Nissan NPD Process Analysis - Report Example

Creativity work 2 Table of Contents Introduction 3 2. Introducing the Team and Their Structures 3 3. Case Study 4 3.2. Benchmarking 5 4 Analysis of Brand Performance and Structure 6 4.2 Improvements Based on the Feedback 11 4.3 Comparison analysis with Nissan team performance and structure 11 5.Analysis of the New Product development 12 A.Fiat NPD Process 12 B.Nissan NPD process 13 C.Comparative Analysis of the NPD process 14 D.Benchmarking Creativity 15 6.Strategies 15 7.Conclusion 16 8.References 17 9.Bibliography 19 1. Introduction The objective of this paper is to evaluate factors that impose major influences on the creativity trends within an organization. Accordingly, emphasis has been laid on the identification of different barriers and synthesizing techniques those can be utilized to ensure creative and sustainable development in the organization in the process of New Product Development (NPD). With this objective, this coursework emphasizes the case scenario of Nissan Motor Manufacturing UK Limited, one of the largest automobile companies in the UK. Correspondingly, to gain a better understanding of the process and its various dimensions, a comparative analysis with Fiat 500L has been conducted, emphasizing the mission, vision, company profile, benchmarking and subsequently on the applied NPD process by both these organisations. 2. Introducing the Team and Their Structures Our group consists of four people with defined roles in the Research & Development (R&D) and marketing department, which focuses on the way innovative products are developed and delivered to the customers facilitated by effective marketing strategies. It mainly consists of vertical, structural and operational dimensions of the organization. The group, with the help of advance technologies, such as Computer Aided Design (CAD), has been serving the organization, having an active role in its overall NPD process. 3. Case Study The case taken into consideration in this study emphasises the NPD process adopted by Nissan in it product management dimension. The case principally illustrated three brands developed and promoted by Nissan, i.e. Micra, Primera and Almera, elaborating on the procedural framework followed by the organisation to accomplish its goal associated with the NPD process. Due significance has also been provided in the case study, to the technology processes as well as administrative and operational mechanics as integrated in the NPD process followed by Nissan (Business Case Studies, 2014). 3.1. Selecting Nissan as a Case Study Mission & Vision A. Mission: Nissan’s mission apparently reflects its aim to provide innovative and unique products to the customers on a consistent basis and thereby increase the profit margin for the stakeholders through sustainable market growth (Nissan, 2014). Correspondingly, it can be asserted that NPD has strong influence on the mission of the organisation, wherein its effectiveness is almost entirely depended on its product strategies. B. Vision: Nissan strives with a vision to suffice individual needs, tastes and preferences through customised designing and innovative technology, as integrated in its NPD process (Nissan, 2014). 3.2. Benchmarking Segment: Market segmentation plays a crucial role in ensuring successful implementation of the NPD process, as it helps the organization to understand the requirements of the target customers and develop the product accordingly to suffice the identified customer needs (Tynan & Drayton, 1987). Correspondingly, Nissan can be observed to have segmented the market by introducing new models, integrating a variety of technology systems and innovative measures. For instance, as can be observed in the case referred, Nissan’s three key brands, Micra, Primera and Almira, has been emphasising the demographics of Sunderland. In Europe, it is considered as one of the most productive car plants to have captured the market in over the past seven years (Business Case Studies, 2014). When comparing the same with that of Fiat, it can be observed that the company has also been highly focused on appropriately segmenting the market when introducing a new model FIAT 500L Pop. However, the emphasis of Fiat remained on the comfort of its customers rather than on advanced technology integration to promote its product in the targeted market. Correspondingly, based on the segmentation tactics used by both Nissan and Fiat, the benchmarks of these organisations can be identified in terms of technology advancements and comfortability of the product respectively. Positioning: Nissan has been able to manage its product development strategies in a differentiated manner, from that used by its competitors, which has further facilitated its efficiency in positioning the model (On the Mark, 2005). To be mentioned in this regard, the introduction of the new model within the market has assisted the company in obtaining advantages in terms of Unique Selling Proposition (USP), which in turn indicates its efficiency in product positioning (Business Case Studies, 2014). Fiat, on the other hand, has successfully differentiated its products from that of its customers. This differentiation strategy in its positioning has in turn awarded the company a prominent place in the market. Correspondingly, when considering the benchmarking strategies of the two companies during the positioning of their products, it can be observed that both the companies follow the mechanism of investigating, identifying and sufficing the key demands of their targeted customers with highest possible efficiency. Targeting: Targeting is considered as one of the most important elements of marketing mix that can in turn ensure organisational efficiency in capturing a larger proportion of the market share (George & et. al, 1997). In its NPD process, Nissan has managed to target the key group of consumers, for the kind of specifications designed and integrated in the three car models of Micra, Primera and Almira. Notably, the company, in the process of developing the product development strategies, initially emphasise studying the behavioural pattern of the different customers in the European market to ensure accuracy in its targeting strategies (Business Case Studies, 2014). In the similar context, Fiat can also be observed as focused on the buying behaviour of the customers within the automobile industry when introducing its 500L in the market. Studying both these cases, it can be asserted that studying the consumer behaviour trends with accuracy holds considerable significance in ensuring success in the targeting mechanism of NPD process. 4.1 Analysis of Brand Performance and Structure A. Company and Product Profile: Through continuous efforts, Nissan has attained the position of one of the most lucrative and prominent brands in the automobile industry. Its strategic alliance with Renault, the French automaker has further helped the company to obtain great benefits in the recent years. In order to achieve these set targets, Nissan has planned to increase its brand value based on the benchmarks of developing efficient, hybrid and alternative sources of energy in alignment with its vision and mission to serve with continuously developing technology standards in its product development process (Nissan Motor Company, 2003). Company profile: Nissan is an automobile manufacturer, with its plants located in almost 20 different countries. It offers various products and services in almost 160 different countries. Undoubtedly, such wide network has offered the company with a better hold to larger proportion of market share in the global marketplace. The company is mainly involved in trading and distribution of commercial automobiles, product related to marines and other accessories (Nissan Motor Company, 2013). Product differentiation of Nissan Interior All new models are equipped with sliding and folding seats and provide great comfort to the customers (Nissan Motor Company, 2013) Nissan has managed to provide the customers with coloured dashboards, which are both optional and customized, signifying flexibility in the product development strategies of the company that further helps it to meet the needs of the customers (Nissan Motor Company, 2013) The new models of Nissan is designed with sufficient space to offer the customers with fatigue free comfort in long drives, which in turn suffices the visionary aim of the company to provide great experience to its customers (Nissan Motor Company, 2013) Exterior The large front window within the new car models of Micra, Primera and Almera helps to drive the car conveniently, add into customer preferences The company has provided to customers with a wide range of colours and patterns in the aforesaid new models, with the desire to meet the demand of the customers worldwide (Nissan Motor Company, 2013). The diameter of 14”- 15” is usually followed in the car models to enhance balance features of the car, wherein its tire aspect ratio (%) ranges from 65-70, varying on the basis of the size of the car (Nissan Motor Company, 2013) Feature and Technology: The autonomous system within the Nissan car models has made the car eligible to integrate automatic driving as well as parking technology systems, further adding to customer convenience (Nissan Motor Co., Ltd, 2006)The sound system provided inside the car offers the customers with superior experiences as well (Nissan Motor Co., Ltd, 2006)Nissan has upgraded its system and has come up with a touch screen technology within the car that has been a key driver to the differentiation strategies adopted by the company when focusing on its NPD process Nissan are also equipped with voice recognition software and GPS to assist customers with an advanced navigation system (Nissan Motor Co., Ltd, 2006) Safety: Considering the safety of the customers as crucial, Nissan cars are designed with high quality airbags following multiple experiments to mitigate the possible chances of even minute defects in the safety mechanics of the models (Nissan Motor Company, 2013) The recent models of the Nissan has also managed to earn the top rating in the automobile industry in terms of its safety features Market Price of Nissan models Nissan Primera: £1500 - £2,350 Nissan Micra: £2000 - £25,595 Nissan Almera: £1000 - £2000 Demographic and Target Consumer Nissan targets a variety of customers on the basis of their income range. For instance, as can be observed from the above section, wherein its Almera and Primera brands target the middle-income groups, its Micra brand is mainly introduced in the market for high-income group customers. The efforts of the engineer, accountant and the marketer have made it possible to launch new cars in production to meet the growing demand of the customers. Another dimension of its targeting strategies with concern to its NPD process can be identified in terms of its significance delivered to segmenting customers on the basis of their age groups. Notably, the company mainly targets consumers who are within the age group of 25-70 years. From a broader understanding, it can be observed that this particular category comprises the existing largest proportion of the population, considered as the key potential market segment (Barnett, 2012). Production and Distribution of Nissan In its production and distribution processes, Nissan has been concentrated on attaining the vision and mission of the company by providing quality products to the consumers with consistent development in its NPD process. Correspondingly, through its Kaizen technology, the company is deliberated to prevent the issues associated with malfunctioning and other technical failures in its new products. This justifies that the company considers quality as a key factor to drive success in its NPD process. Another crucial element in the NPD process followed by Nissan can be identified in terms of its design review function, which is aimed to enhance quality and reduce the defects possible in the new design (Nissan Motor Corporation, n.d.). The Environment Environment factors also hold considerable importance in the NPD process of Nissan. Correspondingly, as per the observations made, one of the most important aspects that Nissan considers to attain in its long run performance is sustainability in the market through environmentally responsible mechanism. The company can be apparently observed to put much stress on reducing the level of CO2 emission in the environment, which in turn has imposed considerable effects on the designing process when developing new products (Business Case Studies, 2014). 4.2 Improvements Based on the Feedback Funnel trend mainly provides formation about the percentage sale of the car in a year. It can be clearly observed that Nissan has managed to increase its sales in a consistent manner over the past few years through its effective NPD process. However, based on a comparative analysis it can be observed that Fiat was able to secure only a smaller proportion increase in its sales, unlike Nissan. Accordingly, when considering the risk assessment mechanism of Nissan, it can be observed that the company has been targeted towards prospering in the market in a more sustainable manner, wherein its differentiation and diversification in a wide range of market segments have in turn facilitated its risk management efficiency. In addition, to better serve its customers, Nissan has also been focusing on extensive R&D activities and thereby, reduce risks associated towards the manufacturing of the car. Fiat, on the other hand, has been emphasising one particular market segment for its car models, in terms of age groups and income groups, increasing market risks for the company on a comparatively higher rate. Nevertheless, focused on research and a suitable process of NPD, it can be asserted that both these companies are brain storming to meet the demands of the customers, introducing new and advance products as suitable for their targeted markets. 4.3 Comparison analysis with Nissan team performance and structure By comparing the Nissan team and the Team of Fait, it can be observed that Nissan team members have managed to make the company attain a prominent place in the market following an aggressive mode of NPD process. On the contrary, although many key factors associated with the NPD process of Nissan is also identifiable in the context of Fiat, the underlying notion of the later can be identified as significantly different, wherein the latter emphasises adoption of a more lenient and defensive mechanism when developing new products. 5. Analysis of the New Product development A. Fiat NPD Process Macro and Micro Trend Fiat has focused on introducing new models on a consistent basis in the market. In order to meet its technology needs and promote continuous advancement in its product designing, Fiat has to import materials from other countries to its assembly line. However, Fiat has managed to reduce the cost in its distribution channel through proper cost management techniques to meet the demand of the consumers, without affecting their affordability. Key Drivers Comparing Nissan and Fiat Both Nissan and Fiat mainly takes into consideration that employee of the organization should prosper in reaching the goal of the organization. Proper safety measures have also been applied by the organisation to ensure an accident-free workplace. However, as observed from the above conducted research, Fiat can be observed as technologically in a more advanced position as compared to Fiat on the basis of their applied NPD processes. Target Consumer Demographics The two demographic criteria that Fiat has been focused on are the gender of the customers and the income range of the same to segment its most potential group of customers. Target Consumer Purchasing Behaviour The key target segment of Fiat has been recently reflecting attributes of being socially as well as environmentally aware, along with the characteristic of high purchase capacity, Fiat has been focused on developing its new products, in a costly manner although, but with effective integration of green technology. Trend Effect on Consumer’s Environment The trend pioneered by Fiat has created a string impression on the customer market of the industry. It has not only increased competition amid the players but has also leveraged customer demand for effective technology that satisfies their safety, comfort and communication needs, besides being environmentally responsible. Commercial Product Concepts To promote commercial product concept, Fiat has been emphasising its exterior and interior designing attractiveness. Even in its designing process, the company has been delivering greater significance to the commercial values of its vehicles through extensive R&D process to develop unique designing mechanism. B. Nissan NPD process The NPD process utilised by Nissan can be well understood by the help of 4’Cs model. In general, the 4’C framework includes Consumer, Cost, Convenience and Communication. Consumer: Nissan pays due attention towards understanding the behavioural traits of the consumer and their needs in the preliminary stage of its NPD process through market analysis. Nissan has accordingly managed customization in its product designing mechanism to meet the demand of the consumers in the current scenario (Business Case Studies, 2014). Cost: The cost feature of Nissan brands in accordance with the product design forms a distinguished combination to meet the demand of the customers and attain sustainability as integrated in its mission and vision statements of the company (Business Case Studies, 2014).. Convenience: Nissan has managed to deliver its product across the world to meet the demand of the customers worldwide in a convenient manner without being confined within a limited geographic region (Business Case Studies, 2014). Communication: Nissan has been highly focused on aggressive marketing wherein it has promoted the unique designing of its interior and exteriors in new car models. Correspondingly, the promotional tactics used by Nissan can also be observed as aligned with the market trends wherein technology features, safety concerns and attractive designing can be identified as key elements (Business Case Studies, 2014). C. Comparative Analysis of the NPD process Comparative analysis of the NPD processes followed by both Fiat and Nissan revealed that there are certain similarities as well as certain dissimilarities in the procedures followed by each of these organisations. For instance, both these organisations have been observed to follow extensive amount of research prior to design a new product to suffice the needs of the customers. In addition, both the organisations also have their market segmented on the basis of income-range, making consumer availability a vital element in their NPD process. On the contrary, while Nissan focuses on a wide networking strategy and provides major significance to age group segmentation of the customers, Fiat emphasises gender classification and a narrowed cost-effective mechanism of product designing. D. Benchmarking Creativity Nissan has introduced new models in the market with better creativity as compared to Fiat. Correspondingly, the former has been able to increase its brand value by providing quality products to its customers that too in a well-aligned manner to suffice their needs. It is in this context that Nissan has set a higher benchmark to serve the customer with high quality products as compared to Fiat. Nevertheless, Fiat, on the other hand, has provided its customers with products, which are reasonable in price and can be afforded by even lower income group individuals. Fiat has also managed to provide quality products to its customers across the globe. 6. Strategies Both Nissan and Fiat follow different strategies in their NPD process. Nissan mainly follows a different strategy to target the customer whereas Fiat, on the other hand, follow the strategy to provide cheap products to the customers as suitable according to the affordability of the customers. Nissan has certainly made every effort to reach its targeted customers following a rigorous product development process that can suffice the needs of both technology enhancement and safety. 7. Conclusion From the above analysis, it can be concluded that Nissan and Fiat follow different strategies in their NPD process. Where on one hand, Nissan has managed to get the attention of the individual worldwide by pioneering automobile engineering; Fiat has also promoted techniques to serve the lower income group people and thereby leveraging societal advancements. Again, Nissan has provided the customers with exclusive design to differentiate its product from others, while Fiat, on the other hand, due to inclusion of new models and better affordability has been able to rejuvenate its brand positioning in the global market in a more sustainable manner. However, to be concluded, it can be asserted that both the NPD processes reveal certain key elements that should be considered as crucial in successful implementation of the same, such as environmental issues, market segmentation, consumer’s buying behaviour analysis and differentiated product designing. 8. References Barnett, M. 2012. Whats driving Nissan?. Analysis. [Online] Available at: http://www.marketingweek.co.uk/analysis/essential-reads/whats-driving-nissan/4003367.article [Accessed Jul 02, 2014]. Business Case Studies., 2014. Planning for quality and productivity. A Nissan Case Study. [Online] Available at: http://businesscasestudies.co.uk/nissan/planning-for-quality-and-productivity/introduction.html#axzz36IOcb8io [Accessed Jul 02, 2014]. George, P. & et. al, 1997. Targeting the Mature Market: Opportunities and Challenges. Journal of Consumer Marketing, Vol. 14, No. 4, pp. 282-293. Nissan Motor Corporation., 2011. Nissan LEAF Wins Car Of The Year Japan 2011-2012. 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