Nissan Motor Company Ltd. is a Japanese car manufacturer. It was established on December 26, 1933. It is the second largest automobile manufacturing company of Japan, popularly known as "Nissan". Nissan Motors are of the opinion that India has a huge market potential and that the economy is growing at a tremendous rate. They believe that India is a market of opportunities and growth. They are of the opinion that their investment in India will help in the growth of the company. They are also planning to open manufacturing units in India.They believe that India is strategically very important for them. And the company's future growth is a lot dependent on the outcome of their investment in India. They have immense expectation from the Indian market. They have bigger plans in the future for India. And setting up manufacturing units and initial investment is just the starting point of the bigger picture.Nissan Motors India Pvt Ltd. is the Indian division of Nissan Motors. They deal with all the aspects of automobile manufacture. That would include import (presently, later it might be manufacturing), spare parts, sales, after sales, marketing, distribution etc. Nissan Motors India has car dealerships outlets in places like Delhi, Mumbai, Bangalore, Secunderabad and Chennai. Nissan Motors India has started their operations in India with the launch of new X-Trail. This particular model is very popular throughout the world. They have been very successful throughout. Moreover Nissan has been able to complete its revival plan according to its planning and timing. Infact, they had actually completed their project a year ahead. This makes it even easier for them to concentrate better on the India market and work accordingly. The new X-Trail has been launched in two different variants in
HISTORY OF NISSAN
Nissan started its operations in India in 2005, with the launch of the Nissan X-Trail SUV, which was imported fullybuilt. In 2007, the company launched the Nissan Teana sedan. Along with Nissan's global alliance partner, Renault, NMIPL is setting up a manufacturing facility in Chennai to manufacture 200,000 cars per annum. The facility with an investment of US$ 920 million will manufacture the Nissan Micra for the European market, besides various other models for the Indian market. NMIPL sells the Nissan X-Trail and the Nissan Teana in India, both of which are currently imported fully-built.
In INDIA automobile industry is growing at a rapid pace. The demand for cars in INDIA 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 TATA 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 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
Automobile Industry Overview 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 5000-14000 km per year. This will contribute to the automotive industry a big deal.
Automobile Industry Overview of INDIA
In INDIA automobile industry is growing at a rapid pace. There have been huge demand for cars in INDIA over time but in the last few years due to improvement in economy of INDIA this demand has increased tremendously. Total number of automobiles in use today in INDIA is 25 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. 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, TATA, Honda, FORD, Hyundai. The government is also supporting the investors to invest in INDIA this has attracted more producers of cars to come in INDIA and grasp
Nissan Motor Co. is one of the major car manufacturers in the world. Nissan Motor Co. is in automobile industry for over 70 years. Nissan has spread out its manufacturing over all major countries and territories of the world. Nissan Motor Co. founded in 1934, formally known as Datsun until 1983, is a Japanese automobile manufacturer and is Japan’s second largest company after Toyota. It is among the top Asian rivals of the “big three” in the US. Initially, Nissan produced military vehicles for Japans military. Nissan produces an extensive range of mainstreams cars, trucks for domestic and international consumers
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: “Nissan-Enriching people’s Lives.” The significance of this is that Nissan aims to participate in the development and progress of society through its business activities worldwide. This is only achieved through set of objectives that needs to be focused and better implemented through effectiveness and efficiency
“Nissan provides unique and innovative automotive products and services that deliver superior measurable values to all stakeholders”
Nissan next: Marketing Environment Micro Environment
. Consumers Consumers are the main target which needs to be understood and satisfied in the market. Their purchasing behavior will most likely be an impact affecting an organization in several unprecedented ways. It is important to understand their mindset patterns of purchasing a family car, the basic pattern includes affordability, fuel efficiency, safety and comfort giving the consumer a mood of acceptance and appreciation. The main focus of the Nissan will be the low level car owners and low income consumers. It will also target product to bike owners as they are very unsafe. Competitors With strong economic growth and government relaxation on taxes, several companies are emerging to establish their market position. Nissan next stands a good chance of competing with existing competitors as several of Nissan products are already in the market. Nissan will position the new product with features such attractive look-n-feel. Direct - competitors are TATA and Suzuki which have substantial market share.
Intermediaries Nissan will adopt both distribution channels, direct and indirect. Intermediaries (i.e authorized dealers of Nissan) are important, since indirect distribution of its product is carried out through them. This will help to further enhance the reachability of the car. Publics Publics are the general public who are involved in the reputation of Nissan and its products. Nissan has to provide several strategic approaches in order to stand out with the public opinions. Any critics against Nissan would impact the sales and repute. With such diverse culture, consumers are highly deterred with public opinions. This very thin line, the public offers, can effect production, distribution and diversification of Nissan. Nissan will have to stand out in their primary objective and not loose that position.
Education The literacy rate of the country is increasing and as a result it has increased the consciousness in people about safety and quality of travel. People are now more sensitive about how safe and comfortable is the automobile they are using. With the increased awareness in people they have now shifted towards the automobiles which are according to safety standards and give more comfortable travel. This shift is also helping Nissan Motor Co.’s business as people are moving towards it. Population Population of INDIA 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
Economic Environment With the rapid growth of national economy purchase power of people has also increased. Also the priorities have changed a lot. The affordability of cars has improved and this resulted in huge increase in the sales of cars. This provides Nissan an opportunity to jump into market with strong impact and grab a major share in automobile industry. Technological Environment Rapid improvement and advancements in technology impacts the automobile industry a great deal. It impacts the manufacturing, assembling and furbishing of automobiles. New technological advancements pace up the operations; results in more rapid production of cars. Technological improvements also impact Nissan’s operations a great deal and forces towards technological shift. Nissan keeps on improving its technological structure with time and has to continue its strategy of regular improvements.
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 :
1 year parts and service warranty. Integrated Tracking System. Highly attractive design.
CNG installed in car for user convenience
Consumer or Industrial Product?
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.
Distribution – Wide Spread or Not?
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.
Strengths Following are some of the major strengths of company: Brand image of Nissan Motor Co. and Gandhara Nissan Limited. Variety of Automobiles being produced. Local Production of cars / low cost of production. Financially Nissan is a strong company. High Quality products.
Weaknesses Following are some of the weaknesses of the Product and company: Currently Nissan has low share in market. Nissan next is currently being launched in two varieties only. Nissan has small distribution network currently.
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.
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.
The goals and objectives of the marketing plan are usually defined under the light of certain performance indicators which are related to the probable increase in growth, sales and performance levels in terms of increasing overall company revenues and image. Marketing objectives leads to the increased sales if they are clear and understandable For “Nissan next” we’ll define performance parameters and baseline in light of Nissan’s vision to achieve customer satisfaction. Also the growth of automobile industry in INDIA 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 . Target middle class and low earning income class specially by providing them an affordable option. Create awareness among target audience. Use excessive advertising especially using media preferred by the target market. Use unique features like good design, low prices and comfortable environment to create attraction towards product. Create product belonging and position among buyer’s mind.
Promotion is one of the most important factors of marketing; it is done to affect the consumer behavior in order to achieve sales and increase product image. In promotion the major task is to make consumers aware of the product and to attract consumer towards the product by highlighting the advantages of the product. Also it keep consumers aware and well informed about product’s features and improvements. Recommendations Nissan can use electronic and print media to advertise about its car. Nissan can advertise on billboards, flex signs, bus boards, telemarketing etc. Special advertisement campaigns can be launched e.g. seminars, road shows publications etc. to create awareness about Nissan next. Nissan will sponsor special events like concerts etc. to introduce the car to public.