STRATEGY ANALYTICS: Renault Luxury Car Plans Face Huge Brand Hurdle; Brand Image and Multimedia Content Vital for Success

Business Wire, Feb 23, 2006

BOSTON -- The new Strategy Analytics Automotive Buyer Dynamics consumer segmentation and market modeling program has recently examined Renault's "Commitment 2009" growth plan - which aims to double the sales of Renault luxury vehicles. One key area that the new research has highlighted is the importance of in-vehicle multimedia features that demonstrate the greatest difference between luxury buyers and other, more price-sensitive, customers.

"Renault has a brand mountain to climb," asserts Ian Riches, a Director for the Automotive Practice. "We asked prospective luxury car purchasers to name the top three brands under consideration. Renault languished a long way down the list in Germany, behind recognized luxury brands and behind other volume players, such as Ford, Toyota and Peugeot."

In addition, early results from the data also suggest that Renault may be able to capitalize on another segment. Current Renault drivers, and those considering a Renault, show a very strong agreement with the statement, "Minimizing the cost of buying and maintaining a car is very important to me." Owners and would-be owners of existing prestige brands, such as BMW, show much weaker agreement. Those at the base end of the premium market, who intend to spend in the region of 24,000 to 34,000 euros on their next vehicle, fall somewhere in between. Strategy Analytics believes that this group is most likely to be tempted away from prestigious German brands by the promise of desirable luxury multimedia features at a lower overall cost of ownership.

This new Strategy Analytics Automotive Buyer Dynamics (ABD) consumer segmentation and market modeling program has recently completed a major consumer survey of new car buyers in the USA, France, Germany and the UK. A free report, "Competing for the Auto Buyer's Choice - Selling for Profit," by Strategy Analytics president, Harvey Cohen, may be downloaded by registered guests at http://www.strategyanalytics.com/abd-report1.html

About Strategy Analytics

Strategy Analytics, Inc. - a global research and consulting firm - provides timely insights and strategic business solutions to companies operating at the convergence of information, communications and entertainment technologies. For more information, see www.strategyanalytics.com