet data (independent surveys).

All data: European Commission, (*) Ministry of Economics & Finance.

INTERNAL ENVIRONMENT: Renault in Greece - MAVA

Implement ready, in-house software to track real-time MAVA/Dealer stock, order, invoice and registration data.

Based on the above, specify and implement a new monthly marketing reporting system, specified with and covering the needs of Management, Renault and Marketing.

Exploit Renault-specified PER4 Dealer training program (analytic proposal to be submitted by end of March 2010) to provide a business case for dealers to endorse change, total customer satisfaction and a new culture vis-avis Renault's forthcoming product assault. Budget 50.000€.

Starting from 2011 (along with new Megane), consider an extensive communication plan to change current perceptions of Renault and gradually establish it among top-of-mind brands in Greece. Given approval, Marketing will provide a comprehensive "route map" by end of June 2010 to be finalized by end of 2010 and be implemented starting from 2011. This will include a thorough proposal on the approach and process leading to an action plan by end of 2010.

Deployment of the new brand identity graphic guidelines within the company and to the dealer network (core elements, stationery, printed forms, advertising, local communication -publications, events etc), starting with the new Twingo launch campaign, including follow-up and evaluation on the extent of deployment, according to time-plan imposed by Renault (12 months).

The PURCHASE BEHAVIOR of the target group

Stage 1: Initial interaction with the brand

At this stage, customer has not fully developed the need to purchase a new car and "collects" information / perceptions / impressions by various channels that result in top-of-mind awareness of specific brands. Brand Influence at this stage comes from creating impressions and emotional territories through:

Advertising: emotional positioning.

Press relations: word of mouth is especially important for the "small" Greek society and especially women, who mostly turn to friends and family for advice.

B-T-L Promotions: help relate the brand to values and behaviors.

Stage 2: Actual investigation

At this stage, customer "assesses" technical and tangible factors (however still through an emotional process), identifying possible solutions to his/her needs. This results to the shortlist.

Provided that the brand has "passed the test" of the first stage, the choice criteria are:

Performance (20-28)

Roominess and reliability (29-45),

with price and equipment as common denominators.

Customers first choose a brand and, subsequently, the model it offers in the segment they need. French Cars in general provides to their customers:

Elegance

Alternative

Focused in comfort & Luxury

Feminine

Unreliable

Weak USP

Design

Progression

Affordability

Customer's Character - Twingo Characteristics

Renault Twingo differentiates its target group depending on the version:

Twingo Authentic to Expression

Mainstream, practical

Twingo Dynamic

Feminine

Twingo GT

Sporty, masculine

In general its target group is men and women 20 - 35 years old. Twingo means fan, joy, entertainment combined with all the above characteristics of a French Car.

PRODUCT REVIEW

In continue, we have to outline the main characteristics and summarize extra information needed about our product, Renault Twingo.

Renault Twingo is characterized by:

Modern, Pleasing Design

Roomy, practical and occupant-friendly

An assertive personality underpinned by dynamic styling

Communicative and occupant-friendly: New Twingo features an Audio Connection Box (in UK we will be calling this system 'multi-functional Tune Point') which enables personal music collections stored on USB keys, portable MP3 players or iPods® to be played through the car's audio system and operated via the steering wheel-mounted controls.

'My Twingo' philosophy: buyers can customize their new car - inside and out - thanks to a range of decorative decals for the exterior and a selection of innovative accessories such as the Organizer Box and Makeup Box for the interior.

Appeal to young clientele, essentially urban-dwellers hooked on new technologies

Chassis derived from the B-segment and a power train range featuring the new TCE (Turbo Control Efficiency) 100hp petrol engine, which offers class-leading performance and fuel consumption, New Twingo's superior dynamics, set it apart from its predecessor.

Optimizing cabin space and interior versatility, by making full use of the car's compact dimensions (length: 3.60m).

Interior is extremely modular thanks to its four independent sliding seats.

Safety was at the forefront of the New Twingo design team's priorities.

New Twingo is the first model to be renewed within the framework of Renault Commitment 2011 and had to meet an extremely exacting brief in terms of quality and profitability.

Supplementary information about models:

A. TWINGO

Twingo's agile handling makes it perfect for nipping in and out of city traffic. With its compact length of just 3.60 m, Twingo is a cinch to park and a delight to drive. It also stands out with its pure, contemporary styling. Twingo brings drivers a dynamic and pleasant drive. Our primary consumer target is middle- to lower-income people who need a car with pleasing desing but also comfortable and easy to use. All versions of Twingo carry the Renault eco² signature. They emit less than 140 g/km of CO2, contain renewable materials and recycled plastic, and are produced at the ISO 14001 certified Novo Mesto plant in Slovenia.

B. TWINGO SPORT

Renault has produced an affordable high-performance car which sits alongside Clio and Mégane Renault Sport in the Renault Sport range.

Renault Twingo's existing lines are underpinned by a more curvaceous, athletic stance and the newcomer's sporty calling is further emphasized by its wider front and rear wings, profiled sills and spoiler.

Twingo Renault Sport is the response of Renault Sport Technologies' experts to a two-pronged challenge, namely to deliver sports performance while at the same time ensuring that the new car is easy to use on a day-to-day basis.

Twingo Renault Sport's chassis is both responsive and finely tuned to provide precise, balanced sports handling, while specific work on the pitch of its new 133hp 1,598cc engine reveals its punchy temperament.

C. TWINGO GORDINI R.S.

The return of the Gordini name is to be marked by the introduction of a new chic and sporty version of Renault Sport's pocket rocket which takes a current-day stance on the cues long associated with the Gordini world.

Twingo Gordini R.S. features a gleaming Malte Blue lacquered metallic finish, plus two white racing stripes, in keeping with tradition. The front and rear bumpers are enhanced by gloss black details, while the fog lamp surrounds, exterior mirror housings and lip spoiler are all picked out in a contrasting white finish.

'Gordini Series' badging either side refers back to the heyday of the Gordini Cup when the qualifying heats of the different meetings were known as séries. This exclusive exterior styling package is rounded off by a choice of either blue or black diamond-effect 17-inch aluminum alloy wheels.

To ensure that it befits Gordini's glorious motor sport heritage, the latest addition to the Twingo range is based on the same performance/equipment package as the Renault Sport version:

'Sport' chassis with 17-inch wheels for outstanding road-holding performance that is equally suited to everyday motoring,

a feisty, responsive 1.6-litre 133hp petrol powerplant with a distinctive, specially-tuned engine pitch under acceleration,

precise, incisive steering for even greater fun at the wheel,

powerful, durable braking performance.

The fashionable and sporty label of the Renault Sport range with its elegant finish and strong design codes, the Gordini label builds on the renowned expertise of Renault Sport, and offers a fresh interpretation of its values.

Renault naturally opted to build on the reputation of Renault Sport Technologies (RST) in order to transform the Gordini legend into a reality. Renault's sports branch has prolonged the Gordini heritage through its renowned expertise in motor sport and the development of its sports models.

COMPETITIVE REVIEW

The direct completion for Renault Twingo in Greece is FIAT Panda, CHEVROLET Matiz, HYUNDAI Atos, PEUGEOT 107, SMART ForTwo, TOYOTA Aygo, KIA Picanto, CITROEN C1, VOLKSWAGEN Fox, DAIHATSU Cuore, FORD Ka, OPEL Agila.

The Total Market Sales are showed below:

As we can see, the segment dominated by Panda & Koreans (low price models, therefore strong in fleet sales) followed by TPCA trio (Toyota, Peugeot, Citroen Automobile), upward indication for ForTwo and Cuore and downward indication for Matiz, Atos and Fox.

The 3-Door Sales - Direct Competitors VS Renault Twingo

3-door versions appeal to first-time buyers, seeking for looks and style, who are willing to spend more for differentiation.

Fleet Sales VS Retail Sales - Direct Competitors VS Renault Twingo

Segment leaders retain significant contribution on both fleet and retail sales. The ForTwo, Fox and TPCA trio appeal more to retail buyers.

Despite drop of fleet sales, Picanto compensated with strong retail sales.

MARKETING STRATEGY

As a volume carmaker, Renault has long been recognised for the quality and inventiveness of its products in the small car segment and New Twingo is no exception. Since its unveiling at the 1992 Paris Motor Show, Twingo has revolutionised the world of city cars.

In response to shifts in customer demand across the span of its 14-year life, Twingo took the form of seven different collections and a long list of striking special and limited editions.

The European small car market has been reasonably stable since 2000, yet that hasn't prevented it from being extremely competitive, owing to the presence of the traditional European makes and, more recently, the advent of newcomers from Asia. Even so, Renault stands out as a major player in the segment and New Twingo reinforces the brand's line-up with a view to optimising its coverage of this end of the market. With a length of 3.60 metres, New Twingo is a practical, communicative, compact car.

New Twingo's mission is twofold, the first being to build on its ever-growing reputation as Twingo owners were loyal to the car and replaced it with another Twingo. The second aspect of the model's mission involves reaching out to a new clientele seeking a safe, versatile, practical and feisty package with compact dimensions. One-third of European small car buyers are aged under 35, including 11 per cent who are under 25. Amongst its new targets, New Twingo seeks to appeal to this young clientele, essentially urban-dwellers hooked on new technologies and for whom the car is seen as a symbol of freedom, as well as an extension of the world in which they live. New Twingo covers all these criteria thanks to its unique personality and unprecedented connectivity for its segment, not to mention its inherent versatility, driver appeal, travelling comfort and dynamic, reassuring handling.

Strategy and Marketing employs 150 people from diverse backgrounds, including 12 different nationalities.

The five key functions in Renault's Marketing Department

1. Marketing product and services manager

Their role is to develop the most attractive selection of products and services for a given range of vehicles. They adapt their choice to each national market without overlooking the brand's identity and sales targets.

They help elaborate marketing strategy, analyse sales figures for their models, and constantly look for ways to sell more.

2. Product positioning consultant

They draw on different surveys and studies to propose ways to improve the brand's positioning and image. Working with the different range managers, they decide how a model should be positioned and what audiences to target. They then adapt this positioning to each country.

3. Price consultant

They draft a price strategy for each model in every country. Another of their functions is to examine across-the-board pricing methods and procedures. Strong interpersonal skills are important as they are in daily contact with the markets and other marketing experts.

4. Trend forecaster

Their task is to analyse market trends and sales forecasts for each vehicle in a range of countries. Their conclusions help the factories plan production in line with the dealerships' probable needs for vehicles to satisfy customer demand.

5. Planning studies manager

They pilot the sales and marketing planning system, assess Market Areas' needs for economic modelling, and adapt planning tools accordingly. They train the national plan coordinators in the use of planning tools and methods. They also analyse each country's budget and strategy plans to then compile a group-wide synthesis.

Positioning

The new Renault Twingo hopes to appeal to the small car segment and the initial first car buyer segment while also appealing to families who wish to acquire a second car, or to those using their car in urban or city areas. This car interests distinct and different groups of car buyers so there is a need for careful product positioning in the mind of the consumer. Some considerations when positioning a new car might include:

first car or small car users who expect specific design qualities from a car

families who want a second car to get them from A to B or to complete the school run twice a day and who will also want different features

young people looking for 'personality' from their car - perhaps more

sporty features or individual and distinctive design finishes.

New Twingo's key target market is young dynamic people. Renault has a marked advantage in this area because it is known for its keen pricing and is also an established, highly recognisable brand that young people can relate too.

Price Strategy

Renault has a clear understanding of its key target market (young people and

other price-conscious car buyers) and has designed pricing strategies to best address their needs and the positioning of the New Twingo. In the case of the New Twingo it is imperative that it be keenly priced and also that running costs are low.

The price quoted by Renault is the price you will pay at the dealership. The starting price is 8790€ and it can reach the 13100€ depending to the model and the equipment included. All the dealers provide the option to buy the car with a small amount in advance and then with monthly installments.

Price Positioning by Model - Direct Competitors VS Renault Twingo

8k: Koreans (high contribution of fleet sales).

9k: Panda (has also the widest coverage).

9-11k: Twingo's core competition.

12k: Smart.

13-14k: Twingo GT's main competition (Panda 100 & C2 VTS).

Distribution Review

In this level we have to analyze Renault's distribution network around the world and specifically in Greece. Renault it's an international industrial organization with 38 industrial sites in 17 countries which ensure that production occurs close to markets and unique standardization which guarantees the same level of quality throughout the world. International production capacities are expanding rapidly. Major projects of development are in Russia (a partnership signed with the AvtoVAZ automaker), and Morocco (work began on a new industrial complex in Tangiers).

A launch to the dealers is different to launching a car to the public. Increased demand for a car is also known as a 'pull factor' as it essentially pulls the product through the distribution channel from the manufacturer toward the consumer. In order to succeed at getting the product to the consumer, Renault has an International network of 'agents' or dealers who carry its cars in the companies stable. This means that support is given to the Renault dealers around the world to promote the new model in a way that generates demand for the new car. Our channel strategy is to use selective distribution all over Greece. During the first year, we will add channel partners until we have coverage in all major greek markets and the product is included in the major car catalogs and even Web sites.

The Renault Production Way:

Guarantees the same quality standards throughout the world,

Enhances Group performance (plant specialization according to car segment, development of plant capacity to produce different vehicles on the same production line, continuous improvement of the workstation, etc.),

Ensures the Group's commitments to the environment (100% of Renault's production sites are committed to ISO 14001 (environmental management standard) certification processes),

Reinforces safety throughout the world.

Renault has a distribution network all over the world-Americas, Europe, Eurasia, Asia and Africa. The official sales partnership in Greece is PGA motors at Marousi, Athens. Moreover Renault motors are sold by almost 31 agents-sales points all over the country.

SWOT ANALYSIS

In the next step of our marketing plan, is the SWOT analysis. SWOT analysis is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in our project. It involves identification of the internal and external factors that are favorable and unfavorable to achieve our objective.

Strengths: Strengths and strong points of our car.

Weaknesses: Internal weaknesses of Renault Twingo.

Opportunities: external conditions which are helpful to achieving our objective.

Threats: external conditions which could do damage to the objective.

Identification of SWOTs is essential because subsequent steps in the process of planning for achievement of the selected objective may be derived from the SWOTs.

STRENGHTS

"My Twingo" philosophy-Modern, Pleasing Design

Roomly, Vertisile interior

1.2-litre TCE (Turbo Control Efficiency) engine.

WEAKNESSES

Evidence of cost cutting

Thrashy, and engine noise is intrusive at motorway speeds.

Disputed wheel positioning

OPPORTUNITIES

Increase fleet sales

Are there emerging trends on which we can capitalize?

Increased demand in segment A

THREATS

Pure fleet sales

Extreme competition in segment A- Fiat 500, C2, Smart

Many offers and uprising Car industries with cheap products

Marketing Communication Strategy

Pre-publicity in the form of motoring reviews and test drives are critical to

the success of a trade launch as this activity must generate sufficient consumer curiosity and interest in the new model. In this way, we will give the opportunity to experts and driving correspondents or journalists, to assess the merits of the new Twingo before the rest car-buying public. We will also try to hold 'open weekends' in dealers' garages where customers can come along to test drive the new car. By getting potential car buyers to test drive a car, product usage increases. This will have a knock on sales of the new car.

The primary above the line medium we are going to use to promote and communicate the new car is through advertising. In the case of the New Twingo, the main advertising mediums going to be used, aside for those used when communicating with the trade, are outdoor billboard advertising and TV and radio advertising. New Twingo advertising themes and images include ideas of surprise, independence, spontaneity and versatility. Key factual messages that need to be also included are the smart design of the car, the value for money and cost of the car and the low running costs.

Advertising Expenditure Evolution

During Jan-Oct 2010, the advertising expenditure of the segment has decreased by 33,3% since all major competitors' launches have been conducted before 2010.

Share of Spending

Chevrolet Matiz is, by far, the leader of the segment.

Smart has no TV investment (only magazines and BTL activities).

MediaMix

TV and Magazines are the main media during Jan-Oct 2011

Large increase of TV against Magazines in 2011 is due to launches having taken place in 2010, reflects tactical advertising in 2010.

Share of Voice - Adults 18-34

8

Matiz acquire, by far, the highest SOV due to small average duration of spots.

COMMUNICATION OBJECTIVES

2010

Create a "buz" among young potential customers to support Twingo's positioning as a "trendy" choice.

Differentiate creative and media mix according to target group ( mainstream, women, men).

Draw on the values of Twingo I to retain existing customers (modular design, simplicity of entry versions).

Implement an integrated launch campaign (adaptation of international launch) to fight clutter by competitors' launches and spice-up brand image.

Media Use

Use of TV as main medium (MAD TV included as the only youth music channel).

Use short TVCs to increase SOV.

Creative use of magazines (lifestyle advertorials - photo shootings etc): lifestyle, women's, youth titles.

Creative use of radio (lifestyle testimonials).

Joint events (Asterix movie sponsorship).

Use of Internet and New Media with creative penetration (ambient media).

Use of outdoor at urban regions (5 major cities).

Content

Communicate the accessories' youth-targeting features (personalization & connectivity).

Communicate price affordability.

Use GT version to communicate TCE USPs.

Press

Maintain a Press test-drive fleet of 2 cars (Dynamique GT).

2011: Communicate RS and limited editions (ATL and Press).

2012: Introduce tactical communication.

Competition Launching Media Plans

2010 - 2012 Media Plan

Marketing research

Using research, we are identifying the specific features and benefits that our target market segments value. Feedback from market tests, surveys, and focus groups will help us develop the next model of the new Twingo. We are also measuring and analyzing customers' attitudes toward competing brands and products. Brand awareness research will help us determine the effectiveness and efficiency of our advertising and promotion. Finally, we will use customer satisfaction studies to provoke positive reactions to future buyers.

Controls

There is no planning without control. Marketing control is the process of monitoring the proposed plans as they proceed and adjusting where necessary. If an objective states where you want to be and the plan sets out a road map to your destination, then control tells you if you are on the right route or if you have arrived at your destination.

Control involves measurement, evaluation, and monitoring. Resources are scarce and costly so it is important to control our marketing plans. Control involves setting standards. We are planning tight control measures to closely monitor quality and customer service

satisfaction. This will enable us to react very quickly in correcting any problems that may

occur.

- GLOBAL -

Quality and profitability at the core of the X44 project

As part of the new model offensive set out in Renault Commitment 2009, New Twingo had to meet an extremely specific brief in terms of quality and profitability. Renault's latest small car will be produced at the Novo Mesto factory in Slovenia.

Upon his arrival as President of Renault in May 2005, Carlos Ghosn instructed engineers to optimise the cost effectiveness of the X44 project. Twingo's replacement needed to meet a raft of quality- and appeal-related targets at an extremely competitive cost. Initially delayed to ensure it responded even more closely to customer demand, the project then picked up speed and the car's development was completed within 21 months of the new design's approval.

Controlled production-related costs

The technique of carry-over served as a powerful lever in achieving this feat. Certain components from previous projects noted for their reliability and effectiveness were incorporated into the new vehicle. In addition to being a pledge of quality, this approach also eliminated unnecessary design costs and lead-times. Although an entirely new car in its own right, New Twingo incorporates parts from the chassis used for Clio II whose quality earned it recognition in 2006.

Constraints associated with the adaptation of production plant were similarly minimised in this way. New Twingo is built at the Novo Mesto body assembly factory in Slovenia - which already produces Clio II - and was designed to fit in with the same production processes as Clio II from start to finish (body shop, paint shop and final assembly). 80 per cent of manufacturing operations are identical for both models.

Renault's policy of producing models that feature a high proportion of shared parts in a single location has born. Total production-related outlay for New Twingo was limited to €400 million, a significant saving compared with the same figure for Clio II when its production began in Novo Mesto.

Quality - The Factory

New Twingo is a beneficiary of the extremely high quality requirements laid out in Renault Commitment 2009. Renault's newcomer faced the same quality-related constraints in terms of design, production and evaluation as those applied to all the brand's vehicles. Just as the forthcoming Laguna is targeting a top-three ranking in its segment regarding product quality and service, Twingo too is looking to make it onto the podium in its class. In the wake of Modus and Clio III, New Twingo reasserts Renault's know-how when it comes to producing high quality small cars.

The Revoz factory in Novo Mesto rose enthusiastically to this challenge and the combination of careful attention to the organisation of production, supplier control and operator training has culminated in an unprecedented level of quality. The reinforcement of quality-related standards was a natural sequel to previous work undertaken at the Revoz plant which saw it emerge as one of Renault's top performers - anywhere in the world - in this domain. The factory can notably claim exemplary results in terms of finished vehicle quality and its efforts were rewarded in 2006 when a J.D. Power study ranked Clio II amongst the top-three vehicles in its segment.

New Twingo also benefits from Novo Mesto's optimised organisation which not only guarantees profitability but also respect of delivery times. Indeed, the Slovenian factory is the group's best performer in this domain as well as in terms of compliance with production schedule sequences.

Progress on the product and service quality fronts as set out in Renault's Excellence Plan implies active management of safety, ergonomics and work conditions in the factories. At Novo Mesto, the arrival of New Twingo has taken the significant progress regarding production ergonomics already achieved with Clio II a step further by taking these factors into account from the design stage. The number of different workstations in the factory has been cut by 20 per cent thanks to the setting up of Kaizen schemes.

Finally, the ISO 14001 certification obtained by the Novo Mesto factory in 1999 was renewed in 2002 and 2005 and this plant figures amongst the Renault group factories that boast the lowest impact on the environment. In ten years, the amount of water consumed per vehicle has been cut by a factor of two, while energy consumption has been slashed by 40 per cent.

The X44 project - Human Resources in production line

The X44 project marked a decisive step in the Novo Mesto factory's integration within the Renault Group. Since 1972, the factory has produced a total of seven models for the brand. New Twingo, however, is the first time that production of a new vehicle has exclusively started here. This new responsibility has been greeted with enthusiasm and all the parties concerned feel a very strong sense of involvement.

The factory was directly involved in the project from the design phases in France. Scores of Revoz engineers, technicians and operators spent several months at Renault's R&D centre, the Technocentre, near Paris, where they worked with the design team on production processes and parts supply chain logistics at a very early stage. And, for the first time, the waves of prototypes were produced directly on-site. During the build-up to the start of production, some 60 engineers and technicians from the Technocentre travelled to Novo Mesto to help their Slovenian colleagues with final adjustments.

To produce New Twingo, the factory has been partly modernised and equipped with new technologies. A line of presses capable of producing major body parts has been installed; the performance of cataphoresis equipment (body surface treatment) has been upgraded and a covered test track has been built with a view to testing every vehicle that comes off the line. Finally, certain leading-edge technologies have been introduced in a Renault factory for the very first time. The innovative technique of laser-brazing for the roof enables body parts to be bonded to each other in a flexible and visually pleasing manner and this technique contributes to the seamless fluidity of New Twingo's lines.

The fact is that it is the first time that t his factory producing a brand new model also provided the Novo Mesto factory with an opportunity to develop its supplier network. As a result, the proportion of local content - i.e. the percentage of supplies sourced from the factory's catchment area - has been doubled in the case of New Twingo compared with Clio II and today stands at 60 per cent.

The production of the new model alongside Clio II has led to the recruitment of 600 employees which takes the factory's total staff to nearly 3,000. All operators undergo training concerning the new vehicle's assembly. An average 70 hours of training per person was given. Working on a three-shift roster, the factory's production capacity is 210,000 vehicles per annum.

Environmental Policy

Renault actively participate for the World Environment Day. Industrial and engineering sites, commercial and tertiary offices are mobilized to set up actions in favor of sustainable development. Commemorated yearly on 5 June, WED is one of the principal vehicles through which the United Nations stimulates worldwide awareness of the environment and enhances political attention and action. The theme for WED 2010 is Many Species. One Planet. One Future. It echoes the urgent call to conserve the diversity of life on our planet. Renault Group sites around the world are commited and mobilized for environmental protection, people's sensibilization and changing individual habits.

1. RENAULT ECO² CRITERIA

Renault launched the Renault eco² signature in May 2007 to identify its most ecological and economical vehicles. The signature reflects Renault's aim to inform customers of the environmental progress it has made across the vehicle life cycle in the last 10 years. Renault eco² vehicles fulfill three ecological criteria in production, CO2 emissions and recycling.

Production: ISO 14001 plants

Renault eco² vehicles are produced at ISO 14001-certified plants. This standard rewards the progress made by manufacturing sites in reducing water and energy consumption and in cutting waste production and atmospheric and noise emissions.

CO2 emissions: less than 140 g/km

Renault eco² vehicles emit less than 140 g/km of CO2. Some Renault eco² vehicles can run on biofuels, made from plant matter.

Vehicles containing recycled plastic

Renault eco² vehicles have to contain at least 5% recycled plastic. They are also designed so that 95% of their mass can be recovered at end-of-life, and thus begin a second existence.

RENAULT ECO² : Twingo dCi 85

Production: Twingo is manufactured at the Novo Mesto plant (Slovenia), which obtained ISO 14001 certification in 1999.

CO2 emissions: Twingo is now available with the dCi 85 engine. It joins the range alongside the dCi 65, delivering additional power (+20hp/15kW) and torque (200Nm, up 40Nm), yet CO2 emissions are a mere 94g/km.

Recycling: Twingo contains 9% recycled plastic (15 kilos) and is 95% recoverable by mass at end of life.

THE ELECTRIC VEHICLE, A GLOBAL STRATEGY

Renault aims to become the first full-line manufacturer to market zero-emission vehicles accessible to the greatest number, by 2011. Electric cars emit no CO2 in use. The Renault-Nissan Alliance is developing a complete range of 100% electric powertrains with power ratings of between 15kW (20hp) and 100kW (140hp).

For Renault, the electric vehicle is the real long-term solution to today's environmental and noise pollution issues. Technological innovations now make it possible to mass market an electric vehicle at reasonable cost. In addition, changes in vehicle use make electric cars ideal for the majority of trips, with 87% of Europeans currently driving less than 60 km a day.

Beyond 2012, Renault will continue to extend its electric car range to cover all segments. Renault will also bring customers access to innovative services making electric vehicle use easier and to advanced battery technology currently under development by the Renault-Nissan Alliance.

Research and Development

Research at Renault is the wellspring of innovation. The research programs of DREAM (Department of Research, Advanced Studies and Materials) focus on four main areas: environment, safety, comfort and dynamic performance.

Innovation for all the range

Innovation at Renault is not reserved exclusively for upper-range vehicles - it concerns the entire range. For example, Renault Modus benefits from the latest safety innovations in the upper-range segment, including dual-function xenon headlights and variable-assistance power steering.

Innovation and safety

Renault's safety research is focused on developing cars that can:

- prevent accidents through driver information systems,

- correct the driver's behavior, particularly in emergency situations,

- protect occupants in the event of impact.

With 12 vehicles having obtained five stars in EuroNCAP tests, Renault sets the standard on safety.

Innovation and comfort

Renault innovation also focuses on travelling comfort. From soundproofing to air conditioning via ergonomics and creating a sense of space, the brand spares nothing where customer well-being is concerned. For example, Renault vehicles feature automatic headlights and intuitive controls for navigation system or radio.

Innovation and environment

Renault R&D works toward environmental protection. Renault engineers are reducing CO2 missions and fuel consumption and the brand is involved in research programs on alternative energy sources, such as biomass fuels , electric or fuel cells. Renault is also working on developing vehicles that are almost 100% recyclable.

Innovative organization structure

Renault's internal organization structure is itself innovative. The objective is to react fast to market demands on times and performance. Also, internal organization is structured according to Group projects. People working on design - engineers, stylists, buyers and so on are part of a larger development team, from project inception to project end. This exchange-based structure has reduced development times by nearly one-third. The best example of this approach is at the Technocentre.

Conclusion

The New Twingo is designed to answer the driving needs of different sections of the car buying public. Renault has answered this marketing conundrum by presenting a new car to the market that defies an easy classification. It has technical attributes and characteristics that let it sit happily in many customer segment groups satisfying each unique group of consumers. The creative translation of this positioning through promotion into the car trade and through consumer advertising must answer customer expectations if a new car model is to compete and secure a position in the market.