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EXECUTIVE SUMMARY
This document discusses the marketing strategies, problems and solutions for a selected company and
its new product being launched.
The company discussed in this document is Gandhara Nissan Limited working in Pakistan; in
collaboration with Nissan Motor Co. Japan. Gandhara Nissan is launching anew car with name of
“Nissan next” and this document provide an efficient and workable marketing plan for the product.
In Pakistan automobile industry is growing at a rapid pace. The demand for cars in Pakistan over time
has increased a lot due to growth of economy and stability of people economic condition. This has
attracted a number of producers towards the market. Nissan along with other producers like Toyota,
Suzuki and Honda etc. is a player in the automobile market.
Now Nissan has planned to launch a new car with significant innovations and steps towards
improvements. For the success of the car in industry a deep study and research has been undertaken to
develop an effective and efficient plan.
Some of the important areas covered in this document while developing a Marketing Plan for the
selected company are:
Discussion of the Industry
Analysis of company’s position
Marketing objectives
Promotions strategies
Pricing strategies
Product strategies
Distribution strategies.
Furthermore, action plan lays out successful implementation through monitoring has also been
included.
TABLE OF CONTENTS
Executive Summary...........................................................................................................1
Table of Contents...............................................................................................................2
1.0. Automobile Industry Overview.................................................................................5
1.1. Global Industry for Automobile.....................................................................................................5
1.2. Automobile Industry Overview of Pakistan...................................................................................5
2.0. Nissan: History............................................................................................................6
2.1. Introduction....................................................................................................................................6
2.2. Nissan’s Vision..............................................................................................................................6
2.3. Nissan’s Mission............................................................................................................................7
3.0. Nissan next: Marketing Environment.......................................................................7
3.1. Micro Environment........................................................................................................................7
3.1.1. Consumers...............................................................................................................................7
3.1.2. Competitors.............................................................................................................................7
3.1.3. Intermediaries..........................................................................................................................7
3.1.4. Publics.....................................................................................................................................8
3.2. Macro Environment........................................................................................................................8
3.2.1. Demographic Environment.....................................................................................................8
3.2.2 Economic Environment............................................................................................................8
3.2.3. Technological Environment....................................................................................................8
4.0. Nissan next: Product Evaluation.............................................................................10
4.1. Core, Actual and Augmented Product..........................................................................................10
4.2. Consumer or Industrial Product?..................................................................................................10
4.3. Convenience, Shopping, Special or Unsought Product................................................................10
4.4. Product Uses and Consumer Acceptance.....................................................................................10
4.5. Distribution – Wide Spread or Not?.............................................................................................11
4.6. SWOT Analysis............................................................................................................................11
4.6.1. Strengths................................................................................................................................11
4.6.2. Weaknesses...........................................................................................................................11
4.6.3. Opportunities.........................................................................................................................11
4.6.4. Threats...................................................................................................................................12
5.0 Consumer Evaluation................................................................................................12
5.1 Type of Purchase Decision............................................................................................................12
5.2 Consumption – consumer response...............................................................................................12
5.3 Quality, Comfort & Safety............................................................................................................12
5.4 Customer Awareness and Brand Switching..................................................................................13
5.5 Brand Prospects -- Location and Influence...................................................................................13
6.0 Competitor Analysis..................................................................................................14
6.1 Pricing...........................................................................................................................................14
6.2 Promotion......................................................................................................................................14
6.3 Distribution....................................................................................................................................14
6.4 Future Competitors and Replacement Products............................................................................14
7.0 Marketing Objectives................................................................................................15
Goals and Objectives...........................................................................................................................15
8.0 Marketing Strategies.................................................................................................16
8.1 Target Market................................................................................................................................16
8.2 Nissan next Target Market: Geographic Segment.........................................................................16
8.3 Nissan next Target Market: Psychographics.................................................................................16
8.4 Nissan next Target Market: Demographics...................................................................................16
9.0 Marketing Mix Strategies.........................................................................................17
9.1 Product Strategies..........................................................................................................................17
9.1.1 Packaging...............................................................................................................................17
9.1.2 Labeling..................................................................................................................................17
9.1.3 Product Line...........................................................................................................................18
9.2 Pricing Strategies...........................................................................................................................18
9.3 Distribution Strategies...................................................................................................................18
9.4 Promotion Strategies.....................................................................................................................19
9.4.1 Environment Research...........................................................................................................19
9.4.2 Advertising.............................................................................................................................19
9.5 Positioning Strategy......................................................................................................................20
9.6 Action Plan....................................................................................................................................20
10.0 Evaluation, Monitoring and Control.....................................................................21
11.0 Budget.......................................................................................................................22
11.1 Market Analysis Cost..................................................................................................................22
11.2 Questionnaire Cost......................................................................................................................22
11.3 Advertising and promotional cost...............................................................................................22
12.0 Bibliography.............................................................................................................24
APPENDIXES
APPENDIXES 'A' Surveys
Car Dealers Survey Summary........................................................................................26
Consumer Questionnaire................................................................................................27
APPENDIX 'B' Budget....................................................................................................38
1.0. AUTOMOBILE INDUSTRY OVERVIEW
1.1. GLOBAL INDUSTRY FOR AUTOMOBILE 1
Automobile Industry is a business of manufacturing and selling vehicles. It has encouraged the
expansion of road systems and allowing consumers to commute long distances. It has also allowed
other industrial product to contribute as well, such as steel and thus is the key determinant for
economic growth.
Globalization of automotive industry accelerated exponentially after the 1980’s. This was due to the
construction of important overseas facilities and mergers alongside with improved production
techniques adopted by Japanese in the 1970’s.
By 2005, the industry’s global output touched 64.6 million vehicles. The auto market today is one of
the largest segments in world trade. Today the annual automotive exports have reached a level of $600
billion which accounts for 10% of the worlds export.
With increase awareness in consumers about potential hazards, automobile industries are in constant
competition with each other to produce a better vehicle for the right consumer. It is estimated that the
car industry will continue to prosper to increasing trends as national economies and population
increases. Mobility 2030, of the World Business Council for Sustainable Development, reported that
per capita mobility of china, Latin America, Russia and rest of Europe would double by 2030 to 5000-
14000 km per year. This will contribute to the automotive industry a big deal.
1.2. AUTOMOBILE INDUSTRY OVERVIEW OF PAKISTAN 2
In Pakistan automobile industry is growing at a rapid pace. There have been huge demand for cars in
Pakistan over time but in the last few years due to improvement in economy of Pakistan this demand
has increased tremendously. Total number of automobiles in use today in Pakistan is 5 million. About
two-third of the market demand is being met currently by local production and imports from other
countries and one-third is left unmet.
1 http://imvp.mit.edu/papers/99/shimokawa.pdf
2 http://www.unescap.org/tid/publication/part_two2223_pak.pdf
So there is a huge gap in market demand and supply which is still there to be met. Major producers
currently in the market are Toyota, Suzuki, Nissan, Honda, Mitsubishi, Hyundai.
The government is also supporting the investors to invest in Pakistan this has attracted more producers
of cars to come in Pakistan and grasp market share from Pakistan automobile market.
2.0. NISSAN: HISTORY
2.1. INTRODUCTION 3
Nissan Motor Co. is one of the major car manufacturers in the world. Nissan Motor Co. is in
automobile industry for over 70 years. Nissan has spread out its manufacturing over all major countries
and territories of the world. Nissan Motor Co. founded in 1934, formally known as Datsun until 1983,
is a Japanese automobile manufacturer and is Japan’s second largest company after Toyota. It is among
the top Asian rivals of the “big three” in the US. Initially, Nissan produced military vehicles for Japans
military. Nissan produces an extensive range of mainstreams cars, trucks for domestic and
international consumers.
In Pakistan Nissan is operating in collaboration with Bibojee Services (Pvt.) Limited with local brand
name of Gandhara Nissan Limited. Gandhara Nissan Limited was established in 1981 as a private
Limited Company and has sale license for distribution of Nissan vehicles. In Pakistan Nissan’s net
sales for year ending 30th June 2006 were about Rs. 4 billion.
In Pakistan Nissan has following major cars already in market :
Nissan Sunny
Nissan Patrol
Nissan Cefiro
Nissan X-Trail
2.2. NISSAN’S VISION 4
Nissan’s vision is to enhance the quality and safety of travel and achieve customer satisfaction. Nissan
focuses on maintain and implement better quality standards to ensure people with more comfortable
and safe drive.
3 http://www.gnl.com.pk/profile.htm
4 http://www.nissan-global.com/EN/COMPANY/MESSAGE/index.html
There vision is expressed in their statement as: “Nissan-Enriching people’s Lives.”
The significance of this is that Nissan aims to participate in the development and progress of society
through its business activities worldwide. This is only achieved through set of objectives that needs to
be focused and better implemented through effectiveness and efficiency.
2.3. NISSAN’S MISSION 5
“Nissan provides unique and innovative automotive products and services that deliver superior
measurable values to all stakeholders”
3.0. NISSAN NEXT: MARKETING ENVIRONMENT
3.1. MICRO ENVIRONMENT
3.1.1. CONSUMERS
Consumers are the main target which needs to be understood and satisfied in the market. Their
purchasing behavior will most likely be an impact affecting an organization in several unprecedented
ways. It is important to understand their mindset patterns of purchasing a family car, the basic pattern
includes affordability, fuel efficiency, safety and comfort giving the consumer a mood of acceptance
and appreciation. The main focus of the Nissan will be the low level car owners and low income
consumers. It will also target product to bike owners as they are very unsafe.
3.1.2. COMPETITORS
With strong economic growth and government relaxation on taxes, several companies are emerging to
establish their market position. Nissan next stands a good chance of competing with existing
competitors as several of Nissan products are already in the market. Nissan will position the new
product with features such attractive look-n-feel. Direct - competitors are Toyota and Suzuki which
have substantial market share.
5http://www.nissan-global.com/EN/COMPANY/MESSAGE/index.html
3.1.3. INTERMEDIARIES
Nissan will adopt both distribution channels, direct and indirect. Intermediaries (i.e authorized dealers
of Nissan) are important, since indirect distribution of its product is carried out through them. This will
help to further enhance the reach-ability of the car.
3.1.4. PUBLICS
Publics are the general public who are involved in the reputation of Nissan and its products. Nissan has
to provide several strategic approaches in order to stand out with the public opinions. Any critics
against Nissan would impact the sales and repute. With such diverse culture, consumers are highly
deterred with public opinions. This very thin line, the public offers, can effect production, distribution
and diversification of Nissan. Nissan will have to stand out in their primary objective and not loose that
position.
3.2. MACRO ENVIRONMENT
3.2.1. DEMOGRAPHIC ENVIRONMENT
3.2.1.1. Education
The literacy rate of the country is increasing and as a result it has increased the consciousness in people
about safety and quality of travel. People are now more sensitive about how safe and comfortable is the
automobile they are using. With the increased awareness in people they have now shifted towards the
automobiles which are according to safety standards and give more comfortable travel. This shift is
also helping Nissan Motor Co.’s business as people are moving towards it.
3.2.1.2. Population
Population of Pakistan is increasing at rapid pace and has touched the figures of 150 million in year
2006. This increase in population has also increased the number of buyers and expanded the market of
automobiles. Requirement of more automobiles has grown. Automobile industry has also responded to
this scenario. But there is still a huge gap between people demand and supply of cars. Nissan focuses
on this gap and is trying to avail this opportunity to its best.
3.2.2 ECONOMIC ENVIRONMENT
With the rapid growth of national economy purchase power of people has also increased. Also the
priorities have changed a lot. The affordability of cars has improved and this resulted in huge increase
in the sales of cars. This provides Nissan an opportunity to jump into market with strong impact and
grab a major share in automobile industry.
3.2.3. TECHNOLOGICAL ENVIRONMENT
Rapid improvement and advancements in technology impacts the automobile industry a great deal. It
impacts the manufacturing, assembling and furbishing of automobiles. New technological
advancements pace up the operations; results in more rapid production of cars. Technological
improvements also impact Nissan’s operations a great deal and forces towards technological shift.
Nissan keeps on improving its technological structure with time and has to continue its strategy of
regular improvements.
4.0. NISSAN NEXT: PRODUCT EVALUATION
4.1. CORE, ACTUAL AND AUGMENTED PRODUCT
The Core Product is an easily affordable Vehicle for consumers.
The Actual Product is “Nissan next” car which is a new launch of Nissan. It provides its users
with an affordable choice to buy and ensures a safe and comfortable travel.
The Augmented Product is the added features this car provides to its buyers. Major add-on
features Nissan next provides to its buyers are :
o 1 year parts and service warranty.
o Integrated Tracking System.
o Highly attractive design.
o CNG installed in car for user convenience.
4.2. CONSUMER OR INDUSTRIAL PRODUCT?
“Nissan next” comes under the category of consumer products as it is designed and launched for the
satisfaction and facility of individual or family users of middle class and low-earning income
population.
4.3. CONVENIENCE, SHOPPING, SPECIAL OR UNSOUGHT PRODUCT
“Nissan next” is a shopping product, as there is high involvement of buyers while buying cars. They
want more information about the product and also this is not daily purchase or frequent purchase
product. There is a huge demand of affordable and safe automobiles in the market. Getting a
comfortable travel facility has become a desire of every person as frequency of travel has increased a
lot. “Nissan next” will provide users will all three major factors in demand for automobiles i.e.
economy, comfort, safety.
4.4. PRODUCT USES AND CONSUMER ACCEPTANCE
The consumer acceptance for this car will be highly as people are becoming more and more sensitive
towards traveling. People now prefer cars which are more comfortable and look attractive. Economic
strengthening of the country has also improved the economic condition of people resulting in more
demand of automobiles. Therefore there is a huge gap in market and Nissan next through its low
pricing, more safety and comfort will get huge consumer acceptance.
4.5. DISTRIBUTION – WIDE SPREAD OR NOT?
Distribution of “Nissan next” will be widespread as Nissan want to reach all the major areas of the
country. It will be launched at all the showrooms and dealers of Nissan.
4.6. SWOT ANALYSIS
4.6.1. STRENGTHS
Following are some of the major strengths of company:
Brand image of Nissan Motor Co. and Gandhara Nissan Limited.
Variety of Automobiles being produced.
Local Production of cars / low cost of production.
Financially Nissan is a strong company.
High Quality products.
4.6.2. WEAKNESSES
Following are some of the weaknesses of the Product and company:
Currently Nissan has low share in market.
Nissan next is currently being launched in two varieties only.
Nissan has small distribution network currently.
4.6.3. OPPORTUNITIES
Following are some of the opportunities which Nissan can avail in future to increase its market share:
Increased awareness of people.
Improved economic condition of people.
Increased population/consumption
Increased media influence on people.
Increased market demand.
4.6.4. THREATS
Following are some of the threats which may be faced in the future:
High competition in the market.
New Entrants can also add to the competition.
Presence of other brands in the market and their infrastructure.
5.0 CONSUMER EVALUATION
5.1 TYPE OF PURCHASE DECISION
Automobile industry has a number of producers already in market including Nissan, Nissan next will
introduce a new image of the company and will most likely attract consumers as it will be a
customized model for the people. Since any consumer will be a long lasting relationship, it is important
that it stands out in front of its competitors and has a competitive edge. There will be high involvement
of user as it has to make a big purchase decision and also there are competitors like Suzuki and Toyota
etc. giving services to people; so this purchase behavior will be categorized as Dissonance-Reducing
Buyer behavior.
5.2 CONSUMPTION – CONSUMER RESPONSE
Commute has become a necessity and more roads infrastructure has been established. More people are
interested in purchasing as their needs and interests increases. As competition is on the rise so public is
more informed about cars. They are more conscious about the safety and economic features of the car.
This awareness and consciousness is increasing the buying and there is already a gap in market so
production of Nissan next will be tremendous.
5.3 QUALITY, COMFORT & SAFETY
Gandhara Nissan Limited is working in collaboration with its mother company in Japan, Nissan motor
Co. Thus it has an international image in local market & public mind stands on good grounds when
considering Quality, comfort and Design. The new image will provide a new quality, price and comfort
pattern which will be very favorable to consumers. Since consumers relationship is going to last, it is
important that these variables are constantly improved. Nissan next will be affordable most of all, and
safety should be first priority so that the consumer’s first impact would be that this is a car for my
family. Design will be unique from the rest of its competitors and will be designed after evaluating
customer buying patterns.
5.4 CUSTOMER AWARENESS AND BRAND SWITCHING
Since this is a high value purchase, it is most likely that the brand loyal consumers are loyal to the
company and believe that the Nissan products are much better than others. The new car will attract our
existing customers as it will contain additional unique features. Nissan next aim is to capture the new
market of its level and provide its existing customer a new opportunity to experience a new ride
experience. Nissan will provide unique differentiated points to create awareness and presentations
proving the consumers the advantages and luxury it can provide to a small family. With increase in
awareness in consumer minds, it is imperative that safety features are emphasized and provide core
values which the consumers like to see.
5.5 BRAND PROSPECTS -- LOCATION AND INFLUENCE
In Pakistan, 30% of the population is living below the poverty level which be translated as earning
less than $2 a day and about 5% comes in the bracket of elite class. Therefore Nissan next will provide
a very different level of customization to different locations which will be favorable to low-income
families. Most of them travel by bikes and buses. Nissan will introduce a better shift to its new car
which is Compaq, secure and most economical.
6.0 COMPETITOR ANALYSIS
Major competitors of “Nissan next” are Suzuki, Toyota, Hyundai and Cherry QQ. All products of
these companies of same size and capacity will give tough competition to “Nissan next”.
6.1 PRICING
As making cars more affordable is the major objective of launching this car therefore the prices of this
car are kept lower than that of all the current competitors in the market. This will help grasping larger
market share and compete well in market.
CNG plus AC car will be available at Rs. 3, 50,000 only.
Only AC car will be available at Rs. 3, 15,000 only.
6.2 PROMOTION
Major competitors of “Nissan next” like Toyota and Suzuki; are spending huge revenue on promotion
of their brand and products. Nissan will also make extensive effort and heavy investment on creating
awareness about “Nissan next” in market. Promotion of “Nissan next” will be done at nation wide
scale as Nissan aims at targeting all major areas of country.
6.3 DISTRIBUTION
Nissan has currently distribution setup in the major divisional headquarters only but the competitors
specially; Toyota and Suzuki has a wider network. There presence in more areas than Nissan is giving
tough competition to Nissan. For Nissan next , Gandhara Nissan Limited will come up with a new
strategy of distribution to reach all those areas where there they are not currently present.
6.4 FUTURE COMPETITORS AND REPLACEMENT PRODUCTS
In future the most effective competitor for “Nissan next” can be a small car from Honda Limited.
Honda is a large car manufacturing company but not currently producing small cars in Pakistan.
Therefore a step of producing small cars by Honda can give tough time to Nissan next. Nissan should
develop strategy to cope with the situation if Honda also jumps into the market with small cars for
consumers.
7.0 MARKETING OBJECTIVES
The goals and objectives of the marketing plan are usually defined under the light of certain
performance indicators which are related to the probable increase in growth, sales and performance
levels in terms of increasing overall company revenues and image. Marketing objectives leads to the
increased sales if they are clear and understandable
For “Nissan next” we’ll define performance parameters and baseline in light of Nissan’s vision to
achieve customer satisfaction. Also the growth of automobile industry in Pakistan and increase in
demand of automobiles is kept under consideration.
GOALS AND OBJECTIVES
Capture at least 25% of market share for small cars in defined Target market.
Occupy second position in the market following Suzuki Motor Company.
Target middle class and low earning income class specially by providing them an affordable
option.
Create awareness among target audience. Use excessive advertising especially using media
preferred by the target market.
Use unique features like good design, low prices and comfortable environment to create attraction
towards product.
Create product belonging and position among buyer’s mind.
8.0 MARKETING STRATEGIES
This section of the plan basically outlines Nissan’s plan to achieve its objectives that are mentioned
above as well, it is the most essential part of the marketing plan.
8.1 TARGET MARKET
Nissan nexc target market will be the low-level income group, middle class and bike owners. Bike
owners are the most critical as large number of consumer currently in Pakistan travel through bikes.
Safety hazards of this type are tremendous considering the increasing number of accidents that occur
due to unsafe bikes. With constant awareness and education about Nissan affordability and safety
features, this type of group could be acquired resulting in increase of brand loyal consumers. People
are more aware and therefore, they are constantly more particular when deciding which car to
purchase. With strategic advertisement, consumers can be attracted with its latest features and a new
image Nissan will provide to owners.
8.2 NISSAN NEXT TARGET MARKET: GEOGRAPHIC SEGMENT
The major concern of Nissan next is to capture all the district headquarters of the country resulting in
its coverage of almost all over the country.
8.3 NISSAN NEXT TARGET MARKET: PSYCHOGRAPHICS
With new image Nissan next will provide to its buyers, owners will feel more confident and proud
considering that Nissan is an international organization with strong background resulting driving
Nissan next a status symbol. Also safety and comfort are big factors of considerations in a consumers
mind so Nissan by focusing on these factors will attract safety and comfort conscious people. Seeing
its potential, consumers will most likely shift to Nissan next.
8.4 NISSAN NEXT TARGET MARKET: DEMOGRAPHICS
Primary Target market belongs to middle class, upper middle class and low earning income people in
society, falling in income bracket of below Rs. 50,000. Also the target will be people from 25 - 60year
old who are major automobile buyers.
9.0 MARKETING MIX STRATEGIES
“Nissan next’s” marketing efforts will be based on the priority of expanding its market share and
increase the brand loyalty among buyer’s by achieving customer satisfaction.
Nissan is launching “Nissan next” at this particular time because of boom in the automobile industry
in Pakistan. The demand of cars for private usage is increasing a great deal but there are a few car
production companies currently in the market. Nissan feels that there is a very good opportunity to
jump into the market at this time with a quality product and grasp a major share in market.
9.1 PRODUCT STRATEGIES
The name of the car will be “Nissan next”. It should be a highly quality product focusing on three
important parameters of economy, safety and comfort to compete the major competitors in the market
i.e. Suzuki and Toyota.
9.1.1 PACKAGING
Nissan next will be built on one standard size. It will be available in both color types i.e. Metallic and
Non-Metallic. The color range will be 5 major colors red, white, black, blue and green with capacity to
increase other colors on demand. The design of the car will be smooth and catchy.
Imp. Recommendations
The shape of the car should be kept different from the shape of competitor’s products.
The design of the car is recommended to be kept innovative and unique in order to attract
customers.
The design should also be kept on improving on regular basis.
9.1.2 LABELING
The Label of car presents only basic information about the car i.e. brand name and car name.
Imp. Recommendations
The name of the car proposed is “Nissan next”. The name represents innovation and movement ahead
as is the plan to move the car ahead of its competitors in aspects like Affordability, comfort, design and
safety. The label of the car should be innovative and attractive. The fonts used should be decent and
attractive. Only precise text should be presented.
9.1.3 PRODUCT LINE
Nissan next will be available in two major types of cars:
1. Nissan next CNG/AC
2. Nissan next AC
Imp. Recommendations
It is recommended both products should be launched simultaneously with major production and share
to CNG car as demand of CNG is much more than that of simple car. After three months time a survey
should be conducted to judge customer’s response to the car.
9.2 PRICING STRATEGIES
The price of the cars will be as following:
Nissan next CNG/AC ------------- Rs. 3,50,000/-
Nissan next AC ---------------- Rs. 3,15,000/-
Imp. Recommendations
The price of the car should be kept lesser than the competitors as Nissan next’s major objective is
providing economical car to users. Also the target market of the car is Middle and low income class so
it should be kept in their affordability. This is accomplished by reducing the overhead costs like OWN
payment etc. by developing efficient distribution mechanism.
9.3 DISTRIBUTION STRATEGIES
Basically there are two types of distribution channels available: Direct distribution and In-direct
distribution
Recommendations
Nissan next will adopt both distribution channels for distribution of car.
Use of Direct Channel: Nissan has its showrooms in major divisional headquarters; at these stations
Nissan next will use its direct distribution channel. Also it is recommended to increase the direct
distribution coverage area by setting up showrooms in more areas to have better control over
distribution.
Use of In-direct Channel: In those areas where Nissan doesn’t have its showrooms it will use its
chain of authorized dealers to sell out its cars in these areas.
9.4 PROMOTION STRATEGIES
Promotion is one of the most important factors of marketing; it is done to affect the consumer behavior
in order to achieve sales and increase product image. In promotion the major task is to make
consumers aware of the product and to attract consumer towards the product by highlighting the
advantages of the product. Also it keep consumers aware and well informed about product’s features
and improvements.
Recommendations
Nissan can use electronic and print media to advertise about its car.
Nissan can advertise on billboards, flex signs, bus boards, telemarketing etc.
Special advertisement campaigns can be launched e.g. seminars, road shows publications etc. to
create awareness about Nissan next.
Nissan will sponsor special events like concerts etc. to introduce the car to public.
9.4.1 ENVIRONMENT RESEARCH
An extensive market research will be conducted to have better idea about consumers’ perception about
Nissan and its competitors. For this purpose Nissan will acquire services of marketing and research
agencies to better analyze market environment. This will enable Nissan to learn about the consumers’
behavior, how they perceive us and compare with the competitor. The media of the advertising a
product is always chosen after the market environment research to get knowledge that if the target
audience is interested in that mode of advertisement or not
9.4.2 ADVERTISING
To advertise the product better and create awareness about product; Nissan will use different
advertisement methods to approach the consumers. The diversity of advertisement channels will help
in reaching the masses of different mindsets.
Following Advertisement methods will be used:
Nisan will use print and electronic media to introduce the product to consumers.
Special events will be sponsored by Nissan.
Use of Billboards, flex signs etc for massive introduction of car’s launch.
Special road shows and displays will be set at dealers outlets.
Prize contest will be conducted to attract people towards the car.
9.5 POSITIONING STRATEGY
Nissan next will use the image of NISSAN MOTOR CO. and hope that it will attract the customers
towards the car. Also Nissan next’s extensive marketing with focus on its special features like
economy, safety and comfort will draw attention of buyers and create room for the product in the
market.
9.6 ACTION PLAN
The action plan will commence from the month of January 2007 and will go up to June 2007.
PROMOTION ACTIVITY DURATION RESPONSIBILITY
Launch a blind ad campaign on billboards and
magazines in all A class areas of major cities and
magazine.
2 weeks Marketing department
Heavy advertising on TV, newspapers and
magazines
4 weeks Marketing department
Sponsor a highly prestigious chain of events or
concerts.
3 weeks Marketing department,
Finance Department
Set displays of car at all the Nissan showrooms
and major dealer outlets in all cities.
3 weeks Marketing department
A contest will be held and people who win will
get prizes (Car Info. Books, Key chains, phone
cards etc.)
April Finance Department,
Marketing Department.
Reduce number of billboards, television and
magazines advertisements.
May Marketing department
Continue Advertising June Marketing department
10.0 EVALUATION, MONITORING AND CONTROL
The goal of the marketing plan is to outline the strategies, tactics, and programs that will make the
sales goals outlined in the Nissan next business plan a reality by the end of the season. There are a
number of KPI ’s which are needed to be measured for better evaluation of the performance.
The monthly and the annual revenue generation, then the amount of expenses incurred in a month or
in a year, then the increased level of customer satisfaction and ensuring the brand loyalty..
For complying with these scenarios the advertising efforts made by the company, strength of the
distribution channels, launch of the new products and the pricing will be measured. The possible
increase in growth of the target market also depend all these efforts made by Nissan next.
The people who are responsible for the monitoring and control of the marketing plan involves, the
Marketing Executives, Sales Managers, Media Managers, Market Research Departments, and the
Production Managers.
Some activities must be carried out for precisely and closely evaluating the effectiveness of the
strategies and tactics for example the gathering and structuring of data regarding market, product,
consumers and the pricing trends, then the generation of daily sales report should be maintained and
then in the end continuous reconfirming of the marketing budget and activities by the managers of
different divisions.
11.0 BUDGET
As Nissan has a tough competition with some big names like Suzuki and Toyota so there is need of
strong financial support to all marketing activities. Nissan has allocated initially Rs. 30 millions for the
marketing of Nissan next. This budget will be used during the fiscal year of 2006-2007.
This amount will be further sub-allocated to different areas. Rs. 15 millions has been allocated to the
budget of initial cost for the marketing analysis and all activities of advertising and promotion during
first quarter of the year. For the continuity of the promotional and advertisement activities Rs. 15
millions has been sub-allocated for each quarter over the years as Rs. 5 million per quarter.
These allocations of finances can be altered with respect to the future requirements
11.1 MARKET ANALYSIS COST
Nissan’s marketing department includes professionals for market analysis, competitor analysis, etc.
These people are advised to do their best and for more extensive approach. Nissan has also acquired
the services of marketing research and analysis agencies for better approach and more in-depth
research. The cost estimated for market research is Rs. 2 million.
The further subdivision of this cost is given below in table 1.2 in Appendix B.
11.2 QUESTIONNAIRE COST
Nissan’s has conducted an extensive questionnaire with general public to have better idea about the
mindset and understanding of general public. This survey costs for its development, execution and then
process of interpretation. Cost estimated for this survey is Rs. 1 million.
The further subdivision of this cost is given below in table 1.3 in Appendix B.
11.3 ADVERTISING AND PROMOTIONAL COST
The cost allocated for advertising and promotion is Rs. 12 million. This cost is allocated to the areas of
advertisements, sponsorships, promos, etc.
The further subdivision of this cost is given below in table 1.4 in Appendix B.
11.3.1 ADVERTISING COST
Advertising costs includes advertisement on electronic media, print media (news papers, magazines,
etc.), billboards, road shows, displays etc. etc. These all activities have been allocated Rs. 8 million.
The further subdivision of this cost is given below in table 1.4.1 in Appendix B.
11.3.2 PROMOS COST
Promo cost includes the cost of handouts; information books, prize contests etc. these all promo
activities will cost around Rs. 2 million.
The further subdivision of this cost is given below in table 1.4.2 in Appendix B.
11.2.3 SPONSORSHIPS
Nissan will sponsor different events like concerts, seminars and other social activities etc. to promote
the car in masses and attract people. This sponsorship of a chain of activities over time will cost about
to Rs. 2 million.
The further subdivision of this cost is given below in table 1.4.3 in Appendix B.
12.0 BIBLIOGRAPHY
ALLEN, G. (1998). Introduction to Marketing . Addison-Wesley. Fifth Edition. London.
SAMUEL, B. (2003). Marketing for Beginners . Pearson Education . 2nd Edition. Boston.
MERCER, D. (1996). Marketing . Blackwell Publishing . 2nd Edition. London.
MINETTE, S. (2001). B2B Marketing . Pearson Education . Revised Edition. Boston.
ALBERTO, J. (2005). Strategy Moves . Pearson Education . 1st Edition. New York.
Appendix A
CAR DEALERS SURVEY SUMMARY
KBC
Suzuki and Toyota are enjoying the most market share in Pakistan with about 40% and 35%
respectively. Suzuki is successful due to its local production and economical cars but they have major
problem of sustainability and designs of their cars. Toyota is enjoying good market share because of
good quality and extensive production. If Nissan is launching new car and want to grasp market share
then it has to focus on designs of cars and also provide more affordable option to buyers. Also Toyota
and Suzuki do good marketing and to beat them Nissan must develop efficient marketing strategy.
MUST CARS
Due to increase in economic activity in the country, demand of automobiles especially cars for private
use have increased hugely. Currently Suzuki is enjoying the major share in the market due its
affordable cars, availability of spare parts and good marketing. Suzuki is dominating the market but
there are a lot of problems which are being faced by users. Especially the week areas are design and
safety standards. If Nissan wants to compete with Suzuki in the market and break into its dominance it
should provide buyers with highly excellent designs of cars and also cars which are safe and
comfortable to travel.
CAR MAX
The most important parameters while buying cars a buyer looks for are its Price, Safety standards,
Design of car and how much comfortable the vehicle is. Currently some of the cars implemented the
design, safety, comfort standards are very expensive and huge market share goes to those cars which
are less standardized but are cheap. Nissan can stand in market and be successful if it make an ideal
combination of Affordability, design, safety, comfort and make a better and cheap product for buyers.
Currently less quality cars of Suzuki are enjoying bulk of market share due to lack of better options
available in market. Nissan is currently not so much successful in Pakistani market but they can
improve their position by focusing at this area and developing effective marketing strategy to break the
influence of Suzuki and Toyota.
CONSUMER QUESTIONNAIRE
What is your Gender?
a. Male
b. Female
What is your age?
a. 18-25
b. 25-35
c. 35 and above
What is your income?
a. Below 50,000
b. Above 50,000
Do you use Nissan cars?
a. Yes
b. No
What comes to your mind when you think about Nissan?
a. Affordable Cars
b. High quality Cars
c. Trust Worthy
d. Expensive Cars
e. Safety
f. High brand image
How satisfied are you with Nissan?
a. Very satisfied
b. Satisfied
c. Neutral
Do you own a car?
a. Yes
b. No
If yes, which car do you prefer?
a. Toyota
b. Suzuki
c. Nissan
d. Others, please specify …………….
Do you prefer public transport to private cars?
a. Yes
b. No
Are you satisfied with safety of cars already in market?
a. Yes
b. No
What is your major preference when buying a car?
a. Price
b. Safety
c. Comfort
d. Design
e. Other please specify ……….
What power of car do you prefer?
a. 800 cc
b. 1000 cc
c. 1200 cc or more
What type of color you like?
a. Non-Metallic
b. Metallic
How satisfied are you with prices of cars in market?
a. Satisfied
b. Not - Satisfied
c. Neutral
How much are you willing to pay for 1000 cc. Cars?
a. Rs. 300, 000/- to Rs. 450, 000/-
b. Rs. 450, 000/- or more.
If one of the companies plans to launch a new car of great design, safety, comfort and affordable
which one you will prefer?
a. Toyota
b. Suzuki
c. Nissan
d. Local companies
e. Other please specify
What influences your buying decision?
a. TV ad
b. Magazine
c. Word of mouth
d. Bill board
e. Other, Please specify ………………..
Gender
0
10
20
30
40
50
60
Male Female
Gender Type
%ag
e
QUESTIONNAIRE ANALYSIS
Income
0
10
20
30
40
50
60
70
Below 50000 Above 50000
Income group
%ag
e
Age Group
05
1015
2025
3035
4045
18-25 25-40 40-60 Above 60
Age Grouping
%ag
e
Do you use Nissan Cars?
0
10
2030
40
50
60
7080
90
100
Yes No
%ag
e
Are you satisfied with Nissan cars?
0
10
20
30
40
50
60
70
Very satisfied Satisfied Neutral
%ag
e
Which Car brand do you prefer?
0
5
10
15
20
25
30
35
40
45
Toyota Suzuki Nissan Other
%ag
e
Are you satisfied with safety of cars already in Market?
0
10
20
30
40
50
60
70
80
Yes No
%ag
e
Do you prefer Public transport to Private Cars?
0
10
20
30
40
50
60
70
80
Yes No
%ag
e
What is your major preference when buying cars?
0
10
20
30
40
50
60
Price Safety Comfort Design Other
%ag
e
What power of car do you prefer?
0
10
20
30
40
50
60
800 cc 1000 cc 1200 cc or more
%ag
e
What type of color you prefer?
0
10
20
30
40
50
60
70
Non-Metallic Metallic
%ag
e
How satisfied are you with prices of cars in market?
0
10
20
30
40
50
60
Satisfied Not-Satisfied Neutral
%ag
e
How much are you willing to pay for 1000 cc Car?
0
10
20
30
40
50
60
70
80
90
3,00,000 - 4,50,000 4,50,000 or more
%ag
e
If any one of the company launches a car whichone you will prefer?
0
5
10
15
20
25
30
35
Toyota Suzuki Nissan LocalCompanies
Other
%ag
e
What influences your buying decision?
05
1015202530354045
TV ad Magazine Word ofMouth
Billboards Other
%ag
e
ANALYSIS SUMMARY
According to survey people with an income bracket less than Rs. 50,000 per month prefers buying
small cars for their private use. A large percentage of people prefer buying their own cars then to use
public transport but most of them are not satisfied with the safety standards of the cars in the market.
There is very less market share of Nissan in the market i.e. about 8 % while its competitors are
enjoying large share. People using Nissan cars are not greatly satisfied with the car and they expect
Nissan to do more. According to survey the most important considerations by a buyer of car are price,
safety, comfort and design with price having major influence. About 65% of the people surveyed were
of age group 25 to 60 who are the major buyers.
Most of the buyers are not satisfied with the prices of the cars and are willing to buy 1000 cc. cars for
Rs. 3,00,000 to Rs. 4,50,000 but most of the cars in the market get more out of them as they are
expensive. They consider Toyota and Suzuki more successful in launching a new car in market than
Nissan. People seem to be more highly influenced by the TV ads and billboards.
Appendix B
Age Structure
Graph 1.1
0
10
20
30
40
50
60
percentage population
0-14 years 15-64 years 65 and above
Table 1.1
Age Limit Percentage Population
0-14 years 41%
15-64 years 55%
65 and above 4%
BUDGET
Table 1.2
Market Analysis Cost
Wages and Salaries Rs. 700,000
1 Professional Cost Rs. 500,000
2 Team Leader Rs. 50,000
3 Team Members Rs. 150,000
Research Agencies Cost Rs. 1300,000
Grand Total: Rs. 2 million
Table 1.3
Questionnaire Cost
1 Development Cost Rs. 200,000
2 Execution Cost Rs. 600,000
3 Interpretation Cost Rs. 200,000
Grand Total: Rs. 1 million
Table 1.4
Advertising & Promotional Cost
Table 1.4.1
Advertising Rs. 8 million
1 Bill Boards etc. Rs. 2 million
2 TV/ Cable Networks Rs. 3 million
3 News Paper, Magazines, etc Rs. 1 million
4 Displays & Roadshows etc. Rs. 2 million
Table 1.4.2
Promos Rs. 2 million
1 Hand outs etc. Rs. 500,000
2 Prize Contest Rs. 1500,000
Table 1.4.3
Sponsorships Rs. 2 million
1 Sponsor ship of concerts etc. Rs. 1 million
2 Sponsorship of social seminars etc. Rs. 1 million
Grand Total Rs. 12 million
