Dear car drivers, I’m posting for Speed Market from Romania. I have received a link regarding “Reverse innovation in action: Romanian cars from a french company on the german autobahn” and i’m able to give more details regarding.
First, please take on the post described by “Hardvard Business Review” on the blogs section:
Imagine you’re German, you need a new family car, and you have a limited budget — say, US$9,400. What can you do? Continue using public transportation? Buy a used car? Or maybe buy a brand-new Dacia Logan!
Dacia is a Romanian car manufacturer acquired in 1999 by French automaker Renault with the aim of designing low-cost passenger vehicles for emerging Eastern European markets. The Logan, a five-seater with a spacious trunk, was introduced in Romania in 2004 and subsequently to neighboring countries. The Logan’s basic version, costing US$6,500, was revolutionary in the automotive industry well before the Tata Nano appeared on the scene. Dacia now offers pickups, vans, station wagons, and mini SUVs (Duster) in emerging as well as developed markets. In Germany alone, where the car is offered starting at US$9,400, Dacia’s sales jumped from about 6,000 units in 2006 to about 85,000 units in 2009 — this in a land studded with its own car brands.
To offer the car at such low prices, Renault followed a stringent design-to-cost approach. The Logan consists of fewer parts than the average Western car and is made of traditional steel in a labor-intensive assembly process in a low-cost country. To meet the needs of emerging market customers, the car has a fuel filter, increased ground clearance, and a battery that can survive extreme weather conditions. Maintenance is simple; a basic technician can do the work. Interestingly, the Logan originally was conceived at Renault’s French R&D headquarters. Product development responsibility gradually shifted to the company’s new R&D center in Romania.
When Dacia launched the Logan in Germany, they followed five principles that may be useful to other companies planning to bring emerging market products into developed markets.
Focus on building platforms, not products. Platforms can be scaled up or down for global markets. For the German market, Dacia scaled up the product platform with more safety features and more appealing exterior characteristics, such as metallic paint. This allowed the automaker to charge higher prices and, in turn, reap higher profit margins.
Select target customers. The company carefully chose its target customers. Typically, these customers are people who buy a Logan instead of a used car, a cheap, Asian import, or a very small European car. These customers value price, space, and reliability. Renault highlights Logan’s best space-price ratio in its respective car segment. The car’s exceptional reliability is highlighted via guarantees, regular checks, and customer satisfaction surveys.
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Did you know that about Dacia ?
Dacia is a Romanian car manufacturer, named for the historic region that constitutes much of present-day Romania. It is now a subsidiary of the French carmaker Renault. The company is the main exporter from Romania with a market share of 10% of total exports.
Automobile Dacia company was founded in 1966 with assistance from Renault and the main Dacia factory was built in 1968, in Colibaşi (now called Mioveni), near Piteşti. Dacia acquired the tooling and basic designs of the Renault 12. However, until the tooling was ready it was decided to produce the Renault 8 under licence; it was known as the Dacia 1100.
From 1968 to 1972, some 44,000 were produced, with a very minor cosmetic change to the front in early 1970. Also produced in very limited numbers was the 1100S, with twin headlamps and a more powerful engine, used by the police and in motor racing.
And now …
Dacia Logan
Dacia Logan MCV
Dacia Sandero | Dacia Sandero Stepway
Dacia Duster, first concept car
Dacia Duster
Romanians car, Dacia are very good cars, for the prices and quality and the road’s infrastructure. The low cost models are Dacia Logan, Dacia Logan MCV, Dacia Sandero, Dacia Sandero Stepway, Dacia Duster.
Check here more information regarding Dacia and it’s car models.