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This integrated marketing communication (IMC) plan outlines objectives, strategies and
tactics for Nissan-Tan Chong Group to provide a consistent, cohesive brand message that
will be delivered to Nissan-Almera target audience within next twelve (12) months. It is
anticipated the IMC plan will play a role a significant role in increasing sales, improving
brand image, changing customer perceptions and attitudes, retaining current database of
customers and attracting new customers.
The overall goal of the IMC plan is to capitalize on Nissan-Tan Chong Group target
audience of middle income people. Rather than competing with Toyota Vios and Honda
City, Nissan-Tan Chong Group will progress towards a more customer-centric focus with
efforts on providing its target audience with purchase satisfaction and creating delight
customers.
Contents
1.0 INTRODUCTION ............................................................................................................... 1
2.0 SITUATIONAL ANALYSIS .............................................................................................. 1
2.1 SWOT Analysis ............................................................................................................... 1
2.2 Competitive Analysis ...................................................................................................... 2
3.0 IMC OBJECTIVES ............................................................................................................. 5
4.0 TARGET MARKET ........................................................................................................... 7
4.1 Behavioral Factor ............................................................................................................ 7
4.2 Demographic Factor ........................................................................................................ 7
4.3 Psychographic Factor ...................................................................................................... 7
5.0 BRAND POSITIONING ..................................................................................................... 9
5.1 Justifications .................................................................................................................... 9
6.0 CREATIVE STRATEGIES .............................................................................................. 10
7.0 IMC TOOLS...................................................................................................................... 13
7.1 Advertising .................................................................................................................... 13
7.2 Internet/Interactive Marketing ....................................................................................... 13
7.3 Sales Promotion ............................................................................................................. 14
7.4 Event Marketing and Sponsorship................................................................................. 14
7.5 Public Relations ............................................................................................................. 15
8.0 MEDIA SCHEDULE ........................................................................................................ 16
8.1 Justifications .................................................................................................................. 19
9.0 BUDGET ALLOCATION ................................................................................................ 20
9.1 Justifications .................................................................................................................. 20
10.0 EVALUATION AND CONTROL.................................................................................... 21
11.0 CONCLUSION ................................................................................................................. 22
12.0 REFERENCES .................................................................................................................. 22
13.0 APPENDICES ................................................................................................................... 25
IMKTC (BM023-3-3) Page 1 of 30
1.0 INTRODUCTION
The automobile industry today is the most lucrative industry. Due to increase in
disposable income in both rural and urban sector and availability of easy finance are the
main drivers of high volume car segments. Further competition is heating up with host of
new players coming in and global brands like Toyota and Honda set to venture capitalize
in Malaysian market. This paper presents the integrated marketing communication
strategies to introduce the new Nissan Almera in Malaysia.
With more than 50 years operation in Malaysia, Tan Chong Group, an automotive
company is a well-established conglomerate that involved in diversified businesses that
perceived competitive strategic alliances with Nissan Group (TanChong Motor, 2012).
Not only that, Tan Chong group benefits from its good reputation, experienced and
skilled human capital and high quality products (TanChong, 2015). This is because of
their well-structured in sales and distribution, servicing and maintenance, manufacturing
and supply of motor vehicle parts and accessories, research and development, heavy
equipment, travel, consumer products and hire purchase insurance.
Weakness
However, Tan Chong Group has been encountered with declining of brand image due to
product recalls from Nissan Group. In 2001, according to journal of Assembly
Automation (2014), Nissan recalled 34,000 Sentra compact cars because of a battery
cable problem that could cause the engine to stall. As mentioned in the journal of
Manufacturing Engineer (2014), The National Highway Traffic Safety Administration
(NHTSA) reveals that the battery cable problem might increase the risk of crash and
percentage of accident on the road. The recalls indicate poor quality checks of vehicles
by the group, which in turn negatively impacts customers confidence in Tan Chong
Group.
Opportunity
On the other hand, Tan Chong Group believes that the implementation of Goods and
Services Tax (GST) will lead to 1%-3% drop in new prices as indicated by GST
Malaysia (2015). This opportunity will cause the customers to be less-price-sensitive, and
will definitely increase the sales volume. The group can take advantage of the
governments incentives granted for projects in the energy efficient vehicle (EEV)
segment (GST Malaysia, 2015). With this, the company is able to sell cheaper cars to the
consumers.
Threat
On the negative side, as reported by the Malaysia fuel-subsidy (2015), the non-
subsidized fuel price increase elevates the general level of fuel fluctuation and threatens
to Tan Chong and the automobile industry growth. If the fuel price fluctuates vehemently,
it will ultimately results in global recession. For Malaysia, a net oil exporter, stagflation
poses a real threat because of its external dependence, especially on American prosperity
(The Star, 2013).
Honda City becomes one of the competitors for Nissan Almera. Honda City with 60,000
units sold since its launch five years ago, is a successful mid-size car model for customers
(Sharma, 2014). Honda City offers various features such as automatic transmission,
electric windows, central locking and a child-proof safety lock (on rear doors). This has
become one of the differentiation strategies by Honda City to offer these features of
international standards. Honda City thus secured a position far above any of its present
available options in the customers mind and highlights its superiority over the rivals
(Sharma, 2014). Even though Honda City price is slightly higher than its present
Toyota Vios
Toyota Vios is another competitor for Nissan Almera. They are the Japanese Big Three
Automakers (Toyota Motor Corp, 2015). Toyota has its own network of suppliers for
various automobile parts such as Yokohama, Koito Manufacturing, Denso Corporation
and Aisin Seki (Toyota Motor Corp, 2015). Dynamic exterior design and interior quality
has delivered class-above presence value to the customers. In addition, Toyota Vios is
unique with its class-surpassing spacious cabin and luggage space that provide
comfort value. Furthermore, Toyota Vios also features high levels of basic performance,
durability, excellent driving stability and riding comfort that allows the drivers to
drive it with a sense of security even on rough roads (Live Life Drive, 2014). Toyota
Vios is targeted towards medium income group of people age 24-45 years old that
values quality and reliability. Toyota Vios has strong brand equity as in the luxury car
segment. It starts targeting small towns and cities as most of its communication is for
urban population.
Table 1.0 shows car sales unit and market share in year 2012 for Toyota and Honda.
Toyota Vios dominates the market by 10.6% whereas Honda City gains 8.9% of market
share during 2012.
Tactic: Implement new mobile app in webpage that allows customers to test-
drive their own Almera car.
Tactic: Offer special promotions in the showrooms for customers who pre-order
Nissan Almera on the spot and rewards those who test-drive the cars.
Tactic: Implement new Nissan Way, a shuttle program designed to fetch
customers from a location to the nearest Nissan-Tan Chong showroom.
This goal is meant to reach potential customers without means or desire to travel to a
distant Nissan-Tan Chong showroom. If a customer is made aware of the product line,
they may be more willing to visit the Nissan-Tan Chong showroom. This is one of the
buzz marketing strategies for Tan Chong Group (Percy, 2008).
Tactic: Refresh the Nissan-Tan Chong Facebook page to integrate friendlier and
humanistic customer service to customers who like the page and reward those
who invite their friends to like the page; increase number of likes by 20,000
within one year.
Tactic: Utilize Facebook and Twitter account to network for more registrations.
Offer percentage-off promotions such as vouchers and free gifts for those get
their friends to the showrooms.
Goal 2 targets families and individuals by making them feel special and desired. Gaining
trust through the customers will strengthen the relationships, potentially turning the
referrals into customers (Hoyer & MacInnis, 2010).
Goal 3: Increase positive brand image throughout press release by ten percent
within 12 month period
Objective 3: To generate press release that receive positive media coverage nationwide.
Tactic: Create and disseminate at least 36 press releases per year/ three per month,
focusing on positive accomplishments and activities that evoke good publicity
nationwide.
This goal aims to enhance public image of Tan Chong Group as well as Nissan Almera.
A press release can effectively help change and build the public image of a product and
company. (Parenta, 2006). Plus, well-written and distributed press releases can help to
communicate a positive brand image and improve customer perceptions.
Customers who are loyal to Nissan will tend to accept the new car innovations by Nissan
and may choose to attach themselves with Nissan by joining the membership clubs to
gain more information. Therefore, the new Nissan Almera car innovations would tend to
be accepted by customers with strong brand loyalty towards Nissan car.
For our business proposition that introduces new Nissan Almera, Nissan-Tan Chong
Group is targeting customers who has family members with size of three (3) to five (5)
members. In order to own a Nissan Almera, the customers relatively have a monthly
income of RM2, 000 and above and cater for the customer preferences for all races.
Nissan-Tan Chong Group investment in the automotives industry could influence the
purchasing power of the customers who are looking to the car models with lower prices.
Hence, these will be demand for Nissan Almera base on the psychographic factor.
Besides that, Nissan- Tan Chong Group has not only produced cars for the local
customers but has broadens the automotives industry to regional and international (Tan
Chong Motor, 2012). Therefore, the export market for Nissan Almera will be a
substantial key for Nissan to achieve its long-term success as a credible auto-
manufacturer and distributor, for instance, Nissan Almera has received an encouraging
number of bookings at the recently concluded India International Motor Expo 2013 (Tan
Chong, 2015). The companys order books were filled with 1388 bookings from a total of
25,220 orders placed at the Expo (Tan Chong Motor, 2012). Therefore, with enhancing
Nissan Almera exisiting features with emphasis on increasing fuel-efficiency,
convenience and safety at competitive price, this would boost further Nissan Almera
sales and market shares.
In general, Nissan Almera target market and market segmentation can be summarized as
below:
Source: self-made
The spacious legroom and seating and with 490l of boot space, Nissan Almera lets the
customers to bring along everything they need. There are also convenient places designed
especially for phone and MP3 player. Nissan Almera also allows the customers to enjoy
fresh air and a good ambiance with climate control option (Nissan Almera, 2015).
Nissan Almera brand symbolizes fuel-efficient, superior, luxurious, durable and reliable.
Nissan Almera becomes the customers best decision because the brand is adopted from
Japan, it is luxurious at affordable prices, it is comfort and it is a sedan with class (Nissan
Almera, 2015).
The Nissan LEAF which is the worlds first and currently only mass-produced 100%
electric vehicle requires no fuel and has zero emission that embraces people, vehicles and
nature (Nissan Almera, 2015).
5.1 Justifications
Overall, Nissan Almera is positioned as fuel-efficient with the spacious seats that offer
at lower prices to provide the best-driving experience to the drivers. Hence, it is the best
decision ever for the customers.
Source: http://blog.carlist.my/2012/09/blog/malaysias-nissan-almera-spec-revealed/
Figure 1.0 shows the advertisement of Nissan Almera that can be published in the
newspapers, magazines or websites like Facebook and Twitter. The advertisement
highlights the unique features of the car that includes lots of legroom, steering wheel
audio and Bluetooth, six airbags, stability controls and child seat anchorage points. It
focuses on the dominant product traits, informative and present important attributes (Live
Life Drive, 2014). The ad utilizes rational appeal to deliver factual message with
straight forward presentation of information about Nissan Almera and mentioning low
price of Nissan Almera.
Strategy 2:
Source: https://www.youtube.com/watch?v=S-nBoUn-GXc
Figure 2.0 shows the advertisement of comparison between Honda City, Toyota Vios and
Nissan Almera. The ad starts with three guys argue to proof their car is the best. The
video mentions the features in each car before they start testing their cars. From the video,
it is found that Toyota Vios has small seats and expensive, Honda City has loud engine
noise, and Nissan Almera is the most budget-choice and no one is disappointed with it. In
fact, the content of message emphasizes facts, learning and logic of persuasion and makes
comparison to other brands directly by claiming Nissan Almera superiority and
advantages over the other two brands. Besides that, the ad uses demonstration as
execution technique as it convinces customers on product utility and quality.
Strategy 3:
Source: https://www.youtube.com/watch?v=OyysizawDE0
Figure 3.0 shows a girl feel excited towards her husbands surprise in the Nissan Almera.
The ad starts with the girl reads newspaper in the morning while having her breakfast. All
of the sudden, she saw an ad in the newspaper Babe, surprise in the car. She walks out
and check inside the car in every corner. Finally she found her husband was inside the
bonnet car, at the same time propose her marriage. The video ends with explanation of
car features. In fact, the ad uses rationale and emotional appeal by emphasizing on the
spacious space and comfort of the car, and simultaneously delivers happiness, joyous,
excitement, love and romantic appeal. Imagery and dramatization are applied in the ad
on creating suspenseful situation in the form of short story.
Strategy 4:
Source: https://www.youtube.com/watch?v=GjvK3NZzr1U
Figure 4.0 shows the ad of using emotional sex appeal. The ad starts with a guy asking
someone to wash his car, but end up a sexy lady helping him. He is so amazed and
excited. The ad contains some humor appeal as well when the guy asking the sexy lady to
get out from his new car. It contains imagery that encourages the customers to associate
sex appeal with the Nissan Almera.
7.1 Advertising
Nissan-Tan Chong Group will use two means of advertising, namely the print
advertising (The Sun, Berita Harian and Sin Chew Daily from Monday to Friday) and
television commercial advertising (TV3 from 8pm till 11pm). The Sun newspaper is
chosen because it is cheap and the highest circulated English newspaper, with a daily
circulation of 305,000 copies (Westwood, 2015); Berita Harian is the highest number of
readership among Malays; Sin Chew Daily has the highest circulation among Malaysian
Chinese (Westwood, 2015). The ads will be published in first double page of the
newspaper because those are the captions that will attract readers attention. Meanwhile,
according to Westwood (2015), TV3 is chosen because it has the highest number of
19,000,000 page views, contains 383,000 unique users and the age group covers below
18 (11%), 18-24 (40%), 25-34 (30%) and above 35 (19%). TV3 trading terms is 30
seconds ads will charge for RM1000. Advertising has been utilized aggressively by
Nissan-Tan Chong Group whereby almost every car models have its own advertisement,
be it print or electronic media, for example, Nissan Almera has its own print
advertisement carrying tagline Innovation that Excites (Sheehan, 2011). The reasons of
selecting the time for TV advertising is because it is able to reach segmented audiences
easily whereas nighttime is the best period for working adults and family to watch
television (Parenta, 2006).
the same time promotes Nissan Almera is certainly a great option for young and
discerning car buyers. At the same time, internet advertising is used to create online ads.
Other than that, Nissan usually engaged the customers with their customer franchise
building promotions like car-testing, demonstrations and non-customer franchise building
promotions like premiums. These promotional items will somehow enhance the attitudes
and loyalty of customers towards Nissan brand and eventually increase brand equity. In
addition, Nissan Almera can launch a My Story with Nissan Almera that offers grand
prizes of RM20, 000. This will act as pull strategy to attract the customers to purchase the
new Nissan Almera as they respond favorably to money-saving opportunities and value
adding promotions (David, 2005).
helps to create awareness, brand identity and superiority towards Nissan (Hoyer &
MacInnis, 2010).
It is hope that Nissan-Tan Chong is able to gain large number of new customers and
generates positive media reports on the Nissan Almera and Tan Chong Group.
8.1 Justifications
Print ads and TV ads are scheduled as continuous pattern of advertising to serve as a
constant reminder to the customers. Meanwhile, Youtube video and Facebook page are
created to communicate with the customers. Nissan Pimp My Almera is scheduled as
seasonal to suite with during school holidays events whereas another contest My Story
with Nissan Almera is a continuous program running a whole year. The rebate
program is scheduled as pulsing style during the special festivals like Chinese New Year,
Deepavali, Hari Raya and Christmas to stimulate car sales. Car testing and demonstration
are scheduled as flighting style because of the cost efficiency of advertising (Parenta,
2006). The sponsorships such Le Tour de Langkawi, Al- Team Malaysia, Nissan Football,
Nissan Badminton are also scheduled as monthly basis. Showroom and media invites are
scheduled as pulsing style while continuity is maintained as to increase promotional
efforts (Parenta, 2006).
9.1 Justifications
Nissan-Tan Chong Group uses the maximum allocation decision on print and TV
advertising to stretch the advertising value because they believe that print and TV
advertising are the two media that can reach the target audience easily and
effectively compared to other medium (Westwood, 2015). The group has made efforts
to become more innovative and efficient as well as allocating significant portions of the
budgets from traditional to non-traditional media.
Besides that, Nissan-Tan Chong Group decides to allocate fewer budgets in Internet
because it is the cheapest medium and the company is targeting towards the Generation-
X and Generation-Y. It is believed that Gen-Y spends more time online and Nissan-Tan
Chong Group sees this as opportunity to advertise online and expand the uses of online
social media (Hoyer & MacInnis, 2010).
Moreover, Nissan-Tan Chong Group would spend the budget allocation in sponsorships
because the group views in supporting community they are able to nurture talents that
will be benefited to the nation in the future. The group also believes that corporate
social responsibility (CSR) is an integral part of the company (Percy, 2008).
Evaluation Plan 1:
Evaluation Plan 2:
One of the most economical methods will include intercept surveys. Intercept surveys are
highly effective and will provide instant feedback (Parenta, 2006). Since Nissan-Tan
Chong Group is concerning about getting more referrals, it is important to understand the
reasons behind missed revenue and the loss of potential customers. Intercept surveys can
help Nissan-Tan Chong Group to identify customers who made a purchase and those who
did not and why and their chances to recommend other friends to purchase.
Evaluation Plan 3:
Theater testing will be used to identify strengths and weaknesses of broadcast marketing
messages and indicate how Nissan-Tan Chongs commercials will compare against its
competitors (Sheehan, 2011). Using theater testing, individuals will be told to watch and
critique a television program, but their reception to Nissan Almera brand message will
actually be measured which, in turn, helps to determine brand preference among the
target audience.
11.0 CONCLUSION
Finally, integrated marketing communication plan has been developed for Tan-Chong
Nissan Almera in Malaysia. It is believe that with the thorough internal and external
analysis of the group and company, Nissan Almera will be launched successfully in the
introductory stage of the product life cycle. After all, one can succeed in the competitive
market only after understanding the complex consumer behavior because this enables the
marketers to undertake marketing decisions which are compatible with consumers needs.
12.0 REFERENCES
ATM's PulseStaker lends a hand to the new Nissan Almera. (2014). Assembly
Automation, 20(4).
Chief finds success along Nissan way. (2014). Manufacturing Engineer, 86(3), pp.28-31.
David, F. (2005). Strategic management. Upper Saddle River, N.J.: Pearson Prentice Hall.
GST Malaysia, (2015). GST Malaysia Goods and Services tax. [online] Available at:
http://www.gstmalaysia.co/ [Accessed 23 Feb. 2015].
Live Life Drive, (2014). 2013 Nissan Almera Malaysia Price, Reviews and Ratings by
Car Experts on LIVE LIFE DRIVE. [online] Available at:
http://www.livelifedrive.com/malaysia/new-cars/overview/2138/2013-nissan-
almera-sedan [Accessed 23 Feb. 2015].
Sharma, D. (2014). The secrets to Honda success. [online] Pitchonnet. Available at:
http://pitchonnet.com/blog/2014/02/26/secrets-hondas-success/ [Accessed 23 Feb.
2015].
Tanchong, (2015). Tan Chong Motor Holdings Berhad. [online] Available at:
http://www.tanchong.com.my/ [Accessed 23 Feb. 2015].
Toyota Motor Corp, (2015). Sustainability Report 2013. [online] Available at:
http://www.toyota-
global.com/sustainability/report/sr/pdf/sustainability_report13_fe.pdf [Accessed 23
Feb. 2015].
YouTube, (2015). DRIVEN 2014 #1: Honda City vs Toyota Vios vs Nissan Almera.
[online] Available at: https://www.youtube.com/watch?v=S-nBoUn-GXc [Accessed
23 Feb. 2015].
13.0 APPENDICES
1957
Tan Chong & Co, a partnership of the Tan brothers, was appointed sole distributor
of Nissan/Datsun in Malaysia, the first Japanese car sold in Malaysia.
1959
The Tan brothers incorporated their partnership business into a limited company.
1970
1974
Tan Chong Motor Holdings Berhad was listed on the Kuala Lumpur Stock
Exchange.
1976
The late Chairman Tan Sri Tan Yuet Foh with the first Nissan Roll-Off in 1976.
1977
1993
Segambut Assembly Plant received ISO 9002 (Quality Systems) certification, the
first motor assembly plant in South-East Asia to be accredited.
1994
2003
Joint venture in Thailand via TC Capital (Thailand) Company Ltd for provision of
equipment leasing.
2004
In less than 15 months the Kangoo CKD went from project to reality. Renault and
TC Euro Cars Sdn Bhd inaugurated the locally-assembled Kangoo in Malaysia.
This investment of locally-assembled Kangoo constitutes the first CKD production
for Renault in the ASEAN region.
2006
Ground breaking ceremony on 28 February 2006 for the new plant at Serendah,
Selangor.
Opened the first overseas after-sales service centre in Cambodia under the brand
name of E-Garage.
2007
Serendah Plant started production and rolled out the first model, Nissan Latio.
2009
2010
Appointment as sole and exclusive distributor for Nissan vehicles in the Kingdom
of Cambodia and Lao Peoples Democratic Republic.
Ground breaking ceremony on 30 June 2010 for the Groups first overseas vehicle
assembly plant in Danang, Vietnam.