EXECUTIVE SUMMARY

This document discusses the marketing strategies, problems and solutions for a
selected company and its new product being launched.
The company discussed in this document is Gandhara Nissan Limited working in
Pakistan; in collaboration with Nissan Motor Co. Japan. Gandhara Nissan is
launching anew car with name of Nissan next and this document provide an
efficient and workable marketing plan for the product.
In Pakistan automobile industry is growing at a rapid pace. The demand for cars
in Pakistan over time has increased a lot due to growth of economy and stability
of people economic condition. This has attracted a number of producers towards
the market. Nissan along with other producers like Toyota, Suzuki and Honda
etc. is a player in the automobile market.
Now Nissan has planned to launch a new car with significant innovations and
steps towards improvements. For the success of the car in industry a deep study
and research has been undertaken to develop an effective and efficient plan.
Some of the important areas covered in this document while developing a
Marketing Plan for the selected company are:

Discussion of the Industry

Analysis of companys position

Marketing objectives

Promotions strategies

Pricing strategies

Product strategies

Distribution strategies.

Furthermore, action plan lays out successful implementation through monitoring

has also been included.

TABLE OF CONTENTS
Executive Summary...............................................................................1
Table of Contents...................................................................................2
1.0. Automobile Industry Overview.......................................................5
1.1. Global Industry for Automobile..................................................................................5
1.2. Automobile Industry Overview of Pakistan...............................................................5
2.0. Nissan: History...............................................................................6
2.1. Introduction................................................................................................................6
2.2. Nissans Vision............................................................................................................6
2.3. Nissans Mission.........................................................................................................7
3.0. Nissan next: Marketing Environment............................................7
3.1. Micro Environment.....................................................................................................7
3.1.1. Consumers............................................................................................................7
3.1.2. Competitors..........................................................................................................7
3.1.3. Intermediaries......................................................................................................7
3.1.4. Publics..................................................................................................................8
3.2. Macro Environment....................................................................................................8
3.2.1. Demographic Environment..................................................................................8
3.2.2 Economic Environment.........................................................................................8
3.2.3. Technological Environment.................................................................................8

4.0. Nissan next: Product Evaluation..................................................10

4.1. Core, Actual and Augmented Product.....................................................................10
4.2. Consumer or Industrial Product?.............................................................................10
4.3. Convenience, Shopping, Special or Unsought Product..........................................10
4.4. Product Uses and Consumer Acceptance................................................................10
4.5. Distribution Wide Spread or Not?.........................................................................11
4.6. SWOT Analysis..........................................................................................................11
4.6.1. Strengths............................................................................................................11
4.6.2. Weaknesses........................................................................................................11
4.6.3. Opportunities.....................................................................................................11
4.6.4. Threats...............................................................................................................12
5.0 Consumer Evaluation....................................................................12
5.1 Type of Purchase Decision........................................................................................12
5.2 Consumption consumer response..........................................................................12
5.3 Quality, Comfort & Safety.........................................................................................12
5.4 Customer Awareness and Brand Switching.............................................................13
5.5 Brand Prospects -- Location and Influence...............................................................13
6.0 Competitor Analysis......................................................................14
6.1 Pricing........................................................................................................................14
6.2 Promotion...................................................................................................................14
6.3 Distribution................................................................................................................14
6.4 Future Competitors and Replacement Products......................................................14
7.0 Marketing Objectives....................................................................15
Goals and Objectives.......................................................................................................15

8.0 Marketing Strategies....................................................................16

8.1 Target Market............................................................................................................16
8.2 Nissan next Target Market: Geographic Segment...................................................16
8.3 Nissan next Target Market: Psychographics............................................................16
8.4 Nissan next Target Market: Demographics..............................................................16
9.0 Marketing Mix Strategies.............................................................17
9.1 Product Strategies.....................................................................................................17
9.1.1 Packaging............................................................................................................17
9.1.2 Labeling...............................................................................................................17
9.1.3 Product Line........................................................................................................18
9.2 Pricing Strategies......................................................................................................18
9.3 Distribution Strategies..............................................................................................18
9.4 Promotion Strategies.................................................................................................19
9.4.1 Environment Research.......................................................................................19
9.4.2 Advertising..........................................................................................................19
9.5 Positioning Strategy..................................................................................................20
9.6 Action Plan.................................................................................................................20
10.0 Evaluation, Monitoring and Control...........................................21
11.0 Budget.........................................................................................22
11.1 Market Analysis Cost...............................................................................................22
11.2 Questionnaire Cost..................................................................................................22
11.3 Advertising and promotional cost...........................................................................22
12.0 Bibliography................................................................................24

APPENDIXES
APPENDIXES 'A' Surveys
Car Dealers Survey Summary..............................................................26
Consumer Questionnaire.....................................................................27

APPENDIX 'B' Budget...................................................................................38

1.0. AUTOMOBILE INDUSTRY OVERVIEW

1.1. GLOBAL INDUSTRY FOR AUTOMOBILE 1
Automobile Industry is a business of manufacturing and selling vehicles. It has
encouraged the expansion of road systems and allowing consumers to commute
long distances. It has also allowed other industrial product to contribute as well,
such as steel and thus is the key determinant for economic growth.
Globalization of automotive industry accelerated exponentially after the 1980s.
This was due to the construction of important overseas facilities and mergers
alongside with improved production techniques adopted by Japanese in the
1970s.
By 2005, the industrys global output touched 64.6 million vehicles. The auto
market today is one of the largest segments in world trade. Today the annual
automotive exports have reached a level of $600 billion which accounts for 10%
of the worlds export.
With increase awareness in consumers about potential hazards, automobile
industries are in constant competition with each other to produce a better
vehicle for the right consumer. It is estimated that the car industry will continue
to prosper to increasing trends as national economies and population increases.
Mobility 2030, of the World Business Council for Sustainable Development,
reported that per capita mobility of china, Latin America, Russia and rest of
Europe would double by 2030 to 5000-14000 km per year. This will contribute to
the automotive industry a big deal.

1.2. AUTOMOBILE INDUSTRY OVERVIEW OF PAKISTAN

In Pakistan automobile industry is growing at a rapid pace. There have been

huge demand for cars in Pakistan over time but in the last few years due to
improvement in economy of Pakistan this demand has increased tremendously.
1

http://imvp.mit.edu/papers/99/shimokawa.pdf

http://www.unescap.org/tid/publication/part_two2223_pak.pdf

Total number of automobiles in use today in Pakistan is 5 million. About twothird of the market demand is being met currently by local production and
imports from other countries and one-third is left unmet.
So there is a huge gap in market demand and supply which is still there to be
met. Major producers currently in the market are Toyota, Suzuki, Nissan, Honda,
Mitsubishi, Hyundai.
The government is also supporting the investors to invest in Pakistan this has
attracted more producers of cars to come in Pakistan and grasp market share
from Pakistan automobile market.

2.0. NISSAN: HISTORY

2.1. INTRODUCTION 3
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 Japans 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 Nissans 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

http://www.gnl.com.pk/profile.htm

Nissan X-Trail

2.2. NISSANS VISION 4

Nissans 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.
There vision is expressed in their statement as: Nissan-Enriching peoples

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.

2.3. NISSANS MISSION 5

Nissan provides unique and innovative automotive products and services
that deliver superior measurable values to all stakeholders

3.0. NISSAN NEXT: MARKETING ENVIRONMENT

3.1. MICRO ENVIRONMENT
3.1.1. 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

http://www.nissan-global.com/EN/COMPANY/MESSAGE/index.html
http://www.nissan-global.com/EN/COMPANY/MESSAGE/index.html

car owners and low income consumers. It will also target product to bike owners
as they are very unsafe.

3.1.2. 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.

3.1.3. 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 reachability of the car.

3.1.4. 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.

3.2. MACRO ENVIRONMENT

3.2.1. DEMOGRAPHIC ENVIRONMENT
3.2.1.1. 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.

3.2.1.2. 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.

3.2.2 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.

3.2.3. 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
Nissans 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.

4.0. NISSAN NEXT: PRODUCT EVALUATION

4.1. 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.

4.2. 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.

4.3. 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.

4.4. 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.

4.5. 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.

4.6. SWOT ANALYSIS

4.6.1. 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.

4.6.2. 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.

4.6.3. 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.

4.6.4. 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.

5.0 CONSUMER EVALUATION

5.1 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.

5.2 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.

5.3 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
consumers 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.

5.4 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.

5.5 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.

6.0 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.

6.1 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.

6.2 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.

6.3 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.

6.4 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.

7.0 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 well define performance parameters and baseline in light of
Nissans 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

environment to create attraction towards product.

Create product belonging and position among buyers mind.

and

comfortable

8.0 MARKETING STRATEGIES

This section of the plan basically outlines Nissans plan to achieve its objectives
that are mentioned above as well, it is the most essential part of the marketing
plan.

8.1 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.

8.2 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.

8.3 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.

8.4 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.

9.0 MARKETING MIX STRATEGIES

Nissan nexts marketing efforts will be based on the priority of expanding
its market share and increase the brand loyalty among buyers 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.

9.1 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.

9.1.1 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 competitors
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.

9.1.2 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.

9.1.3 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
customers response to the car.

9.2 PRICING STRATEGIES

The price of the cars will be as following:

Nissan next CNG/AC

Nissan next AC

------------- Rs. 3,50,000/----------------

Rs. 3,15,000/-

Imp. Recommendations
The price of the car should be kept lesser than the competitors as Nissan nexts
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.

9.3 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 doesnt have its
showrooms it will use its chain of authorized dealers to sell out its cars in these
areas.

9.4 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 products
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.

9.4.1 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

9.4.2 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 cars launch.

Special road shows and displays will be set at dealers outlets.

Prize contest will be conducted to attract people towards the car.

9.5 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 nexts 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.

9.6 ACTION PLAN

The action plan will commence from the month of January 2007 and will go up to
June 2007.
PROMOTION ACTIVITY

Launch a blind ad campaign on billboards

DURATION

2 weeks

and magazines in all A class areas of major

RESPONSIBILITY

Marketing
department

cities and magazine.

Heavy advertising on TV, newspapers and

4 weeks

magazines
Sponsor a highly prestigious chain of
events or concerts.

Marketing
department

3 weeks

Marketing
department,
Finance

Department
Set displays of car at all the Nissan

3 weeks

showrooms and major dealer outlets in all

Marketing
department

cities.
A contest will be held and people who win

April

Finance

will get prizes (Car Info. Books, Key chains,

Department,

phone cards etc.)

Marketing
Department.

Reduce number of billboards, television

May

and magazines advertisements.

Continue Advertising

Marketing
department

June

Marketing
department

10.0 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.

11.0 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

11.1 MARKET ANALYSIS COST

Nissans 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.
The further subdivision of this cost is given below in table 1.2 in
Appendix B.

11.2 QUESTIONNAIRE COST

Nissans 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.
The further subdivision of this cost is given below in table 1.3 in
Appendix B.

11.3 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.
The further subdivision of this cost is given below in table 1.4 in
Appendix B.

11.3.1 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.
The further subdivision of this cost is given below in table 1.4.1 in
Appendix B.

11.3.2 PROMOS COST

Promo cost includes the cost of handouts; information books, prize contests etc.
these all promo activities will cost around Rs. 2 million.
The further subdivision of this cost is given below in table 1.4.2 in
Appendix B.

11.2.3 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.
The further subdivision of this cost is given below in table 1.4.3 in
Appendix B.

12.0 BIBLIOGRAPHY

ALLEN, G. (1998). Introduction to Marketing . Addison-Wesley. Fifth

Edition. London.

SAMUEL, B. (2003). Marketing for Beginners . Pearson Education . 2nd

Edition. Boston.

MERCER, D. (1996). Marketing . Blackwell Publishing . 2nd Edition.

London.

MINETTE, S. (2001). B2B Marketing . Pearson Education . Revised

Edition. Boston.

ALBERTO, J. (2005). Strategy Moves . Pearson Education . 1st Edition.

New York.

Appendix A

CAR DEALERS SURVEY SUMMARY

KBC
Suzuki and Toyota are enjoying the most market share in Pakistan with about
40% and 35% respectively. Suzuki is successful due to its local production and
economical cars but they have major problem of sustainability and designs of
their cars. Toyota is enjoying good market share because of good quality and
extensive production. If Nissan is launching new car and want to grasp market
share then it has to focus on designs of cars and also provide more affordable
option to buyers. Also Toyota and Suzuki do good marketing and to beat them
Nissan must develop efficient marketing strategy.

MUST CARS
Due to increase in economic activity in the country, demand of automobiles
especially cars for private use have increased hugely. Currently Suzuki is
enjoying the major share in the market due its affordable cars, availability of
spare parts and good marketing. Suzuki is dominating the market but there are
a lot of problems which are being faced by users. Especially the week areas are
design and safety standards. If Nissan wants to compete with Suzuki in the
market and break into its dominance it should provide buyers with highly
excellent designs of cars and also cars which are safe and comfortable to travel.

CAR MAX
The most important parameters while buying cars a buyer looks for are its Price,
Safety standards, Design of car and how much comfortable the vehicle is.
Currently some of the cars implemented the design, safety, comfort standards
are very expensive and huge market share goes to those cars which are less
standardized but are cheap. Nissan can stand in market and be successful if it

make an ideal combination of Affordability, design, safety, comfort and make a

better and cheap product for buyers. Currently less quality cars of Suzuki are
enjoying bulk of market share due to lack of better options available in market.
Nissan is currently not so much successful in Pakistani market but they can
improve their position by focusing at this area and developing effective
marketing strategy to break the influence of Suzuki and Toyota.

CONSUMER QUESTIONNAIRE
What is your Gender?
a. Male
b. Female
What is your age?
a. 18-25
b. 25-35
c. 35 and above
What is your income?
a. Below 50,000
b. Above 50,000
Do you use Nissan cars?
a. Yes
b. No
What comes to your mind when you think about Nissan?
a. Affordable Cars
b. High quality Cars
c. Trust Worthy
d. Expensive Cars
e. Safety

f. High brand image

How satisfied are you with Nissan?
a. Very satisfied
b. Satisfied
c. Neutral

Do you own a car?

a. Yes
b. No
If yes, which car do you prefer?
a. Toyota
b. Suzuki
c. Nissan
d. Others, please specify .
Do you prefer public transport to private cars?
a. Yes
b. No
Are you satisfied with safety of cars already in market?
a. Yes
b. No
What is your major preference when buying a car?
a. Price
b. Safety
c. Comfort
d. Design
e. Other please specify .
What power of car do you prefer?
a. 800 cc
b. 1000 cc
c. 1200 cc or more
What type of color you like?
a. Non-Metallic
b. Metallic
How satisfied are you with prices of cars in market?

a. Satisfied
b. Not - Satisfied
c. Neutral
How much are you willing to pay for 1000 cc. Cars?
a. Rs. 300, 000/- to Rs. 450, 000/b. Rs. 450, 000/- or more.
If one of the companies plans to launch a new car of great design, safety, comfort and affordable
which one you will prefer?
a. Toyota
b. Suzuki
c. Nissan
d. Local companies
e. Other please specify
What influences your buying decision?
a. TV ad
b. Magazine
c. Word of mouth
d. Bill board
e. Other, Please specify ..

QUESTIONNAIRE ANALYSIS
Gender
60

%age

50
40
30
20
10
0
Male

Female
Gender Type

%age

Do you use Nissan Cars?

100
90
80
70
60
50
40
30
20
10
0
Yes

No

Are you satisfied with Nissan cars?

70
60
50
40

%age

30
20
10

0
Very satisfied

Satisfied

Neutral

Which Car brand do you prefer?

45
40
35

%age

30
25
20
15
10
5
0
Toyota

Suzuki

Nissan

Other

Are you satisfied with safety of cars

already in Market?
80
70
60
%age

50
40
30
20
10
0
Yes

No

ANALYSIS SUMMARY
According to survey people with an income bracket less than Rs. 50,000 per
month prefers buying small cars for their private use. A large percentage of
people prefer buying their own cars then to use public transport but most of
them are not satisfied with the safety standards of the cars in the market.
There is very less market share of Nissan in the market i.e. about 8 % while its
competitors are enjoying large share. People using Nissan cars are not greatly
satisfied with the car and they expect Nissan to do more. According to survey
the most important considerations by a buyer of car are price, safety, comfort
and design with price having major influence. About 65% of the people surveyed
were of age group 25 to 60 who are the major buyers.
Most of the buyers are not satisfied with the prices of the cars and are willing to
buy 1000 cc. cars for Rs. 3,00,000 to Rs. 4,50,000 but most of the cars in the
market get more out of them as they are expensive. They consider Toyota and
Suzuki more successful in launching a new car in market than Nissan. People
seem to be more highly influenced by the TV ads and billboards.

Appendix B

Age Structure
Graph 1.1

Table 1.1
Age Limit

Percentage Population

0-14 years

41%

15-64 years

55%

65 and above

4%

BUDGET
Table 1.2
Market Analysis Cost
Wages and Salaries
1
2
3

Rs.

Professional Cost
Team Leader
Team Members

Rs. 500,000
Rs. 50,000
Rs. 150,000

Research Agencies Cost

700,000

Rs.
1300,000
Rs. 2

Grand Total:

million

Table 1.3
Questionnaire Cost
1
2
3
Grand Total:

Development Cost
Execution Cost
Interpretation Cost

Rs. 200,000
Rs. 600,000
Rs. 200,000
Rs. 1
million

Table 1.4
Advertising & Promotional Cost
Table 1.4.1
Advertising
1
2
3
4

Bill Boards etc.

TV/ Cable Networks
News Paper, Magazines,
Displays & Roadshows etc.

Rs.
Rs.
Rs.
Rs.

2
3
1
2

Rs.

Rs.

Rs.

million
million
million
million

Table 1.4.2
Promos
1
2

Hand outs etc.

Prize Contest

Rs. 500,000
Rs.

Table 1.4.3
Sponsorships
1
Sponsor ship of concerts Rs. 1 million
2
Sponsorship
of
social Rs. 1 million
Grand Total

Rs.

12