Undamentals of Marketing: Case Study Assignment NISSAN
The word count for this assignment is 2,500 words. Students are expected to use information from within the case study and supplement their answers with their own research, to develop answers that combine both the module taught theoretical principles and case information.
1) Compare and contrast the concepts of market orientation, production orientation and sales orientation. Which one of these philosophies do you feel Nissan utilise? Illustrate your answer with examples (50 marks)
2) Discuss the way the Nissan Leaf is being positioned in the marketing communications activity of Nissan? Illustrate your answers by considering a range of promotional mix variables. (50 marks)
Fundamentals of Marketing: Case Study Assignment NISSAN
Established in 1933, Nissan Motor Co., Ltd. was a pioneer in the manufacturing of automobiles. Nearly 70 years later, Nissan has become one of the worlds leading automakers, with annual production of 2.4 million units, which represented 4.9 percent of the global market. Domestically, the company sells 774,000 vehicles on an annual basis, placing it second behind Toyota Motor Corporation. About 35 percent of Nissans vehicles are sold in Japan, 25 percent in the United States, and 20 percent in Europe. In the North American market, the companys top models include the Infiniti, Maxima, Altima, and Sentra passenger cars, the Quest minivan, the Frontier pickup truck, and the Pathfinder sport utility vehicle. After losing money for most of the 1990s, Nissan entered into a global alliance with Renault S.A. in March 1999, with the French company taking a 37 percent stake in Nissan. A massive restructuring was then launched.
Nissan Motor, one of Japans leading automakers, wants to get big by going small. Through its small-car initiative, the company primarily produces low-cost and fuel-efficient small cars with standard comfort, safety, style, and performance. Nissans models include Maxima and Sentra cars, and Altima and Infiniti upscale sedans, as well as pickups, SUVs, and sports cars. It is also one of the worlds largest manufacturers of forklifts. Renault holds a 44% stake in Nissan Motor, constituting the Renault-Nissan Alliance, which is largely focused on manufacturing all-electric vehicles. Nissan primarily manufactures in China, Japan, Mexico, Spain, the UK, and the US. About 80% of sales come from outside Japan
Nissan Power 88
Nissan CEO, Carlos Ghosn, unveiled Nissan Power 88 on Monday, the automakeras new mid-term plan that aims to raise profit margins and worldwide market share to 8 percent by fiscal 2016.
The Japanese automaker, which makes vehicles including the Qashqai SUV, the Murano and the all-electric Leaf, says in its new Power 88 plan that by 2016 the company will sell 66 different vehicles around the world, following a demanding debut schedule which will see a new product launched every six weeks for the next six years.
Thirteen of the brands current 64 models will be retired, according to the plans, while 15 new ones will take their place, with 14 new products launching in the US and Europe during 2013 and 2014.
Many of the new sales envisioned by the plan will come from emerging countries, Nissan boss Carlos Ghosn said, with Nissan aiming to hold a ten percent share of the massive Chinese market by 2016.
Infiniti, the companys premium brand, is also aiming for a ten percent share of the global luxury brand market, while Nissan and its partner Renault are aiming to have 1.5 million electric vehicles on the road.
Following its selection as the official taxi provider of New York City, a choice expected to provide a considerable boost to its NV200 model, the company says that it is also aiming to become the worlds leading light commercial vehicle manufacturer.
China, the worldas biggest car market, will likely lead the way with Nissan pledging to raise its current 6.2 percent market share to 10 percent, while in Brazil more than quadrupling share.
This is the first time Nissan is starting a plan on the offensive instead of reconstructing something or defending something.Ghosn said. Its the first time. Thats why we feel very good.
Nissan introduced its battery-powered LEAF compact last year, and the plan targets 1.5 million EV sales with partner Renault by 2016.
Electric cars demonstrate that what is good for the public and what is good for the planet is also good business,Ghosn said.
With an eye on the bottom line, Nissan also aims to trim costs by 5 percent a year, while garnering about 10 percent of the global market for premium vehicles by the time Nissan Power 88 powers down in fiscal 2016.
Customers will have more places than ever to buy the models, says Nissan, with the dealership network planned to grow by 1,500 outlets to 7,500 points of sale globally by the end of the plan.
The development of Electric Vehicles
On August 2, 2009, Nissan unveiled the Nissan LEAF, the worlds first affordable, electric vehicle, which has been launched first in Japan, the United States and Europe in late FY2010.
Why Promote Zero-EmissionNow? Nissan has been investing in a wide range of environmentally-friendly Greentechnologies including clean diesel, hybrid and fuel cell vehicles. Nevertheless, zero-emission vehicles, such as the EV, will play a central role in its product strategy for the next several years. There are three factors behind this strategy:
(1) Environmental Issues
Global warming and climate change are at the center of global concern. There has been increasing demand for the auto industry to produce solutions to limit or reduce greenhouse gas emissions. Governments worldwide have introduced legal measures with stringent environmental targets for vehicle emission standards.
Starting in 2012, the European Commission will impose heavy fines on auto manufacturers, if the average emissions of new models exceed 130 gram per one kilometer (which equates to fuel consumption of approximately 18km/L). The amount of the fine will vary depending on the level of emissions. The U.S. Congress also proposed a bill to require auto manufacturers to set the average fuel economy for all vehicles at 35 miles per gallon (which is approximately 15km/L) by 2020.
(2) Post-Petroleum Society
We rely heavily on oil as a source of energy for transportation. In addition, the price of fuel produced from oil is extremely volatile and is generally expected to soar in the midand long-term. On July 11, 2008, oil prices hit an all-time high of 147.27 dollars a barrel. Political disputes have ensued over the stable supply of oil and energy self-reliance has become a major focus of concern. Now, governments and consumers are seeking solutions, so that we can break our dependence on oil.
(3) Technological Advances
Due to the recent advances made in battery technology, batteries that are more compact and powerful, with increased capacity, have been developed, compared to previous-generations. Nissan will use the new compact lithium-ion battery, which will be produced by a joint venture with the NEC group, for the new EV in 2010. In addition to batteries, Nissan also develops key components such as the motor and inverter in-house. Nissan is also a pioneer in ITS with telematics and navigation technologies.
Nissan LEAF Electric Vehicle
The Nissan LEAF, which was introduced in late FY2010, has a number of characteristics unique to the EV.
In contrast to traditional vehicles, the Nissan LEAF does not have an engine. As a result, it does not emit CO2 or exhaust gas.
(2) Driving range sufficient for daily driving
The Nissan LEAF delivers a driving range of more than 160km (100 miles) on one full charge (US LA4 mode). Some research indicates that over 80% of drivers worldwide drive less than 100 km a day. In Japan and the U.K., more than 80% of drivers drive less than 50 km a day.
(3) Charging method and time
It takes approximately eight hours to fully charge the battery through a 200V outlet (often used for home air-conditioners). If the veh