Peugeot/CitroŽn marketing strategy
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  1. #1
    1000+ Posts gerry freed's Avatar
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    Default Peugeot/CitroŽn marketing strategy

    There is a lot of talk here about "fourchette" marketing - pitching the products at the lower price driven end of the market and at the luxury end, leaving out the middle segments.
    Renault, having designed the Dacia platform from a design brief of low cost, are in the unusual position of making good profit margins from cheap small cars.
    In spite of various French efforts, the Germans occupy the luxury end. The middle is being squashed in margin and volume by the European economic restructuring.
    PSA had hoped to take its C5 + offerings into the German image by making them in Opel factories. That relationship is on hold because of government intervention.
    The CitroŽn brand has been position cleverly in my view in the luxury end of the middle segments of the market with the DS series. This is a hard territory to hold as the Germans are well placed to copy as VW/Audi, BMW and Mercedes are in there. The new A and B Class Mercedes are typical examples.
    The 208 is a lower cost product than the 207, but it doesn't have the margin to take them into the Dacia territory.
    PSA has to move more strongly into emerging markets, which it cannot serve from a French manufacturing base, in spite of the political pressures. They are planning a new low cost vehicle for 2014, branded CitrŲen and make in places like Spain. Using the 208 platform they are still not down to Dacia costs and so will have to be pitch a little more up market.
    In recent years the two PSA brands have sold through parallel networks and have featured styling variants on commmon platforms. Now that they are combining the customer interface as a single unit, their is a logic in using the two brands differently. Discrete market segments will be defined by using one brand only. At the monment within Europe the 208 is the lower cost small car segment offering but in emerging markets it seems it will be a CitroŽn vehicle.
    There will be, left over from a pre economic crash decision process new CitroŽn Picassos coming out early next year, right in the middle of the fork!

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  2. #2
    Real cars have hydraulics DoubleChevron's Avatar
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    The only problem is I find there offerings have absolutely zero appeal. Take the DS5... This is supposed to the "up market" version ... that's big enough to be a family car.

    http://www.iol.co.za/motoring/cars/c...tWkGk.facebook

    The main points to note:
    ---crap suspension. This was linked on facebook. The comments so far by citroen enthusiest have been

    Amelia xxxx Went for a drive in Okkie's new one and besides it being a beautiful car, I felt like I needed a kidney belt....
    about an hour ago ∑ Like

    Rolf xxxx Awesome to drive, but not to be in the back seat.....very hard!
    about an hour ago ∑ Like ∑ 1
    They have just stuck the crappy bumpy, thumpy, shuddery C4 suspension under it. This is supposed to be the "top" model and it doesn't even get hydraulics

    it doesn't even get a spare tire, yet in it's class is small inside. It sounds like it could be a bit of fun to drive..... But .... The aussie importers will only import the slugomatics..... No doubt it'll be that piece of crap AL4 gearbox.... That should have been thrown away a decade ago. The reason I think this They detune the bloody thing back to 115kw if you get the crappy slugomatic, 'cos it'd sh!t itself if the full 1600cc of raw power was put through the 'box

    what a joke. Little wonder there going out backwards.

    seeya,
    Shane L.
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    Proper cars--
    '85 Series II CX2500 GTi Turbo I
    '63 ID19 http://www.aussiefrogs.com/forum/showthread.php?t=90325
    '72 DS21 ie 5spd pallas (last looked at ... about 15years ago)
    '78 GS1220 pallas
    '92 Range Rover Classic ... 5spd manual.

    Yay ... No Slugomatics


    Modern Junk:
    '07 Poogoe 407 HDi 6spd manual

  3. #3
    1000+ Posts gerry freed's Avatar
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    The DS series has gone from 0 to 15 percent of sales by units in three years for CitroŽn and much more in terms of gross margin contribution. The idea of up market is not up segment but within a given segment to offer a differentiated product with greater appeal than the average, to get at more profit.
    In Europe the road quality especially in the urban complexes and the extensive autoroute networks is such that the benefits of Hydropneumatic suspension don't justify the cost and complexity any more. The various current safety regulations preclude the use of an integrated hydraulic system as per the real DS and again a lot of the benefit is lost.

    Within France only about 5% of cars are fitted with automatic transmissions and those that have them are generally the less capable drivers, so the AL4 is not particularly stressed and is rarely seen now having been supplanted by later technology Japanese and German autos.

    Europe goes for small engines as it is consumption and emission conscious.

    The challenge PSA have is to justify the costs of tooling for a RHD market with very different demographics, climate and driving behaviour. Their mainstream market is lapping up these cars and they are being challenged by imitators.
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  4. #4
    1000+ Posts gerry freed's Avatar
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    In explaining the strategy for recovery at PSA, the CEO talked of the new brand strategy. They are concerned that Peugeot and CitroŽn are canniballising each other's sales and that the marques have to be differentiated better.
    So although the DS series is top of the range, the intention is to reposition Peugeot as the Audi and CitroŽn as the VW. CitroŽn's new product line will be based on lower cost, simpler vehicles with few add-ons and options.
    I do not know where that puts "creative technologies", it is more like "descended from the 2cv".

    The logic of this may not be obvious in Australia but in Europe it makes a lot of sense as the market has turned poor and worried about employment futures. Renault is already there with the Dacia range.
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  5. #5
    Should get a life 2353's Avatar
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    Interesting. Citroen has usually been seen as the "upmarket" brand in Australia. Given Australia's "love" of French cars (as demonstrated by the sales of them here) it's not going to be a concern at PSA HQ - but Sime Darby may have a problem explaining it to the "masses".
    Save the earth, it's the only planet with chocolate.

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