Entry of Nissan in India

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 Nissan Motor Company Ltd. is a Japanese car manufacturer.

It was
established on December 26, 1933. It is the second largest
automobile manufacturing company of Japan, popularly known as
"Nissan". Nissan Motors are of the opinion that India has a huge
market potential and that the economy is growing at a
tremendous rate. They believe that India is a market of
opportunities and growth. They are of the opinion that their
investment in India will help in the growth of the company. They
are also planning to open manufacturing units in India.They
believe that India is strategically very important for them. And the
company's future growth is a lot dependent on the outcome of
their investment in India. They have immense expectation from
the Indian market. They have bigger plans in the future for India.
And setting up manufacturing units and initial investment is just
the starting point of the bigger picture.Nissan Motors India Pvt Ltd.
is the Indian division of Nissan Motors. They deal with all the
aspects of automobile manufacture. That would include import
(presently, later it might be manufacturing), spare parts, sales,
after sales, marketing, distribution etc.
Nissan Motors India has car dealerships outlets in places like Delhi,
Mumbai, Bangalore, Secunderabad and Chennai. Nissan Motors
India has started their operations in India with the launch of new
X-Trail. This particular model is very popular throughout the world.
They have been very successful throughout. Moreover Nissan has
been able to complete its revival plan according to its planning
and timing. Infact, they had actually completed their project a
year ahead. This makes it even easier for them to concentrate
better on the India market and work accordingly.
The new X-Trail has been launched in two different variants in
HISTORY OF NISSAN
 Nissan started its operations in India in 2005, with the
launch of the Nissan X-Trail SUV, which was imported fully-
built.[1]
 In 2007, the company launched the Nissan Teana sedan.

 Along with Nissan's global alliance partner, Renault, NMIPL


is setting up a manufacturing facility in Chennai to
manufacture 200,000 cars per annum.[1] The facility with
an investment of US$ 920 million will manufacture the 
Nissan Micra for the European market, besides various
other models for the Indian market.[2]

 NMIPL sells the Nissan X-Trail and the Nissan Teana in India,


both of which are currently imported fully-built.
NISSAN TEANA
 In INDIA automobile industry is growing at a rapid pace. The demand for
cars in INDIA 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 TATA 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
Automobile Industry
Overview
 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.
Automobile Industry Overview of
INDIA
 In INDIA automobile industry is growing at a rapid
pace. There have been huge demand for cars in
INDIA over time but in the last few years due to
improvement in economy of INDIA this demand
has increased tremendously. Total number of
automobiles in use today in INDIA is 25 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, TATA, Honda, FORD, Hyundai.
 The government is also supporting the investors
to invest in INDIA this has attracted more
producers of cars to come in INDIA and grasp
Nissan: History
 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
Nissan’s Vision
 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
Nissan’s Mission
 “Nissan provides unique and
innovative automotive products and
services that deliver superior
measurable values to all
stakeholders”
Nissan next: Marketing

Environment
Micro Environment
 . 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
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.
 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 TATA and Suzuki which have substantial
market share.
 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.
 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.
Macro Environment
 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.
 Population
 Population of INDIA 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
 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.
 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.
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 :
 1 year parts and service warranty.
 Integrated Tracking System.
 Highly attractive design.
 CNG installed in car for user convenience
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.
Distribution – Wide Spread or
Not?
 Distributionof “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.
SWOT Analysis

 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.
. 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.
 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.
THREATS
 Followingare 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.
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 INDIA 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 .
 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.
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.

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