Best of the lot

BT gets many responses to its case studies. Below is the best one on Renault Duster (October 27, 2013)
     Print Edition: Dec 22, 2013

BT gets many responses to its case studies. Below is the best one on Renault Duster (October 27, 2013)

The success story of Renault Duster is a classic example of a company benefitting by breaking into uncharted territory. This success is in large measure a result of the Indian customer's preference for SUVs (Sport Utility Vehicles) and the Duster's value proposition.

Drawing an analogy with W. Chan Kim and Renée Mauborgne's Blue Ocean Strategy, value innovation in the Duster made competition irrelevant and helped Renault resuscitate its image in India after the failure of Mahindra Renault Logan. Renault differentiated the Duster by giving it an imposing road presence and macho styling of an SUV, coupled with the fuel efficiency and performance of a sedan at a lower cost.

The innovation created a sweet spot and the brand got good word of mouth publicity. This spread awareness about the brand. Hence, despite a limited number of dealers, the Duster outsold Maruti Ertiga and matched the sales of Mahindra Scorpio, both with a comparatively extended dealer network. However, the challenge for Renault is to safeguard its position in the face of growing competition. The immediate threat is from Ford's EcoSport, an SUV just below four metres, which is exempt from excise duty, unlike the Duster. This presented an opportunity for Ford to price the vehicle even more aggressively. Thus, Renault should focus on increasing market share for the Duster by a mid-generational refresh.

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