Nissan Tsunami Re-launch Campaign - Business Plan Example

The Mid-Range Hybrid Electric Family Car the ‘Nissan Tsunami’ Is To Be Re-Launched Due To Poor Sales. Design a Marketing Communications Plan for the Re-Launch and First Six Months of the New Campaign Table of Contents Introduction 3 Discussion 3 Situation Analysis 4 Objective 12 Specific Chosen Variables 13 Targets 14 Tools 15 Strategies 17 Communication Plan 18 Mind Map Diagram 20 References 21 Bibliography 24 Introduction Nissan Motor Co., Ltd., also acknowledged as Nissan, is one of the biggest automakers throughout the globe (A&E Television Networks, LLC, 1934). It is worth mentioning that during the year 1960, the company received a title of being the first Japanese automobile manufacturer to won the ‘Deming Prize’ in terms of its excellence in the area of automobile engineering. Despite of having a global brand image, this automobile giant faced certain issues related to the launch of its mid-range electric hybrid car named the ‘Nissan Tsunami’ in terms of certain mechanical faults that persisted within this vehicle, which further resulted in its poor sales and thus planning to re-launch it again in the business markets (A&E Television Networks, LLC, 1934). With this concern, the report intends to design a sensible communications plan for Nissan based on the SOSTT structure. Moreover, the use of various sorts of effective marketing communication tools that would contribute towards the success of this newly formulated communication strategy will also be discussed in the report. Discussion In order to create a sensible communications plan for Nissan, the SOSTT model or structure has been explained in a detailed manner in the following. Situation Analysis This element of the SOSTT structure will comprise certain details relating to Nissan that include product description, turnover rates, profit rates, product distribution channels, product life cycle (PLC), competition levels, product positioning and external environmental influence. Moreover, apart from the above aspects, a brief idea would also be gained about geographic, demographic and seasonal factors or considerations. These have been described in detail hereunder. Product Description The company launched the ‘Nissan Tsunami’ as a mid-range hybrid electric family car. The car is of ‘five-door hatchback’ model and is mainly designed for city transportation purpose (Gauch, 2014). Adding to this, the car is also kept on receiving periodic software and hardware up gradations with the intention of improvising the driving experience of the customers. Moreover, the car is also loaded with latest technological advancements encompassing ‘ keyless central locking’, ‘Bluetooth’, ‘USB ports’, ‘climate control’, ‘touchscreen control panel’, ‘satellite navigation features’, ‘rear view camera with parking sensors’ and ‘battery meter’(Gauch, 2014). In terms of engine specifications, the car is equipped with a high powered ‘lithium-ion battery’ and thus provides the customers with a top speed of 90 miles/ hour. The company claims the car to be providing a travel range of about 124 miles after which it needs to be recharged again (Gauch, 2014). The starting price of this automobile variant starts from about $51,500. The car provides the customers with three different driving modes namely the ‘normal mode’, the ‘ECO mode’ and the ‘B mode’ for ultimate driving experience (Gauch, 2014). Turnover Rates and Profit Rates The company launched its ‘Nissan Tsunami’ electric hybrid model with a starting price of $51,500. However, the company witnessed a dip in the sales figure of this car due to lower customer interest in terms of electric hybrid models, which further led a revenue earning loss of about 10%. Thus, in recent times, the company has brainstormed in terms of slashing down the model’s price by 6 % in order to give this car an economy vehicle look. Through this effort, the company is intending towards stimulating the market in terms of boosting up sales through a re-launch process (News.com.au, 2013). The re-launch campaign of ‘Nissan Tsunami’ in this current context will be supported by an effective marketing communication plan for which the company would invest an amount of about US$87, 680. The company is also expecting a hike in the car sales figures by 2% every month in context to this 6 month marketing communication campaign. The current year turnover rate and profit rate through the improvement in the sales figure is expected to increase by 4.5% and 4.1% respectively as per the predictions made by the company (News Limited, 2014). Product Distribution Channels As previously mentioned, Nissan faced certain issues in terms of declining sales in its electric hybrid car model. One identified reason, which is expected to cause this sort of decline is the distribution channels that selected by the company (Scribd Inc., 2014). Previously, the company remained focussed towards the utilisation of direct distribution channels (Scribd Inc., 2014). Moreover, ineffective advertisement styles that used by this company for promoting this car further worsened the situation. By taking into concern these sort of loopholes, the company is focussing towards utilising both direct and indirect distribution channels in order to increase the accessibility of this car at large (Scribd Inc., 2014). In major cities, wherein the number of Nissans’ outlets is more, the company might focus towards direct distribution. Moreover, in smaller areas, if the company feels to make limited access of the car, then it might take the help of authorised dealers. Through these efforts, the company is aiming towards making this car available to more and more targeted customers, which will gradually help in boosting up the sales figures (Scribd Inc., 2014). Product Life Cycle In terms of product life cycle (PLC), the car model i.e. ‘Nissan Tsunami’, can be predicted to be existing in between the youth and the maturity stage of the PLC curve. Previously, due to the decline in sales figure, the curve of the growth stage remained straight. The predicted reasons might be due to the limited awareness of sustainability concept car amid the customers. Moreover, the limited accessibility of this car to the customers also laid down significant impact in terms of declining the sales figures to a major extent (Komninos & et. al., n.d.). However, with the current re-launching campaign along with effective marketing communication plan, Nissan is expecting a rise in the PLC curve in context to increase in sales figures. By reducing the price of the Tsunami model and contracting with more and more domestic along with international authorised car dealers, the company might recover its declined sales condition in this changing business market scenario and altering preferences of the customers (Komninos & et. al., n.d.). Competition Levels In this current scenario, Nissan is expecting to face high level of competition as multiple electric car substitutes are already present within the market and are priced at economic slab rates. Moreover, since majority of the international markets are currently in recovering stage after overcoming from the recent economic turmoil, there lay the chances of higher competitive threat levels. Specially mentioning, in order to boost up economies and encourage foreign income, the governments of multiple nations are providing relaxations on tax levels and subsidies where they are finding these necessary (United Nations New York, 2013). This might provide a chance for various automobile manufacturers to entire into the global market and compete for attaining an international position. In this context, it is expected that Nissan Tsunami will be facing competition with multiple other electric hybrid concepts such as BMS I3 and I8 concept cars (U.S. News Rankings & Reviews, n.d.). It is worth mentioning that with the rising fuel prices and the increasing need for hybrid cars, Nissan will be facing tough competition in terms of pricing since other competitors already exist in the business markets offering the similar standard products at much cheaper rates. Thus taking all these competitive factors into concern it is necessary that the marketing communications plan must be effective enough to bring this brand and the ‘Tsunami’ model on top of every other competitor (U.S. News Rankings & Reviews, n.d.). Product Positioning Positioning the ‘Tsunami’ model would be the prime concern for Nissan after experiencing poor sales figure of the model. Positioning this model will significantly help the company in changing the mind-set of existing customers who do not prefer to buy this car model. Moreover, depending on the current economic condition, the company need to position this model as an economic family car (Los Angeles Times, 2010). Nissan must focus more on explaining the values that this model will be providing to the customers. Apart from this, the company should also display its current price reduction strategy for this model, which will subsequently help in improvising the aspects of brand positioning as well as product positioning. The company can also highlight the superiority of Japanese automobile technology as an additive factor in the product positioning process (Los Angeles Times, 2010). In term of positioning this electric hybrid car in the perceptual map, Nissan will be placing it in between low priced and high quality segment. PESTLE Analysis of Nissan PESTLE analysis will play a decisive role for Nissan in understanding the level by which the external factors will be contributing in terms of success and failure of this marketing communication campaign. Political Factor In terms of political analysis, it has been observed that the government of multiple nations except few are currently concerned about developing their economic stance for competing in the global market. Moreover, the rise and exhaustive nature of naturally obtained fuels are also raising concerns for the government. Thus, the company i.e. Nissan might expect flexibility in trade barrier levels that set up by the governments of respective nations where it operates (Naranlala School of Industrial Management and Computer Science, 2013). Economic Factor In the current business scenario, the economies of multiple nations seem to be undergoing through a recovery process after overcoming from the hits of the past economic crisis. Thus, the company can take this factor into concern in terms of making investments in international business markets. Moreover, as the company is also expecting for the scope of attaining significant subsidiary and tax reduction help from the governments of developing economies, this can be a success factor for the company to promote its ‘Nissan Tsunami’ model (Naranlala School of Industrial Management and Computer Science, 2013). Social Factor The hit from existing economic crisis has resulted in downsizing the living standards of inhabitants of multiple nations. Due to the decrease in the level of disposable income, customers in the current market scenario are focussing much towards purchasing economical products rather than tending towards niche high priced products. Thus, Nissan can also communicate its lower pricing strategy to the customers during the communication process (Naranlala School of Industrial Management and Computer Science, 2013). Technological Factor Projecting the technological advancement of this ‘Tsunami’ model should be the prime concern for this company. The company need to practise product diversification techniques in terms of explaining customer about how their promoted model is of higher quality and value in comparison with other competitive products that exist in the business markets (Naranlala School of Industrial Management and Computer Science, 2013). Legal Factor The company is mainly of capitalist origin and thus it will not be facing legal obligations in terms of setting up international production units or exporting its products to overseas nations. However, in case, if the company tends to opt for joint venture or alliance, then it might face certain legal issues on behalf of the respective governments (Naranlala School of Industrial Management and Computer Science, 2013). Environmental Factor By taking into concern the persistence of current environmental pollution levels, the governments of multiple nations are focusing towards zero emission alternatives in terms of automobiles. In this context, Nissan seems to be having a competitive advantage since its ‘Tsunami’ model being an electric hybrid car is expected to be of low emission type. Moreover, the rising prices of fuel are also forcing customers for shifting towards electric vehicles rather than combustion engine cars (Naranlala School of Industrial Management and Computer Science, 2013). Geographic or Seasonal Consideration The geographic or seasonal factor will affect the communications campaign and promotion of this ‘Nissan Tsunami’ model by a certain extent. The main reason behind this is that the ‘Tsunami’ model completely runs on electricity and is specifically designed for urban transports. Thus, it will not be capable enough to drive in mountainous areas or muddy tracks (Bronnenberg & Albuquerque, 2002). Objective What Is To Be Achieved? In terms of achievement, Nissan is currently looking forward to re-launch its ‘Nissan Tsunami’ car model. Through this re-launch, the company is planning to boost up the sales figures of this electric hybrid model in the current year after witnessing deterioration in sales figure of the car model. When? The previous year i.e. 2013 hit the company in terms of dipping sales figure of its ‘Nissan Tsunami’ electric hybrid model. Thus, Nissan is planning to re-launch this model with the incorporation of effective marketing communication and product promotion campaign in this current year i.e. 2014. Where? Keeping in mind the current global economic health and the rising environmental concerns, Nissan should focus on conducting communications and promotional campaigns for this model in those areas where the respective governments seem to be supportive and flexible enough in terms of encouraging such environmental friendly hybrid electric cars. Which Audience? As the target audience for this marketing communication campaign is concerned, Nissan needs to focus and design its advertisement modes for influencing economic middle segment customers. The target customers for this electric hybrid car are mostly the families who desire to minimise their fuel expenses and much environmentally concerned. Specific Chosen Variables Based on the above discussion, certain specific variables can be chosen and related to the said context. These variables include awareness, interest, trial and adoption. These have been discussed hereunder. Awareness In relation to the design an effective marketing communication plan, Nissan would require to raise the level of customer awareness for its ‘Nissan Tsunami’ hybrid mid-range family car model. For attaining this aspect, the company require conducting aggressive advertisement practises in order to bring this car into notice to numerous customers. The higher customer awareness level will definitely help in increasing the sales figures of this car at large. Interest Once the awareness of this car model spreads amid the huge figure of customers, the company would then require providing valuable information to the customers concerning the price and the benefits offered by this car. Trial Once the customers are satisfied that this car will be providing them with all the benefits which they expected from it, they will be definitely look forward to test drive the car in order to evaluate its real time performance levels. Here, the company need to work towards increasing the satisfaction level of the customers with the aim of making positive purchase decision from customers’ end. Adoption Based on the satisfaction level, which is expected to gain from the trial process, the customers will be making their final decision of whether to buy the car or not. The outcome of this step will completely depend on the level of customer satisfaction provided by the company in the above discussed ways. Targets Nissan would require to take into concern the following variables or factors that will be necessary for promoting the sales of its ‘Nissan Tsunami’ electric hybrid model. Age Though the age factor will not be playing much role in promoting the sales figure of this hybrid car, still the company might target the middle age and the older generations to a major extent in comparison with the younger generation ones (International Markets Bureau, 2012). Gender Gender difference will impose no effect on sales promotion as well as marketing communication process and thus the company may not need to pay much attention in this context. Socio Economic Group In terms of socio-economic group, since the company is planning of promoting this electric hybrid model as an economic family car, thus it needs to focus on the mid-range and high- income level customers who prefer much towards economic sustainability (Bellu & Pansini, n.d.). Psychographics In this context, Nissan would focus on complying with the requirements and the likings of the customers. In this similar context, the company would lay much focus on fulfilling customers’ needs regarding speed, performance, car size, car parking capabilities, efficiency, status factor and a combination of all these liking aspects (Sarli & Tat, 2011). Geographics In terms of promoting this hybrid model, Nissan should project this model as a urban cum plain rural transport vehicle since it completely runs on electricity and is not designed for travelling on hilly areas (Bronnenberg & Albuquerque, 2002). Tools Personal Selling Personal selling will not be considered in this marketing communication and promotion strategy since it will not be of any contribution in terms of boosting up sales figure of this car. Sales Promotion In term of promoting sales, the company will have to come up with a variety of tactics that would significantly help in increasing sales as well as customer interest. Such tactics that may be related to this context have been mentioned hereunder. Offering free servicing for time duration of one year Easy monthly instalment schemes at lower interest rates Free car insurance schemes Free accessories with every unit of car purchased Assured gifts with every purchase scheme Source: (Miller, 2000) Direct Advertisement In this context, direct advertisement seems to be the most effective promotional tool in terms of communicating the advertisement message to a mass population at a single time instance. Direct advertisement media includes advertisement over television, newspapers, billboards, magazine publishing and campaign drives (Asadollahi & Tanha, 2011). Digital Media Marketing Nissan should also pay significant importance for promoting this hybrid electric car model through online promotional techniques that include social media promotions, email intimations and online surveys among others (Infosys Limited, 2014). Public Relationship Communication and promotion of this hybrid car in context to public relationship includes allowing the customers to test drive the car model, which is being promoted to provide them a real life experience (Waters and et. al., 2009). Sponsorship and Exhibitions Promoting and exhibiting this hybrid car through sponsorship methods might prove to be effective for Nissan. This might include taking the help of public figure in terms of advertisements and sponsoring the car to be used in certain movies that would be effective in gaining customer interest. Apart from these, exhibiting the car for display along with test drives in auto car shows and conducting live news review about this car will also contribute towards boosting up sales of this model by a certain degree (Abiodun, 2011; Beier & Dambock, n.d.). Strategies Pull Aimed Directly At Consumer The pull marketing strategy has been in use in multiple car manufacturing industries since decades wherein the customers provide the company with specific information about their requirements. The car manufacturers after collecting all the data manufactures the car as per demanded by the clients. This strategy might also help Nissan in fulfilling the customer needs by directly collecting information from them and assembling this hybrid model as per their requests (Klug, n.d.) Push Aimed At Next in Distribution Chain (Intermediaries) Nissan might also look forwarded to push strategy but the success rate of pull strategy will be higher in comparison with push strategy. In terms of push strategy, Nissan might directly promote this hybrid model through television or other promotional media but in that context, the company will not be able to specifically know about the customers’ requirements. Thus, the company should completely leave the push marketing strategy to be carried out by the intermediaries that include the authorised dealers (Klug, n.d.) Profile (Public Perception of Organization/Stakeholders) Through the design of an effectual marketing communication program, Nissan require to make deliberate efforts toward understanding the alignment of the multiple features present within this hybrid car to that of the customers’ requirement. This will significantly help the company in determining the type of modifications that are to be made within this car model so that it can be easily adopted by the customers at large (Waters and et. al., 2009). Communication Plan Mind Map Diagram References Asadollahi, A. & Tanha, N., 2011. The Role of Television Advertising and Its Effects on Children. Interdisciplinary Journal of Research in Business, Vol. 1, Iss. 9, pp. 1-2. Abiodun, O. R., 2011. The Significance of Sponsorship as a Marketing Tool in Sport Events. Degree Thesis International Business, pp.8-11. A&E Television Networks, LLC, 1934. Nissan Motor Company Founded. Automotive. Bronnenberg, B. J. & Albuquerque, P., 2002. Abstract. Geography and Marketing Strategy in Consumer Packaged Goods, pp. 3-5. Beier, J. & Dambock, S., No Date. Description of Fairs, Expositions and Exhibitions. The Role of Exhibitions In The Marketing Mix, pp. 2-5. Gauch, O., 2014. Nissan LEAF Exterior and Interior. Nissan LEAF Review. [Online] Available at: http://www.motoring.co.uk/car-reviews/nissan-leaf-review_62097 [Accessed March 27, 2014]. Infosys Limited, 2014. Business Overview. Digital Marketing. Simplified, pp. 2-3. Komninos, I. & et. al., No Date. 4.1.2 Product Life Cycle. Product Life Cycle Management A Guide to New Product Development, pp. 73-75. Klug, F., No Date. Abstract. Synchronised Automotive Logistics: An Optimal Mix Of Pull And Push Principles In Automotive Supply Networks, pp. 187-190. Los Angeles Times, 2010. With Incentives, Californians May Pay As Little As $20,280 For The New Zero-Emissions Vehicle, Due In December. Nissan Leafs promise: An affordable electric. [Online] Available at: http://articles.latimes.com/2010/mar/30/business/la-fi-nissan-leaf31-2010mar31 [Accessed March 27, 2014]. Miller, R., 2000. Sales Promotion: Car Pricing Battles Boost Promotions - Competition In The Car Market Is Forcing A Rethink On Promotions. Rachel Miller Writes. Marketing. [Online] Available at: http://www.marketingmagazine.co.uk/article/67674/sales-promotion-car-pricing-battles-boost-promotions---competition-car-market-forcing-rethink-promotions-rachel-miller-writes [Accessed March 27, 2014]. News Limited, 2014. Nissan Wants Turnover from New Leaf. Business. [Online] Available at: http://www.news.com.au/finance/business/nissan-wants-turnover-from-new-leaf/story-fnda1bsz-1226634204131 [Accessed March 27, 2014]. Scribd Inc., 2014. Intermediaries. Nissan Marketing Plan. [Online] Available at: http://www.scribd.com/doc/19445142/Nissan-Marketing-Plan [Accessed March 27, 2014]. United Nations New York, 2013. Summary. World Economic Situation and Prospects 2013, pp. 3-4. U.S. News Rankings & Reviews, No Date. Compare Cars. Car Rankings: Hybrid Cars. [Online] Available at: http://usnews.rankingsandreviews.com/cars-trucks/rankings/Hybrid-Cars/ [Accessed March 27, 2014]. Waters, R.D. & et. al., 2009. Engaging Stakeholders through Social Networking: How Nonprofit Organizations Are Using Facebook. Public Relations Review, 102-105. Bibliography Bellu, L. G. & Pansini, R. V., No Date. A Methodological Introduction. A Methodological Introduction, pp. 1-4. International Markets Bureau, No Date. Global Consumer Trends Age Demographics. Market Analysis Report, pp. 2-5. Naranlala School of Industrial Management and Computer Science, 2013. “Pestel Analysis and Study of Various Sectors of Thailand”. A Global Country Study Report, pp. 2-10. Sarli, A. & Tat, H. H., 2011. Attracting Consumers by Finding out Their Psychographic Traits. International Journal of Fundamental Psychology & Social Science, pp.1-3. The American College of Financial Services, 2014. Overview of the Textbook. Target Marketing and Prospecting Method, pp. 1.1-1.5. Read More