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 ³Nissan 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: y y y y y y y Discussion of the Industry Analysis of company¶s 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. Nissan¶s Vision ......................................................................................................................... 7 2.3. Nissan¶s 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 .................................................................................................................... 8 3.1.4. Publics ............................................................................................................................... 8 3.2. Macro Environment .................................................................................................................. 8 3.2.1. Demographic Environment................................................................................................. 8 3.2.2 Economic Environment ....................................................................................................... 9 3.2.3. Technological Environment................................................................................................ 9

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................................................................................................ 39 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 1980¶s. This was due to the construction of important overseas facilities and mergers alongside with improved production techniques adopted by Japanese in the 1970¶s. By 2005, the industry¶s 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 500014000 km per year. This will contribute to the automotive industry a big deal. 1.2. AUTOMOBILE INDUSTRY OVERVIEW OF PAKISTAN
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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. Total number of automobiles in use today in Pakistan is 5 million. About two-third of the market demand is being met currently by local production and imports from other countries and one-third is left unmet.

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http://imvp.mit.edu/papers/99/shimokawa.pdf http://www.unescap.org/tid/publication/part_two2223_pak.pdf

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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 Japan¶s second largest company after Toyota. It is among the top Asian rivals of the ³big 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 : y y y y Nissan Sunny Nissan Patrol Nissan Cefiro Nissan X-Trail

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

2.2. NISSAN¶S VISION 4 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. There vision is expressed in their statement as: ³Nissan-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. 2.3. NISSAN¶S MISSION 5 ³Nissan 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 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
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http://www.nissan-global.com/EN/COMPANY/MESSAGE/index.html

5http://www.nissan-global.com/EN/COMPANY/MESSAGE/index.html

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 reach-ability 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 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.

4.0. NISSAN NEXT: PRODUCT EVALUATION 4.1. CORE, ACTUAL AND AUGMENTED PRODUCT y y The Core Product is an easily affordable Vehicle for consumers. The Actual Product is ³Nissan 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. y 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? ³Nissan 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 ³Nissan 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. ³Nissan 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 ³Nissan 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: y y y y y 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: y y y 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: y y y y y 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: y y y 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 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. 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 ³Nissan next´ are Suzuki, Toyota, Hyundai and Cherry QQ. All products of these companies of same size and capacity will give tough competition to ³Nissan 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. y y 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 ³Nissan 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 ³Nissan next´ in market. Promotion of ³Nissan 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 ³Nissan 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 ³Nissan 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 y y y 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. y Create awareness among target audience. Use excessive advertising especially using media preferred by the target market. y Use unique features like good design, low prices and comfortable environment to create attraction towards product. y Create product belonging and position among buyer¶s mind.

8.0 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. 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 ³Nissan 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 ³Nissan 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 ³Nissan 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 y y 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. y 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 ³Nissan 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 customer¶s response to the car. 9.2 PRICING STRATEGIES The price of the cars will be as following: y y 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 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. 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 doesn¶t 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 product¶s features and improvements. Recommendations y y y 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. y 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: y y Nisan will use print and electronic media to introduce the product to consumers. Special events will be sponsored by Nissan.

y y y

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.

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 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. 9.6 ACTION PLAN The action plan will commence from the month of January 2007 and will go up to June 2007. PROMOTION ACTIVITY DURATION RESPONSIBILITY Marketing department

Launch a blind ad campaign on billboards and 2 weeks magazines in all A class areas of major cities and magazine. Heavy advertising on TV, newspapers and 4 weeks magazines Sponsor a highly prestigious chain of events or 3 weeks concerts. Set displays of car at all the Nissan showrooms 3 weeks and major dealer outlets in all cities. A contest will be held and people who win will April get prizes (Car Info. Books, Key chains, phone cards etc.) Reduce number of billboards, television and May magazines advertisements. Continue Advertising June

Marketing department

Marketing department, Finance Department Marketing department

Finance

Department,

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Marketing department

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. y These allocations of finances can be altered with respect to the future requirements

11.1 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. The further subdivision of this cost is given below in table 1.2 in Appendix B. 11.2 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. 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 50 %age 40 30 20 10 0 Male Gender Type Female

Income
70 60 50 %age 40 30 20 10 0 Below 50000 Above 50000 Incom e group

Age Group
45 40 35 30 25 20 15 10 5 0 18-25 25-40 40-60 A bove 60 Age Grouping

%age

Do you use Nissan Cars?
100 90 80 %age70 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 30 25 20 15 10 5 0 Toyota Suzuki Nissan Other

%age

Do you p f r Public tr n port to Privat Car ?
  ¡   ¢   £   ¤   ¥   ¦   §   ¨  

%age

Are you satisfied ith safety of cars already in Market
80 70 60 50 %age 40 30 20 10 0 Yes No

What is your major pr f r nce hen buying cars?
  ¡   ¢   £   ¤   ¥   ¦  

%age

Price

Safety

Comfort

Design  

©

o

Other

What power of car o you prefer? 
           

%age

What type of color you prefer?
70 60 50 %age 40 30 20 10 0 Non- etallic

How satisfied are you with prices of cars in mar et?
60 50 40 %age 30 20 10 0 Satisfied Not-Satisfied Neutral

! 

cc

1000 cc

1200 cc or more

Metallic

How much are you willing to pay for 1000 cc Car?
90 80 70 60 50 40 30 20 10 0 3,00,000 4,50,000 4,50,000 or more

%age

If any one of the company launches a car whichone you will prefer?
35 30 25 %age 20 15 10 5 0 Toyota Suzuki Nissan Local Companies Other

What influences your buying decision?
45 40 35 30 25 20 15 10 5 0 TV ad Magazine Word of Mouth Billboards Other

%age

"

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
0-14 ears 15-64 ears 65 and above

60 50 40 30 20 10 0 percent e popul tion

Table 1.1 Age Limit 0-14 years 15-64 years 65 and above Percentage Population 41% 55% 4%

BUDGET

Table 1.2 Market Analysis Cost

Wages and Salaries 1 2 3 Professional Cost Team Leader Team Members Rs. 500,000 Rs. 50,000 Rs. 150,000

Rs. 700,000

Research Agencies Cost Grand Total:

Rs. 1300,000 Rs. 2 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 Table 1.4.2 Promos 1 2 Table 1.4.3 Sponsorships 1 2 Grand Total Rs. 2 million Sponsor ship of concerts etc. Rs. 1 million Sponsorship of social seminars Rs. 1 million Rs. 12 million Rs. 2 million Hand outs etc. Prize Contest Rs. 500,000 Rs. 1500,000 Rs. 8 million Bill Boards etc. TV/ Cable Networks News Paper, Magazines, etc Displays & Roadshows etc. Rs. 2 million Rs. 3 million Rs. 1 million Rs. 2 million

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