Media Plan: Nissan Group Fantastic Max Dempster, Diana Aguilar-Flores, Ashley Thomas, Brittany Boylan, Alyssa Case, Lloret Pelayo Table of Contents Executive Summary.....................................................................................................3 Background .................................................................................................................................................................3 Target ............................................................................................................................................................................3 Media Plan ...................................................................................................................................................................3 Marketing Situation Analysis.......................................................................................4 Industry Review ........................................................................................................................................................4 Marketing Mix ............................................................................................................................................................5 Product ............................................................................................................................................................................. 5 Previous Campaigns ................................................................................................................................................... 6 Competitive Analysis .................................................................................................................................................. 6 Problems and Opportunities ................................................................................................................................... 7 Marketing Objectives ..................................................................................................8 Advertising Objectives ................................................................................................9 Target Audience........................................................................................................ 10 Demographics ......................................................................................................................................................... 10 Psychographics ....................................................................................................................................................... 10 Lifestyle...................................................................................................................................................................... 10 Geographic Distribution ..................................................................................................................................... 11 Media Usage ............................................................................................................................................................. 11 Media Objectives ...................................................................................................... 11 Reach........................................................................................................................................................................... 11 Frequency ................................................................................................................................................................. 11 Continuity Pattern: Pulsing Schedule ............................................................................................................ 12 Media Strategy ......................................................................................................... 14 Print............................................................................................................................................................................. 14 Network ..........................................................................................................................................................................16 Cable.................................................................................................................................................................................17 Media Weighting .................................................................................................................................................... 18 Flow Chart ................................................................................................................ 19 Budget Allocation ..................................................................................................... 20 Rationale ........................................................................................................................................................................21 Works Cited .............................................................................................................. 23 Executive Summary Background Nissan’s ad campaign will run from April 2013 to March 2014. The purpose of this campaign is to increase awareness within the millennial multicultural market, specifically African American, Hispanic and Chinese consumers. Nissan wants to increase their overall market share within this community. We were given a budget of 100 million dollars, 76 million will be used for the campaign while 4 million will be set aside for contingency. Target The target consumers are African American, Hispanic and Chinese individuals between the ages of 18 and 29. The target market strives to achieve a higher status through their career and overall life plan. When it comes to automotive purchase decisions, this market is attracted to style, quality and environmental impact. Media Plan The 76 million dollars will be allocated to a variety of different media. We plan to focus on television, magazines, internet and out of home advertisements. The majority of the budget will be used in the digital space because we have overwhelming data and research that states our target market spends a lot of time online. Also, the media plan utilized a pulsing schedule with the high months during April, May, March, August and September. Marketing Situation Analysis Industry Review Nissan is one of the top multicultural marketing companies in the automobile industry, coming in at number 3, after Toyota and Honda. This represents not a shortcoming on Nissan’s part, but an opportunity to seize a larger share of the multicultural market. Nissan holds 13.4% of multicultural market share. Chinese American market share is the weakest at 8.39%. Total multicultural sales for Nissan have risen 29% from the year before. Millward-Brown’s 2011 6th annual release highlighted key points that occurred in the car industry over the past year. The category highlights were as follows: The car industry made cars people wanted. Automakers listened to their consumers and the cars sold. Consumers spent more time researching online and relying on third-party comments as car marketing adjusted to the digital age. Fuel efficiency became a necessity. o Fuel efficient cars have become so important because gasoline prices have rose to over $4 in some markets. Marketing Mix Product Automobiles. In order to most effectively reach the millennial target group, Nissan should make a point to present its most stylish and forward-thinking vehicles. The Leaf is an essential product to present, as it is in like with the target’s green-life sensibilities. Price Nissan products will be competing in price with brands like Honda and Toyota. These have mid-range, affordable pricing with new cars starting as low as $10,000. Place Nissan takes advantage of both direct and indirect distribution channels. These take the form of dedicated Nissan distribution locations as well as more generalized auto-sale lots. This facilitates auto-sales to people who do not know if they want a Nissan and browse in general auto-lots as well as brand-loyalists who want to go to a Nissan specialist. Promotion Nissan relies on Television ads as their primary promotion vehicle. It also includes newspaper and magazine ads. All of these have a visual component to them, which allows Nissan to show off the innovative design of the vehicles. Personal sales at car dealerships are also a large part of the Nissan promotion strategy. Previous Campaigns Nissan and its primary agency, TBWA/Chiat Day, introduced the “Shift_” campaign in 2006. The campaign, features variations on the phrase and continues to define the Nissan brand and differentiate its models from the competitions. Nissan spent more than $510 million on advertising efforts in 2007(TNS Media Intelligence, 2008). This figure includes B2B efforts, Hispanic advertising and outdoor and Internet expenditure (TNS Media Intelligence). Competitive Analysis Our biggest competitor is Toyota. According to Millward Brown’s Annual Survey, 2011 it is ranked 1st for Brandz Top 100 Most Valuable Brand and ranked 11th for Interbrand’s 2011 100 Best Global Brands. Their strengths include great resiliency after facing two major crises’ since 2010. They have increased their brand value 6% since 2010. Toyota led all automotive brands among new vehicle purchases by African-Americans in 2010, according to Polk. (“Toyota Top,” 2010). The company recovered after publicized safety concerns in 2010 by focusing on safety and quality. Toyota modified its leadership structure after 2010 problems. They have capitalized on its world-renown green efforts relying heavily on its family of Prius models and Hybrid Synergy Technology. It is ranked #1 in Interbrand's Best Global Green Brands and matches the current consumer values and priorities of low-consumption and sustainability. Toyota does a poor job at incorporating customer feedback into their cars according to a panel Toyota set up in 2010 after a long string of safety recalls. Problems and Opportunities Nissan was able to restock inventories faster than its competitors immediately following the earthquake that devastated Japan in March 2011. Nissan proved its resilience during a difficult time and managed to increase brand value as a result. When the Cube launched back in 2009, Nissan was one of the first automakers to introduce an iPhone application. Presently, have a committed mobile site that’s product-focused and easy to navigate. Nissan’s internal communications team maintains a YouTube channel, which features videos on new Nissan products as well as brand event footage. Nissan’s electric car, LEAF, was named World Car of the Year in 2011 (Nissan Leaf Wins, 2011). Nissan produced a reality show giving Gran Turismo 5 gamers the opportunity to become a professional racecar driver (Nissan Brings, 2010). The show brings together America's fastest 16 out of nearly 54,000 Gran Turismo 5 gamers who participated in a National tournament (Nissan Brings, 2010). The program will be featured as a five-part reality series on SPEED TV beginning September 20 (Nissan Brings, 2010). Nissan will use a number of interactive social promotions like the 2012 Nissan Versa Kick-Off, which included an innovative way to take fans on the road with the new Versa Sedan. “Facebook users can create their own trips by selecting their routes and inviting their Facebook friends to come along. They can then submit their trip, tell Nissan why their online journey should be made into a real one, and share it with their social networks” (Marketing Campaign, 2011). Nissan is launching the multi-platform “Most _____ per dollar” marketing campaign as the new Versa arrives at dealerships. The campaign will focus on how the Nissan Versa outperforms the competition in many ways. Marketing Objectives To increase the share of Hispanic, African American and Chinese American adult male and female millenials Rationale This target audience has been chosen because Nissan is one of the top automobile brands in regards to multicultural consumers. If we can increase the brand loyalty and brand perception of young multicultural individuals we will increase the future usage of Nissan vehicles. Nissan is sitting at the number three position, while Honda and Toyota enjoy first and second. The Hispanic American demographic is also the largest minority in the United States; potentially creating a very large number of Nissan buyers. Nissan is already relatively popular with African Americans, but can certainly grow within that demographic. Although Chinese Americans are not among the top Nissan buyers, perhaps due to the significant number of other Asian car brands. Attracting Chinese American buyers can increase market share for Nissan, while decreasing market share for other automobile brands (specifically Honda and Toyota). Advertising Objectives The advertising objectives for this campaign will focus on the cognitive, affective, and conative aspects of the consumer. The cognitive objectives to increase awareness of brand attributes and benefits (such as affordability, style and innovation) and creating association with the millennial lifestyle and values: new technology, green technology, and connectedness. We also want to address affective objectives. We want the target audience to develop desirability and preference for Nissan over other automobile makers, to associate feelings of concern for the environment and a need to be connected to society with Nissan. The conative objectives are to induce trial use (in the form of test drives) and purchase of Nissan automobiles, achieving loyalty with the target audience, as well as information inquiry, by visiting our site, and increasing sales leads. Through the use of these advertising objectives we will lead consumers to have higher positive associations with Nissan; the objectives will also increase interest in the brand from a purchasing standpoint and ultimately help to increase sales. Target Audience Demographics Males and females 20 – 29 years old African, Chinese and Hispanic Americans Single or married Well educated – high school graduate, bachelors and above seeking individuals Psychographics Confident, adventurous and with a deep value of authenticity Interested in environmentally friendly technology Highly connected to new technology and the internet Follow brands that have a cause or incentive behind them Surveys have indicated that there is a strong brand loyalty among younger Hispanic buyers Understand that brands are part of their lives, but preferred not to be defined by them Lifestyle Millenials tend to fall into the “reformer” and “explorer” psychographics o Reformer – personal growth focus, social awareness, curious, likes new categories o Explorer – energy, experience acquisition, open-mindedness, first to try new brands Geographic Distribution The highest concentration of Hispanics in the U.S. is in California and Texas African American population has been increasing in southern states, most notably: Florida, Texas and Georgia Chinese is the largest Asian segment in the U.S., with California having the largest Chinese population, followed by New York and New Jersey Media Usage The Hispanic segment consumes more media per week than the general market, with over 75% of their media consumption spent on TV and radio African Americans are more than twice as likely to follow and trust Black media than mainstream media and overall consume more traditional media than Caucasians For the Asian segment that are English-proficient, their consumptions of Asian media is about choice, not necessity Media Objectives Reach The reach objective is to achieve a minimum of 75% amongst the targets over the course of the campaign. Frequency The frequency objective is to achieve a frequency of 6 – 8 against the targets over each 4-week period over the course of the campaign. Continuity Pattern: Pulsing Schedule After research, we discovered that in 2010, Nissan’s highest unit sales were in March, April, May, August, September. The same is true for their sales up to November of 2011, thus our continuity pattern will mirror the months in which their unit sales are highest. We plan to pulse heavily in spring and fall, especially in the months listed below. High Months: March, April, May, August, and September Low Months: January, February, June, July, October, November and December A pulsing schedule will allocate more funds during the peak seasons, while still staying in the minds of the consumers throughout the other seasons. Geographic Coverage Delivery of the advertising message will be higher in these areas in order to expose advertising to the highest percentage of the target audience: California Los Angeles San Diego San Francisco Texas Austin San Antonio Dallas Houston New York New York Pennsylvania Philadelphia Rationale The case study states that the MC target market has a large presence and affinity for the digital space. Thus, we would like to focus a large portion of our media attention and budget on having a strong online presence. We plan on heavily utilizing social media, with a lesser focus on blogs, video sites and in/out of language news sites. As the case study also points out, each separate cultural target spends varying amounts of time on different medias. Since Hispanics split their time between digital and television space, we plan to target them through commercials on inlanguage stations. The same will apply with African Americans. However, when it comes to Chinese-Americans, we will also focus on establishing a print presence both in and out of language. Promotion of Nissan social contributions and programs will also play a part in our campaign, as the millenial target resonates with cause marketing, green-living and community building. Media Strategy Print We plan to advertise heavily in magazines for a variety of reasons. The most important is that magazines will allow us as a brand to target specialized audiences. Another reason we chose magazines as a media type is because research has shown that consumers see magazine ads as more trustworthy. They are receiving information from a source they read monthly, perhaps even daily. We would like to note that although we did have Cosmopolitan en Espanol as one of our primary print choices, we researched and discovered that it is 7th in reach to the Hispanic market. We changed from Cosmo en Espanol to magazines that are in the to 5: People en Espanol, which is the number 1 magazine and Vanidades, which is the 3rd selected choice. People en Espanol lists Latina as one of it’s main competitors thus we focused on Latina as our third choice. We chose the magazines listed below based on their demographic and readership information that was available. Vibe o Demographics Sex Men: 55% Women: 45% Age 18-34: 67% Race/Ethnicity Black: 75% White 15.9% Hispanic 12.4% Asian 1% Other 11.3% Essence o Demographics Race Reaching 70% of Black women on an annual basis Age 18-34: 33% Education 60% of readers are college educated Ebony ALMA Magazine o Demographics Sex Male: 53% Female 47% Age 21-25: 8% 26-30: 21% People en Espanol o Reaches 1 in 5 Hispanics o Demographics Sex Female: 57% Male: 43% Age 18-24: 21% 25-34: 27% Vanidades Magazine Information NCS/NHCS: FALL 2009 ADULT FULL YEAR (NOV 08 - DEC 09) Copyright Experian Simmons 2010 Total Sample EBONY ESSENCE COSMOPOLITAN Elements (000) Vertical Horizontal Index (000) Vertical Horizontal Index (000) Vertical Horizontal Index (000) Vertical Horizontal 222,896 100% 100% 100 6,674 2.99% 100% 100 3,890 1.75% 100% 100 8,771 3.93% 100% African Americans 18-29 5,413 100% 2.43% 100 937 17% 14% 578 719 13% 18% 761 249 4.59% 2.83% Asians 18-29 0 0.00% 0.00% 0 0 0.00% 0.00% 0 0 0.00% 0.00% 0 0 0.00% 0.00% Hispanics 18-29 9,426 100% 4.23% 100 105 1.11% 1.57% 37 47 0.50% 1.21% 29 897 9.52% 10% LATINA STYLE LATINA STYLE Index (000) Vertical Horizontal Index (000) Vertical Horizontal Index 100 861 0.39% 100% 100 861 0.39% 100% 100 117 55 1.01% 6.33% 261 55 1.01% 6.33% 261 0 0 0.00% 0.00% 0 0 0.00% 0.00% 0 242 127 1.34% 15% 348 127 1.34% 15% 348 Television Research has shown that the prime-time network TV viewing was highest amongst African Americans (38.9%), and lowest amongst Asian Americans (22.7%), with Hispanics falling between the two (33.1%). For this reason, we find it necessary to try to communicate our message through television, especially during prime time. Network Among African Americans, the top-rated show was a Fox NFL Sunday night game. Hispanic TV viewers flocked to Univision's "Latin Grammys" as the best-rated broadcast show. NCS/NHCS: FALL 2009 ADULT FULL YEAR (NOV 08 - DEC 09) Copyright Experian Simmons 2010 Total Sample African American Asian Hispanics elements 18-29 18-29 18-29 Total Sample (000) 222,896 5,413 2,453 9,426 Vertical 100% 100% 100% 100% Horizontal 100% 2.43% 1.10% 4.23% Index 100 100 100 100 DAYTIME DRAMA (000) 26,732 1,351 160 738 Vertical 12% 25% 6.51% 7.83% Horizontal 100% 5.05% 0.60% 2.76% Index 100 208 54 65 10AM-4:30PM (000) 39,009 1,526 424 923 Vertical 18% 28% 17% 9.79% Horizontal 100% 3.91% 1.09% 2.37% Index 100 161 99 56 Cable The best rated cable shows were ESPN "Monday Night Football” followed by BET's "Soul Train Awards." Hispanic viewers rated Galavision's "Futbol Liga Mexico” very highly. Asian homes also had football--a Fox NFL Thursday game-rated as their highest rated show. Digital/Internet Research and the case study has shown that the target audiences have strong online presences. Using the Internet will allow Nissan to increase brand awareness, encourage brand loyalty by increasing consumers’ interaction with the brand, and provide in-depth information about the brand to the target demographic. In our high months, we will focus mainly on social networking and national news websites. This will include: Facebook.com AOL.com CNN.com In-language news sources Out-of-Home Out-of-home media provides very high frequency and coverage for local areas. Billboards and posters will be an ideal choice for Hispanic, Asian, and African American communities. These will primarily be placed in the target’s geographic areas. Billboards Posters Signage Car artwork Media Weighting During the high months, we will focus more on increasing Nissan’s Internet presence with click-throughs, banners, and Facebook flyers. During this time, network and spot television will also be increased in our specific DMAs. During the low months network television and online media will still be active, but at a lower rate than in the high months. However, online media will be used more heavily than the other media types, in order to reach a high percentage of the target audience. Flow Chart Budget Allocation This budget adds up to 76 million, which means we left aside 4 million for contingency. We planned that 2,500,000 can go into National Contingency and 1,500,000 can go into spot contingency. High months (7) – 5.3% = 37.1% Low months (5) – 12.58% = 62.9% Media Percent of Budget Amount Magazines 15% 12 million Television 45% 36 million - Network 14.4 million - Cable 10.8 million - Spot 10.8 million Digital/Internet 20% 16 million - News 6.4 million - Social Media 4.8 million - Search Engines 4.8 million Out-of-home 15% 12 million Budget Allocation - High Months 151.9 Net TV - Prime 58.1 467.6 737.1 Net TV - Sports 1839.7 709.5 404.8 709.5 1248 235.9 515 Net Cable - Daytime Net Cable - Prime Magazine - Mens 1455.1 616.7 Magazine - Women Budget Allocation - Low Months Net TV - Prime 737.1 689.9 Net TV - Sports 151.9 Net Cable - Daytime 389.6 607.2 Net Cable - Prime 0 118.3 236.5 98.3 117 140.2 285.3 599 Magazine - Mens Magazine - Women Rationale Magazines will prove to be an effective media type in that it reaches our specialized target audiences. According to Dynamic Logic, magazines outperform other media in positively influencing purchasing behavior. Magazines are also popular with young adults, aged 18-29 (our target age), according to MRI. Television is granted the largest portion of the budget because it is certainly the most expensive media vehicle. Prime-time television requires a large amount of money, but it reaches a significant portion of the target audiences. Digital media is certainly one of the most important media types. It has an astounding reach for our target audiences and is relevant to their daily lives. Digital is also a cost-effective medium and will not need as much of an allotment of the budget. Out-of-Home media in the form of billboards and posters are affective for local markets, providing wide coverage and high frequency. However, this is a highcost medium and so will be only a small faction of the strategy. Works Cited Nissan in the News. (2011, August 29).Marketing Campaign For the 2012 Nissan Versa Kicks Off [Press release].Retrieved from http://www.nissaninthenews.com/marketing-campaign-for-the-2012-nissanversa-kicks-off/. PRNewswire. (2010). Nissan Brings the Next Level of Innovative Marketing by Producing a Reality TV Show Launching September 20 on SPEED [Press release]. Retrieved from http://www.prnewswire.com/news-releases/nissan-brings-thenext-level-of-innovative-marketing-by-producing-a-reality-tv-show-launchingseptember-20-on-speed-129892288.html. PRNewswire. (2011, April 26). Toyota Top Choice Among African-American Car Buyers in 2010, According to Polk.[Press release]. Retrieved from http://www.thefreelibrary.com/Toyota+Top+Choice+Among+AfricanAmerican+Car+Buyers+in+2010,...-a0254751304. Richardson, Aaron. (2011, October 10). Automakers show resilience in 2011 Best Global Brands report. Retrieved from http://www.autoblog.com/2011/10/10/automakers-show-resilience-in2011-best-global-brands-report/. Zero Emission Motoring. (2011, April 21). Nissan Leaf Wins 2011 World Car of the Year. [Press release].Retrieved from http://www.zemotoring.com/news/2011/04/nissan-leaf-named-world-car-of-theyear.