BPMM 6013 MARKETING MANAGEMENT

Marketing Plan: Tan Chong Motor & Nissan

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Prepared for : Assosiate Prof. Dr. Filzah Md. Isa Prepared by : Nurul Hidayah Binti Md Noor 814541 Siti Nabilah Binti Sulaiman 815748

Situational analysis
Tan Chong Motor Group is entering its over than 50 years of operation. TCM the only one of distributor in Malaysia that get franchise from Nissans company to sold it products which is Nissan and Infiniti.

o Tan Chong Motor Holdings Berhad (TCMH) was incorporated in Malaysia on 14 October 1972. o TCMH Group (the Group) is today one of the largest national conglomerates the assembly and marketing of motor vehicles and auto parts manufacturing property development heavy machineries, industrial equipment and consumer products - both locally and abroad Warisan TC Holdings Shiseido Cosmetics Distributorship
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o The franchise holder and exclusive distributor of Nissan and Renault vehicles in Malaysia.

o 98 sales branches and authorized dealership outlets nationwide; supported by 91 after-sales service centres. o Franchise holder and exclusive distributor for trucks and buses under the UD Trucks and Silverbus brands. o The two assembly plants in Segambut (Kuala Lumpur) and Serendah (Selangor) have very close capacity; both plants together can deliver 100,000 units a year.
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o Tan Chong & Co. was founded in 1940s o Tan Chong and his two sons, Tan Yuet Foh and Tan Kim Hor imported and sold a Japanese brand of cars called Datsun. o First year of business from a shop lot in Jalan Ipoh, Kuala Lumpur, they sold 39 units.

Internal analysis of TCM

Assembly

Propert y

Sales and distribution

Business Divisions

Financial product and service

After-sales services

Internal analysis
Business divisions: 1. Assembly
Motor vehicle
2.

Sales and distribution

Passenger cars Light Commercial Vehicles Trucks Buses

3.

After-sales services
Spare part Workshop

4. Financial products and service

Hire purchase Leasing Insurance agency Money lending Management and investment Hire purchase Leasing Insurance agency Money lending

5. Property

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TCM products and services:

Product (Nissan)
Sedans Hybrid & electric MPVs SUVs Pickup Truck Van Sport

Product(Infiniti) Sedan & Coupes Crossovers & SUVs Hybrid

Service Financing service for customers Genuine spare parts and auto services

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Customer analysis Why customer prefer Nissan vehicle compare other rivals? Nissan always come with something different in values that can attract customer attention. For example, people choose Nissan Leaf not just because of they aware about environment safety, they actually make shift in value. Saving in fuel cost.

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Characteristic of Nissan buyer: Nissan Leaf female, age 30s, families Nissan Grand Livina customers like to gathering with family Infiniti luxury buyer Nissan Murano male 40s, without child

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Value chain analysis

Nissan

Tan Chong Motor Assembly Unit

Tan Chong Distribution Unit

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Tan Chong Motor SWOT analysis Strength

Good reputation Experienced management and skill human capital High quality product Market diversified product

Weakness
Largely dependent on the domestic automotive Limited market
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Opportunities
The sliding market share from Proton, Perodua, Honda, and Naza Government offer rebate Investment in Indo-China market

Threats
National Automotive Plan put TCM and Nissan a disadvantage support national cars The increase globalization has threat TCM with facing new competition
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Nissan SWOT analysis

Strength Strong financial performance Strategic partnership Innovative culture Growing brand reputation
Weakness Product recalls

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Opportunities Growing global demand for environment friendly vehicle Growing through acquisition Increasing fuel price Threat Declining fuel price Global competition in automotive industry Rising raw material prices Natural disasters Appreciating yen exchange rates
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Macro-Level External Environment

Political and legal Malaysias highly intricate and complicated policies for automotive industry. Social - changing of life cycle stages and lifestyle, consumers. Technological - the alliance with Renault is an advantage in development of automotive technologies which boosted Nissan sales. Environmental the preference towards hybrid cars Nissan Leaf and Serena S-Hybrid Economic fuel price hike, Malaysia inflation instability, modest and uneven global growth.

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Competitive Environment

Rivalry among existing firms Top competitors

UMW Holdings Berhad Sapura Industrial Bhd EP Manufacturing Berhad Yokohama Industries Berhad Boon Koon Group Berhad
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Segmentation, target market, positioning

o It

hard for marketer to satisfy all customers in market because everyone have their own needs and wants. o So, marketers decide to divide the market into segments. o Then they identify and profile distinct group of buyers based on demographic, geographic, psychographic, and behavioral that was different among buyers.
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Then, marketer will choose which segment have a big opportunities, then choose it as target market. for the chosen target market, firm will develop market offering, then the offering will be positioning in minds of target buyers as delivering some of values.

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Target market of Nissan

Demographic

Psychographic

Behavioral

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Market offering
Sedan Pickup and truck

Infiniti

Nissan product
SUVs Hybrid & electric cars MPVs

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Infiniti products

Sedan & Coupes

Hybrid

Crossovers & SUVs

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Nissan ALMERA B-segment Target market young family Position delivering diversify and unique, which is low cost of ownership.
Nissan Navara Pickup segment Target market business person, weekend recreational Position delivering value of dynamic performance and comfort
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Nissan Grand Livina MPVs segment Target market for people like gathering family members Positioning delivering the value of happiness and stress free experience. S-Hybrid SERENA MPVs hybrid segment Target market people who sensitive on environment or eco-friendly Positioning delivering values of clean environment and fuel save.
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Nissan Murano SUVs segment Target market people without children Positioning delivering value of luxury with tagline it hard to get anybody come down. Infiniti QX70 Luxury segment Target market luxury buyers Positioning delivering value of elegant muscularity and charismatic performance.

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How Nissan capture their customers? Nissan come into Malaysia by bringing products closely attuned to the needs and desires of their consumers. Their product offering customers a diverse and distinctive selection from the world of Nissan, will be back with superior service through all phases of the ownership experiences. Nissan create product with promises for something, when customer own the cars they will get the value of promises delivering in minds. It can build trust, customers tend to be loyalty for the brand.
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Nissan goal: o Becoming the world biggest seller of batterypowered autos o Leader in the move to make cars safer by adding electronic systems capable of preventing accident and injuries. o Nissan power 88 aims to achieve 8% in global market share and to increase its corporate operating profit to a stable 8% by 2016.
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Marketing Mix Strategies Product/ Branding Strategies Nissan prominent brand reputation Service Strategies Tan Chong Ekspres Auto Servis Sdn Bhd(TCEAS), to maximize convenience, and minimize queuing, TCEAS encourages reservations on vehicle service appointments via e-booking online facility. Pricing Strategies competitive price with other foreign cars and pricing above local cars price. Supply Chain Strategies Completely Knocked Down (CKD), Local Assembly Plant in Segambut and Serendah.

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TCM performance: TCM contributes its record sales achievement from the support of the media. TCM achieved its highest Nissan sales record in 2012 since its presence in Malaysia for the past 56 years. Nissan is now the No.2 non national car brand in Malaysia Nissan ALMERA leads Nissans strong performance with more than 1,5000 units booked date. TCM continues to excite consumers with the introduction of the Updated 2013 Nissan Teana 2.5L

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TCM financial highlight

http://www.tanchong.com.my/financialhighlight.html 34

http://www.tanchong.com.my/financialhighlight.html 35

http://www.tanchong.com.my/financialhighlight.html

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TCM Goal: Be an excellent in automotive business TCM Objective: Widen the geographic footprint in automotive business ASEAN That they achieve the goal? TCM get awarded 2013 Nissan Global Award from Nissan company Nissan also label TCM as Champion Distributor because they can sustain the growth well. So, the award Nissan give to TCM as testimony in achieving TCM objective.
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How TCM get trust from Nissans company? TCM had maintain sales volume with aging models, a challenging task when rivals regularly launched new model Get 2013 Nissan Global Award as a proof of TCM hard work and dedication to superior performance. TCM also facing Nissan industry challenging that compete with than 130 National Sales Companies, but TCM still achieved outstanding sales, growth and profitability.
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Future plan: Nissan become fully electric car, reducing CO2 emissions. TCM widen the geographic of footprint in automotive business in ASEAN. What makes Nissan brand strong in Malaysia? Nissan diversify and unique brand, they attract people to experience something that shift in value.

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Suggestion: Nissan should conduct more comprehensive market research to clearly define their customer needs and wants. Create dynamic, cohesive campaigns that consistently speak to Nissan customers about the experience after use Nissan vehicle. Nissan also can increase their after-sales services like give more longer period in warranty.
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