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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..................................................... .............3

1.0. Automobile Industry Overview .......................................6

1.1. Global Industry for Automobile .....................................................................6

1.2. Automobile Industry Overview of Pakistan ..................................................7

2.0. Nissan: History............................................................ ...7

2.1. Introduction ..................................................................................................7

2.2. Nissan’s Vision .............................................................................................8

2.3. Nissan’s Mission ...........................................................................................9

3.0. Nissan next: Marketing Environment...............................9

3.1. Micro Environment........................................................................................9

3.1.1. Consumers..............................................................................................9

3.1.2. Competitors............................................................................................9

3.1.3. Intermediaries.........................................................................................9

3.1.4. Publics...................................................................................................10

3.2. Macro Environment.....................................................................................10

3.2.1. Demographic Environment...................................................................10

3.2.1.1. Education........................................................................................10

3.2.1.2. Population......................................................................................10

3.2.2 Economic Environment..........................................................................10

3.2.3. Technological Environment...................................................................11

4.0. Nissan next: Product Evaluation....................................12

4.1. Core, Actual and Augmented Product..........................................................12


4.2. Consumer or Industrial Product?.................................................................12

4.3. Convenience, Shopping, Special or Unsought Product................................12

4.4. Product Uses and Consumer Acceptance....................................................13

4.5. Distribution – Wide Spread or Not?..............................................................13

4.6. SWOT Analysis............................................................................................13

4.6.1. Strengths...............................................................................................13

4.6.2. Weaknesses..........................................................................................13

4.6.3. Opportunities........................................................................................14

4.6.4. Threats..................................................................................................14

5.0 Consumer Evaluation................................ .....................14

5.1 Type of Purchase Decision ...........................................................................14

5.2 Consumption – consumer response..............................................................14

5.3 Quality, Comfort & Safety............................................................................15

5.4 Customer Awareness and Brand Switching..................................................15

5.5 Brand Prospects -- Location and Influence ..................................................15

6.0 Competitor Analysis......................................................17

6.1 Pricing..........................................................................................................17

6.2 Promotion.....................................................................................................17

6.3 Distribution...................................................................................................17

6.4 Future Competitors and Replacement Products...........................................17

7.0 Marketing Objectives...................................... ...............19

Goals and Objectives..........................................................................................19

8.0 Marketing Strategies............................. ........................20

8.1 Target Market...............................................................................................20

8.2 Nissan next Target Market: Geographic Segment........................................20

8.3 Nissan next Target Market: Psychographics.................................................20


8.4 Nissan next Target Market: Demographics...................................................20

9.0 Marketing Mix Strategies........................... ....................22

9.1 Product Strategies........................................................................................22

9.1.1 Packaging...............................................................................................22

9.1.2 Labeling.................................................................................................23

9.1.3 Product Line...........................................................................................24

9.2 Pricing Strategies.........................................................................................24

9.3 Distribution Strategies.................................................................................24

9.4 Promotion Strategies....................................................................................25

9.4.1 Environment Research...........................................................................25

9.4.2 Advertising.............................................................................................26

9.5 Positioning Strategy.....................................................................................26

9.6 Action Plan...................................................................................................26

10.0 Evaluation, Monitoring and Control...............................28

11.0 Budget............................................................. ...........29

11.1 Market Analysis Cost..................................................................................29

11.2 Questionnaire Cost.....................................................................................29

11.3 Advertising and promotional cost...............................................................30

11.3.1 Advertising cost...................................................................................30

11.3.2 Promos Cost.........................................................................................30

11.2.3 Sponsorships........................................................................................30

12.0 Bibliography......................................................... .......31

Car Dealers Survey Summary....................................... ........33

KBC.....................................................................................................................33

MUST CARS.........................................................................................................33

CAR MAX............................................................................................................33
Consumer Questionnaire.....................................................34

QUESTIONNAIRE ANALYSIS.................................................................................38

Analysis Summary..............................................................................................43

Budget.................................................... ...........................46

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
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.

2.0. 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.

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

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.

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

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.

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 2 weeks Marketing


and magazines in all A class areas of major department
cities and magazine.
Heavy advertising on TV, newspapers and 4 weeks Marketing
magazines department
Sponsor a highly prestigious chain of events 3 weeks Marketing
or concerts. department,

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.

• 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 ………………..
QUESTIONNAIRE ANALYSIS

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

Are you satisfied with Nissan cars?


70

60

50

40
%age

30

20

10
0

Very satisfied Satisfied Neutral

Which Car brand do you prefer?


45
40
35
30
%age

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

Are you satisfied with safety of cars


already in Market?
80
70
60
50
%age

40
30
20
10
0

Yes No

What is your major preference when


buying cars?
60

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

What type of color you prefer?

70
60
50
40
%age

30
20
10
0
Non-Metallic Metallic

How satisfied are you with prices of


cars in market?
60

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

If any one of the company launches


a car whichone you will prefer?
35
30
25
20
%age

15
10
5
0
Toyota Suzuki Nissan Local Other
Companies

What influences your buying


decision?
45
40
35
30
%age

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

0-14 years 15-64 years 65 and above

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

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.

Grand Total: 1300,000


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
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

Grand Total Rs. 12