GLOBAL MARKETING STRATEGY
OF NISSAN MOTOR COMPANY
Submitted by:
GURSANT SINGH
11102320
MBA – 2ND SEM
Introduction
Nissan Motor Company, Ltd. Is a Japanese company shortened to Nissan, is a multinational
automaker headquartered in Japan. It was formerly a core member of the Nissan Group, but has
become more independent after its restructuring under Carlos Ghosn (CEO).
It formerly marketed vehicles under the "Datsun" brand name and is one of the largest car
manufacturers in the world. As of August 2009, the company's global headquarters is located in
Nishi-ku, Yokohama. In 1999, Nissan entered a two way alliance with Renault S.A. of France,
which owns 44.4% of Nissan while Nissan holds 15% of Renault shares, as of 2008. The current
market share of Nissan, along with Honda and Toyota, in American auto sales represent the
largest of the automotive firms based in Asia that have been increasingly encroaching on the
historically dominant US-based "Big Three" consisting of GM, Ford and Chrysler. In its home
market Nissan is the third largest car manufacturer, with Honda being second by a small margin
and Toyota in a very dominant first. Along with its normal range of models, Nissan also produces
a range of luxury models branded as Infiniti.
The Nissan VQ engines, of V6 configuration, have been featured among Ward's 10 Best
Engines for 14 straight years.
Nissan Motor Co. is one of the major car manufacturers in the world. Nissan Motor Co. is in
automobile industry for over 70 years. Nissan has spread out its manufacturing over all major
countries and territories of the world. Nissan Motor Co. founded in 1934, formally known as
Datsun until 1983, is a Japanese automobile manufacturer and is Japan’s second largest company
after Toyota. It is among the top Asian rivals of the “big three” in the US. Initially, Nissan
produced military vehicles for Japans military. Nissan produces an extensive range of
mainstreams cars, trucks for domestic and international consumers.
In Pakistan Nissan is operating in collaboration with Bibojee Services (Pvt.) Limited with local
brand name of Gandhara Nissan Limited. Gandhara Nissan Limited was established in 1981 as a
private Limited Company and has sale license for distribution of Nissan vehicles. In Pakistan
Nissan’s net sales for year ending 30th June 2006 were about Rs. 4 billion.
In Pakistan Nissan has following major cars already in market :
• Nissan Sunny
• Nissan Patrol
• Nissan Cefiro
• Nissan X-Trail
NISSAN’S VISION
Nissan’s vision is to enhance the quality and safety of travel and achieve customer satisfaction.
Nissan focuses on maintain and implement better quality standards to ensure people with more
comfortable and safe drive.
Their vision is expressed in their statement as: “Nissan-Enriching people’s Lives.”
The significance of this is that Nissan aims to participate in the development and progress of
society through its business activities worldwide. This is only achieved through set of objectives
that needs to be focused and better implemented through effectiveness and efficiency.
NISSAN’S MISSION
“Nissan provides unique and innovative automotive products and services that deliver superior
measurable values to all stakeholders”
NISSAN NEXT: MARKETING ENVIRONMENT
MICRO ENVIRONMENT
CONSUMERS
Consumers are the main target which needs to be understood and satisfied in the market. Their
purchasing behavior will most likely be an impact affecting an organization in several
unprecedented ways. It is important to understand their mindset patterns of purchasing a family
car, the basic pattern includes affordability, fuel efficiency, safety and comfort giving the
consumer a mood of acceptance and appreciation. The main focus of the Nissan will be the low
level car owners and low income consumers. It will also target product to bike owners as they are
very unsafe.
COMPETITORS
With strong economic growth and government relaxation on taxes, several companies are
emerging to establish their market position. Nissan next stands a good chance of competing with
existing competitors as several of Nissan products are already in the market. Nissan will position
the new product with features such attractive look-n-feel. Direct - competitors are Toyota and
Suzuki which have substantial market share.
INTERMEDIARIES
Nissan will adopt both distribution channels, direct and indirect. Intermediaries (i.e authorized
dealers of Nissan) are important, since indirect distribution of its product is carried out through
them. This will help to further enhance the reach-ability of the car.
PUBLICS
Publics are the general public who are involved in the reputation of Nissan and its products.
Nissan has to provide several strategic approaches in order to stand out with the public opinions.
Any critics against Nissan would impact the sales and repute. With such diverse culture,
consumers are highly deterred with public opinions. This very thin line, the public offers, can
effect production, distribution and diversification of Nissan. Nissan will have to stand out in their
primary objective and not loose that position.
MACRO ENVIRONMENT
DEMOGRAPHIC ENVIRONMENT
Education
The literacy rate of the country is increasing and as a result it has increased the consciousness in
people about safety and quality of travel. People are now more sensitive about how safe and
comfortable is the automobile they are using. With the increased awareness in people they have
now shifted towards the automobiles which are according to safety standards and give more
comfortable travel. This shift is also helping Nissan Motor Co.’s business as people are moving
towards it.
Population
Population of Pakistan is increasing at rapid pace and has touched the figures of 150 million in
year 2006. This increase in population has also increased the number of buyers and expanded the
market of automobiles. Requirement of more automobiles has grown. Automobile industry has
also responded to this scenario. But there is still a huge gap between people demand and supply
of cars. Nissan focuses on this gap and is trying to avail this opportunity to its best.
ECONOMIC ENVIRONMENT
With the rapid growth of national economy purchase power of people has also increased. Also
the priorities have changed a lot. The affordability of cars has improved and this resulted in huge
increase in the sales of cars. This provides Nissan an opportunity to jump into market with strong
impact and grab a major share in automobile industry.
TECHNOLOGICAL ENVIRONMENT
Rapid improvement and advancements in technology impacts the automobile industry a great
deal. It impacts the manufacturing, assembling and furbishing of automobiles. New technological
advancements pace up the operations; results in more rapid production of cars. Technological
improvements also impact Nissan’s operations a great deal and forces towards technological
shift. Nissan keeps on improving its technological structure with time and has to continue its
strategy of regular improvements.
NISSAN NEXT: PRODUCT EVALUATION
CORE, ACTUAL AND AUGMENTED PRODUCT
• The Core Product is an easily affordable Vehicle for consumers.
• The Actual Product is “Nissan next” car which is a new launch of Nissan. It provides its users
with an affordable choice to buy and ensures a safe and comfortable travel.
• The Augmented Product is the added features this car provides to its buyers. Major add-on
features Nissan next provides to its buyers are :
o 1 year parts and service warranty.
o Integrated Tracking System.
o Highly attractive design.
o CNG installed in car for user convenience.
CONSUMER OR INDUSTRIAL PRODUCT?
“Nissan next” comes under the category of consumer products as it is designed and launched for
the satisfaction and facility of individual or family users of middle class and low-earning income
population.
CONVENIENCE, SHOPPING, SPECIAL OR UNSOUGHT PRODUCT
“Nissan next” is a shopping product, as there is high involvement of buyers while buying cars.
They want more information about the product and also this is not daily purchase or frequent
purchase product. There is a huge demand of affordable and safe automobiles in the market.
Getting a comfortable travel facility has become a desire of every person as frequency of travel
has increased a lot. “Nissan next” will provide users will all three major factors in demand for
automobiles i.e. economy, comfort, safety.
PRODUCT USES AND CONSUMER ACCEPTANCE
The consumer acceptance for this car will be highly as people are becoming more and more
sensitive towards traveling. People now prefer cars which are more comfortable and look
attractive. Economic strengthening of the country has also improved the economic condition of
people resulting in more demand of automobiles. Therefore there is a huge gap in market and
Nissan next through its low pricing, more safety and comfort will get huge consumer
acceptance.
DISTRIBUTION – WIDE SPREAD OR NOT?
Distribution of “Nissan next” will be widespread as Nissan want to reach all the major areas of
the country. It will be launched at all the showrooms and dealers of Nissan.
SWOT ANALYSIS
STRENGTHS
Following are some of the major strengths of company:
• Brand image of Nissan Motor Co. and Gandhara Nissan Limited.
• Variety of Automobiles being produced.
• Local Production of cars / low cost of production.
• Financially Nissan is a strong company.
• High Quality products.
WEAKNESSES
Following are some of the weaknesses of the Product and company:
• Currently Nissan has low share in market.
• Nissan next is currently being launched in two varieties only.
• Nissan has small distribution network currently.
OPPORTUNITIES
Following are some of the opportunities which Nissan can avail in future to increase its market
share:
• Increased awareness of people.
• Improved economic condition of people.
• Increased population/consumption
• Increased media influence on people.
• Increased market demand.
THREATS
Following are some of the threats which may be faced in the future:
• High competition in the market.
• New Entrants can also add to the competition.
• Presence of other brands in the market and their infrastructure.
CONSUMER EVALUATION
TYPE OF PURCHASE DECISION
Automobile industry has a number of producers already in market including Nissan, Nissan next
will introduce a new image of the company and will most likely attract consumers as it will be a
customized model for the people. Since any consumer will be a long lasting relationship, it is
important that it stands out in front of its competitors and has a competitive edge. There will be
high involvement of user as it has to make a big purchase decision and also there are competitors
like Suzuki and Toyota etc. giving services to people; so this purchase behavior will be
categorized as Dissonance-Reducing Buyer behavior.
CONSUMPTION – CONSUMER RESPONSE
Commute has become a necessity and more roads infrastructure has been established. More
people are interested in purchasing as their needs and interests increases. As competition is on
the rise so public is more informed about cars. They are more conscious about the safety and
economic features of the car. This awareness and consciousness is increasing the buying and
there is already a gap in market so production of Nissan next will be tremendous.
QUALITY, COMFORT & SAFETY
Gandhara Nissan Limited is working in collaboration with its mother company in Japan, Nissan
motor Co. Thus it has an international image in local market & public mind stands on good
grounds when considering Quality, comfort and Design. The new image will provide a new
quality, price and comfort pattern which will be very favorable to consumers. Since consumers
relationship is going to last, it is important that these variables are constantly improved. Nissan
next will be affordable most of all, and safety should be first priority so that the consumer’s first
impact would be that this is a car for my family. Design will be unique from the rest of its
competitors and will be designed after evaluating customer buying patterns.
CUSTOMER AWARENESS AND BRAND SWITCHING
Since this is a high value purchase, it is most likely that the brand loyal consumers are loyal to
the company and believe that the Nissan products are much better than others. The new car will
attract our existing customers as it will contain additional unique features. Nissan next aim is to
capture the new market of its level and provide its existing customer a new opportunity to
experience a new ride experience. Nissan will provide unique differentiated points to create
awareness and presentations proving the consumers the advantages and luxury it can provide to a
small family. With increase in awareness in consumer minds, it is imperative that safety features
are emphasized and provide core values which the consumers like to see.
BRAND PROSPECTS -- LOCATION AND INFLUENCE
In Pakistan, 30% of the population is living below the poverty level which be translated as
earning less than $2 a day and about 5% comes in the bracket of elite class. Therefore Nissan
next will provide a very different level of customization to different locations which will be
favorable to low-income families. Most of them travel by bikes and buses. Nissan will introduce
a better shift to its new car which is Compaq, secure and most economical.
COMPETITOR ANALYSIS
Major competitors of “Nissan next” are Suzuki, Toyota, Hyundai and Cherry QQ. All products of
these companies of same size and capacity will give tough competition to “Nissan next”.
PRICING
As making cars more affordable is the major objective of launching this car therefore the prices
of this car are kept lower than that of all the current competitors in the market. This will help
grasping larger market share and compete well in market.
• CNG plus AC car will be available at Rs. 3, 50,000 only.
• Only AC car will be available at Rs. 3, 15,000 only.
PROMOTION
Major competitors of “Nissan next” like Toyota and Suzuki; are spending huge revenue on
promotion of their brand and products. Nissan will also make extensive effort and heavy
investment on creating awareness about “Nissan next” in market. Promotion of “Nissan next”
will be done at nation wide scale as Nissan aims at targeting all major areas of country.
DISTRIBUTION
Nissan has currently distribution setup in the major divisional headquarters only but the
competitors specially; Toyota and Suzuki has a wider network. There presence in more areas
than Nissan is giving tough competition to Nissan. For Nissan next , Gandhara Nissan Limited
will come up with a new strategy of distribution to reach all those areas where there they are not
currently present.
FUTURE COMPETITORS AND REPLACEMENT PRODUCTS
In future the most effective competitor for “Nissan next” can be a small car from Honda Limited.
Honda is a large car manufacturing company but not currently producing small cars in Pakistan.
Therefore a step of producing small cars by Honda can give tough time to Nissan next. Nissan
should develop strategy to cope with the situation if Honda also jumps into the market with small
cars for consumers.
MARKETING OBJECTIVES
The goals and objectives of the marketing plan are usually defined under the light of certain
performance indicators which are related to the probable increase in growth, sales and
performance levels in terms of increasing overall company revenues and image. Marketing
objectives leads to the increased sales if they are clear and understandable
For “Nissan next” we’ll define performance parameters and baseline in light of Nissan’s vision to
achieve customer satisfaction. Also the growth of automobile industry in Pakistan and increase in
demand of automobiles is kept under consideration.
GOALS AND OBJECTIVES
• Capture at least 25% of market share for small cars in defined Target market.
• Occupy second position in the market following Suzuki Motor Company.
• Target middle class and low earning income class specially by providing them an affordable
option.
• Create awareness among target audience. Use excessive advertising especially using media
preferred by the target market.
• Use unique features like good design, low prices and comfortable environment to create
attraction towards product.
• Create product belonging and position among buyer’s mind.
MARKETING STRATEGIES
This section of the plan basically outlines Nissan’s plan to achieve its objectives that are
mentioned above as well, it is the most essential part of the marketing plan.
TARGET MARKET
Nissan nexc target market will be the low-level income group, middle class and bike owners.
Bike owners are the most critical as large number of consumer currently in Pakistan travel
through bikes. Safety hazards of this type are tremendous considering the increasing number of
accidents that occur due to unsafe bikes. With constant awareness and education about Nissan
affordability and safety features, this type of group could be acquired resulting in increase of
brand loyal consumers. People are more aware and therefore, they are constantly more particular
when deciding which car to purchase. With strategic advertisement, consumers can be attracted
with its latest features and a new image Nissan will provide to owners.
NISSAN NEXT TARGET MARKET: GEOGRAPHIC SEGMENT
The major concern of Nissan next is to capture all the district headquarters of the country
resulting in its coverage of almost all over the country.
NISSAN NEXT TARGET MARKET: PSYCHOGRAPHICS
With new image Nissan next will provide to its buyers, owners will feel more confident and
proud considering that Nissan is an international organization with strong background resulting
driving Nissan next a status symbol. Also safety and comfort are big factors of considerations in
a consumers mind so Nissan by focusing on these factors will attract safety and comfort
conscious people. Seeing its potential, consumers will most likely shift to Nissan next.
NISSAN NEXT TARGET MARKET: DEMOGRAPHICS
Primary Target market belongs to middle class, upper middle class and low earning income
people in society, falling in income bracket of below Rs. 50,000. Also the target will be people
from 25 - 60year old who are major automobile buyers.
MARKETING MIX STRATEGIES
“Nissan next’s” marketing efforts will be based on the priority of expanding its market share and
increase the brand loyalty among buyer’s by achieving customer satisfaction.
Nissan is launching “Nissan next” at this particular time because of boom in the automobile
industry in Pakistan. The demand of cars for private usage is increasing a great deal but there are
a few car production companies currently in the market. Nissan feels that there is a very good
opportunity to jump into the market at this time with a quality product and grasp a major share in
market.
PRODUCT STRATEGIES
The name of the car will be “Nissan next”. It should be a highly quality product focusing on
three important parameters of economy, safety and comfort to compete the major competitors in
the market i.e. Suzuki and Toyota.
PACKAGING
Nissan next will be built on one standard size. It will be available in both color types i.e. Metallic
and Non-Metallic. The color range will be 5 major colors red, white, black, blue and green with
capacity to increase other colors on demand. The design of the car will be smooth and catchy.
Imp. Recommendations
• The shape of the car should be kept different from the shape of competitor’s products.
• The design of the car is recommended to be kept innovative and unique in order to attract
customers.
• The design should also be kept on improving on regular basis.
LABELING
The Label of car presents only basic information about the car i.e. brand name and car name.
Imp. Recommendations
The name of the car proposed is “Nissan next”. The name represents innovation and movement
ahead as is the plan to move the car ahead of its competitors in aspects like Affordability,
comfort, design and safety. The label of the car should be innovative and attractive. The fonts
used should be decent and attractive. Only precise text should be presented.
PRODUCT LINE
Nissan next will be available in two major types of cars:
1. Nissan next CNG/AC
2. Nissan next AC
Imp. Recommendations
It is recommended both products should be launched simultaneously with major production and
share to CNG car as demand of CNG is much more than that of simple car. After three months
time a survey should be conducted to judge customer’s response to the car.
PRICING STRATEGIES
The price of the cars will be as following:
• Nissan next CNG/AC ------------- Rs. 3,50,000/• Nissan next AC ---------------- Rs. 3,15,000/Imp. Recommendations
The price of the car should be kept lesser than the competitors as Nissan next’s major objective is
providing economical car to users. Also the target market of the car is Middle and low income
class so it should be kept in their affordability. This is accomplished by reducing the overhead
costs like OWN payment etc. by developing efficient distribution mechanism.
DISTRIBUTION STRATEGIES
Basically there are two types of distribution channels available: Direct distribution and In-direct
distribution
Recommendations
Nissan next will adopt both distribution channels for distribution of car.
Use of Direct Channel: Nissan has its showrooms in major divisional headquarters; at these
stations Nissan next will use its direct distribution channel. Also it is recommended to increase
the direct distribution coverage area by setting up showrooms in more areas to have better
control over distribution.
Use of In-direct Channel: In those areas where Nissan doesn’t have its showrooms it will use its
chain of authorized dealers to sell out its cars in these areas.
PROMOTION STRATEGIES
Promotion is one of the most important factors of marketing; it is done to affect the consumer
behavior in order to achieve sales and increase product image. In promotion the major task is to
make consumers aware of the product and to attract consumer towards the product by
highlighting the advantages of the product. Also it keep consumers aware and well informed
about product’s features and improvements.
Recommendations
• Nissan can use electronic and print media to advertise about its car.
• Nissan can advertise on billboards, flex signs, bus boards, telemarketing etc.
• Special advertisement campaigns can be launched e.g. seminars, road shows publications etc. to
create awareness about Nissan next.
• Nissan will sponsor special events like concerts etc. to introduce the car to public.
ENVIRONMENT RESEARCH
An extensive market research will be conducted to have better idea about consumers’ perception
about Nissan and its competitors. For this purpose Nissan will acquire services of marketing and
research agencies to better analyze market environment. This will enable Nissan to learn about
the consumers’ behavior, how they perceive us and compare with the competitor. The media of
the advertising a product is always chosen after the market environment research to get
knowledge that if the target audience is interested in that mode of advertisement or not
ADVERTISING
To advertise the product better and create awareness about product; Nissan will use different
advertisement methods to approach the consumers. The diversity of advertisement channels will
help in reaching the masses of different mindsets.
Following Advertisement methods will be used:
• Nisan will use print and electronic media to introduce the product to consumers.
• Special events will be sponsored by Nissan.
• Use of Billboards, flex signs etc for massive introduction of car’s launch.
• Special road shows and displays will be set at dealers outlets.
• Prize contest will be conducted to attract people towards the car.
POSITIONING STRATEGY
Nissan next will use the image of NISSAN MOTOR CO. and hope that it will attract the
customers towards the car. Also Nissan next’s extensive marketing with focus on its special
features like economy, safety and comfort will draw attention of buyers and create room for the
product in the market.
ACTION PLAN
The action plan will commence from the month of January 2007 and will go up to June 2007.
PROMOTION ACTIVITY DURATION RESPONSIBILITY
Launch a blind ad campaign on billboards and magazines in all A class areas of major cities and
magazine. 2 weeks Marketing department
Heavy advertising on TV, newspapers and magazines 4 weeks Marketing department
Sponsor a highly prestigious chain of events or concerts. 3 weeks Marketing department,
Finance Department
Set displays of car at all the Nissan showrooms and major dealer outlets in all cities. 3 weeks
Marketing department
A contest will be held and people who win will get prizes (Car Info. Books, Key chains, phone
cards etc.) April Finance Department, Marketing Department.
Reduce number of billboards, television and magazines advertisements. May Marketing
department
Continue Advertising June Marketing department
EVALUATION, MONITORING AND CONTROL
The goal of the marketing plan is to outline the strategies, tactics, and programs that will make
the sales goals outlined in the Nissan next business plan a reality by the end of the season. There
are a number of KPI ’s which are needed to be measured for better evaluation of the
performance.
The monthly and the annual revenue generation, then the amount of expenses incurred in a
month or in a year, then the increased level of customer satisfaction and ensuring the brand
loyalty..
For complying with these scenarios the advertising efforts made by the company, strength of the
distribution channels, launch of the new products and the pricing will be measured. The possible
increase in growth of the target market also depend all these efforts made by Nissan next.
The people who are responsible for the monitoring and control of the marketing plan involves,
the Marketing Executives, Sales Managers, Media Managers, Market Research Departments, and
the Production Managers.
Some activities must be carried out for precisely and closely evaluating the effectiveness of the
strategies and tactics for example the gathering and structuring of data regarding market,
product, consumers and the pricing trends, then the generation of daily sales report should be
maintained and then in the end continuous reconfirming of the marketing budget and activities
by the managers of different divisions.
BUDGET
As Nissan has a tough competition with some big names like Suzuki and Toyota so there is need
of strong financial support to all marketing activities. Nissan has allocated initially Rs. 30
millions for the marketing of Nissan next. This budget will be used during the fiscal year of
2006-2007.
This amount will be further sub-allocated to different areas. Rs. 15 millions has been allocated to
the budget of initial cost for the marketing analysis and all activities of advertising and
promotion during first quarter of the year. For the continuity of the promotional and
advertisement activities Rs. 15 millions has been sub-allocated for each quarter over the years as
Rs. 5 million per quarter.
• These allocations of finances can be altered with respect to the future requirements
MARKET ANALYSIS COST
Nissan’s marketing department includes professionals for market analysis, competitor analysis,
etc. These people are advised to do their best and for more extensive approach. Nissan has also
acquired the services of marketing research and analysis agencies for better approach and more
in-depth research. The cost estimated for market research is Rs. 2 million.
QUESTIONNAIRE COST
Nissan’s has conducted an extensive questionnaire with general public to have better idea about
the mindset and understanding of general public. This survey costs for its development,
execution and then process of interpretation. Cost estimated for this survey is Rs. 1 million.
ADVERTISING AND PROMOTIONAL COST
The cost allocated for advertising and promotion is Rs. 12 million. This cost is allocated to the
areas of advertisements, sponsorships, promos, etc.
ADVERTISING COST
Advertising costs includes advertisement on electronic media, print media (news papers,
magazines, etc.), billboards, road shows, displays etc. etc. These all activities have been allocated
Rs. 8 million.
PROMOS COST
Promo cost includes the cost of handouts; information books, prize contests etc. these all promo
activities will cost around Rs. 2 million.
SPONSORSHIPS
Nissan will sponsor different events like concerts, seminars and other social activities etc. to
promote the car in masses and attract people. This sponsorship of a chain of activities over time
will cost about to Rs. 2 million.