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CASE VALEO

Valeo is a French global automotive supplier headquartered in France, listed on the Paris Stock Exchange (CAC-40 Index). It supplies a wide range of products to automakers and the aftermarket. The Group employs 113,600 people in 33 countries worldwide. It has 186 production plants, 59 R&D centers and 15 distribution platforms. Its strategy is focused on innovation and development in high-growth potential regions and emerging countries.^[1] In 2018, Valeo's sales rose 4% to 19.1 billion. It also ranked as France's leading patent filer from 2016 to 2018.^[2]

Valeo is structured around four business units:^[13]

1. Comfort & Driving Assistance Systems (specialized in technologies to make driving safer, more intuitive, more autonomous and more connected)
2. Powertrain Systems (development of innovative solutions for reducing CO₂ emissions in terms of electrification, automated transmissions and clean engines for vehicles)
3. Thermal Systems (optimization of vehicle thermal management and passenger well-being)
4. Visibility Systems (development of technologies ensuring the best visibility and safety for drivers in all weather conditions)

Its Valeo Service activity supplies original equipment spares to automakers and replacement parts to the independent aftermarket.^[14]

Original equipment sales growth by destination region:

• Europe and Africa: 46% of sales
• Asia: 32% of sales
• North America: 20% of sales
• South America: 2% of sales

Considering all above, if you were Marketing Manager of Valeo:

1. Suggest a market segmentation
2. Which pricing strategy/ies should you recommend?
3. Critically evaluate their distribution strategy; would you change anything? Would improve it? Is the width appropriate?
4. How would you assess the new product development strategy, and what would you recommend as strategic lines for new products inception and development.