Media Plan Final

.

Table of Contents Executive Summary………………………………………………………………………………………………………………………..3

Situation Analysis………………………………………………………………………………………………………………...…….4-42

History of the Market……………………………..…………………………………...………………………………...……….4-9

Nissan: History and Current State…………………………………..………………...…………………………………….…10-16

Distribution Channels……………….……………………………………………………………………………………...….17-19

Product Consumer: Demographics, Psychographics and Buyer Habits.………………………....………………..…….........20-38

Target Consumer Profiles..………………………………………………………………………………………………….....39-42

Competitive Analysis………………………………………………………………………………………………………..…….…..43-78

Toyota Motor Corp. ……………………………………………………………………………………………………….…..44-50

Chevrolet, Division of General Motors………………………………………………………………………...……………...51-58

Ford Motor………………………………………………………………………………………………………….....….……59-65

Hyundai Motor Company………………………………………………………………………………………………….…..66-72

Honda Motor Company Ltd. ……………………………………………………………………………………………….....73-78

Media Plan…………………………………………………………………………………………………………………………...79-115

Overview………………………………………………………………………………………………………………….…...80-84

Media Selections and Rationale…………………………………………………………………………………...…….…….85-97

Media Considered But Not Recommended……………………………………………………………………….................98-101

Seasonality of Media Buys………………………………………………………………………………………………….102-109

Decision Dates and Cancellation Flexibility…………………………………………………………………….................110-116

Appendix A…………………………………………………………………………………………………………………………117-120

Appendix B: Sources……………………………………………………………………………………………………………………121

2

3

As Nissan hopes to increase multicultural Millennial share of market specifically targeting Hispanics, African

Americans, and Chinese, it is imperative for the company to understand what makes this target

unique. Research conducted by CPMedia concludes findings that the multicultural Millennial target would

best be reached through a combination of national, local, and interactive components. Thus, we have

included national print and network TV, in combination with outdoor advertising in four specific DMA’s,

strategically picked for their high density of multicultural Millennials in order to maximize the number of

targets we reach in addition to the frequency in which we reach them. Further, we allocated a large

percentage of the budget to cover Internet advertising because the target is more likely to spend their time

online than engaged in any other media. We have incorporated non-traditional buys into the plan that utilize

celebrity endorsements that the target can ethnically identify with, which also contain a strong call to action

to visit the Nissan YouTube page. With this creative campaign CPMedia has created an overall message that

encompasses the idea of individuality through the tagline, Free to be you. Free to be Nissan. The overall

message in the campaign will appeal to the multicultural Millennial’s desire to be unique and stand out.

Through these specific media buys and the non-traditional approach of identifying with your target, you will

generate future revenues with the multicultural Millennials.

Executive Summary

4

History of the Market

Nissan’s total market share is 8.8%; however these six competitors comprise 70% of the market. 5

Nissan vs. the Market

Primary Players

19.7%

16.6%

11.5% 8.5%

8.8%

4.9%

30%

Other GM

Ford

Toyota

Honda Nissan

Hyundai

1"Auto Sales - Markets Data Center." Wall Street Journal. Web. 07 Oct. 2011. <http://online.wsj.com/mdc/public/page/2_3022-autosales.html>.

Automotive Industry Market Share Wall Street Journal - September 20111 General Motors

Ford Motor

Toyota Motor Corp.

Nissan Motor Corp., Ltd.

Honda Motor Company Ltd.

Hyundai Motor Company

6


How Nissan is Gaining Market Share

2Nissan Cars, Trucks, Crossovers, & SUVs | Nissan USA. Web. 06 Oct. 2011. <http://www.nissanusa.com/>. 3Ibid.

• Only 100% electric vehicle in

market compared to

competitors

• Focus on manufacturing 100%

electronic, emission-free

vehicles (ESFLOW & LEAF)2

• Beginning 2013, Exclusive automobile for

New York City TLC (Nissan NV200)3

7 4Web. 28 Sept. 2011. <http://www.mergentonline.com/competitors.php?compnumber=6050>.

$-

$10.00

$20.00

$30.00

$40.00

$50.00

$60.00

$70.00

Ford Motor Co. General MotorsCo.

Honda MotorCo., Ltd.

Hyundai MotorCo., Ltd.

Nissan MotorCo., Ltd.

Toyota MotorCorp

$9.86

$21.00

$29.21 $25.25

$16.55

$67.85

Automotive Share Prices4 Day-end September 28, 2011


Share Price Comparison

8 5Web. 28 Sept. 2011. <http://www.mergentonline.com/competitors.php?compnumber=6050>.


Revenue Comparison

Hyundai Motor Co.

Nissan Motor Co.

Honda Motor Co.

Ford Motor Co.

General Motors Co.

Toyota Motor Corp.

$100,400,000

$106,000,000

$108,000,000

$129,000,000

$135,600,000

$229,400,000

Automotive Revenue Comparison 20105 (000)

9

Company Name Ticker Market Value ($ - 000) EPS* Yield % β**

Toyota Motor Corp. TM 105,547.39 $1.68 1.60% 0.71

Ford Motor Co. F 43,927.34 $1.74 2.39

Nissan Motor Company Ltd. NSANY 39,321.47 $1.71 1.58

General Motors Co. GM 36,763.97 $4.75


Company Market Value

*EPS denotes Earnings Per Share

**β denotes Beta (investment risk) where average Beta is

equal to 1.00

Nissan’s market value, observed at the fiscal year end, is approximately $40 million. It ranks third in

market value when compared to the primary players of the automotive market.6

Nissan Earnings Per Share

(Justification of Market Value)

Q1 EPS: 0.56

Q2 EPS: 0.57

Q3 EPS: 0.46

Q4 EPS: 0.18

Year EPS: 1.79

6"Nissan Motor Co ADS." NetAdvantage. Web. 15 Oct. 2011.

<http://www.netadvantage.standardandpoors.com/NASApp/NetAdvantage/cp/companyAllCompetitors.do://>.

http://www.netadvantage.standardandpoors.com/NASApp/NetAdvantage/cp/companyAllCompetitors.do:/

10

Nissan

History and Current State

11

Nissan Motor Co., Ltd.

A Brief Overview

History7

• Nissan Motor Co., Ltd. date of establishment: December 26, 1933

• The founder of Nissan was Yoshisuke Aikawa, who planned to produce 10,000 – 15,000

units per year.

• The first Datsun passenger car emerged off the assembly line in April of 1935

• Nissan’s original slogan was "The Rising Sun as the flag and Datsun as the car of choice.”

Nissan Motor Co., Slogan: SHIFT_The way you move

Future Outlook8

• Nissan announced a six-year business plan called "Nissan Power 88."

• It calls for growth across new markets for the six fiscal years ending March 31, 2017

• During this 6 year plan Nissan plans to deliver an all-new vehicle every six weeks

• Nissan’s global portfolio will have 66 vehicles and will cover 92% of all markets and

segments under this plan

• Also, by 2017 the company aims to achieve a global market share of 8%

7"NISSAN | CORPORATE INFORMATION | Outline of Company TOP." Nissan Motor Company Global Website. Web. 08 Oct. 2011. <http://www.nissan-

global.com/EN/COMPANY/PROFILE/>.

8“Nissan Motor Co." Business Summary. Sun. 09 Oct. 2011. <www.netadvantage.standardandpoors.com>

The Product Itself

Product History

12

1933:

Nissan Motor Co., Ltd. is

established in Japan9

1937:

The Datsun Type 15 is the

first mass produced Japanese

vehicle. Other Type 15 models

include a mini pickup and

delivery van.

9"Nissan Heritage." Nissan USA. Web. 13 Oct. 2011. <http://www.nissanusa.com/about/heritage/the-early-days.html>.

1958:

The first Datsun sedan

is sold in America.

1975:

Datsun becomes the top

U.S. vehicle imported.

2011:

Nissan introduces the

Leaf trying to reach their

100% electricity 0 emission

objective.

1968:

The first car styled

for the U.S. market is

launched, the Datsun 510.

1993:

Nissan celebrates 10 years of

manufacturing cars in the U.S. ,

Altima tops sales records, and

the Maxima surpasses one million

cars sold.

13


Ad Spending for 2010

Spending Overview10

• In 2010 Nissan Motor Co. spent at total of $866,435,000 on media in the United

States, which gave it a ranking of 42 out of the 100 companies that spent the

most in media.

• Of the different channels of media that Nissan allocated its budget to, the

categories that received the most amount for 2010 were:

• Network TV

• Cable TV

• Spot TV

10"Advertising Age." Advertising Agency & Marketing Industry News - Advertising Age. 20 June 2011. Web. 28 Sept. 2011. http://adage.comdatacenter/marketertrees2011/.

14


Where is the Money Going?


9.35% 0.03% 0.05% 0.00% 0.91%

0.67%

0.01%

0.04%

22.67%

2.64% 10.73%

0.02%

11.43%

0.07%

1.15%

10.67%

29.54%

Magazines

B-to-B Magazines

Local Magazines

Spanish-language Magazines

Newspaper

National Newspaper

Spanish-language Newspaper

Outdoor

Network TV

Spanish-language Network TV

Spot TV

Syndication

Cable TV

Network Radio

Local Radio

Internet

Unmeasured

Fiscal Year Ending 201011

Nissan’s total Ad Spending is approximately $866 million

Sales (000)

81,029

242

399

22

7,878

5,829

126

360

196,427

22,882

92,990

186

99,031

638

9,933

92,487

255,976

*A specified breakdown of unmeasured spending can be found in the appendix

*

15


Advertising Seasonality Nissan Advertising Seasonality12

12

The most significant pattern

observed with Nissan

advertising expenses is that

they do not advertise in Q4

and spend significantly less

money in Q1 when compared

to the other quarters of the

year. It’s possible that the

company is saving funds to

spend the most amount

possible in Super Bowl

advertising. They could also

be waiting to spend more

money advertising newer

models, which come out at

the start of the year.

Also, in 2009 Nissan spent

considerably more on

advertising than in 2010 and

2011; however, it seems they

are spending more and more

each year, and each quarter

since then.

12 Bloomberg L.P. (2011). ARD Advertising Expenses graph for Nissan Motor Corp. 2000 to 2011. Retrieved Oct. 6, 2011 from Bloomberg terminal.

16

SWOT Analysis

Strengths

Industry’s first fully electric vehicle

Affordable

Exclusive automobile for New York City TLC

Red Tent Event

Nissan Power 88

Weaknesses

Low market share

Overall low gas mileage

Mediocre brand image

Advertising spending towards a small percentage of potential customers

Opportunities

Media plan focus towards multicultural Millennials

Improve upon product line’s gas mileage

Promote big sales and new model releases

Enhanced sponsorships

Creative buys geared towards target

Threats

High direct competition (other car companies)

Exclusive sponsorship deals already signed by competition

Media waste

Public transportation leverages target audience

SWOT

17

Distribution Channels

18


Exclusive Nissan Dealerships

• Nissan’s exclusive dealerships are located in 49 states, excluding Hawaii.

• In total Nissan owns 1,065 exclusive dealerships throughout the United States

• The concentrated regions where Nissan places the most dealerships are: California,

Texas, New York, and Florida13

13 "Find a Nissan Dealer | Nissan USA." Nissan Cars, Trucks, Crossovers, & SUVs | Nissan USA. Web. 27 Oct. 2011. <http://www.nissanusa.com/apps/dealerlocator>.

19


Nissan’s National Tent Event

• Nissan’s National Tent Event is an annual end of summer sale, which aims to get rid of

their old models in preparation for the releases of new models in September.

• The Tent Event runs from July to September each year.

• This is promoted and hosted at ALL local Nissan dealers

• Red and white tents are placed at dealerships to promote the seasonal deals

• Nissan chooses to spend heavily during Q3 (i.e. July, August and September). This is in

preparation for the Tent Event, the biggest dealership sales promotion of the year and for

the new models released in September.14

14 2011 Nissan Tent Event | Nissan National Tent Event | Come Save Today!! Web. 27 Oct. 2011. <http://www.thenissantentevent.com>.

20

Product Consumer

Demographics, Psychographics & Buyer Habits

21

Product Consumer

Demographics

Who is the target demographic?15 • The target demographic for this initiative is

Multicultural Millennials, ages 18-29, in the African

American, Hispanic and Chinese segments.

• The target is comprised of 57% men and 43% women.

• The MC Millennial is 41% more likely than the

average to have a household income of $60,000+ and

32% more likely than the average to have attended

college.

• In terms of occupation the MC Millennials are highly

likely to work in the Arts, Design, Entertainment,

Sports and Media industry; and are 186% more likely

than the average to do so. The second most common

occupation this target holds is in Sales/Office, and the

Multicultural Millennials are 60% more likely than the

average to hold a position in this field.

15Nissan Client Brief

22

Target Demographic Population

Of the United States population, there are a total of 7,750,700 Multicultural Millennials which accounts for

approximately 2.44% of the population. Further broken down by demographic, African American, Hispanic

and Chinese Millennials account for 1.07%, 1.28% and .09% of the total population respectively. Thus, when

allocating budget and media buys, the largest percent of the budget corresponds to the largest demographic,

Hispanic Millennials, followed by African American Millennials, and last Chinese Millennials. While this

target may be a small percentage of the entire U.S. population, it still accounts for close to 8,000,000 people,

which has the potential to create large sales volume increases for Nissan.16

162010 U.S. Census

Product Consumer

Demographics

• Big purchase decisions are based on style, function, quality and reliability.

• Want to be defined by their choice in music, art, and celebrity association.

• A cause or incentive is necessary to follow a mass brand.

• Internet, Television, and Magazines are the three most popular medias for

relaxation.17

23

Media Index

Internet: All 3 186

Television: Source of Information and Relaxation 207

Magazines: Source of Relaxation only 643

Radio: Source of Inspiration only 141

Radio: Source of Relaxation only 130

Note: Information, Relaxation, and Inspiration = Internet: All 3

17Nissan Client Brief

24

Psychographics

Attitudes Towards Cars and Driving

18Simmon Choices 3

OFTEN DRIVE BY SELF FOR SENSE OF FREEDOM

Sample 2,840 36 23 263

(000) 54,113 1,416 952 2,572

Vertical 25% 29% 34% 30%

Horizontal 100% 2.62% 1.76% 4.75%

Index 100 117 136 121

Base 25% 0.65% 0.44% 1.18%

African Americans

Asians Hispanics

MY CAR SHOULD EXPRESS MY

PERSONALITY

Sample 3,526 39 38 325

(000) 65,212 1,735 1,577 2,850

Vertical 30% 35% 56% 33%

Horizontal 100% 2.66% 2.42% 4.37%

Index 100 119 187 112

Base 30% 0.79% 0.72% 1.30%

• Nissan’s target often drive by themselves for a sense of freedom.

• Nissan’s target feel that their car should express their personality.

• The research shows that, overall, Nissan’s demographic is independent.

These users consume products that can be personalized and fit their lifestyles.18

25

Psychographics

Attitudes Towards the Ideal Car

• African American, Chinese, and Hispanic

Millennials have formed their own attitudes towards

cars.

• Their ideal car is fast, exciting, friendly to the

environment, makes use of technology, and allows

them to include their own personal style.

• They will choose a car based on looks and style.

• The target is:

• 80 times more likely to “seek out designs

that stand out from others”

• 66 times more likely to “seek our cars that

support their commitment to the environment”

• 34 times more likely to “enjoy personalizing

their vehicle”19

19 Nissan Client Brief

Car Attitudes

Agree Completely Index

Seek out bold, innovative designs that stand out from others

180

Seek out vehicles that support my commitment to the environment

166

Having a fun vehicle to drive is a top consideration

152

Look forward to technology advances in new vehicles

139

Enjoy personalizing my vehicles to reflect my individual tastes

134

Consider myself to be an automotive enthusiast

125

Generally purchase the most expensive model with all luxury appointments

116

26

Psychographics

Attitudes Toward Car Purchases

20Simmon Choices 3

• Asians, overall, are 213 times more likely to purchase a Japanese, Korean or other Asian originated

vehicle in their next vehicle purchase. Asian Millennials are 212 times more likely to make this purchase

than the average individual. All Asians are 107 times more likely to purchase a new Nissan, and 31 times

more likely to own a Nissan than the average population.

• Hispanic Millennials and Hispanics overall are not highly likely to purchase a Nissan, but the segment

follows the average of Nissan purchases.

• African Americans overall are 46 times more likely than the average to have most recently acquired a

Nissan.20

Sample 228

(000) 3,474

Vertical 37%

Horizontal 14%

Index 313

Sample 1.59%

Sample 52

(000) 709

Vertical 7.49%

Horizontal 8.96%

Index 207

Sample 0.32%

Next vehicle Japanese, Korean

or Other Asian Bought a new Nissan

Asian

Psychographics

Reasons for Driving

27

Reasons Target Drives: Adults 18 - 29

Race: African American

Race: Asian

Spanish spoken in home

Commute to Work 3 times

less likely 20 times less likely

13 times more likely

5 times less likely

Other Driving for Work 19 times


12 times less likely

9 times less likely

Leisure 16 times

less likely 39 times



Errands 20 times




Transport Others Average 28 times

less likely 8 times

less likely 6 times

less likely

Other 91 times

more likely 15 times less likely

2 times less likely


21 MRI Mediamark Reporter. Fall 2010. Web. 19 Oct. 2011. <http://www.mriplus.com.rlib.pace.edu/account/home.aspx>.

MRI Fall 2010 Automotive21

• According to MRI, adults 18-24 are 91 times more likely to describe their reasons for driving as other.

This pattern of being the most relevant information is seen again for African Americans as well as

Hispanics. Asians are the only segment who responded that they were 13 times more likely to use a car

to commute to work as the primary reason for driving.

Sample 309

(000) 3,744

Vertical 9.40%

Horizontal 24%

Index 131 28

Psychographics

Attitudes Towards Nissan

22Simmon Choices 3

• Nissan car-buyers were evaluated in conjunction with the target audience. There was no significant data

regarding African American Millennials and Asian Millennials in regards to their preferences towards

Nissan. However, Hispanic Millennials and Millennials overall are likely to favor Nissan.

• Hispanic Millennials are 45 times more likely to have most recently acquired a Nissan than the average

individual. Millennials – overall – are 29 times more likely to have most recently acquired a Nissan and

34 times more likely to have acquired a Nissan within no specific timeframe than the average individual.

Millennials are 31 times more likely than the average to own a Nissan. With significance in the Millennial

age range, the target audience may be reached through their social environments and word of mouth

buzz.22

Own a Nissan

Sample 390

(000) 4,584

Vertical 12%

Horizontal 24%

Index 134

Recently acquire a Nissan

Millennials

Note: In this instance, “own” denotes an owner of a Nissan that has obtained the Nissan by no specific means. “Acquire” denotes an individual

that has obtained a Nissan for oneself, by oneself (as in bought for oneself).

29

Psychographics

Attitudes Towards Technology

Technology Interests

Agree Completely Index

I am first among my friends to try new technology.

213

I am fascinated by new technology.

164

Technology helps make me more organized.

134

I like to read reviews before buying new technology.

133

Computers can be a good source of entertainment.

116

When I find new technology I typically recommend it to people I know.

114

• Millennials are 113

times more likely to try

new technology.

• Millennials are 33 times

more likely to read

reviews.23

23 Nissan Client Brief

30

Psychographics

Attitudes Toward Electronics

24Simmons Choices 3

• It is clear that the target demographic holds an exponentially favorable attitude towards electronics.

African Americans, Asians and Hispanics (ages 18-29) are 101%, 208% and 106%, respectively, more

likely than the average to pay anything for an electronic product that they want. With this directional

research we can conclude that because the target is willing to pay anything for an electronic product they

want, they place this kind of technology in high regard; this is something to consider when appealing to

their attitudes in a campaign.

• Additionally, the Millennial African Americans, Asians and Hispanics are 133%, 198% and 64%,

respectively, more likely than the average to be the first of their friends to have new electronic equipment.

This demonstrates the target can be considered purchasing leaders among their peers.24

African Americans

Asians Hispanics

PAY ANYTHING FOR ELECTRONIC PRODUCT I WANT

Sample 2,517 62 45 388

(000) 22,479 988 779 1,789

Vertical 10% 21% 32% 21%

Horizontal 100% 4.40% 3.47% 7.96%

Index 100 201 308 206

Base 10% 0.45% 0.36% 0.82%

31

Psychographics

Attitudes Towards the Media

25Simmons Choices 3

• The target also favorably agreed with the following

statements regarding media attitudes:

• I find television advertising interesting

• Magazines are my main source of entertainment

• I often notice the ads at bus stops

• I often notice ads on trains

• I often notice the ads on buses

• I often notice the ads on taxis

Nissan Outdoor Advertising

Nissan Print Advertising • This demonstrates that Multicultural

Millennials do pay attention to

advertising in the above mediums. They

are less likely than the average to listen

to the radio for quick news updates and

do not rely on newspapers to keep

informed.25

32

Psychographics

Attitudes Towards Internet and Entertainment

26Simmons Choices 3

• Millennial African Americans, Asians and Hispanics are 42%, 268% and 49%, respectively, more likely

than the average to view the internet as their prime source of entertainment.

• The target also greatly agrees with the statement “internet is the new way I socialize and meet others” as

well as “internet is the prime source of family entertainment.” These findings allow us to understand that

the target demographic is not just casually on the internet, but rather it is an important component that

affects multiple aspects of their life.26

African

Americans Asians Hispanics

INTERNET PRIME SOURCE MY ENTERTAINMENT

Sample 3,315 60 68 448

(000) 32,810 1,022 1,359 1,894

Vertical 15% 21% 55% 22%

Horizontal 100% 3.12% 4.14% 5.77%

Index 100 142 368 149

Base 15% 0.47% 0.62% 0.87%

INTERNET NEW WAY I SOCIALIZE/MEET OTHERS

Sample 2,871 77 65 445

(000) 29,091 1,256 1,275 2,044

Vertical 13% 26% 52% 24%

Horizontal 100% 4.32% 4.38% 7.03%

Index 100 197 390 181

Base 13% 0.57% 0.58% 0.93%

33

Psychographics

Focused on African American Millennials

27Simmon Choices 3

• There are two lifestyle statements that are unique in African Americans Millennials:

• People always ask my advice on a car buy

• I like a new car every two or three years

• The significance of these statements show that this segment considers themselves to be

influencers. African American Millennials are also active consumers in the automotive

market.27

LIKE A NEW CAR EVERY TWO OR THREE YEARS

Sample 26

(000) 1,054

Vertical 22%

Horizontal 3.43%

Index 153

Base 0.48%

PEOPLE ALWAYS ASK MY ADVICE ON CAR BUY

Sample 22

(000) 721

Vertical 15%

Horizontal 2.47%

Index 111

Base 0.33%

34

Psychographics

Focused on Asian Millennials

28Simmon Choices 3

• 60% of Asians 18 – 29 feel that comfort is the most important thing in a car and 51%

normally drive without any passengers.

• This segment focuses heavily self concept. Asian Millennials are conscious of self-

perception as well as how they are perceived by others.

Sample 27

(000) 1,199

Vertical 42%

Horizontal 4.77%

Index 368

Base 0.55%

Sample 37

(000) 1,401

Vertical 49%

Horizontal 2.48%

Index 191

Base 0.64%

I can tell a lot about someone

by the car they drive

My car should catch people’s attention

• The following lifestyle statements were significant in

support of these insights:

• Foreign cars have more prestige than American cars

• I like to drive faster than normal

• Foreign cars are of higher quality than American cars

• I prefer driving a luxury vehicle

• I choose a car mainly on looks

• I would pay extra for an engine with more horsepower28

35

Psychographics

Focused on Asian Millenials

29Simmon Choices 3

American Cars Versus Foreign Cars • The Asian segment holds different attitudes than the other segments of Nissan’s target. Asian Millennials

hold a higher value in foreign vehicles over American vehicles.

• The segment is 259 times more likely than African American Millennials and 164 times more likely than

Hispanic Millienials to feel that foreign cars hold more prestige than American cars.

• Asian Millennials are also 93 times more likely than African American Milliennials and 99 times more

likely than Hispanic Millennials to feel that foreign cards are of higher quality than American cars.

Cars and Self-Perception • The segment is 62 times more likely than African Americans and 51 times more likely than Hispanics to

agree with the statement, “My car should catch people’s attention.”

• Asian Millennials are also 77 times more likely than African Americans and 28 times more likely than

Hispanic Millennials to feel that they can tell about someone by the car they drive.29

36

Psychographics

Focused on Hispanic Millennials

30Simmon Choices 3

• Hispanic Millennials are similar to Asian Millennials in the perception of foreign vehicles.

This information is useful to Nissan as these segments are likely to purchase a foreign

vehicle. The segment is similar to African American Milliennials as influencers in the

market.

Sample 186

(000) 1,611

Vertical 19%

Horizontal 6.41%

Index 164

Base 0.74%

Sample 172

(000) 1,638

Vertical 19%

Horizontal 5.62%

Index 144

Base 0.75%

Foreign cars have more

prestige than American

People always ask my

advice on car buys

• The Hispanic Millennials segment was found to

be likely to agree to the following statements:

• My car should catch people’s attention

• Options on a car impress me

• Can tell about someone by the car driven

• Often in car with more than one person

• Choose a car mainly on looks30

37

Buyer Habits

Amount Target Spent in Total

Amount Spent in Total on Vehicle:

Adults 18 - 29


Race: Asian


$50,000+ 61 times less likely




$30,000 - $39,999 49 times less likely




$15,000 - $19,999 39 times




Under $10,000 7 times

more likely 15 times less likely


4 times more likely



• When purchasing a new vehicle, Nissan’s target market of adults 18 to 24 years old of African America, Chinese,

and Hispanic race will consider price as one of the most important aspects. According to the above data from MRI

Fall 2010 Product: Automotive, Asians and those who speak Spanish within the home are more willing to spend a

large amount of their money on an automotive vehicle ($50,000 or more). While the average adult 18 – 24 years

old, especially African Americans, stated they are not willing to spend a large amount to buy a vehicle. As the

price of the vehicle reduces, African Americans are more willing to buy, as opposed Asians who display an

opposite pattern. Spanish speaking households are more willing to buy when the price is either high or very low,

but not an in between value. This may be due to income and perceived value of the product according to price.

38

Buyer Habits

How Target Purchased Vehicle



How Target Purchased Vehicle:

Adults 18 - 29


Race: Asian


Bought 27 times less likely


6 times less likely


Leased 22 times

more likely 7 times


more likely 16 times

more likely

With Cash 21 times


less likely 7 times


With Trade-in 49 times




Financing from Dealer 31 times

less likely 6 times


more likely 5 times

less likely

Bank Loan 38 times




Credit Union Loan 34 times




less likely

Financing from Auto Manufacturer





• How to purchase a vehicle consists of multiple options as displayed in the chart above. Adults 18 to 24 will choose to lease a vehicle

over buying the product, this is because leasing a vehicle does not require the young buyer to be responsible for the full price only

fixed monthly payments. The data displays that these 3 ethnicity groups are likely to avoid loans and trade-ins to purchase a vehicle

(49-21 times less likely). Financing from Dealer is the most attractive option with only 5-16 times less likely rates.

39

Target Consumer Profiles

Target Consumer Profile

Meet Carlos

40

Carlos prefers a foreign vehicle that will catch the

attention of his friends. Carlos feels that foreign cars

are more prestigious than American cars. The new

and innovative vehicles provided by Nissan are ideal

for him. Carlos seeks out vehicles with options that

may impress him and his friends. He feels that he

can tell about someone by the car they drive. Carlos

will choose his next vehicle based on its looks as he

will be driving with more than one passenger.34

33Client Brief 34Simmons Choices 3

Profile Highlights

Name: Carlos

Age: 23

Location: Los Angeles, California

Job Title: Retail Manager

Annual HHI: $45,00033

Marital Status: Single


Meet Charles

41

Charles, being tech savvy, is the first among his friends to get the latest electronics.

Several Nissan vehicles come equipped with voice command electronic systems which

can help Charles navigate, find local restaurants, and play his favorite music. Charles

spends much of his time online, browsing Yahoo!, or watching funny videos on YouTube.

He works hard and looks for a car that can keep up with his busy life. Good thing the

Nissan Maxima delivers an impressive 290 HP.36

35Client Brief 36Simmons Choices 3

Profile Highlights

Name: Charles

Age: 27

Location: New York, NY

Job Title: Sales Manager


Marital Status: Engaged


Meet Valerie

42 37Client Brief 38Simmons Choices 3

Valerie is a new buyer to the automotive market.

She is likely to buy a new car every two to three

years, which makes her a potential lifetime

buyer of Nissan. Valerie will purchase a car that

expresses her personality. She will be driving

her car alone and will seek out a car that makes

her feel comfortable.38

Profile Highlights

Name: Valerie

Age: 19

Location: Atlanta, Georgia

Job Title: Student

Annual Income: Dependent


Marital Status: Single

43

Competitive Analysis

44

Toyota Motor Corp.

The Competition

45

History39 • Toyota Motor Co., Ltd. was founded in 1937 by Mr. Sakichi Toyoda, however Toyoda had

been working toward the inception since 1924.

• In 1957 Toyota Motor Sales Co., Ltd. Was established despite a major financial crisis facing

the company.

• In 1982 the two entities merged to become what we know as Toyota Motor Corp.

• Today Toyota is the world's largest vehicle manufacturer based on sales and production

volume.

39"History of Toyota." TOYOTA MOTOR CORPORATION GLOBAL WEBSITE. 1995-2011. Web. 07 Oct. 2011. <http://www.toyota-

global.com/company/history_of_toyota/>. 40Levy, Efraim. Sector Scorecard: GICS Sub-Industry Summary. Rep. Standard & Poor's, 2011. NetAdvantage. Web. 26 Sept. 2011.

<http://http://www.netadvantage.standardandpoors.com.rlib.pace.edu/NASApp/NetAdvantage/cp/companyIndustryPage.do>.

Toyota Motor Corp.

A Brief Overview

Toyota Motor Corp. Slogan: Moving Forward

Outlook for the Future40 • Toyota’s outlook for the automobile manufacturers sub-industry for 2012 is positive, as U.S. demand for

automotive is raising annually. Japanese automakers are recuperating from the recent tragedy at a rapid

rate.

• Toyota is paying full attention to economic factors that may weaken sales

• Due to rising gasoline prices in the U.S., Toyota predicts the possibility of a decrease in sales

volume and vehicle mix

• Rising raw material costs are causing compressions in margins

• Thus, Toyota predicts that growth will occur in smaller trucks and SUVs

46

Spending Overview41

• During 2010 Toyota Motor Corp. allocated

$916,524,600 to media buys throughout various

channels of communication.

Toyota Motor Corp.



• When compared to other companies, Toyota was ranked as the 16th company to

spend the most amount of money on media in 2010.

• When compared to Nissan Motor Co. Ltd, Toyota spent significantly more on

media (about $432,158,000). Nissan’s media spending in 2010 totaled to

$484,366,600; Toyota nearly doubled what Nissan spent on media in 2010.

7.65% 0.33%

0.06% 0.00%

0.03%

1.14%

0.63%

0.03%

21.98%

7.80%

1.11%

11.13%

3.82% 0.06%

0.00% 0.28% 0.99%

7.57%

35.37%

Magazine

Sunday magazine

B-to-B magazine

Local magazine

Spanish-language magazine

Newspaper

National newspaper

Spanish-language newspaper

Network TV

Spot TV

Syndicated TV

Cable TV networks

Spanish-language network TV

Network radio

National spot radio

Local radio

Outdoor

Internet (display only)

Unmeasured spending

47 42"Advertising Age." Advertising Agency & Marketing Industry News - Advertising Age. 20 June 2011. Web. 26 Sept. 2011. http://adage.comdatacenter/marketertrees2011/.

Toyota Motor Corp.



Sales (000)

132,833

5,705

975

44

559

19,835

10,976

607

381,432

135,394

19,342

193,205

66,261

1,047

60

4,911

17,210

131,337

613,929 *


48

It seems that after juggling

with the advertising budget

in the early 90’s, Toyota

has progressively spent

more and more on

advertising over the years.

However, in 2003 the

aggressive growth pattern

leveled out and it’s

appropriate to predict that

Toyota’s budget since 2003

has rose, but not in the

exponential way we see in

earlier years. Because of

the 2008 financial crisis

Toyota’s advertising budget

most likely declined during

2008 and 2009. Due to

recalls of their product in

2010, Toyota most likely

increased spending on

advertisements to regain

public trust.43

Toyota Motor Corp.

Advertising Seasonality

43Bloomberg L.P. (2011). ARD Advertising Expenses graph for Toyota Motor Corp. 2000 to 2011. Retrieved Oct. 6, 2011 from Bloomberg terminal.

49

Both Toyota and Nissan spent high percentages of their respective budgets on similar channels of media: Magazines, Network TV, Spot TV and

Cable TV. While Toyota focused spending on Network and Cable TV, Nissan honed in on Magazines and Spot TV. This allows us to better

understand the consumers both companies are hoping to reach. It’s appropriate to conclude that the target Toyota was attempting to reach in 2010

were heavy Network and Cable TV watchers.

Toyota Motor Corp.

Media Buys Compared to Nissan Fiscal Year Ending

201015


Nissan

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

Magazines

B-to-BMagazin

es

LocalMagazin

es

SundayMagazin

es

Spanish-languag

eMagazin

es

Newspaper

NationalNewspa

per

Spanish-languag

eNewspa

per

OutdoorNetwor

k TV

Spanish-languag

eNetwor

k TV

Spot TVSyndicat

ionCable

TVNetwork Radio

LocalRadio

NationalSpot

RadioInternet

Unmeasured

Nissan 9.4% 0.0% 0.0% 0.0% 0.0% 0.9% 0.7% 0.0% 0.0% 22.7% 2.6% 10.7% 0.0% 11.4% 0.1% 1.1% 0.0% 10.7% 29.5%

Toyota 7.7% 0.1% 0.0% 0.3% 0.0% 1.1% 0.6% 0.0% 1.0% 22.0% 3.8% 7.8% 1.1% 11.1% 0.1% 0.3% 0.0% 7.6% 35.4%

Toyota vs. Nissan Budget Allocation (by percent)

Nissan Toyota

50

Toyota Motor Corp.

How Toyota is Gaining Market Share

Toyota ’s Sports45

• Toyota is very active in the sports world with from sponsorships to special events. The

company is currently an official sponsor of the FIFA World Cup (soccer) as well as the

IAAF World Championships (track and field).

• Toyota also sponsors various football events during the Unites States football season,

however their current focus is on soccer.

• Motor Sports sponsorships are also a large chunk of Toyota’s annual budget. The

company sponsors races and programs annually as well as participates in motor sports

through their vehicles.

Toyota Believes the Children are Our Future46

• The Fritz Kreisler Violin Competition and the Dream Car Art Contest are two cultural

events that Toyota also sponsors.

• Both contests encourage children and young adults to tap into their full potential and be

their generations leaders, whether it be leading by excellence or leading with

imagination.

45"Sports Sponsorship." TOYOTA MOTOR CORPORATION GLOBAL WEBSITE. 1995-2011. Web. 28 Sept. 2011. <http://www.toyota-

global.com/events/sports_sponsorship/>. 46”Cultural Events." TOYOTA MOTOR CORPORATION GLOBAL WEBSITE. 1995-2011. Web. 28 Sept. 2011. http://www.toyota-

global.com/events/cultural_events/.

Chevrolet, Division of General Motors

The Competition

51

History

• General Motors owns Chevrolet, GMC, Cadillac and Buick47

• The company was incepted in Detroit, MI in 1908

• It is the world’s 2nd largest car & truck manufacturer and the largest

in the United States48

• The Chevrolet division was established in 191149

• Founded by racer Louis Chevrolet and original General Motors founder William C. “Billy”

Durant

• Chevy produced cars, crossovers, SUVs, and trucks

• Chevrolet is the 4th largest automotive brand in the world

• 52% of GM’s advertising budget was allocated to Chevy in 201050

Chevrolet Slogan: An American Revolution

Current Situation and Future Outlook

• 27% of GM is owned by the United States due to when the company filed for bankruptcy in 200951

• GM is confident they will return to normal production by 201152

• The company plans to increase to 12.9 million units of production in 2011

52

Chevrolet

A Brief Overview

47"Chevy Culture | Chevrolet 100 Years Strong." 2011 Cars, SUVs, Trucks, Crossovers & Vans | Chevrolet. Web. 06 Oct. 2011. <http://www.chevrolet.com/culture/article/chevrolet-centennial/>. 48"Standard & Poor's." Web. 07 Oct. 2011. <http://www.netadvantage.standardandpoors.com/NASApp/NetAdvantage/companyOverview.jsp>. 48"Chevy Culture | Chevrolet 100 Years Strong." 2011 Cars, SUVs, Trucks, Crossovers & Vans | Chevrolet. Web. 06 Oct. 2011. <http://www.chevrolet.com/culture/article/chevrolet-centennial/>. 50"Advertising Age." Advertising Agency & Marketing Industry News - Advertising Age. 20 June 2011. Web. 28 Sept. 2011. http://adage.comdatacenter/marketertrees2011/.

"Standard & Poor's." Web. 07 Oct. 2011. <http://www.netadvantage.standardandpoors.com/NASApp/NetAdvantage/companyOverview.jsp>. 51ibid. 52ibid.

53

General Motors & Chevrolet


General Motors Spending Overview53

• GM Motors is the third highest spender in advertising in the United States.

• In 2010 alone the company spent $2.87 billion in advertising.

• Highest expenditure is Network TV ($602.5 million)

• Advertising in Spanish-language magazines ($3.6 million)

• Advertising in Spanish-language newspaper ($2.9 million)

• Advertising in Spanish-language network TV ($76.8 million)

Chevrolet Spending Overview

• Chevy began advertising on Hispanic networks in August 2010.

• It was the highest expenditure for GM in 2010 ($1.1 billion)

• 2nd highest advertising expenditure is for GMC at $335 million

53"Advertising Age." Advertising Agency & Marketing Industry News - Advertising Age. 20 June 2011. Web. 28 Sept. 2011. <http://adage.comdatacenter/marketertrees2011/>.

13.72% 0.07%

0.26%

0.09%

0.13%

7.50% 0.96%

0.10%

21%

6.55%

1.45%

10.23%

2.68%

1.09% 0.30% 0.56%

0.61%

8.37%

24.32%

Magazine

Sunday magazine

B-to-B magazine

Local magazine

Spanish-language magazine

Newspaper

National newspaper

Spanish-language newspaper

Network TV

Spot TV

Syndicated TV

Cable TV networks

Spanish-language network TV

Network radio

National spot radio

Local radio

Outdoor

Internet

Unmeasured

54

General Motors




Sales (000)

393,718

7,516

2,641

2,108

3,642

215,086

27,559

2,934

17,469

602,547

76,857

188,033

41,523

293,618

31,285

16,091

8,654

240,003

697,670


*

55

General Motors


55Advertising Age." Advertising Agency & Marketing Industry News - Advertising Age. 20 June 2011. Web. 28 Sept. 2011. http://adage.comdatacenter/marketertrees2011/.

Chevrolet $1,128,746,000

52%

GMC $335,327,000

16%

Cadillac $297,126,000

14%

Buick $248,487,000

11%

OnStar $66,628,000

3%

GM $51,312,000

2%

Goodwrench $38,067,000

2%

GM allocated 52% of total

advertising spending to

Chevrolet amounting to a total

of approximately $1.1 billion

Ad Spend (2010)55

56

General Motors


There was an exponential

increase in GM’s

advertising expenses from

2009 to 2010. This can be

linked to the deep financial

burden GM experienced

before the government

bailout. After the 2008

financial crisis, GM most

likely cut budget from the

most obvious place to cut

from – advertising. Upon

its initial recovery phase in

2009, GM has been able to

up the advertising budget

and will most likely

continue to do so in 2012.

However the increase will

be slight and when

compared to the increase

from 2009 to 2010, it will

seem minimal.56

56Bloomberg L.P. (2011). ARD Advertising Expenses graph for General Motors. 2000 to 2011. Retrieved Oct. 6, 2011 from Bloomberg terminal.

Nissan

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

Magazines

B-to-BMagazi

ne

LocalMagazi

ne

SundayMagazi

nes

Spanish-

language

Magazines

Newspaper

National

Newspaper

Spanish-

language

Newspaper

Outdoor

Network TV

Spanish-

language

Network TV

Spot TVSyndica

tionCable

TVNetwork Radio

LocalRadio

National SpotRadio

InternetUnmeas

ured

Nissan 9.4% 0.0% 0.0% 0.0% 0.0% 0.9% 0.7% 0.0% 0.0% 22.7% 2.6% 10.7% 0.0% 11.4% 0.1% 1.1% 0.0% 10.7% 29.5%

General Motors 13.7% 0.3% 0.1% 0.1% 0.1% 7.5% 1.0% 0.1% 0.6% 21.0% 2.7% 6.6% 1.4% 10.2% 1.1% 0.6% 0.3% 8.4% 24.3%

General Motors vs. Nissan Budget Allocation (by percent)

Nissan General Motors

57

General Motors Co.

Media Buys Compared to Nissan


Fiscal Year Ending

201057

• GM spends 10% of advertising on Newspapers, while Nissan spends just over 1%. We can conclude that because of GM’s larger advertising

budget, they can spend larger amounts on different channels of media.

• Nissan spends nearly 50% more on Spot TV than GM in terms of percent respective to their budget

• Nissan’s primary focus on spending is in television media, while GM allocates money to all channels of advertising with a higher focus on

print media.

58

Chevrolet

How Chevrolet is Gaining Market Share

Chevy Leads the Way • Chevrolet is the automotive volume leader for GM

• Chevrolet focuses on vehicles with higher fuel efficiency than their competitors58

582011 Cars, SUVs, Trucks, Crossovers & Vans | Chevrolet. Web. 28 Sept. 2011. <http://www.chevrolet.com/>. 59Lico, Nick. “Chevy takes value, volume message, and wraps it in flag.” Advertising Age 79.34 (2008): C-4. Business Source Premier. EBSCO. Web. 27 Sept. 2011. 602011 Cars, SUVs, Trucks, Crossovers & Vans | Chevrolet. Web. 28 Sept. 2011. <http://www.chevrolet.com/>.

Chevrolet: All American. All the Time.59 •Chevy used the slogan, “Baseball, Hot Dogs, Apple Pie, and

Chevrolet” in the 1970s

•The company focuses on affordability and gas efficiency

The 2008 financial crisis’ effect on gas prices caused a drop in

sales

Chevrolet is an international brand •Chevy produces vehicles in Central & South America, China, Egypt, Jordan, Kenya,

and South Africa60

Ford Motor

The Competition

59

Ford Motor

A Brief Overview

History • Henry Ford founded Ford and developed the Model T in October 1903 • In 1913 Ford began mass production in Highland Park, Michigan; Michigan is now home to

Ford headquarters • Ford is the 2nd largest U.S. motor vehicle manufacturer Ford Slogan: “Ford. Drive One.” • Ford Motor Produces:

• Cars • Crossovers & SUVs • Trucks • Hybrids & EVs • Commercial vehicles61

• “Ford Motor Co. in 2010 had the highest U.S. market-share growth of any automaker, and Ford became the top-selling nameplate in the U.S. in 2010”

Future Outlook • Ford was the only company out of the Detroit 3 who survived through the economic downturn

in 2008-2009 without relying on taxpayer bailout (as GM and Chrysler did) • Due to shrinking U.S. market share, the company has announced restructuring plans in an

attempt to lower its costs • The company announced plans to discontinue production of Mercury brand vehicles62

61Ford â€“ New Cars, Trucks, SUVs, Hybrids & Crossovers | Ford Vehicles. Web. 01 Oct. 2011. <http://ford.com>. 62“Ford Motor." Business Summary. Sun. 09 Oct. 2011. <www.netadvantage.standardandpoors.com>

60

Ford Motor


Spending Overview63

• As of June 2011 Ford Motor is ranked #13 of the 100 Leading National Advertisers

spending a total of $1.91 billion in U.S. Advertising4

• Ford allocated the majority of its entire budget to the following categories:

• Network TV - $561,555,000

• Internet - $145,369,000

• Magazine - $136,854,000

• The U.S. accounted for 49.1% of the company's worldwide revenue in 2010; 46.1% in

2009; and 42.1% in 2008

• The company reported worldwide advertising costs of

• $3.9 billion in 2010 or 3.02% of net sales

• $3.2 billion in 2009 or 2.75% of net sales

63 "2010 U.S Ad Spending." Marketer Trees 2011. Web. 28 Sept. 2011. <http://adage.com.rlib.pace.edu/datacenter/marketertrees2011/>

61

Ford Motor


64 "2010 U.S Ad Spending." Marketer Trees 2011. Web. 28 Sept. 2011. <http://adage.com.rlib.pace.edu/datacenter/marketertrees2011/>

Fiscal Year Ending 201064 62

7.15% 0.38% 0.00% 0.04% 0.34%

0.71% 0.00%

0.20%

29.32%

0.74%

4.28% 1.48%

6.48%

1.04% 0.53% 0.15%

7.59%

39.58%

Magazines

B-to-B Magazine

Local Magazine

Sunday Magazines


Newspaper

National Newspaper


Outdoor

Network TV


Spot TV

Syndication

Cable TV

Network Radio

Local Radio

National Spot Radio

Internet

Unmeasured

Sales (000)

136,854

7,191

21

0

672

6,424

13,545

72

3,887

561,555

14,078

81,972

28,425

124,200

19,937

10,099

2,914

145,369

758,119 *


63

Ford Motor


We see the same pattern in

Ford’s advertising expense

that we have seen in the

competitors. Ford

increased spending from

2006 to 2007, but after the

2008 financial crisis Ford

decreased spending

significantly to stay afloat

during trying times in

2009. Once the economy

started to get back on its

feet, Ford increased

advertising expenditures

slowly. It is applicable to

predict that Ford will

continue to increase

advertising budget and

expense in 2012 and again

2013, assuming the

economy continues to

flourish without speed

bumps.65

65Bloomberg L.P. (2011). ARD Advertising Expenses graph for Ford Motor. 2000 to 2011. Retrieved Oct. 6, 2011 from Bloomberg terminal.

Nissan

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

Magazines

B-to-BMagazin

e

LocalMagazin

e

SundayMagazin

es

Spanish-languag

eMagazin

es

Newspaper

NationalNewspa

per

Spanish-languag

eNewspa

per

OutdoorNetwork

TV

Spanish-languag

eNetwork

TV

Spot TVSyndicat

ionCable TV

NetworkRadio

LocalRadio

NationalSpot

RadioInternet

Unmeasured

Nissan 9.4% 0.0% 0.0% 0.0% 0.0% 0.9% 0.7% 0.0% 0.0% 22.7% 2.6% 10.7% 0.0% 11.4% 0.1% 1.1% 0.0% 10.7% 29.5%

Ford 7.1% 0.4% 0.0% 0.0% 0.0% 0.3% 0.7% 0.0% 0.2% 29.3% 0.7% 4.3% 1.5% 6.5% 1.0% 0.5% 0.2% 7.6% 39.6%

Ford vs. Nissan Budget Allocation (by percent)

Nissan Ford

64

Ford Motor



Both Ford and Nissan spend high percentages of their media budgets on Network TV, Spot TV, Cable TV medias. Ford focuses more on

digital media such as TV and Internet. Ford does not dedicate as much of the budget to print media as Nissan does; this includes

newspapers, Local, B-to-B, and Spanish-language magazines. Both Ford and Nissan chose not to spend on Sunday Magazines. A significant

amount of each company’s budget falls into unmeasured spending.

Fiscal Year Ending

201037

Ford Motor

How Ford is Gaining Market Share

Ford Supports67

• Ford offers a College Student Purchase Program

• Includes $500 Student Bonus + National Ford Incentives

• Eligible Vehicles ”Any eligible new 2011 or 2012 Ford or Lincoln car, minivan, truck or SUV purchased or leased and delivered during the program period. See your dealer for a complete list of eligible vehicles.”

• Program period: Purchase or lease vehicle between Jan 2011 – Jan 2012

• Eligible Customers: Student enrolled fulltime or part-time at four year school, will graduate between May 2009 – Jan 2012 or enrolled in Graduate School Program

• Warriors In Pink Fight Against Breast Cancer

• 17-years and Counting: Ford has been a National Sponsor of Komen Race for the Cure

• Ford has donated more than $110 million to this cause

• More than 75,000 Ford employees participate in the Race for the Cure

• Ford works to increase breast cancer awareness through their multiple

media impressions

67 Ford Vehicles. Web. 01 Oct. 2011. <http://www.ford.com>.

65

66


The Competition

67


A Brief Overview

Hyundai Motor company was first established in the year 1967 in South

Korea and has since grown to have a brand value of $5 billion, which it

contributes to its loyal customers. Hyundai’s newest campaign, launched in

2011, carries the tag line “New thinking. New Possibilities.”, which Chairman

and CEO Mong-Koo, Chung says is going to ensure energy and growth for the

company.

68"Financial Information: Annual Report | Hyundai Motors." Hyundai Motor Company | Worldwide Official Website. Web. 01 Oct. 2011.

<http://worldwide.hyundai.com/company-overview/investor-relations/financial-information-annual-report.aspx>.

The global auto market is overcoming the extreme recession from two years ago but continues to

be sluggish as demand in advanced markets…Amidst this situation, in 2010, Hyundai Motor Company

posted its biggest production and sales gains in its history, drawing attention from major media around

the world.68

Like many automotive companies, Hyundai struggled to make sales during the recession.

However, based off below statistics it is evident that Hyundai has recovered nicely from the hit they

took in 2008 and 2009 in wake of the financial crisis. President and CEO Steve S. Yang stated in his

address in the Hyundai annual report:

• Sales Unit (Domestic and Export): 3,461,364

• Sales ($): 36,739,426,000

• Sales Growth: 15.4%

• Net Revenue ($): 98,858,266,000

• Net Revenue Percent Change from 2009: 28%

• Market share of the automotive industry (U.S.): 4.9

68



Spending Overview

• In 2010 Hyundai Motor Company spent a total of $468,700,000 on media, ranking it 73

out of the top 100 highest spending companies of media in the United States.

• Hyundai allocated the majority of its entire budget to the following categories:

• Network TV- $154,252,000

• Cable TV- $73,422,000

• Magazines- $33,871,000

• As Hyundai has been a sponsor multiple times for large, worldwide sporting events, including

the World Cup in recent years, it is important to note that its’ unmeasured media spending

totaled $152,247,000.69

69"Advertising Age." Advertising Agency & Marketing Industry News - Advertising Age. 20 June 2011. Web. 29Sept. 2011. http://adage.comdatacenter/marketertrees2011/.

69




7% 0% 1%

0%

32.97%

4%

0%

15.69% 0% 1%

0%

5%

32.54%

Magazine

B-to-B Magazine

Newspaper

National Newspaper

Network TV

Spot TV

Sydicated TV

Cable TV Networks

Network Radio

Local Radio

Outdoor

Internet (display only)

Unmeasured Spending


Sales (000)

33,871

428

2,638

1,305

1,466

154,252

20,649

395

73,422

200

3,686

23,283

152,247


*

70



Hyundai is very similar to

Nissan in that it does not

advertise in Q4 (or has

very little advertising

expense in Q4). Like its

competitors, Hyundai too

reduced advertising

expense in 2009 because of

the financial crisis in 2008.

It’s interesting to note,

thought, that Hyundai

spent the most in Q3 (June,

July and August) of 2008,

right before the financial

crisis hit. It’s likely that

much of the expense was

useless because after Q4 in

2008, Hyundai’s target

wasn’t in a position to

purchase a vehicle. Also,

Hyundai spent the least

since 2006 in Q1 of 2009.71

71Bloomberg L.P. (2011). ARD Advertising Expenses graph for Hyundai Motor Corp. 2000 to 2011. Retrieved Oct. 6, 2011 from Bloomberg terminal.

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

Magazines

B-to-BMagazin

e

LocalMagazin

e

SundayMagazin

es

Spanish-languag

eMagazin

es

Newspaper

NationalNewspa

per

Spanish-languag

eNewspa

per

OutdoorNetwor

k TV

Spanish-languag

eNetwor

k TV

Spot TVSyndicat

ionCable

TVNetwork Radio

LocalRadio

NationalSpot

RadioInternet

Unmeasured

Nissan 9.4% 0.0% 0.0% 0.0% 0.0% 0.9% 0.7% 0.0% 0.0% 22.7% 2.6% 10.7% 0.0% 11.4% 0.1% 1.1% 0.0% 10.7% 29.5%

Hyundai 7.2% 0.1% 0.0% 0.0% 0.0% 0.6% 0.3% 0.0% 0.3% 33.0% 0.0% 4.4% 0.1% 15.7% 0.0% 0.8% 0.0% 5.0% 32.5%

Hyundai vs. Nissan Budget Allocation (by percent)

Nissan Hyundai

71



While Hyundai did not spend as much as Nissan on media, both companies generally allocated similar percentages of their budgets to

the same media, with the most for both companies going to magazine, network TV, cable TV and spot TV. This data tells us that

Hyundai and Nissan have target markets that use similar media.


Fiscal Year Ending

201043

72


How Hyundai is Gaining Market Share

As mentioned earlier, Hyundai has been known to advertise, partner, and

sponsor major sporting events. In 2009, they were a main sponsor of the U.S. Super

Bowl as well as the FIFA Confederations Cup. Hyundai is now a FIFA partner, which

is the highest tier of their three tier partnership program. This benefits Hyundai mainly

by allowing them to participate in a global event and supports the development of

football worldwide. Additionally, the only other company in the in the automotive

industry that is also a partner for FIFA, is Kia, which is owned by Hyundai, which sets

them apart from their true competition.

73FIFA.com." FIFA.com - Fédération Internationale De Football Association (FIFA). Web. 01 Oct. 2011.

<http://www.fifa.com/aboutfifa/organisation/marketing/sponsorship/strategy.html>.

Hyundai’s partnership with FIFA is a major

competitive advantage because the event

draws worldwide attention and holds a

passionate fan base, many of which are

members of the Millennial generation. In the

United States alone, the 2010 World Cup

final ranked as the most watched soccer

game ever with 24 million viewers watching

the live game, tuning in via ABC or

Univision.73

73


The Competition


A Brief Overview

Honda Motor Company Ltd. Slogan: The Power of Dreams • Honda advertisements do not use their slogan as a result of Mr. Honda’s belief that well built

products will sell themselves.

Future Outlook75 • Production levels were down 9.3% from the previous year as a result of the tsunami in March

2011.

• Full production levels are expected within the next month.

• The Yen is at a record high which makes building cars for export uneconomical.

74 74"Honda Worldwide History." Honda. Web. 01 Oct. 2011. <http://world.honda.com/history/>. 75 Soble, Jonathan. "Japan Carmakers See Recovery in Production." FT.com (2011): n/a. ABI/INFORM Global. Web. 29 Sep. 2011.

History74

• Founded in 1948, Honda is the world’s largest motorcycle producer, as well as,

Japan’s second largest automobile manufacturer.

• As of August 2008 Honda surpassed Chrysler to become the fourth largest

automobile manufacturer in the United States and sixth in the world.



Total Advertising Budget (2010) : $ 1,060,000,00076

Magazines ………………. $91,213,000

Network TV ……………… $162,337,000

Spot TV ……………… $274,029,000

Cable TV …………….. $74,578,000

75 76"2010 U.S Ad Spending." Marketer Trees 2011. Web. 28 Sept. 2011. <http://adage.com.rlib.pace.edu/datacenter/marketertrees2011/>

8.60% 0.25% 0.26% 0.01% 0.85%

0.77% 0.01%

0.46%

15.30%

0.99%

25.83%

0.03%

7.03%

0.73%

0.40% 0.00%

3.50%

34.96%

Magazines

B-to-B Magazine

Local Magazine

Sunday Magazines


Newspaper

National Newspaper


Outdoor

Network TV


Spot TV

Syndication

Cable TV

Network Radio

Local Radio

National Spot Radio

Internet

UnmeasuredFiscal Year Ending 201077



76 77"2010 U.S Ad Spending." Marketer Trees 2011. Web. 28 Sept. 2011.

<http://adage.com.rlib.pace.edu/datacenter/marketertrees2011/>

Sales (000)

91,213

2,634

4

2,770

104

9,064

8,207

104

4,864

162,337

10,494

274,029

268

74,578

7,788

4,290

0

37,159

370,856


*

77 782010 U.S Ad Spending." Marketer Trees 2011. Web. 28 Sept. 2011. <http://adage.com.rlib.pace.edu/datacenter/marketertrees2011/>



Both Nissan and Honda spend the majority of their budgets in similar media, including

magazines, network tv, spot tv, and cable tv. This indicates that the target demographic

for both competitors are similar in their media exposure.

Fiscal Year Ending

201050

Nissan

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

Magazines

B-to-BMagazin

e

LocalMagazin

e

SundayMagazin

es

Spanish-languag

eMagazin

es

Newspaper

NationalNewspa

per

Spanish-languag

eNewspa

per

OutdoorNetwork

TV

Spanish-languag

eNetwork

TV

Spot TVSyndicat

ionCable

TVNetwork

RadioLocalRadio

NationalSpot

RadioInternet

Unmeasured

Nissan 9.4% 0.0% 0.0% 0.0% 0.0% 0.9% 0.7% 0.0% 0.0% 22.7% 2.6% 10.7% 0.0% 11.4% 0.1% 1.1% 0.0% 10.7% 29.5%

Honda 8.6% 0.2% 0.0% 0.3% 0.0% 0.9% 0.8% 0.0% 0.5% 15.3% 1.0% 25.8% 0.0% 7.0% 0.7% 0.4% 0.0% 3.5% 35.0%

Honda vs. Nissan Budget Allocation (by percent)

Nissan Honda

78


How Honda is Gaining Market Share

79"Honda - Sponsorships & Events." Honda. Web. 06 Oct. 2011. <http://corporate.honda.com/america/sponsorships.aspx>.

Honda Battle of the Bands79 • The 2011 Showcase had 1,800 student musicians from eight Historically Black Colleges

and Universities (HBCU) perform at Atlanta’s Georgia Dome.

• The eight major bands were awarded $20,000 each for their music education programs.

• Honda also awarded a $1,000 grant to each of the 45 bands that participated.

• Since the program’s inception Honda has donated nearly $2 million.

Honda Campus All-Star Challenge • Top students from 48 of the nation’s HBCU gather for several days of intense academic

competition.

• The winning team receives a $50,000 grant .

79

Media Plan

80

Nissan Media Objectives

• Introduce 2014 models in third and fourth quarters of business year.

• To promote Nissan through local mediums* to reach the multicultural Millennials in the areas where they reside.

•*Specific to local mediums the target engages in

• To highlight Nissan’s versatile product features,

including affordability, and create product

desirability in order to increase Nissan year end

sales by end of fiscal year 2013.

• To create national awareness and positive word of mouth within the multicultural Millennial population focused on the Red Tent Event prior to August 2013.

Create awareness

Appeal to the

target

Call them to action

Reach them. Not

everyone.

81

Nissan Media Strategy

1. To create national awareness and positive word of mouth within the multicultural Millennial population focused on the Red Tent

Event prior to August 2013.

2. To highlight Nissan’s versatile product features, including affordability, and create product desirability in order to increase Nissan

year end sales by end of fiscal year 2013

Specific media selections will be utilized in order to create national awareness and positive word of mouth in preparation for the Red Tent

Event. These selections will also assist Nissan in increasing their year end sales. The Red Tent Event occurs from July through September.

Advertising will heavy up from April through September in preparation for the sale. Maxim and Cosmopolitan insertions will be placed from

May through July. New York Times will be utilized in July. Family Guy spots will run from April through May. Each selection will promote

the Red Tent Event prior to the sale. All outdoor media in Florida, California, New York and Texas (excluding billboards, which run year-

round) will be strategically placed on display from June through September. The outdoor media selections that will be on display include

train wraps, bus advertisements and train advertisements. Spots on Univision will be broadcasted from June through August. These

selections will increase promotions during the Red Tent Event. Within the advertisements we will highlight the product features as well as

the affordable price that Millennials are looking for.

3. To highlight Nissan’s versatile product features, including affordability, and create product desirability in order to increase Nissan

year end sales by end of fiscal year 2013

Nissan will be introducing the incoming 2014 models throughout the third and fourth quarters of 2013. Media selections will be utilized to

promote awareness of the new product line. Advertising will heavy up from September, the start of the introductions, throughout December.

Insertions in Vogue will be placed during September. Spots will be broadcasted during NBC Sunday Night Football and X Factor from

September through December. More spots will be purchased on Family Guy, Vampire Diaries and E! from September through November.

Spots on TBS will be broadcasted from October through December. Spots on Galavision will be broadcasted through October and

December. Advertising on Hulu and Pandora will be placed during October only, in the midst of the sales of new models.

4. To promote Nissan through local mediums to reach the multicultural Millennials in the areas where they reside.

Advertising in local mediums is necessary in order to reach multicultural Millennials in the areas where they reside. Spot television will be

broadcast throughout the four DMA’s in Florida, California, Texas and New York in local CW and FOX spots. Outdoor advertising on buses,

trains and billboards from June through September will be needed. Outdoor advertising in New York will only occur during June and July

because the selections are more efficient.

82

Media Selections Overview

Print Media

Magazines

GamePro

AutoWeek

Maxim

Glamour

Vogue

Cosmopolitan

ELLE

Parents

Us Weekly

Shape

Men's Fitness

In Touch

Spanish Magazines

People En Espanol

Latina

Ser Padres

National Newspaper

Wall Street Journal

New York Times

Spanish Newspaper

Hoy - Chicago

El Nuevo Herald - Miami

La Opinion - LA

El Diario - NYC

Outdoor

(Florida, Texas, New York & California)

Billboard

Bus Advertisements (Exterior)

Train Advertisements

Train Wrap

Internet

Cars.com

Download.com

Facebook.com

Google.com

Yahoo.com

Hulu.com

Pandora.com

YouTube.com

Television

Network TV

NBC: Sunday Night Football

NBC: Primetime (General)

FOX: Family Guy

FOX: X Factor

FOX: Primetime (General)

CW: Vampire Diaries

CW: Primetime (General)

Spanish Language TV

Univision

Telemundo

Galavision

Cable TV

Adult Swim

BET

E!

G4

MTV

Nick at Nite

TBS

TV One

VH1

KXLA

WMBC-TV SinoVision

Spot TV (FL, TX, NY and CA)

Local CW and FOX

83

Budget Overview &

Recommended Media Selection Rationale In order to effectively reach the multicultural Millennial target demographic, we have decided to create a media plan that encompasses a variety

of different media strategies to ensure that the message will be received. Based on extensive research to discover where multicultural Millennials

turn most of their attention, our plan includes buys in magazines, Spanish magazines, national newspapers, Spanish newspapers, outdoor media,

network TV, Spanish language network TV, spot TV, cable TV, and the Internet. A significant percent of the budget is being allocated towards

internet, network TV, cable TV, and magazines. Research shows that these areas are where Millennials are best reached, for example,

multicultural Millennials are all 86 times more likely to spend time on the internet then other demographics. Also, all three are 107 times more

likely to watch television as both a source of relaxation and information. Magazines, surprisingly, had a Simmons index of 643 which means our

target is 543 times more likely than the rest of the population to read magazines. Since TV, magazines, and internet are the most used media by

our target we allocated the largest percent of the budget to these areas. This comprehensive approach allows for Hispanics, African American and

Chinese American Millennials to be exposed to Nissan advertisements throughout the course of their normal daily life through media that they use

frequently. Within each media type we strategically chose publications, shows, day parts and websites to correspond with the usage of Hispanic,

African American, and Chinese Millennials. The media selections recommended are all targeted to best reach the multicultural Millennials to

avoid significant advertising waste. Below is a break down of our budget by media type:

11.6% 0.7%

2.0%

1.0%

2.1%

21.0%

3.0%

12.0%

17.0%

22.0% 7.0%

0.7%

Magazine

Spanish Magazine

National newspaper

Spanish newspaper

Outdoor

Network TV

Spanish language network TV

Spot TV

Cable TV

Internet

Non-traditional buys

Unexpected costs

Media Type Total Cost

Magazine $11,624,627

Spanish Magazine 700,374

National newspaper 2,025,222

Spanish newspaper 969,696

Outdoor 2,070,196

Network TV 20,993,520

Spanish language network TV 2,976,000

Spot TV 12,000,000

Cable TV 16,988,500

Internet 21,998,569

Non-traditional buys 7,000,000

Unexpected costs 653,296

$100,000,000

84

Budget Overview Specific to Demographic

The budget has been allocated between three demographic targets. Most of the media selections will reach each target together. However, this

chart shows the media selections that provide reach to a specific target only.

AutoWeek, BET, Adult Swim, E!, G4, Nick at Nite and TV One will reach African American Millennials for $9,236,357. KXLA, WMBC-TV

SinoVision, TBS, Download and Yahoo! will reach Chinese American Millennials for $6,762,637. Maxim, Parents, People en Espanol, Latina, Ser

Padres, Hoy, El Nuevo Herald, La Opinion, El Diario, Univision, Telefundo, Galavision, Cars.com, CW: Vampire Diaries and Primetime will

reach Hispanic American Millennials for $10,405,398. Therefore 9.23%, 6.76% and 10.41% of the overall $100 million budget has been allocated

specifically for African American, Chinese American and Hispanic American Millennials, respectively.

African American Millennials are 685 times more likely to watch BET than the average individual. Chinese American Millennials are 166 times

more likely to visit Download.com than the average. Hispanic American Millennials are 311 times more likely to watch CW’s Vampire Diaries.

Specific indices for select media are outlined below:

African American Cost Index

Autoweek $397,677 296

BET $1,980,000 785

Adult Swim $1,221,600 421

E! $1,009,800 263

G4 $1,832,400 282

Nick at Nite $1,334,880 332

TV One $1,460,000 603

Total $9,236,357

Hispanic Cost Index

Maxim $1,477,680 157

Parents $725,920 195

People en Espanol $70,350 HPA*

Latina $528,804 HPA

Ser Padres $101,220 HPA

Hoy $131,040 HPA

El Nuevo Herald $279,552 HPA

La Opinion $279,552 HPA

El Diario $279,552 HPA

Univision $996,000 HPA

Telemundo $1,320,000 HPA

Galavision $660,000 HPA

Cars $42,481 130

CW: Vampire Diaries $1,296,384 411

CW: Primetime $2,216,863

Total $10,405,398

Chinese Cost Index

KXLA $1,152,000

WMBC-TV SinoVision $321,200

TBS $2,747,520 172

Download $1,929 266

Yahoo! $2,539,988 204

Total $6,762,637

*Denotes Hispanic Fact Pack

85

Media Selections & Rationale

Print Media

Magazine Selections & Rationale

Magazine selections for our target market of African American, Hispanic and Chinese Millennials, was based on Simmons Choice 3 data. The

data illustrated that multicultural Millennials purchase and read a wide variety of magazines. These also range in genre including health, fashion,

automotive, gaming, life advice and celebrity news magazines. After extensive consideration, we have chosen the following selection of specific

magazines to run Nissan advertisements in:

GamePro, AutoWeek, Maxim, Glamour, Vogue, Cosmopolitan, ELLE, Parents, US Weekly, Shape, Men’s Fitness, In Touch

80Simmon Choices 3

The magazine selection is based on data that indicates that the multicultural Millennial is at least 30 times more likely than the average individual

to read the specific publication (denoted by an index of 130 or higher). This will ensure strong readership of each selection. A 12-month purchase

of advertising space was made for the following titles: GamePro, AutoWeek, Glamour, Men’s Fitness and InTouch. Nissan will run an ad in each

monthly issue of these selections. We will run advertisements twice a year in the power issues (September & March) of Vogue magazine. An

average of 6 ads for the year will run in the remaining selections, rotating months in magazines of similar genres. This includes a full page, 4

color make up for all print ads.

Magazine Total Cost Coverage CPM

GamePro $120,000 425,000 $23.53

AutoWeek 397,677 275,000 123.51

Maxim 1,477,680 2,530,440 97.33

Glamour 2,340,948 2,304,146 84.66

Vogue 294,112 1,248,121 117.82

Cosmo 1,464,600 3,032,000 80.51

ELLE 745,590 1,100,000 112.97

Parents 725,920 2,215,645 81.91

US Weekly 1,055,022 13,100,000 13.42

Shape 1,092,138 1,656,678 109.87

Men's Fitness 870,480 600,000 120.9

InTouch 1,040,460 5,600,000 15.48

Spanish Magazine Total Cost Coverage CPM

People en Espanol $70,350 540,000 $130.28

Latina 528,804 500,000 88.13

Ser Padres 101,220 850,000 119.08

Spanish language magazines were also chosen for ad space, considering

that Hispanics are the largest of all three demographic segments. Hispanic

Millennials have a strong readership of People En Espanol, Latina and Ser

Padres along with the other English language magazines.80

Advertisement size is displayed

here. All print ads in magazines

will be bleed ads in full color.

86

Print Media

Detailed Newspaper Selections & Rationale Secondary research revealed that our target market does read a small selection of newspapers, but does not utilize it as a main source of

information or advertisement seeking. The Wall Street Journal and New York Times are the two newspaper mediums that received the highest

indices when asked what the consumer read throughout the whole week. Therefore, 12 spaces will be bought throughout the year at the beginning

of every month in the national version of the Wall Street Journal, along with 26 spaces throughout the year in the start and end of every month for

the New York Times. Here we will heavy up advertisements in June & July in preparation for Nissan’s Red Tent Event. Each advertisement will be

black and white and 1/3 of a page in size.

How each demographic segment reads and purchases or subscribes to the above newspapers was also analyzed. Chinese Millennials choose to

read the paper at their office, read someone else’s copy or subscribe at home. All three of these reading habits can be further analyzed through the

assumption of a high pass along rate. The Hispanic and African American segments tend to read someone else’s copy or purchase the newspaper

at a newsstand for both daily and Sunday issues.

Spanish-language newspapers were also selected given the significant focus we would like to place on the Hispanic segment. Hoy, El Nuevo

Herald, La Opinion and El Diario are the newspapers most fit for selection. Advertisements will appear once a week for 52 weeks in each chosen

Spanish-language newspaper. The advertisement size will be 2/3 of a page per unit.81

81Simmon Choices 3

National Newspaper Total Cost

Wall Street Journal $929,400

New York Times 1,950,822

Spanish Newspaper Total Cost

Hoy (Chicago) $131,040

El Nuevo Herald (Miami) 279,552

La Opinion (LA) 279,552

El Diario (NYC) 279,552

87

Magazine Rationale

Motor and Trend CPM of $196.72 is less efficient than CPM of AutoWeek

Hot Rod Weaker readership than AutoWeek

Four Wheeler Weaker readership than AutoWeek

GQ Weak readership; Low index within all demographics (under 110); CPM of $159 indicates inefficiency

Allure Already advertising in two Conde Nast publications as well as similar genres

Fitness Index below 110 in all three demographics indicates minimal interest and engagement from target

xBox Too low of an index for the Asian demographic in order for the media buy to be efficient

American Baby CPM of $100.79 is less efficient than Parents

Sports Illustrated Index below 110 in all three demographics indicates minimal interest and engagement from target

Muscle & Fitness Target is less likely to read this when compared to Men's Fitness in all three demographics

Business Week Inefficient CPM of $377.65

Oprah Index below 110 in all three demographics indicates minimal interest and engagement from target

Rolling Stone Inefficient CPM of $125.77

Brides Inefficient CPM of $245.90 88

Print Media

Selections Considered But Not Recommended Magazines

When researching magazines, multiple genres and target preferences must be considered. After running Simmons Choice 3, data the following

magazines were considered but not recommended based on either a low index/readership, inefficient CPM, or costly rates.

Newspaper

Daily newspapers considered, but not recommend are USA Today, Washington Post and local newspapers. The demographic shows adversity

towards local news via print media, thus we will not be advertising here. All three lacked a strong readership with indices below 110.82

82Simmon

Choices 3

89

Outdoor

After reviewing African American, Chinese and Hispanic

Millennial driving habits, it is recommended that advertising

dollars be spent on outdoor instead of radio spots. The

average indices for time spent in a car between 6 AM and

11:59 PM are 73, 90 and 118, for African American, Chinese

and Hispanics, respectively. However, indices for using

public transportation in the last 30 days are 244, 151 and 278,

respectively. This indicates that the target would be better

reached through subway and bus advertisements when

compared to radio, making the use of advertising dollars

more efficient. A combination of subway posters, subway car

wraps, billboards and bus advertisements will be used.

Because the target is travelling via mass public transportation

more than they are in cars, we decided to allocate a larger

amount of money to advertising in train stations and buses

with a small amount allocated to billboards. A detailed

breakdown is shown here.

To best target the demographic, all outdoor advertisements will be run in

California, New York, Texas, and Florida since these areas have the

highest percent of the total target demographic living there.*

Outdoor - Florida Total Cost Frequency

Billboards $145,200 7 panels

Buses 171,600 11 buses

Trains 147,000 Jumbo King posters in 300 stations

Train Wraps 50,000 1 unit/52 weeks

Outdoor – Texas Total Cost Frequency





Outdoor – New York Total Cost Frequency





Outdoor – California Total Cost Frequency





*For complete population breakdown please review Spot Market List Rationale.

90

Detailed Broadcast Estimates

Network TV Selections & Rationale The following selections are recommended for Nissan’s advertising within network TV. They will ensure less media waste

since advertising dollars spent on these networks and shows will reach the target audience in the most efficient manner.

These selections are highly targeted, as network TV costs are significantly higher than other media channels. The broadcast

selections were based on viewership by multicultural Millennials with Simmons index numbers of 196, 259 and 123 for

Chinese, African American and Hispanics, respectively. This indicates that the target demographic is more likely to watch the

CW, Fox and NBC rather than other networks.83

Network Program Cost Spot Time

CW Primetime $2,216,863 :30

CW Vampire Diaries $1,296,384 :30

FOX Family Guy $4,768,416 :30

FOX Primetime $2,189,043 :30

FOX X Factor $4,168,697 :30

NBC Primetime $2,255,180 :30

NBC Sunday Night Football $4,098,936 :30

Galavision Non-specific $660,000 :30

Telemundo Non-specific $1,320,000 :30

Univision Non-specific $996,000 :30

By choosing these broadcast selections, a total of

$21,939,519 will be spent from the overall $100

million budget.

83"Media Works." Advertising Agency & Marketing Industry News - Advertising Age. Web. 25 Nov. 2011.

<http://adage.com/article/mediaworks/chart-american-idol-nfl-duke-priciest-tv-spot/230547/>.

91


Network TV Selections Considered But Not Recommended

Because of the high costs of Network TV, we

wanted to eliminate as much media waste as

possible by focusing solely on the target and what

they are specifically watching. The chart to the

right shows a list of selections that were

considered but not recommended for Nissan’s

media plan. The audiences for the recommended

broadcast selections also watch these programs,

however, the selected broadcast spots are more

cost efficient.

Network Program Cost Spot Time

ABC Dancing with the Stars $233,482 :30

ABC Dancing with the Stars Results $216,703 :30

ABC The Bachelor $177,150 :30

ABC Modern Family $249,288 :30

ABC Saturday College Football $85,200 :30

CBS The Amazing Race $124,091 :30

CBS Survivor $144,478 :30

CBS How I Met Your Mother $168,829 :30

CBS Two and a Half Men $252,418 :30

NBC The Office $178,840 :30

NBC Glee $267,141 :30

NBC American Idol $502,900 :30

CW Gossip Girl $50,304 :30

CW America's Next Top Model $61,315 :30

TeleFutura Non-specific $10,000 :30

By not choosing these broadcast selections, the

plan’s budget has saved $2,722,139. These

savings reflect the cost of one :30 spot buy for

each selection.84

84"Media Works." Advertising Agency & Marketing Industry News - Advertising Age. Web. 25 Nov. 2011. <http://adage.com/article/mediaworks/chart-american-

idol-nfl-duke-priciest-tv-spot/230547/>.

92


Cable Selections & Rationale Results from secondary research showed that multicultural Millennials were most likely to watch these selected cable

channels. Each selection was highly likely to be viewed by all three demographic targets for Nissan.

For example, African American Millennials are 391 times more likely than the average to watch MTV. Chinese American

Millennials are 165 times more likely than the average to watch MTV. Hispanic American Millennials are 147 times more

likely than the average to watch MTV.85

KXLA and WMBC-TV SinoVision are selected cable channels that are geared toward the Chinese American Millennial.

These channels are the two most prominent Mandarin-speaking channels offered in the United States. By advertising on these

channels we are specifically targeting that demographic.

Cable Channel Frequency Cost

Adult Swim 240 $1,221,600

BET 337 $1,980,000

E! 180 $1,009,800

G4 360 $1,832,400

MTV 300 $1,454,400

Nick at Nite 270 $1,334,880

TBS 180 $2,747,520

TV One 730 $1,460,000

VH1 730 $2,474,700

KXLA 365 $1,168,000

WMBC-TV SinoVision 730 $321,200

85Simmon Choices 3

93

Detailed Broadcast Estimates Cable Channel Selections Considered But Not Recommended

The following chart reflects all the cable channels we considered

but are not recommending to Nissan. Many of these channels do

not reach all three demographics, which could quickly lead to

media waste and cost inefficiency. Thus, instead of advertising in

a vast range of channels sporadically with no strategy, we

recommend that Nissan advertise in those channels that the target

is often engaged with. Further, we found that the target has a

stronger relationship with the recommended channels rather than

the ones we have decided to reject advertising on.

No premium selections were considered because these channels

do not accept advertising.86

Cable & Premium Channels

A&E Lifetime

ABC Family Lifetime Movie Network

Bravo MSNBC

Cartoon Network MTV2

CNBC Nick

Comedy Central Oxygen

Court TV Soapnet

Discover Home Spike

Discovery Health Style

Discovery Times The Movie Channel

Disney Channel TLC

ESPN 2 TNT

ESPN Classic Toon Disney

ESPN News USA

Food Network WE TV

Fuse WGN

FX

86Simmon Choices 3

Spot Market List &

Media Dollar Allocation Rationale

94 87 2010 Census. Web. 23 Nov. 2011. <http://2010.census.gov/2010census/>.

When selecting spot market media, the most effective method to gain reach is to buy commercial time in the DMA’s, designated market areas, of

the four states with higher multicultural populations, as well as, the largest number of Nissan dealerships in the country. The selected states

include New York, California, Florida and Texas.

According to the 2010 U.S. Census, 61.7% of the Hispanic demographic is found within these four states. California alone accounts for 27.8% of

the Hispanic population. The African American demographic is also found mostly in New York, California, Florida, and Texas with 33.4% of

their total U.S. population living in these four states.87 The Census notes that this population is found mostly in the south and in urban areas.

Advertising should focus on major cities over rural areas. The Chinese population is found mostly on the coast in cities in California and New

York which is also covered in our region selections.

Along with high population percentages for our target demographics, the areas with the most Nissan dealerships are found in New York,

California, Florida, and Texas. New York has 59 dealerships, California 104, Florida 57, and Texas 60. We felt that since advertising is going to

be focused on those areas because our target lives there, it is important to know that the distribution channel for Nissan will be readily available

for them.

Hispanic African American Chinese

95

Internet

Website Selections & Rationale The internet site selections were chosen as a final list that would

provide the widest reach across all three targets at the most efficient

price. The costs for Google and Facebook are based on cost-per-click

charges. The other sites charge for advertising based on the placement

and size of each advertisement.

According to Simmons data the target is more likely to visit these sites

due to the genre they fall under. For example, the multicultural

Millennial is most likely to visit a website that allows him/her to

download music, movies, games, etc. such as Download.com

Website Selection Cost

Cars.com $42,481

Download.com $1,929

Facebook.com $4,000,000

Google.com $4,000,000

Yahoo.com $2,539,988

Youtube.com $8,714,986

Hulu.com $1,349,593

Pandora.com $1,349,593

96

Internet

Websites Considered But Not Recommended

The chart represents the list of internet sites that were initially

considered, but have not been included into the Nissan media plan.

These selections were not chosen in order to focus continuously on a

smaller list of internet sites that are being visited more often by the

targets. In order to get effective reach, we decided that frequent

advertising on select websites would be more beneficial than a few

advertisements on websites that the target may or may not be visiting.

Further, with a more focused list of websites we are able to reach the

target specifically to minimize waste. We found that advertising on the

following sites would be inefficient:

Website Selections

Amazon Twitter

AOL Huffington Post

Ebay Business Insider

Fandango Engadget

GameSpot Perez Hilton

Monster Mashable

CareerBuilder TechCrunch

Mapquest Flickr

Moviefone NYT.com

Movies WSJ.com

MSN NFL.com

NBA Enterprise

Ticketmaster Hertz

Weather Budget

97

Non-Traditional Buys

What are you free to be?

To get our multicultural Millennials involved with the Nissan brand, three celebrity endorsements were selected to attract

each segment. These spokespeople will star in short videos that will air on network television as well as the Nissan YouTube

Channel. They will finish the campaign tagline, Free to be_____, celebrating cultural heritage and being unique. The videos

will air in the months of September and October in 2013 for Hispanic Heritage Month and during January and February in

2014 for Chinese New Year and Black History Month respectively. The videos will have a call to action that instructs

multicultural Millennials to log on to YouTube and upload their own videos filling in the tagline. Throughout the specific

months we will use uploaded videos as actual commercials, giving Millennials the opportunity to star in a nation-wide

campaign.

Total Budget: $7 million

America Ferrera Will Smith Lucy Liu

Free to be you. Free to be

98

Media Considered But Not Recommended

99


Radio In order to decide whether or not Nissan should allocate any of the budget to radio advertising, we researched the radio listening habits of the

Chinese, African American and Hispanic Millennial.

We found that the multicultural Millennial is, on average, 24 times less likely to listen to the radio on a daily basis when compared to the general

consumer. Looking in to this further, we derived that African Americans are 26 times less likely, Chinese Americans are 27 times less likely and

Hispanic Americans are 19 times less likely to listen to the radio on a daily basis. After analyzing the radio listening habits of the target

demographic, we looked at whether the target consumer listens to the radio for a quick news update or to keep him/her informed occasionally.

On average the multicultural Millennial is approximately 27 times less likely to listen to the radio for a quick news update and 11 times less

likely to rely on the radio for information than the common individual.

Before we ruled out radio advertising completely, we looked at the driving habits of the consumer to ensure they correspond with the radio

listening habits, as many consumers listen to the radio while they are in the car. We found that the multicultural Millennial is more likely to

utilize public transportation rather than use a car as a primary source of transportation. The African American Millennial is 233% more likely to

use public transportation than use a car. The Hispanic Millennial is nearly 30% more likely to use public transportation and the Chinese

Millennial is about 209% more likely to utilize public transportation rather than a car.

As a result of the findings, we decided advertising on the radio would result in more media waste than sales. Thus, we recommend that Nissan

allocate money in outdoor* advertising rather than radio to be more efficient.

*For a detailed breakdown of outdoor advertising, please refer to the outdoor selections section of this report

African American (18-29)

Chinese (18-29)

Hispanic (18-29)

I rely on the radio for information 81 98 87

I listen to the radio for a quick news update 71 78 69

I listen to the radio everyday 74 73 83

I’ve used public transportation in the last 30 days 244 151 278

100


Local Coverage

Local coverage was found to be unsuccessful in reaching any of the multicultural Millennials.

African American, Chinese American and Hispanic American Millennials are not likely to

value local newspapers and local coverage. Chinese American Millennials are 24 times less

likely to value local coverage. African American Millennials are 36 times less likely to value

local coverage. Hispanic American Millennials are 33 times less likely to value local coverage.

Since the demographic does not hold value in local news or engage in local news readership,

we have decided that it would be wasteful to place advertising in local newspapers and

magazines. The target is not watching local news, however they are watching local network

television channels. With this information, we recommend allocating funds from the budget to

the spot television selections where the targets are actively watching. The national coverage in

newspapers, magazines and network spots will provide a wider coverage to the target audiences

with more efficiency than the local costs.

Chinese (18-29)

African American (18-29)

Hispanic (18-29)

I value local newspapers/local coverage 76 64 67

101


B2B Magazines

Business-to-business buys would provide Nissan with business consumers and potentially strengthen a

business-to-business relationship. Multicultural Millennials cannot be reached as a business but as a specific

consumer. Advertising in business-to-business magazines would be highly ineffective and wasteful in budget

spending.

The budget does not allow for spending in this medium as the targets are consumers of the general

population. The younger audience is more likely to be students and not reading business-to-business

magazines over consumer magazines. Simmons research provides strongly supportive data that multicultural

Millennials are reading consumer magazines. There was no significant data to support any business-to-

business media buys for multicultural Millennials.

102

Seasonality of Media Buys

103

Product Seasonality

While there are certain media in this plan that we have chosen to advertise in throughout the full fiscal year of April 2013 to

March 2014, we have also proposed additional strategic buys during specific seasons. Most notably there are heavy media

buys the two months prior, and the three months during Nissan’s Red Tent Event, July, August, and September. Because the

majority of the Millennial generation is trying to establish themselves financially, as opposed to an already established older

demographic, we felt it important to raise awareness for this event to ensure the target knows when and where the discounts

will be happening closest to them, in an effort to increase sales for Nissan. For instance, the only consecutive time we will

be advertising in Cosmopolitan will be May, June, and July and we will also be buying one consecutive ad per week in the

New York Times starting the last week in June through the last week in July. Similarly, the portion of the outdoor budget

allocated to billboards, which will be running in the four areas where both dealerships and the target demographic are heavily

populated, will be running June, July, August, and September, with the exception of New York which will be just June and

July.

While the Red Tent Event promotes sales, it also serves a second purpose by helping dealerships clear out inventory to make

way for the new models. Thus, there are also heavy media buys starting towards the tail end of the Red Tent Event in

September and into October promoting the new models that will be coming out in time for the new year. For instance, on

network TV we bought consecutive weekly commercial time for both Family Guy and the XFactor throughout the months of

September to October, and September to December respectively. Additionally, on cable TV we allocated all 180 commercial

spots to TBS from the months October through December, all in an effort to make sure that Multicultural Millennials are up

to date with what Nissan has to offer. Our internet initiatives will further support the new Nissan models by running

advertisements on Hulu and Pandora throughout the month of October.

2013-2014 Media Schedule Flow Chart

Month April (2013) May June July Aug September October November December January (2014) February March

31 7 14 21 28 5 12 19 26 2 9 16 23 30 7 14 21 28 4 11 18 25 1 8 15 22 29 6 13 20 27 3 10 17 24 1 8 15 22 29 5 12 19 26 2 9 16 23 2 9 16 23 30 Insertions Cost

Magazines

GamePro 12 $120,000

AutoWeek 12 $397,677

Maxim 6 $1,477,680

Glamour 12 $2,340,948

Vogue 2 $294,112

Cosmopolitan 6 $1,464,600

ELLE 6 $745,590

Parents 4 $725,920

Us Weekly 6 $1,055,022

Shape 6 $1,092,138

Men's Fitness 12 $870,480

In Touch 12 $1,040,460

Spanish Magazine

People En Espanol 11 $70,350

Latina 12 $528,804

Ser Padres 8 $101,220

National Newspaper

Wall Street Journal 12 $929,400

New York Times 26 $1,095,822

Spanish Newspaper

Hoy - Chicago 52 $131,040

El Nuevo Herald - Miami 52 $279,552

La Opinion - LA 52 $279,552

El Diario - NYC 52 $279,552

Outdoor

Florida

Billboard 7 $145,200

Bus 11 $171,600

Train 300 $147,000

Train Wrap 1 $50,000

Texas


Bus 9 $172,800

Train 300 $147,000


New York


Bus 8 $172,800

Train 300 $147,000


California


Bus 10 $180,000

Train 300 $147,000


Network Television

NBC: Sunday Night Football 8 $4,098,936

NBC: Primetime 20 $2,255,180

FOX: Family Guy 18 $4,768,416

FOX: X Factor 13 $4,168,697

FOX: Primetime 12 $2,189,043

CW: Vampire Diaries 22 $1,296,384

CW: Primetime 49 $2,216,863

Spanish Language TV

Univision 83 $996,000

Telemundo 132 $1,320,000

Galavision 220 $660,000

Cable TV

Adult Swim 240 $1,221,600

BET 337 $1,980,000

E! 180 $1,009,800

G4 360 $1,832,400

MTV 300 $1,454,400

Nick at Nite 270 $1,334,880

TBS 180 $2,747,520

TV One 730 $1,460,000

VH1 730 $2,474,700

KXLA 365 $1,152,000

WMBC-TV SinoVision 730 $321,200

Internet

Cars.com $42,481

Download.com $1,929

Facebook.com $4,000,000

Google.com $4,000,000

Yahoo.com $2,539,988

Youtube.com $8,714,986

Hulu.com $1,349,593

Pandora.com $1,349,593

Non-Traditional

NBC: Primetime 17 $1,916,903

FOX: Primetime 10 $1,824,204

CW: Primetime 44 $1,990,653

105

Flowchart

Magazines

Magazine Advertising Seasonality

April (2013) May June July Aug September October November December

January

(2014) February March Cost

31 7 14 21 28 5 12 19 26 2 9 16 23 30 7 14 21 28 4 11 18 25 1 8 15 22 29 6 13 20 27 3 10 17 24 1 8 15 22 29 5 12 19 26 2 9 16 23 2 9 16 23 30 # (000)

Magazines

GamePro 12 $120

AutoWeek 12 $397

Maxim 6 $1,477

Glamour 12 $2,340

Vogue 2 $294

Cosmopolitan 6 $1,464

ELLE 6 $745

Parents 4 $725

Us Weekly 6 $1,055

Shape 6 $1,092

Men's Fitness 12 $870

In Touch 12 $1,040

Spanish

Magazine

People En

Espanol 11 $70

Latina 12 $528

Ser Padres 8 $101

106

Flowchart

Newspaper

National and Spanish Newspaper Seasonality


January


31 7 14 21 28 5 12 19 26 2 9 16 23 30 7 14 21 28 4 11 18 25 1 8 15 22 29 6 13 20 27 3 10 17 24 1 8 15 22 29 5 12 19 26 2 9 16 23 2 9 16 23 30 # (000)

National

Newspaper

WSJ 12 $929

NYT 26 $1,095

Spanish

Newspaper

Hoy - Chicago 52 $131

El Nuevo

Herald 52 $279

La Opinion 52 $279

El Diario 52 $279

107

Flowchart

Outdoor

Outdoor Advertising Seasonality


January


3

1 7 14 21 28 5 12 19 26 2 9 16 23 30 7 14 21 28 4 11 18 25 1 8 15 22 29 6 13 20 27 3 10 17 24 1 8 15 22 29 5 12 19 26 2 9 16 23 2 9 16 23 30 #

(000

)

Outdoor

Florida

Billboard 7 $145

Bus 11 $171

Train 300 $147

Train

Wrap 1 $50

Texas

Billboard 6 $148

Bus 9 $172

Train 300 $147

Train

Wrap 1 $50

New York

Billboard 7 $141

Bus 8 $172

Train 300 $147

Train

Wrap 1 $50

California

Billboard 11 $149

Bus 10 $180

Train 300 $147

Train

Wrap 1 $50

108

Flowchart

Broadcast

Network, Spanish and Cable Television Advertising Seasonality


January


31 7 14 21 28 5 12 19 26 2 9 16 23 30 7 14 21 28 4 11 18 25 1 8 15 22 29 6 13 20 27 3 10 17 24 1 8 15 22 29 5 12 19 26 2 9 16 23 2 9 16 23 30 # (000)

Network

Television

Sunday Night

Football 8 $4,098

NBC Primetime 20 $2,255

Family Guy 18 $4,768

X Factor 13 $4,168

FOX Primetime 12 $2,189

Vampire Diaries 22 $1,296

CW Primetime 49 $2,216

Spanish

Television

Univision 83 $996

Telemundo 132 $1,320

Galavision 220 $660

Cable TV

Adult Swim 240 $1,221

BET 337 $1,980

E! 180 $1,009

G4 360 $1,832

MTV 300 $1,454

Nick at Nite 270 $1,334

TBS 180 $2,747

TV One 730 $1,460

VH1 730 $2,474

KXLA 365 $1,152

SinoVision 730 $1,152

109

Flowchart

Internet & Non-traditional

Internet and Non-Traditional Advertising Seasonality


January


31 7 14 21 28 5 12 19 26 2 9 16 23 30 7 14 21 28 4 11 18 25 1 8 15 22 29 6 13 20 27 3 10 17 24 1 8 15 22 29 5 12 19 26 2 9 16 23 2 9 16 23 30 # (000)

Internet

Cars $42

Download $2

Facebook $4,000

Google $4,000

Yahoo! $2,539

YouTube $8,714

Hulu $1,349

Pandora $1,349

Non-

Traditional

NBC:

Primetime 17 $1,916

FOX:

Primetime 10 $1,824

CW:

Primetime 44 $1,990

110

Decision Dates & Cancellation Flexibility

111

Monthly Magazine Decision Dates

Magazine

Selection88

April

(2013)

May

(2013)

June

(2013)

July

(2013)

August

(2013)

September

(2013)

October

(2013)

November

(2013)

December

(2013)

January

(2014)

February

(2014)

March

(2014)

GamePro 1/20/13 1/20/13 4/20/13 4/20/13 4/20/13 8/10/13 8/10/13 8/10/13 9/23/13 9/23/13 9/23/13 1/20/14

Maxim - 3/1/13 3/29/13 5/3/13 - - 8/2/13 - 9/27/13 - 12/1/13 -

Glamour 1/20/13 2/17/13 3/20/13 4/20/13 5/18/13 6/20/13 7/20/13 8/20/13 9/20/13 10/20/13 11/18/13 12/20/13

Vogue - - - - - 6/29/13 - - - - - 12/30/13

Cosmopolitan - 2/21/13 3/20/13 4/17/13 - - 7/24/13 - 9/18/13 - 11/22/13 -

ELLE 1/31/13 - - - 5/30/13 6/27/13 - 8/29/13 - 10/25/13 - 12/27/13

Parents 1/20/13 - - 4/20/13 - - 7/20/13 - - 10/20/13 - -

Shape - 2/29/13 - 5/2/13 - 6/27/13 - 8/29/13 - 11/2/13 - 1/4/14

Men's Fitness 1/5/13 2/2/13 3/16/13 3/16/13 5/18/13 6/22/13 7/20/13 8/24/13 9/21/13 10/19/13 11/3/13 12/8/13

• All monthly magazine selections have deadlines provided by the publication

• All monthly magazine selections will be long-term buys

88Please see respective media kits provided in appendix

112

Other Magazine Decision Dates

Magazine

Selection89

April

(2013)

May

(2013)

June

(2013)

July

(2013)

August

(2013)

September

(2013)

October

(2013)

November

(2013)

December

(2013)

January

(2014)

February

(2014)

March

(2014)

AutoWeek 3/7/13

3/21/13

4/4/13

4/18/13

5/2/13

5/16/13

5/30/13

6/13/13

6/27/13

7/11/13

7/25/13

8/8/13

8/22/13

9/5/13

9/19/13

10/3/13

10/17/13

10/31/13

11/14/13

11/28/13

12/13/2013

12/27/13

1/10/14

1/24/14

2/7/14

2/21/14

US Weekly

3/7/13

3/14/13

3/21/13

3/28/13

-

5/9/13

5/16/13

5/23/13

5/27/13

-

7/4/13

7/11/13

7/18/13

7/25/13

8/1/13

-

9/2/13

9/12/13

9/19/13

9/26/13

-

11/7/13

11/14/13

11/21/13

11/28/13

-

1/10/14

1/14/14

1/24/14

1/31/14

-

In Touch

2/24/13

3/2/13

3/9/13

3/16/13

3/23/13

3/30/13

4/6/13

4/13/13

4/27/13

5/4/13

5/11/13

5/18/13

5/25/13

6/1/13

6/8/13

6/15/13

6/22/13

6/29/13

7/6/13

7/13/13

7/20/13

7/27/13

8/3/13

8/10/13

8/17/13

8/24/13

8/31/13

9/7/13

9/14/13

9/21/13

9/28/13

10/5/13

10/12/13

10/19/13

10/26/13

11/2/13

11/9/13

11/16/13

11/23/13

11/25/13

12/2/13

12/9/13

12/16/13

12/23/13

12/30/13

1/6/14

1/13/14

1/20/14

1/27/14

2/3/14

2/10/14

2/17/14

People en

Espanol 1/30/13 2/27/13 3/26/13 4/30/13 5/28/13 7/2/13 7/30/13 9/3/13 10/8/13 10/8/13 11/21/13 1/2/14

Latina 1/23/13 2/20/13 3/26/13 3/26/13 5/21/13 7/2/13 7/23/13 8/27/13 9/24/13 9/24/13 11/21/13 12/26/13

Ser Padres 1/27/13 2/24/13 3/30/13 3/30/13 6/1/13 6/1/13 - 8/31/13 - 9/28/13 - -

• All other magazine selections have multiple deadlines provided by the publication specific to each issue

• All other magazine selections will be long-term buys

89Please see respective media kits provided in appendix

113

Newspaper Decision Dates

National Newspapers

The national newspaper selections include the Wall Street Journal and The New York Times. These selections

have a decision date of 2 weeks prior to the publication. To select these mediums in a longer term buy, the

decision dates will be one month prior to the publication. The early decision will secure the advertisement

placement.


The Spanish-language newspaper selections are in DMA specific publications. Hoy will be distributed in

Chicago. El Nuevo Herald will be distributed in Miami. La Opinion will be distributed in Los Angeles. El

Diario will be distributed in New York City. These publications require a decision date approximately 3 days

prior to the publication. To secure advertising, the decision for these selections will be made two weeks prior

to the publication.

Newspaper

Selection90

April

(2013)

May

(2013)

June

(2013)

July

(2013)

August

(2013)

September

(2013)

October

(2013)

November

(2013)

December

(2013)

January

(2014)

February

(2014)

March

(2014)

Wall Street

Journal 3/1/13 4/1/13 5/1/13 6/1/13 7/1/13 8/1/13 9/1/13 10/1/13 11/1/13 12/1/13 1/1/14 2/1/14

NY Times 3/1/13 4/1/13 5/1/13 6/1/13 7/1/13 8/1/13 9/1/13 10/1/13 11/1/13 12/1/13 1/1/14 2/1/14

Hoy 3/15/13 4/15/13 5/15/13 6/15/13 7/15/13 8/15/13 9/15/13 10/15/13 11/15/13 12/15/13 1/15/14 2/15/14

La Opinion 3/15/13 4/15/13 5/15/13 6/15/13 7/15/13 8/15/13 9/15/13 10/15/13 11/15/13 12/15/13 1/15/14 2/15/14

El Diario 3/15/13 4/15/13 5/15/13 6/15/13 7/15/13 8/15/13 9/15/13 10/15/13 11/15/13 12/15/13 1/15/14 2/15/14

90Please see respective media kits

114

Outdoor Decision Dates

All outdoor buys will be long term buys. These advanced buys will secure advertising placement

for the selected DMA’s. Florida, Texas, New York and California will display outdoor Nissan

advertisements. The advertisements will be seen on billboards, buses, trains and a train wrap in

each DMA.

Outdoor

Selection

April

(2013)

May

(2013)

June

(2013)

July

(2013)

Augus

t

(2013)

September

(2013)

October

(2013)

November

(2013)

December

(2013)

January

(2014)

February

(2014)

March

(2014)

Florida 4/1/12 5/1/12 6/1/12 7/1/12 8/1/12 9/1/12 10/1/12 11/1/12 12/1/12 1/1/13 2/1/13 3/1/13

Texas 4/1/12 5/1/12 6/1/12 7/1/12 8/1/12 9/1/12 10/1/12 11/1/12 12/1/12 1/1/13 2/1/13 3/1/13

New York 4/1/12 5/1/12 6/1/12 7/1/12 8/1/12 9/1/12 10/1/12 11/1/12 12/1/12 1/1/13 2/1/13 3/1/13

California 4/1/12 5/1/12 6/1/12 7/1/12 8/1/12 9/1/12 10/1/12 11/1/12 12/1/12 1/1/13 2/1/13 3/1/13

115

Broadcast Decision Dates

The network, Spanish-language and cable television spots will be decided as long term buys. The

early decisions will help plan these media selections one year in advance to secure spot

placement (e.g. April 2013 buys will be decided by April 1st, 2012). The network television

selections will include :30 spots on NBC, FOX, and CW. NBC spots will air on Sunday Night

Football. FOX spots will air on Family Guy and X Factor. CW spots will be air on Vampire

Diaries. The Spanish-language television selections will include :30 spots on Univision,

Telemundo and Galavision. The cable television selections will include :30 spots on Adult Swim,

BET, E!, G4, MTV, Nick @ Nite, TBS, TV One, VH1, KXLA and WMBC-TV SinoVision.

Syndicated television selections were not considered and replaced by a larger budget allocation

towards spot television. The spot television selections are DMA specific for Florida, Texas, New

York and California. The spot networks will be CW and FOX. These buys will be efficiency buys

to be determined by the status of current events.

Television

Selection

April

(2013)

May

(2013)

June

(2013)

July

(2013)

August

(2013)

September

(2013)

October

(2013)

November

(2013)

December

(2013)

January

(2014)

February

(2014)

March

(2014)

Network 4/1/12 5/1/12 6/1/12 7/1/12 8/1/12 9/1/12 10/1/12 11/1/12 12/1/12 1/1/13 2/1/13 3/1/13

Spanish-

language 4/1/12 5/1/12 6/1/12 7/1/12 8/1/12 9/1/12 10/1/12 11/1/12 12/1/12 1/1/13 2/1/13 3/1/13

Cable 4/1/12 5/1/12 6/1/12 7/1/12 8/1/12 9/1/12 10/1/12 11/1/12 12/1/12 1/1/13 2/1/13 3/1/13

Spot TBA TBA TBA TBA TBA TBA TBA TBA TBA TBA TBA TBA

116

Internet Decision Dates

• All internet selection buys will be decided one month in advance

• These decision dates are earlier than the requested dates. We will select these mediums early for

secured advertisements

Internet

Selection

April

(2013)

May

(2013)

June

(2013)

July

(2013)

August

(2013)

Septembe

r (2013)

October

(2013)

November

(2013)

December

(2013)

January

(2014)

February

(2014)

March

(2014)

Cars 3/1/13 4/1/13 5/1/13 6/1/13 7/1/13 8/1/13 9/1/13 10/1/13 11/1/13 12/1/13 1/1/14 2/1/14

Download 3/1/13 4/1/13 5/1/13 6/1/13 7/1/13 8/1/13 9/1/13 10/1/13 11/1/13 12/1/13 1/1/14 2/1/14

Facebook 3/1/13 4/1/13 5/1/13 6/1/13 7/1/13 8/1/13 9/1/13 10/1/13 11/1/13 12/1/13 1/1/14 2/1/14

Google 3/1/13 4/1/13 5/1/13 6/1/13 7/1/13 8/1/13 9/1/13 10/1/13 11/1/13 12/1/13 1/1/14 2/1/14

Yahoo! 3/1/13 4/1/13 5/1/13 6/1/13 7/1/13 8/1/13 9/1/13 10/1/13 11/1/13 12/1/13 1/1/14 2/1/14

Hulu - - - - - - 9/1/13 - - - - -

Pandora - - - - - - 9/1/13 - - - - -

117

Appendix A

118

Assumptions & Limitations

Assumptions

There were several assumptions made in the creation of this media plan. To ensure there is no confusion or

miscommunication between the client and the agency, we have created a list of assumptions for your reference.

• The $100 million budget does not include production costs

• All rates seen here do not include CPMedia agency fees

• This media plan is specifically for the multicultural Millennial demographic consisting of African American, Hispanic

and Chinese Millennials from the ages of 18-29. We are assuming that the client is targeting the general public in a

separate media plan

• All rates seen here are pre-negotiations and can expect to experience a discount post-negotiations

• The proposed creative campaign is a framework for Nissan’s creative department to enhance and complete

Limitations

Below is an outline of the limitations we experienced in the creation of this media plan.

• Accessibility to resources

• Secondary information is limited to broad generalizations of the Asian population

• Availability of Chinese specific media in the United States

119

Defining Directional Costs

Magazines & Newspapers

Rates for selected magazines and newspapers were derived directly from each respective media kit; rates vary depending on size and color

choices. By taking the rate provided (including discounts for running multiple months), we multiplied the cost for one ad by the number of ads

we will run within the year to obtain the total cost of each medium.

Cable TV

Directional rates were derived using the Conway Corporation rate card. This divides shows into 3 tiers, which provides a CPM focused on

specific shows and the time of day the advertisement will run. Because we are only advertising in primetime, we only used the CPM’s for

primetime throughout the three tiers. After obtaining CPM, we used TVbytheNumbers to obtain the average viewership during primetime. This

allowed us to perform the following cost calculation- (CPM × Viewership) ÷ 1000- to determine cost per 30-second spot during primetime of

cable TV. SinoVision and KXLA costs were pulled directly from their respective rate cards.

Network TV

Specific rates for networks CW, FOX, and NBC were derived from the AdAge database. These rates were associated with cost to advertise on

the network’s most viewed shows throughout the week. To determine an average rate for a 30-second spot during primetime hours on these

channels, we averaged the cost of all shows specific to network.

Spot TV

We allocated specific amount for each DMA to put equal focus on each region. We are utilizing this as an efficiency buy.

Internet

To begin we looked at the rates for The Olympian, which is a website that provided rates to the public. Next, we did a percent change formula

for impression levels from The Olympian compared to our selected websites. We applied this percent change as a mark-up/mark-down to the

original rate provided. From here we derived a directional cost for the websites we are advertising in.

Outdoor

Rates here were obtained from the Clear Channel website. They provided costs for billboard, buses, trains and other forms of transit in specific

city areas. We chose to advertise in the four states with the most Nissan dealerships and allocated a set budget to each area within the overall

$1 million budget for outdoor. These rates allowed us to calculate costs for number of months and panels, buses and stations needed. By

multiplying the 4-week rate for one unit to the frequency of the ads and the amount of units.

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Unmeasured Spending

Direct Marketing

Coupons

Coop

Product Placement

Events

Digital Media

Catalogs

Promotion

According to AdAge, unmeasured spending is the difference between a company’s

measured media and its total ad costs. This value includes the following possible

expenses.91

91"Methodology Leading National Advertisers." Advertising Agency & Marketing Industry News. 27 Nov. 2011 <http://adage.com/article/datacenter-

advertising-spending/methodology-100-leading-national-advertisers-2011-edition/227903/>.

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Appendix B: Sources

Documents

Media Plan Final