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This document discusses the marketing strategies, problems and solutions for a
selected company and its new product being launched.
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.
• Marketing objectives
• Promotions strategies
• Pricing strategies
• Product strategies
• Distribution strategies.
Executive Summary..............................................................1
3.1.1. Consumers..............................................................................................9
3.1.2. Competitors............................................................................................9
3.1.3. Intermediaries.........................................................................................9
3.1.4. Publics...................................................................................................10
3.2.1.1. Education........................................................................................10
3.2.1.2. Population......................................................................................10
4.6.1. Strengths...............................................................................................13
4.6.2. Weaknesses..........................................................................................13
4.6.3. Opportunities........................................................................................14
4.6.4. Threats..................................................................................................14
6.1 Pricing..........................................................................................................17
6.2 Promotion.....................................................................................................17
6.3 Distribution...................................................................................................17
9.1.1 Packaging...............................................................................................22
9.1.2 Labeling.................................................................................................23
9.4.2 Advertising.............................................................................................26
11.2.3 Sponsorships........................................................................................30
KBC.....................................................................................................................33
MUST CARS.........................................................................................................33
CAR MAX............................................................................................................33
Consumer Questionnaire.....................................................34
QUESTIONNAIRE ANALYSIS.................................................................................38
Analysis Summary..............................................................................................43
Budget.................................................... ...........................46
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.
1
http://imvp.mit.edu/papers/99/shimokawa.pdf
2
1.2. AUTOMOBILE INDUSTRY OVERVIEW OF PAKISTAN
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.
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.
2.1. 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.
2
http://www.unescap.org/tid/publication/part_two2223_pak.pdf
3
http://www.gnl.com.pk/profile.htm
In Pakistan Nissan has following major cars already in market :
• Nissan Sunny
• Nissan Patrol
• Nissan Cefiro
• Nissan X-Trail
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.
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
4
http://www.nissan-global.com/EN/COMPANY/MESSAGE/index.html
5
http://www.nissan-global.com/EN/COMPANY/MESSAGE/index.html
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.
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.
• 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 :
4.6.2. WEAKNESSES
Following are some of the weaknesses of the Product and company:
• Increased population/consumption
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.
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.
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.
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.
• Target middle class and low earning income class specially by providing them
an affordable option.
• Use unique features like good design, low prices and comfortable environment
to create attraction towards product.
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.
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:
2. Nissan next AC
Imp. Recommendations
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.
Recommendations
Nissan next will adopt both distribution channels for distribution of car.
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.
Recommendations
• Nissan can use electronic and print media to advertise about its car.
• Nissan can advertise on billboards, flex signs, bus boards, telemarketing etc.
• Nissan will sponsor special events like concerts etc. to introduce the car to
public.
• Nisan will use print and electronic media to introduce the product to
consumers.
• Use of Billboards, flex signs etc for massive introduction of car’s launch.
Finance
Department
Set displays of car at all the Nissan 3 weeks Marketing
showrooms and major dealer outlets in all department
cities.
A contest will be held and people who win April Finance
will get prizes (Car Info. Books, Key chains, Department,
phone cards etc.) Marketing
Department.
Reduce number of billboards, television and May Marketing
magazines advertisements. 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.
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.
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
a. 800 cc
b. 1000 cc
c. 1200 cc or more
a. Satisfied
b. Not - Satisfied
c. Neutral
How much are you willing to pay for 1000 cc. Cars?
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
Gender
60
50
%age
40
30
20
10
0
Male Female
Gender Type
Income
70
60
50
40
%age
30
20
10
0
Below 50000 Above 50000
Income group
Age Group
45
40
35
30
25
%age
20
15
10
5
0
18-25 25-40 40-60 Above 60
Age Grouping
Do you use Nissan Cars?
100
90
80
%age
70
60
50
40
30
20
10
0
Yes No
60
50
40
%age
30
20
10
0
25
20
15
10
5
0
Toyota
Suzuki Nissan Other
Do you prefer Public transport to
Private Cars?
80
70
60
50
%age
40
30
20
10
0
Yes No
40
30
20
10
0
Yes No
50
40
%age
30
20
10
0
Price Safety Comfort Design Other
What power of car do you prefer?
60
50
40
%age
30
20
10
0
800 cc 1000 cc 1200 cc or more
70
60
50
40
%age
30
20
10
0
Non-Metallic Metallic
50
40
%age
30
20
10
0
Satisfied Not-Satisfied Neutral
How much are you willing to pay for
1000 cc Car?
90
80
70
60
50
%age
40
30
20
10
0
3,00,000 - 4,50,000 4,50,000 or more
15
10
5
0
Toyota Suzuki Nissan Local Other
Companies
25
20
15
10
5
0
TV ad Magazine Word of Billboards Other
Mouth
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
60
50
40
30
20
10
0
percentage population
Table 1.1
Age Limit Percentage Population
0-14 years 41%
15-64 years 55%
65 and above 4%
BUDGET
Table 1.2
Table 1.3
Questionnaire Cost
Advertising Rs. 8
1 Bill Boards etc. Rs. 2 million
2 TV/ Cable Networks Rs. 3 million
3 News Paper, Magazines, Rs. 1 million
4 Displays & Roadshows etc. Rs. 2 million
Table 1.4.2
Promos Rs. 2
1 Hand outs etc. Rs. 500,000
2 Prize Contest Rs.
Table 1.4.3
Sponsorships Rs. 2
1 Sponsor ship of concerts Rs. 1 million
2 Sponsorship of social Rs. 1 million