Course - B2B Marketing

Report of B2B Marketing Manufacturing

Renault Morocco B2B Product

Prepared by:
Iyad El Ouarradi
Ismail Douch
Nassim Dermouh

Supervised by : Pr. Mesay Sata SHANKA

2023-2024

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 Summary

Chapter 1 : Introduction

Chapter 2: Data Collection Methods and Sources

Chapter 3: Background of the Company

Chapter 4: Discussion on Selected B2B Product -Renault Trucks-

Chapter 4: Framework Analysis on Selected B2B Product

Chapter 5: Servitization during the sale of Renault Trucks

Chapter 6: Marketing Strategy for Renault Trucks Assurance (Servitization)

Chapter 7: Conclusion

References

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Chapter 1 : Introduction

This report presents the concepts and specificities of B2B business-to-business marketing by

recalling the characteristics of the elements of this strategy and analyzing its application in a

real company.

After consultation and course reminder, we tried to look for possible practical cases. This

research led us to analyze the telecom sector which positions itself as an essential partner for

all businesses.

Through research on the different marketing strategies in the automotive sector, we have

identified the operating mode of Renault Maroc's offers. The latter includes a whole range of

offers intended for professionals and businesses.

In this automotive sector, vehicles and trucks are experiencing strong competition and are

benefiting from more innovation and renewal.

The choice of Renault's "Renault Trucks" product as a B2B product to analyze allow to study

the commercial and marketing strategy and its evolution according to the needs of companies

and competition on the market.

To achieve this objective, we present this report as follows:

We begin by explaining our procedure for collecting information and statistics necessary for

the study of Renault and its “Renault Trucks” B2B product.

Afterwards we present Renault Morocco and the B2B product “Renault Trucks” and its target

customers.

The following chapter focuses on the analysis of the selected product, and its marketing

characteristics through the SWOT matrix, Porter Five Forces, and Marketing Mix.

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Then, we will explore Renault Trucks' Servitization strategy to understand the ancillary services

to this Renault Morocco B2B product.

Chapter 6 constitutes an application of the analysis carried out on “Renault Trucks” on the new

product “Renault Trucks Insurance” by emphasizing the added value of this product, on the

definition of the launch and marketing strategy and the definition of the characteristics of the

Ideal customer profile.

The last chapter summarizes and assess Renault's strategy on the B2B product "Renault Trucks"

and make recommendations for applying Servitization in order to improve the results linked to

this product.

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Chapter 2: Data Collection Methods and Sources

To analyze the B2B marketing strategy of Renault's "Renault Trucks" products, we first tried

to deepen our knowledge of B2B marketing and its specificities on the basis of our course and

by consulting other online references.

Subsequently, we exploited the company's official website for research and data collection.

More specifically, annual activity reports and occasional publications contain some information

on B2B marketing and its results.

To discover and further study “Renault Trucks” products, we used specific reports on the

automotive sector in Morocco.

Studies and research by agencies and specialist marketing journals have shed light on the

specificities and strategy adopted by Renault in terms of “Renault Trucks” products.

The following point presents an overall framework on the Renault Maroc company, its products

and its performances.

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Chapter 3: Background of the Company

1. Automotive sector in Morocco

The automobile industry has succeeded in becoming a flagship sector of the Moroccan

economy.

The strategy dedicated to this branch has made it possible to lay the foundations of an efficient

and competitive automobile industry, sufficiently integrated into global value chains.

Almost all car manufacturers are present on the Moroccan market.

The automotive sector contributes significantly to exports and job creation.

The following graph shows that the group expects annual production of 700,000 units in 2023.

The Tangier site comes in first place with 340,000 units.

Source: Ministry of Finance in Morocco

This performance and increase in production has allowed Morocco to strengthen its positioning

as an industrial platform of choice, capable of attracting more and more internationally

renowned automobile investors.

This analysis focuses on the activities of Renault Maroc within Moroccan territory.

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 2. Presentation of Renault Morocco

Present in Morocco for 92 years, Renault Maroc is the leading Moroccan automobile

manufacturer with two factories: SOMACA in Casablanca and Renault-Nissan Tangier.

The Renault factory in Tangier is the largest factory in Africa.

The Renault plant in Tangier is a pillar of the Renault Group's industrial network throughout

the world. With an installed capacity of 340,000 vehicles, it produces several Dacia models:

Sandero, Dokker and Lodgy, in their classic and Stepway versions, as well as Logan.

The Renault plant in Tangier also contributes to the Renault Group's strategy aimed at reducing

its environmental impact as much as possible.

Casablanca: SOMACA, the historical reference

Older than Tangier, the Société Marocaine de Construction Automobile (SOMACA) is a

figure in the Moroccan automotive sector with more than 60 years of existence. Renault

started production of Dacia brand vehicles in 2005, marking a new era in the national

automobile industry.

Commercial establishment

Renault Commerce Maroc constitutes the real strike force

Renault Commerce Maroc represents the entity of the Renault Maroc Group which markets

products and services of the Renault and Dacia brands.

Created in 1928, the commercial division of Groupe Renault Maroc has the widest range of

vehicles on the Moroccan market. Its distribution network, serving customer satisfaction, is

the most extensive in the Kingdom with 93 sites.

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With its Dacia and Renault brands respectively No. 1 and No. 2 in the Moroccan automobile

market, the Renault Morocco Group continues to assert its leading position.

The following table presents some characteristics and statistics of the Renault Maroc group

Renault Group Morocco

Date of creation in Morocco 1928

Activity Domain, Services Automotive and truck manufacturing
Automobile and Truck sales
and Product Maintenance and assistance service

Peugeot for manufacturing

Competitors
All other commercial car brands (Mercedes, Opel, Wolswagen,

BMW, etc.)

Historic Company in amroc

Full coverage of the Kingdom's territory
Overall characteristics
Presence abroad (Africa)
Strong commercial network presence

The Renaut Morocco Network Distribution

The Renault Morocco network Distribution has broad territorial coverage with a global network

of 93 sites spread over 22 dealerships and extended opening hours. Created in 2013, the fleet

sales department is designed to be the ideal partner for companies in the management of their

vehicle fleets.

Due to this large distribution network, Renault achieves good commercial performance.

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3. Sales and Market Share

2021 2022 2023

Number of vehicle sales 69 791 65 287 60 290

Market share (%) 39,8 40,4 37,3

Source : https://www.renault.ma/renault-au-maroc/force-des-quatre-entites.html

The good commercial and financial performance of Renault Maroc places the company as the

third largest company in Morocco with a turnover of around 63 billion DH in 2023.

In terms of competition, Renault Maroc competes with several manufacturers. At the end of

August 2021, the Renault Maroc group occupies first position.

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For employment, the sector employed 85,000 positions between 2014 and 2018, representing

27% industrial job creation.

Chapter 4: Discussion on Selected B2B Product -Renault Trucks-

Target markets and customers:

Renault Maroc builds and markets vehicles and trucks intended for private and professional

use. Renault Morocco's main customers are:

Particular

Businesses

Public administrations

Renault Morocco’s B2B Products

The utility range is intended for all types of businesses, with special targeting for SMEs and

SMIs operating in the sector of services and benefits to individuals and businesses.

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In addition to utility vehicles, Renault Maroc offers trucks adapted to the nature of the client

company's activity.

B2B Trucks product

For transport companies, Renault Trucks offers transport professionals in Morocco a wide

choice of innovative vehicles and services, adapted to a wide range of activities: distribution,

construction, heavy construction, long distance, etc.

Types of Renault Trucks

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 Renault Trucks C and K for demanding applications

Renault Trucks vehicles provide drivers with greater comfort and safety.

D range and Master range from Renault Trucks for regional and local deliveries.

Renault Trucks has a wide range of vehicles dedicated to urban delivery and urban

connections. All these vehicles are available with alternative fuel energies, in order to

reduce CO2 emissions.

For construction companies, they need robust and productive vehicles, with a large payload, as

well as comfort and safety for drivers. Renault Trucks is specifically designed for this type of

business.

The following point focuses on the analysis of Renault Trucks B2B products and its

characteristics using SWOT, Porter Five Forces and Marketing Mix tools.

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Chapter 4: Framework Analysis on Selected B2B Product
Renault Trucks product analysis can be done through the SWOT matrix, the Porter Five Forces,

and Marketing Mix.

1. SWOT Renault Morocco Trucks

The SWOT matrix helps identify, analyze and classify information to determine what data can

be useful about the brand and products, to support the company's strengths and develop

opportunities

Forces

Large production and distribution capacity

hybrid vehicle manufacturer

Investment in research and development

in cooperation with other manufacturers

Weaknesses

Positioning of entry-level products

Supply and disruption risks due to the internationalization of construction

Continued increase in the cost of labor and inputs

The threats

Strong competition in the entry and mid-range

Sensitivity of activity to economic crises and geopolitical risks

Strong dependence on the volatility of commodity prices

Opportunities

Start of positioning in the mid and high end

Strong capacity for innovation, especially in hybrid and electric vehicles

Partnerships and collaboration with other manufacturers.

Coverage of national territory distribution

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 2. Porter Five Forces Analysis of Renault Trucks

Developed by Michael Porter, Porter's 5 forces allow companies to develop a model for

analyzing competitive forces. Through the strengths of the Porter matrix, it is possible to

analyze the competition in order to precisely define the opportunities and threats specific to the

company.

New entrants

Suppliers Competitive Clients

intensity

Substitute
products

Competitive intensity between companies: high

Renault faces fierce competition from car manufacturers present in the Moroccan market,

such as Peugeot, Volkswagen, Toyota and others.

Competition manifests itself throughout the marketing process on prices, and in terms of

technological innovation, product quality, and marketing.

To remain competitive, Renault invests in research and development, with a focus on

electrification, automation and services.

The threat of new entrants: low

Renault benefits from a competitive advantage in terms of barriers to entry thanks to its history

and position.

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The importance of capital investment to enter the market protects historic manufacturers like

Renault.

Additionally, the need to develop a strong brand and comply with strict regulations in the field

of automotive safety further complicates the entry of new players.

But the evolution of the automobile industry towards electric and autonomous vehicles can

attract new innovative players.

Negotiating power of suppliers: moderate

The bargaining power of suppliers is constantly increasing.

Renault has diversified its supplier base over the years, reducing its vulnerability to potential

cost increases or supply disruptions.

Despite these efforts, suppliers' bargaining power towards global automakers is expected to

continue to increase in the years to come. Renault is trying to implement strategies to reduce

their dependence on suppliers

Bargaining power of customers: high

The bargaining power of customers and distributors towards automobile manufacturers

increases because of:

The increase in competition

The diversification of information sources,

The wide variety of choices of brands and models.

The increasing importance of used vehicles

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The threat of substitutable products: moderate

Automotive industry products must face the emergence of their substitutes :

Public transports,

Electric bicycles and scooters,

Shared mobility services

Renault must be aware of the threat posed by substitutable products and launch the development

of new innovative products and services, reducing costs and improving the customer

experience.

Renault is committed to the development of electric vehicles.

3. Marketing MIX of Renault Trucks products

Product

Communicatio Marketing
Mix Price
n
Strategy

Distribution

Product:

Renault is based on the diversification of its range from entry-level to mid-range and high-end.

The products are intended for all types of individual and business customers.

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Price :

Renault follows a strategy of aligning the prices of Renaut brands and models with the prices

charged by direct competition, that is to say, Renault adapts its prices to those of comparable

and substitutable products.

Communication :

Renault uses several types of traditional and digital communication tools. The company

communicates via the media, social networks and advertising panels to ensure high visibility.

Distribution :

The distribution policy imposes several criteria relating to the dimensions and layout of

premises, staff training. In addition, the distribution strategy focuses on the volumes of vehicles

exhibited.

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Chapter 5: Servitization during the sale of Renault Trucks

1. Concept of servitization

Servitization consists of delivering a service rather than a product. and the services are also

expected to generate significant revenue for the company. this solution makes it possible to

encourage business customers to use services that were not available to them in the absence of

this use in the form of a service.

Servitization also involves selling additional services to customers.

Servitization therefore consists of charging for the use of the product “as a service” instead of

selling it to the customer. This solution represents for the customer a minimization of the cost

and insures him against the unavailability of the machine for example or against overcapacity

or over-equipment....

Servitization has transformed the relationship between the FRS and the Clt and the frequency

of their contacts. Contact is therefore no longer made at a distance, but is multiplied at a monthly

or even weekly frequency. Tthis multiplication of contacts always constitutes an opportunity

for the seller to increase the marketing of more services.

The objective of servitization is to make services a growing and dynamic part of the activity

and access new sources of income and improve margins. These new services build customer

loyalty and constitute a differentiating factor.

Servitization requires the availability of more intelligent products and services, this equipment

must operate constantly and provide and collect the information necessary for accurate billing

to their customers and plan servicing and maintenance operations to avoid breakdowns.

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In this sense, Renault is banking on innovative and essential services for businesses to generate

more revenue.

But within the framework of servitization, Renault Trucks relies on the sale of services with

high added value.

Thus, the sale of Trucks constitutes only one step in the commercial process. Subsequently, the

teams market other services with high added value to convince customers.

2. Servitization relating to the Renault Trucks product

Sale of Trucks, but also, proposal of several solutions (equipment as services).

In the Trucks segment, Renault Trucks offers a complete range of transport solutions for

businesses.

Through the Uptime & connectivity formula, Renault Trucks supports its customers to optimize

the performance, operating costs and management of your fleet. Contracts are planned to adapt

to different operating constraints,

The services of the formula offer:

Package and maintenance contracts

To optimize the performance and cost of ownership of Trucks, maintenance is essential.

Renault offers tailor-made, dynamic and connected maintenance plans, designed according to

the use of the equipment.

Automatic updates allow precise scheduling of operations based on usage to ensure optimal

operation.

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The customer plans a maintenance plan and workshop visits with maximum performance and

availability of Renault maintenance agents.

Fleet management:

Renault Trucks offers the Optifleet solution, for permanent assistance with fleet management.

The service is to reduce operating costs. Thanks to vehicle and driver tracking, the company

manages activity in real time and controls expenses.

The Optifleet solution is made up of 3 axes:

OPTIFLEET CHECK: Monitoring fuel consumption to save costs

OPTIFLEET MAPPING: Optimize deliveries thanks to real-time fleet location

OPTIFLEET DRIVE: Stay compliant with driving regulations.

Driver training

Renault Trucks has designed this training to achieve:

Fuel savings

Increased safety in behavior (reduction of accidents and therefore increase in

productivity)

Rational driving to reduce maintenance (anticipation, average speed, optimized braking,

use of the Optidriver gearbox, etc.)

Funding

To facilitate and encourage the acquisition of Trucks by companies, Renault is planning a

financing program via its dedicated bank.

Renault Trucks Financial Services offers several financing options.

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STANDARD CREDIT Your repayments are spread over a predetermined period and amortized

on the balance sheet.

LEASE: financing of the sale price including tax.

FINANCIAL RENTAL The rental amount is calculated based on the duration of use

(determined based on your operating needs). You then return the vehicle at the end of the rental

period, having respected the planned mileage.

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Chapter 6: Marketing Strategy for Renault Trucks Assurance (Servitization)

1. Insurance : The new service

As part of improving its results and increasing profitability, Renault Trucks can still rely on the

strengths of servitization and offer more profitable services.

Value proposition

Renault already offers truck financing solutions. The insurance proposition will constitute an

essential additional service for businesses.

This service will be profitable thanks to the quality of the information in Renault's databases.

Renault can primarily target this service to building and construction companies or those

working on construction sites and which cover fewer miles and whose traffic speed is limited.

This targeting minimizes the risk of incident charges.

In the event of an incident, reimbursement will be made on the basis of spare parts supplied

directly by Renault services at the production cost. And Renault will be assured that it will be

its parts which will be used in the repairs.

2. The marketing plan for the new Trucks insurance service

Market study and need: customers are obliged to take out insurance for Trucks, which is why

they will be more receptive to insurance proposals from the manufacturer.

Design the product: the product consists of highlighting knowledge of the equipment to be

insured and accepting insurance even for the most expensive Products. The insurance must

cover all damage and offer rapid repair support in Renault workshops to put the equipment back

into operation.

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Pricing Strategy:

The price to be offered for the insurance must take into account the prices of specialized

insurers. But, the absence of prospecting costs, and the cost reductions on repairs can encourage

Renault to offer competitive prices to retain customers.

Plan promotions:

To get the insurance service adopted and convince of its contribution. Renault can develop a

promotion consisting, for example, of applying a 10% discount on the price if the company

decides to insure more than 5 Trucks.

Communication and follow-up:

The first customers for insurance will even be Truck customers. Renault must offer complete

contracts with all services including insurance.

For former customers, the teams have contact details and can negotiate them and benefit from

good relations with them.

Advertising campaign:

Advertising of insurance offers must be integrated into Renault's advertising campaigns through

various traditional and digital media.

Sales and distribution channels:

The first contact with companies to offer insurance is the moment of conclusion of the sale.

Insurance can even be used as a selling point.

Other customers can be contacted via the prospecting call center.

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The customer can also be captured through advertising in the media or on social networks which

can capture the interest of company managers and employees.

3. Ideal Customer Profile (ICP)

The target and ideal customer is the Building and public works company that is sufficiently old

and well equipped with Renault Trucks.

These companies are potential customers for this service because of the obligation to take out

insurance for their equipment.

The main argument will be the concentration of administrative financing and insurance

procedures and avoiding paying additional costs with specialized insurers.

The profile and characteristics of the ideal consumer are presented in the following diagram.

BTP : Construction and

public works

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Chapter 7: Conclusion

The analysis of Renault Morocco’s activity shows a variety of products and targeted markets.

The very competitive nature of the automobile market in Morocco requires Renault Maroc to

adopt a very active marketing policy to promote its products and attract more B2B customers.

The company is part of an innovation policy. In this context, Renault is not limited to the sale

of vehicles built at its factories in Tangier and Casablanca, but it has developed an entire catalog

of complementary services necessary for the proper functioning and operation of vehicles and

trucks sold.

This servitization, which consists of transforming and supporting products with customer

services, helps build customer loyalty and generate more revenue from this activity.

To increase the share of revenues from servitization, the company must continue to offer new

services.

The inclusion of insurance in the service packages accompanying Renault Trucks sales requires

the definition of an effective marketing strategy to successfully place this product.

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References

➢ Bachirat, B. Boulouadnine, L. Lembarek, N. (2006). L’industrie automobile au Maroc :

potentiels et dynamiques des relations clients-fournisseurs. Critique économique n° 17.

➢ Bakkali et al. (2022). L’évolution de l’industrie Automobile au Maroc : Etude

comparative avec l’Afrique du sud durant la période 2011 -2021. International Journal

of Financial Accountability, Economics, Management, and Auditing. 4, No.1.

➢ Basiouny M, M. (2020). Servitization for automotive manufacturers in the middle east.

In the Faculty of Humanities. Alliance Manchester Business School.

➢ Hakam, A. (2020). L’industrie automobile au Maroc : Vers de nouveaux gisements de

croissance. DEPF Etudes. depf.finances.gov.ma

➢ Peillon, S. (2016). La servicisation des entreprises industrielles : Un changement majeur

de business model. La Revue des Sciences de Gestion, 278-279, 131-

140. https://doi.org/10.3917/rsg.278.0131

➢ Groupe Renault activity report for the years 2020; 2021; 2022; 2023

➢ Renault pro website dedicated to businesses https://www.renaultsolutionpro.ma/

➢ Renault Trucks Maroc website https://www.renault-trucks.co.ma/fr-ma

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