Marketing Plan For Nissan Electra

4305 words (17 pages) Essay

18th May 2017 Marketing Reference this

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This assignment provides an effective and efficient marketing plan for the success of a brand new product “Nissan Electra” being launched by an automobile company Nissan. Also this document discusses marketing strategies, problems and their solutions for company and its new product.

There are number of companies operating in the automobile market like Nissan, Toyota, Mercedes, BMW, Ford, Honda, etc. With the growth of automobile industry, demands of people have also been increased. Now people are looking for those cars that are:

More user friendly

More comfortable

Provide more safety

Consume less energy

Good for environment, etc.

While developing the marketing plan for Nissan Electra, the following key areas are also discussed:

Discussion of the Industry

Analysis of company’s position

Marketing objectives

Promotions strategies

Pricing strategies

Product strategies

Distribution strategies.

An action plan is also included for successful accomplishment of Nissan Electra.

Table of Contents

marketing plan 1

for 1

“nissan electra” 1

Student Id: ___________________________________ 2

Student Name: ___________________________________ 2

supervisor: ___________________________________ 2

Institute: ___________________________________ 2

Course: ___________________________________ 2

Level: ___________________________________ 2

Subject: ___________________________________ 2

Date: ___________________________________ 2

Executive Summary 3

Table of Contents 4

1.0. Automobile Industry Overview 7

1.1. Global Industry for Automobile 7

2.0. Nissan: History 8

2.1. Introduction 8

2.2. Nissan’s Vision 9

2.3. Nissan’s Mission 9

3.0. Nissan Electra: Marketing Environment 10

3.1. Micro Environment 10

3.1.1. Consumers 10

3.1.2. Competitors 10

3.1.3. Intermediaries 10

3.1.4. Public 10

3.2. Macro Environment 11

3.2.1. Demographic Environment 11

3.2.1.1. Education 11

3.2.1.2. Population 11

3.2.2 Economic Environment 11

3.2.3. Technological Environment 11

4.0. Nissan Electra: Product Evaluation 12

4.1. Core, Actual and Augmented Product 12

4.2. Consumer or Industrial Product? 12

4.3. Consumer Acceptance 12

4.4. Distribution – Wide Spread or Not? 12

4.5. SWOT Analysis 13

4.5.1. Strengths 13

4.5.2. Weaknesses 13

4.5.3. Opportunities 13

4.5.4. Threats 13

5.0 Consumer Evaluation 14

5.1 Type of Purchase Decision 14

5.2 Consumption – consumer response 14

5.3 Quality, Comfort & Safety 14

5.4 Customer Awareness and Brand Switching 14

6.0 Competitor Analysis 15

6.1 Pricing 15

6.2 Promotion 15

6.3 Distribution 15

7.0 Marketing Objectives 16

Goals and Objectives 16

8.0 Marketing Strategies 17

8.1 Target Market 17

8.2 Nissan Electra Target Market: Geographic Segment 17

8.3 Nissan Electra Target Market: Psychographics 17

8.4 Nissan Electra Target Market: Demographics 17

9.0 Marketing Mix Strategies 18

9.1 Product Strategies 18

9.1.1 Packaging 18

9.1.2 Labeling 18

9.1.3 Product Line 19

9.2 Pricing Strategies 19

9.3 Distribution Strategies 19

9.4 Promotion Strategies 20

9.4.1 Environment Research 20

9.4.2 Advertising 20

9.5 Positioning Strategy 21

9.6 Action Plan 21

10.0 Budget 22

10.1 Market Analysis Cost 22

10.2 Questionnaire Cost 22

10.3 Advertising and promotional cost 22

10.3.1 Advertising cost 22

10.3.2 Promos Cost 23

10.3.4 Sponsorships 23

11.0 Bibliography 24

Consumer Questionnaire 26

QUESTIONNAIRE ANALYSIS 29

Analysis Summary 34

Budget 37

1.0. Automobile Industry Overview

1.1. Global Industry for Automobile [1] 

Automobile Industry manufactures and sells vehicles. Modern vehicles and road system has encouraged people to travel long distances. With the development of automobile industry, other industries such as oil, plastic, steel, glass etc. are also growing rapidly and taking part in economic growth.

In the 1970’s Japanese adopted improved production techniques from overseas facilities and mergers that accelerated automotive industry globally after 1980’s.

In 2005, 64.6 million vehicles were produced globally. This confirms that the automobile industry is one the largest industries in world trade. Today exports of vehicles have reached to $600 billion annually, which is the 10% of total global export.

With the increase demand of vehicles, competition between automobile companies has also been increased. They are all working hard to produce right vehicles equipped with all the facilities demanded by consumers. Car industry is increasing along with the growth of economy and population. It is reported by Mobility 2030 of the World Business Council for Sustainable Development that by 2030 per capita mobility of America, Russia, Europe and China would be double to 5000-14000 km/year, which is a big deal for automotive industry.

2.0. Nissan: History

2.1. Introduction [2] 

Nissan is a leading Japanese automobile manufacturing company in the world. It was founded in 1934 and is the second largest automobile company after Toyota in Japan. In the beginning, Nissan was producing military vehicles for its country. Now, Nissan manufactures and exports a range of new technology vehicles and trucks to all major countries in the world.

Some of the popular vehicles of Nissan are:

Crossovers

Qashqai challenge

Influencer Home

Carchitecture

Murano

City Cars

Pixo

Micra

Note

Cube

4 x 4s

X-Trail

Pathfinder

Navara

Nissan All Mode

Sports Cars

GT-R

370Z

Race Academy

GT Academy

Commercial Vehicles

Cabstar

Primastar

Interstar

NV200

2.2. Nissan’s Vision [3] 

To achieve customer satisfaction, Nissan has set its vision to improve and maintain the quality standards of its vehicles to ensure customer a safe and comfortable drive.

They are expressing their vision in their own statement as: “Nissan-Enriching people’s Lives.”

Nissan is also participating through its business activities all over the world to develop and progress the society.

2.3. Nissan’s Mission [4] 

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

3.0. Nissan Electra: Marketing Environment

3.1. Micro Environment

3.1.1. Consumers

Nissan always try its best to understand and satisfy its customers. It is important for Nissan to understand their needs like affordability, safety, comfort and fuel efficiency etc. Nissan is also focusing on low income consumers and producing affordable vehicles for them that meet their requirements.

3.1.2. Competitors

In the market there are numbers of leading vehicle producing companies such as Toyota, BMW, Mercedes, and Ford etc. New companies are also emerging and struggling to gain customer satisfaction. In this competitive environment Nissan Electra has good features to compete such as attractive look, design and other internal features.

3.1.3. Intermediaries

For Nissan Electra, company will adopt both direct and indirect distribution channels. Indirect distribution will be carried out by authorized dealers i.e. intermediaries.

3.1.4. Public

Public plays an important part in the reputation of company and products. In order to stand out public opinions, Nissan has to provide some strategic approaches because any critics may impact repute and sales.

3.2. Macro Environment

3.2.1. Demographic Environment

3.2.1.1. Education

People are well educated to understand safety and quality. They are very sensitive about their vehicle’s safety and comfort. That’s why Nissan produced Nissan Electra, which is safer, comfortable and based on modern technology.

3.2.1.2. Population

With the increase of population, buyers are also increasing in the market. In this scenario Nissan is focusing on people demand and supply of vehicles.

3.2.2 Economic Environment

Purchasing power of people is increased with the growth of economy. Affordability has increased the sales of vehicles. Nissan avails this opportunity to jump into industry with strong impact and grab major share.

3.2.3. Technological Environment

Technology is improving and advancing day by day. This is a challenge for automobile industry to produce their products according to the new modern technology which faster the operations and results in rapid production. Nissan focuses on its technological structure and improving it regularly.

4.0. Nissan Electra: Product Evaluation

4.1. Core, Actual and Augmented Product

Nissan Electra is a Core Product. Because it is an affordable vehicle.

Nissan Electra is an Actual Product launched by Nissan. It ensures comfortable and safe drive and affordable price.

The Augmented Product is the added features this car provides to its buyers. Major add-on features Nissan Electra provides to its buyers are :

Electrical engine.

1 year parts and service warranty.

Integrated tracking system.

Highly attractive design.

AC installed in car.

4.2. Consumer or Industrial Product?

“Nissan Electra” 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. Consumer Acceptance

The consumer acceptance is necessary because they are much sensitive about vehicles. Now, people prefer more comfortable and attractive cars. Nissan Electra will get huge consumer acceptance because of its low price, more safety and comfort.

4.4. Distribution – Wide Spread or Not?

Nissan wants to distribute its product widespread to reach all the major territories of the world. Nissan Electra will be launched at all the showrooms of Nissan.

4.5. SWOT Analysis

4.5.1. Strengths

Nissan has the following major strengths:

Brand image of Nissan Motor Co.

Variety of Automobiles being produced.

Local Production of cars / low cost of production.

Financially Nissan is a strong company.

High Quality products.

4.5.2. Weaknesses

Following are some of the weaknesses of the Product and company:

Currently Nissan has low share in market.

Nissan Electra is currently being launched in two varieties only.

Nissan has small distribution network as compared to other leading companies.

4.5.3. 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.

4.5.4. 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

Nissan Electra will introduce a new image of the company and will attract the customers as it is a new and customized model. To make big purchase a lot of users will be involved and also there are competitors giving services, so this purchase behavior will be categorized as Dissonance-Reducing Buyer behavior.

5.2 Consumption – consumer response

People are aware about cars and conscious about car’s safety and economic features. They are interested in purchasing because of their needs also there is gap between demand and supply. So, in this situation, introducing Nissan Electra is right choice for the company.

5.3 Quality, Comfort & Safety

Nissan is famous for its quality, comfort and design. Nissan Electra will be an affordable car and safe for traveling, so the first impact of customer would be that this is a family car. Its unique design and features will make it favorable to customers.

5.4 Customer Awareness and Brand Switching

Nissan Electra aims is to capture the new market of its level and provide its existing customer a new opportunity to experience a new ride. 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.

6.0 Competitor Analysis

Toyota, Mercedes, BMW, Ford, Vauxhall and Renault are the major competitors of Nissan. All products produced by these companies will give Nissan Electra a tough competition.

6.1 Pricing

As Nissan Electra will be an affordable car therefore its price will be kept lower than all the competitors. This will also help to grasp large share in market.

6.2 Promotion

Nissan will put heavy investment to create awareness about Nissan Electra. Company also aims to target all the major territories of the world.

6.3 Distribution

Nissan will distribute its product widespread to reach all the major territories of the world. Nissan Electra will be launched at all the showrooms of Nissan and its authorized dealers worldwide.

7.0 Marketing Objectives

If marketing objectives are clear and understandable then they lead to the increased sales. To achieve customer satisfaction, performance parameters of Nissan Electra will be defined in the light of Nissan’s vision.

Goals and Objectives

Nissan’s goals and objectives are:

Capture at least 25% of the 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 consumers. Use excessive advertising especially using media preferred by the target market.

Use unique features like unique design, low prices and comfortable environment to create attraction towards product.

Create product belonging and position among buyer’s mind.

8.0 Marketing Strategies

Marketing strategies are the most important part of marketing plan.

8.1 Target Market

Nissan Electra target market will be the low level income class and middle class people. 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 Electra Target Market: Geographic Segment

The major concern of Nissan Electra will be to capture almost all the major territories globally.

8.3 Nissan Electra Target Market: Psychographics

Nissan Electra will give company a new image. Consumers will be confident considering its economic condition, safety and comfort and that Nissan is a leading international brand. It is expected that most of the consumers will most likely shift to Nissan Electra.

8.4 Nissan Electra Target Market: Demographics

Nissan’s primary target is lower class and middle class families. It will also target major vehicle buyers who are aged 25 to 60.

9.0 Marketing Mix Strategies

There is boom in the automobile industry. Nissan is introducing Nissan Electra at this particular time to capture most of the market shares and increase brand loyalty among consumers by achieving their satisfaction. This is a very good time for Nissan to jump into the market with quality product to grasp a major share.

9.1 Product Strategies

Nissan’s new product is Nissan Electra. This is a new technology and high quality product focusing on three major parameters:

Economy Electrical Engine

Safety

And comfort

9.1.1 Packaging

Nissan Electra will be a standard size car. It will be available in two color types i.e. metallic and non-metallic. Consumers can choose between five colors i.e. white, black, green, blue and red. Other colors will be available on demand.

Important Recommendations

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.

Important Recommendations

The name of the car proposed is “Nissan Electra”. The name represents innovation. 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 color types

Nissan Electra Metallic

Nissan Electra Non-Metallic

Important Recommendations

It is recommended both products should be launched simultaneously with major production. 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:

Nissan Electra Metallic ————- GBP 3,500/-

Nissan Electra Non-Metallic —————- GBP 3,000/-

Recommendations

The price of the car should be kept lesser than the competitors as Nissan Electra’s major objective is providing economical car to users.

9.3 Distribution Strategies

Basically there are two types of distribution channels available: Direct distribution and In-direct distribution

Recommendations

Nissan Electra will adopt both distribution channels.

Use of Direct Channel: Nissan has its showrooms in major divisional headquarters; at these stations Nissan next will use its direct distribution channel.

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 keeps 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 Electra..

Nissan will sponsor special events like concerts etc. to introduce the car to public.

9.4.1 Environment Research

Nissan will conduct a market research to know what their consumers think 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.

9.4.2 Advertising

Nissan will use different advertisement methods to create awareness about its new technology product Nissan Electra.

Following Advertisement methods will be used:

Nisan will use print and electronic media to introduce the product.

Special events will be sponsored by Nissan.

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

Extensive marketing of Nissan Electra and its special features like electrical engine, economy, safety and comfort will draw consumers’ attention and will create room for company and its product in the market.

9.6 Action Plan

The action plan will commence from the month of March 2010 and will go up to August 2010.

PROMOTION ACTIVITY

DURATION

RESPONSIBILITY

Launch a blind ad campaign on billboards and magazines in all A class areas of major cities and magazine.

2 weeks

Marketing department

Heavy advertising on TV, newspapers and magazines

4 weeks

Marketing department

Sponsor a highly prestigious chain of events or concerts.

3 weeks

Marketing department,

Finance Department

Set displays of car at all the Nissan showrooms and major dealer outlets in all cities.

3 weeks

Marketing department

A contest will be held and people who win will get prizes (Car Info. Books, Key chains, phone cards etc.)

June

Finance Department, Marketing Department.

Reduce number of billboards, television and magazines advertisements.

July

Marketing department

Continue Advertising

August

Marketing department

10.0 Budget

As Nissan has a tough competition with some big names so there is need of strong financial support to all marketing activities. Nissan has allocated initially 30 million GBP for the marketing of Nissan Electra. This budget will be used during the year of 2010-2011.

This amount will be further sub-allocated to different areas. 15 million GBP 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 15 million GBP has been sub-allocated for each quarter over the years as 5 million GBP per quarter.

10.1 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 2 million GBP.

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

10.2 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 1 million GBP.

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

10.3 Advertising and promotional cost

The cost allocated for advertising and promotion is 12 million GBP. 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.

10.3.1 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 8 million GBP.

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

10.3.2 Promos Cost

Promo cost includes the cost of handouts; information books, prize contests etc. these all promo activities will cost around 2 million GBP.

The further subdivision of this cost is given below in table 1.4.2 in Appendix B.

10.3.4 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 2 million GBP.

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

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