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Mar 26, 2024

Assignment Task

Assignment details

Write and submit a 3 page Marketing Plan for the Nissan LEAF case study (see case study attached to assignment requirements).

In the Marketing Plan, ensure the following is covered:

  •  Analysis internal and external
  • Marketing Strategy objectives
  • Marketing Mix product, price, distribution and communication
  • Expected Results metrics relating to marketing strategy objectives

I have written the first parts of the assignment (see below). Please edit what I have written making the Marketing Plan better, add in communication under Marketing Mix and write expected results/ Metrics. If any of the content I have already written is incorrect change it. Use what I have already written as a guide.

Please note, no marketing budget requirement, please only cover the above.

Analysis:

Nissan’s hold on the German market (~1.5%) has room for growth compared to its benchmark in the European union (~4%). [1]  Although the end of the car-scrapping incentives across the union in 2010 led to a significant decrease (~25%) in new car sales in Germany from 2009 to 2010, Nissan outperformed the statistic with double the market sales than the previous year.

The German car market is attractive as it represents one of the highest per capita income and one of the highest car-owning markets in Europe. Government policy’s expected focus on environmentally friendly incentives is anticipated by most car makers (BMW, Opel, VW, Peugeot and even Tesla) who are developing/marketing their own electric/hybrid vehicles. The development of the Nissan LEAF represents a new opportunity to expand Nissan’s foothold in German market taking advantage of this new interest in electric vehicles.

A number of characteristics are necessary to consider in appropriately identifying the proper segmentation of a new to market vehicle like Germany’s Nissan Leaf launch. JD Power and associates has commonly divided potential customers into 6 groups based on their attitudes towards cars ranging from the more enthusiastic “Gearhead”, “Epicure”, and “Purist” groups to the less excitable “Functionalist”, “Road-Hater”, and “Negative” groups. Given the Nissan Leaf’s perception as a reliable, green, safe, and easy to use vehicle, the less enthusiastic “Functionalist”, “Road-Hater,” and “Negative” segments who collectively represent about 54% of the Germany market represent the most natural attitude segment to target not currently targeted by competing market leaders like those from Mercedes Benz, BMW, and Volkswagen.

Similarly, Nissan Germany’s Marketing director has in the past grouped potential buyers into 4 broad categories based on lifestyle ranging from more conservative “Sensible Classic” and “No-Nonsense Neutral” groups to more expressive “Attention Seekers” and “Freedom Lovers.” Given Nissan’s relatively small market share in Germany and the Leaf’s potential appeal amongst women, targeting the brand wary and 62?male “No-Nonsense Neutrals,” is a likely fit. The innovative “Attention Seekers” category provides another opportunity for Nissan to impress potential customers with the novel benefits of an electric vehicle. Combined, the “No-Nonsense Neutrals” and “Attention Seekers” constitute 57% of new car buyers.

As alluded to previously, gender segmentation is likely to play a critical role in the success of the Nissan Leaf campaign in Germany. Today in Germany, women influence over 80% of all automobile sales and represent the fastest growing segment of car buyers. The Leaf offers a vehicle built for shorter drive distances, a focus on safety, long term cost of ownership savings, and a cleaner means of operation vs. traditional gasoline-based competitors, all of which are particularly appealing to female drivers.

The Nissan LEAF is differentiated from other cars in the market by being similar in size to “Germany’s favorite car,” the VW Golf, having great city performance (speed and range) and low use and maintenance costs. 

Marketing Strategy:

Nissan to dominate the electric car market in Europe through Germany.

Financial Objectives

  • Sales: 2’000 units of the car in Germany in the first year of operation of Nissan Leaf. That additional sales represents approx +4% on sales compared to 2010 figures “Exhibit 1”.
  • Profits: Basis target 2 `000 units. Profit at 5.1% or Eur 2.9 mio*

Toyota Prius sale price of Eur 23,450 - including the rebate. Nissan Leaf cost Eur 28, 315 - including subsidy.  If Nissan Leaf’s is price 29,765 (+5.1%), total profits around Eur 2.9 mio where Eur 2.5 mio profit will cover the budget for marketing and extra Eur 0.4 mio pure benefit.

Non-Financial Objectives (Promotion to be up to 5% of budget - Eur 125k)

  • Brand Objectives: Positioning Nissan brand in a fast growing car segment. Brand loyalty and differentiation. Brand campaign in car magazines emphasizing Nissan YoY market share increase 2009/10, +10%,

Customer Objectives

  • Attracting New Customers: Extended warranty of 5 years. Promotion through the internet (major information source). Cost Eur 200k. OR TV ads - expensive, over budget
  • Keeping actual customers: Match the extended warranty of new cars to 5 years. After sales service and maintenance “free of charge” and offering preferential purchase price for Nissan Leaf. Eur 400k

Strategic Objectives

  • Target Positioning: Target market share 2% over the next 5 years. Considering a constant annual increment on cars sold of 1%, total number of Nissan Leaf to be sold in 5 years to be approximately 38 `000 units.

Product:

Leading: A fresh, forward-looking vehicle.

Environmentally Friendly: Helps you get where you need to go without burning fossil fuels to do so.

Affordable: Eliminate fuel costs at an accessible price.

Family car: Five seats for whoever or whatever you need to transport safely.

Vision/Tagline

The Nissan Leaf is a car you can share a future with.

At $0/gallon, this 5-seat sedan will get you where you want to your destination with a low impact on your wallet and the earth.

Category: Cost-, safety-, convenience-, and climate-conscious individuals who value function over form.

Advantages:

  • Early-to-market EV in a country that values well-built automobiles and sound policy.
  • Easy-to-use: simple to charge, low maintenance,
  • Convenient: charge at home; no trips to the gas station.
  • Reliable: world-class engineering, well-designed dashboard.
  • Affordable and cost-saving

Ideal buyer at-a-glance:

  • Women seeking safety and value
  • No-nonsense buyers who want to avoid dealerships and service stations
  • Eco-conscious individuals not looking to break the bank
  • Young, early-adopters interested in EV technology

Targeting Criteria:

  • Functionalist, Road-haters, and Negatives make up 54% of new car buyers (1.7M cars):
    • Functionalists are looking for sensible, fuel efficient transportation. The Nissan Leaf is exactly that.
    • Road-haters are most concerned about safety, and make up the highest share of women car buyers. They’re not car buffs who will care about horse-power or luxury features.
    • Negatives: These folks view cars as necessary evils and don’t want to spend time on maintenance and up keep.

Lifestyle & Behavior:

  • No-nonsense Neutrals and Freedom Lovers make up 39% of car buyers (1.2M cars)
    • No-nonsense Neutrals:
      • No brand loyalty to the traditional German cars (Mercedes, BMW, Volkswagen).
      • They will not be doing tons of research to find the best car for their needs, but can be influenced by ease-of-use, convenience, and TV ads.
      • A majority female segment.
    • Freedom Lovers:
      • Generally outgoing, social, and active, this group wants a car that can represent who they are.
      • They are bucking the trend of what it means to be a German car-buyer. They may not see the LEAF as a Japanese car; climate change is borderless!
      • They love the freedom of not having to stop for gas or oil changes. They can simply charge their car at home or seek out new charging stations wherever their travels take them. And they’d love to tell you about it!
      • Even male/female split.
    • Demographics:
      • Women:
        • Not only do they purchase more than 52% of all new vehicles (1.6M cars), they influence 80% of automobile sales
        • They’re also the fastest growing segment of new and used car buyers.
        • They tend to purchase lower-priced cars, looking for the right car to suit their needs rather than to impress their peers.
        • They are also more likely to finance their purchases, so compelling lease terms, rebates, and subsidies will attract this group.
        • Most women (68%) would rather do their research online than through car magazines. They will use the internet to do their homework rather than rely on car dealers; visiting a dealership only when they are ready for a test drive.
        • They value safety, dependability, and functionality; style is not high on their list.

Price:

Pricing - Nissan leaf uses high quality materials and state of the art technology and still offers competitive prices.

Price based on Trims - Various trims availability and price points are focussed to a wide range of customers based on their need and their budget.

Package Pricing - Nissan leaf will offer package pricing which includes extended warranty and free services for up to 4 years or 50k miles whichever comes first.

Leasing - Nissa leaf has the option to buy the car outright or we will provide a competitive leasing with 0.9 percent rate

Pre-order discounts - Customers who are early bird and does pre order will get additional 1,500 euros discount on top of all incentives

Nissan specials, exclusive for German customers - Nissan tied up with Local cuisine and gym. Customers buying or leasing the car will get free monthly once dining for 2 and 1 year gym membership. 

Trade in - Nissan guarantees the best offer for the trade in program where customers can trade in old car for new Nissan leaf

Limited time offer - Nissan is confident our customers who use the car will love the comfort, safety and convenience, so we are offering for next 1 year short term rental and Pay per use model where Customers can try and be confident before buying the our car

Distribution:

Nissan planning to use both push and pull strategies to create a robust marketing plan for Nissan leaf car sales

Car Trade shows - In order to attract main and secondary dealers Nissan planned to host trade shows across Germany to showcase the Nissan Leaf to potential retailers and distributors

Incentives to Dealers -  Nissan decided to offer 10% of the total sales price as an incentive for the highest trim and 7% for rest of them

Direct and email methods - Nissan decided to send brochures and information about new models, features and special offers using direct and email methods

Innovation in digital technology - Nissan understood the majority of customers start their car buying process through online and websites, having a well responsive online presence is needed. Nissan puts energy in scaling up the dealership websites and content with accurate pricing and enabling a way where happy customers leave positive reviews.

Advertising  - Nissan decided to use all popular channels such as television, radio, print mails and digital billboards to reach potential customers

Customer sentiment analysis - By understanding how much time the customer was on the website or calls and analyzing their behavior using technology, Nissan plans to target the customers with followup and offering discount coupons for oil change to visit the dealers location.

Test Drive incentives - Nissan plan to offer 75 euros for potential customers who are doing test drive, Nissan strongly believe customer who drives the car will buy the car

Other incentives -  Customers buying Luxury trim are offered various services like vehicle pickup and drop during any maintenance services. Dedicated customer service and access to the lounge. All customers regardless of packages or trim will receive loaner and complementary car wash.

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