Renault and Volkswagen are merely divisions of much larger bodies, Renault-Nissan Alliance and Volkswagen AG (which itself is part of Porsche Automobil Holding SE). These bodies consist of multiple car brands and form very complex internal structure. They currently rank as #5(Renault-Nissan) and #2(Volkswagen AG) in car units production.II

Volkswagen Group Structure [Link]



Renault Group and respective brands [Link]

Such complexity poses certain influence on marketing strategies of numerous car brands of those automotive groups. Each brand should market their production very delicately and with much targeting precision in order to prevent sales cannibalisation, when one product competes with another of the same automotive group.

Being much more complex than Renault-Nissan, Volkswagen Ag inevitably faced such situation, when one of it’s brands — Skoda started to compete with Volkswagen and Seat, cannibalising their sales in severe quantities, rendering Skoda’s marketing campaign ineffective regarding total revenue of automotive group. Renault-Nissan seems much more accurate with targeting audiences, distributing their brands geographically.

     Anyway, marketing decisions contain burden of complexity and should be managed delicately. Any step that may seem successful for one brand in present may lead to losses for another one in future. We will concentrate our efforts on analysing marketing strategies for these companies, trying to establish the most optimal scenarios that will contribute to the whole group. We will further analyse marketing decisions and potential of these automotive groups in european region, focusing on certain car models.

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