BMT6116

MARKETING MANAGEMENT- PROGRAMS AND

NISSAN
PROFESSOR- Dr. UMA PRACHILDA J

SUBMITTED BY: S.VIGNESH

 INTRODUCTION

 CURRENT SITUATION OF NISSAN

 SWOT ANALYSIS OF NISSAN

 COMPANY BACKGROUND

 GROWTH RATE OF NISSAN

 MARKET POTENTIAL

 MARKETING GOALS

 4P’s OF NISSAN

 MARKETING BUDGET OF NISSAN

 SALES AND REVENUE OF NISSAN

 MONITOR AND CONTROL THR PLAN

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 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.
CURRENT SITUATION OF NISSAN
Japan's No. 2 car maker, which had seen its profits plummet to a decadal low,
announced a further 98.5 per cent plunge in profit to 1.6 billion yen ($14.80 million)
in the first quarter of the current fiscal.
Nissan Motor's announcement on Thursday regarding slashing over 12,500 jobs
globally over the next few years till FY 2020 will affect India too. It will be reducing
the headcount in the country by over 1,700. This development comes in the wake of
sluggish sales, rising costs, the scandal surrounding ousted Chairman Carlos Ghosn
as well as steeply eroding profits. Japan's No. 2 car maker, which had seen its profits
plummet to a decadal low, announced a further 98.5 per cent plunge in profit to 1.6
billion yen ($14.80 million) in the first quarter of the current fiscal.
SWOT ANALYIS OF NISSAN
STRENGTH
Brand equity:
Brand equity in the automobile industry is an important strength and a sign of
business stability. To form strong brand equity, companies invest in technology,
customer experience as well as marketing and building trustful and strong
relationships with the stakeholders. Brand image matters more than ever in the
automobile industry because of growing competition as well as regulatory pressures
and consumer interest in a company’s reputation. Nissan has maintained strong brand
equity overall which is a result of its consistent focus upon technological innovation,
customer experience and investment in employees, community as well as other
stakeholders. Except for a decline in market share in the United States, Nissan did not
experience any major decline in net revenue in fiscal 2018 as compared to 2017. This
is a result of strong brand equity and continuous investment in product quality.
TECHNOLOGICAL INNOVATION:
Technological innovation is the key to faster growth in the automobile industry. The
growth of digital technology, AI and changing lifestyles of customers around the
world also necessitate higher investment in research and development. Research and
development expenses of the company climbed to 495.8 Billion Yen in 2017
compared to 490.4 billion Yen in 2016 (Nissan Annual Report). The company has
established seven research centers around the world. Three of these research centers
are in Japan and rest in U.S.A., Russia and India. One of the core focuses in terms of
research and development at Nissan is electrification. The focus of Nissan Intelligent
mobility is to create solutions that make driving more exciting, connected and safer.    
 WEAKNESS
PRODUCT RECALLS:
Auto brands all over the world are dealing with a high number of laws and
regulations related to product quality and passenger safety. Laws are particularly
stringent in the U.S. and some other Western nations. Even a minor glitch can
become a cause of investigation and can lead to losses worth millions. Over the past
3-4 years, Nissan was also forced to make a large number of recalls. According to the
Kelly Blue Book, the company recalled around 3 million vehicles in 2016 over airbag
issues. The recalled models included 2016-2017 Maxima, 2013-2016 Altima, NV200,
Leaf, Sentra and Pathfinder, 2014-2016 NV200 Taxi, 2014-2017 Rogue, 2015-2016
Murano and Murano Hybrid, and 2014-2015 Pathfinder Hybrid vehicles.
MANAGEMENT ISSUES:
Following the arrest of Carolos Ghosn over a financial scandal, the problems of
Nissan have deepened. It has brought a large number of problems with it including an
internal investigation and reformation of the companies weak corporate governance
structure. Before his arrest in relation to the sea dal, Carlos Ghosn was hailed as a
hero in Japan. Nissan was at the brink of bankruptcy in 1999 and carlos Ghosn turn
the company around. However, recently, he was arrested for financial misconduct
and also removed from his position of the chairman. Chances of Nissan’s alliance
with Renault faltering grew after the arrest of Ghosn. The arrest also brought to light
several problems with Nissan’s board and its governance structure. While the
company has taken several important steps to overcome the situation, it still has a
long way to go in terms of corporate governance best practices. Nissan has
acknowledged that the crisis has hit it financially.
 OPPURTUNITIES

1. Increasing government regulations

Many governments around the world are committed to reducing the greenhouse gas
emissions and are encouraging fuel efficiency initiatives. Such environmental
initiatives may increase production costs for the car manufacturers and these costs
will be either passed to price sensitive consumers or will decrease the company’s
profits. Nissan may take advantage of this by introducing more car models running
only on electricity and bypassing all the government regulations associated with the
greenhouse gas emissions.

2. Improving U.S. economy

Signs of an improving economy and rising consumer confidence have been reflected
in the strongest increase in new vehicle sales for more than a decade in the U.S.
market. 17.5 million new units were sold in 2015, a 5.7% increase over 2014. Interest
rates in the U.S. have been low for several years and are forecast to remain that way
for the foreseeable future. In such economic conditions, Nissan has an opportunity to
capture the higher market share and increase its sales in the U.S. automotive market.

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.
 COMPANY BACKGROUND
On June 1, 1934, the Tokyo-based Jidosha-Seizo Kabushiki-Kaisha
(Automobile Manufacturing Co., Ltd. in English) takes on a new name:
Nissan Motor Company. Jidosha-Seizo Kabushiki-Kaisha had been
established in December 1933. The company’s new name, adopted in June
1934, was an abbreviation for Nippon Sangyo, a “zaibatsu”(or holding
company) belonging to Tobata’s founder, Yoshisuke Aikawa. Nissan
produced its first Datsun (a descendant of the Dat Car, a small, boxy
passenger vehicle designed by Japanese automotive pioneer Masujiro
Hashimoto that was first produced in 1914) at its Yokohama plant in April
1935. The company began exporting cars to Australia that same year.
Beginning in 1938 and lasting throughout World War II , Nissan converted
entirely from producing small passenger cars to producing trucks and military
vehicles. Allied occupation forces seized much of Nissan’s production
operations in 1945 and didn’t return full control to Nissan until a decade
later. In 1960, Nissan became the first Japanese automaker to win the
Deming Prize for engineering excellence. New Datsun models like the
Bluebird (1959), the Cedric (1960) and the Sunny (1966) helped spur Nissan
sales in Japan and abroad, and the company experienced phenomenal growth
over the course of the 1960s.The energy crises of the next decade fueled the
rise in exports of affordable, fuel-efficient Japanese-made cars: The third-
generation Sunny got the highest score on the U.S. Environmental Protection
Agency’s tests of fuel economy in 1973. Success in the United States and
other markets allowed Nissan to expand its foreign operations, which now
include manufacturing and assembly plants in as many as 17 countries around
the world. Today, Nissan–which dropped the Datsun name in the mid-1980s–
is one of Japan's largest car manufacturers.
 GROWTH RATE OF AMAZON

Nissan Motor annual/quarterly revenue history and growth rate from 2006 to 2019.
Revenue can be defined as the amount of money a company receives from its
customers in exchange for the sales of goods or services. Revenue is the top line item
on an income statement from which all costs and expenses are subtracted to arrive at
net income.

 Nissan Motor revenue for the quarter ending December 31, 2019
was $23.039B, a 15.01% decline year-over-year.
 Nissan Motor revenue for the twelve months ending December 31, 2019
was $95.816B, a 11.72% decline year-over-year.
 Nissan Motor annual revenue for 2019 was $104.168B, a 3.15% decline from
2018.
 Nissan Motor annual revenue for 2018 was $107.561B, a 1.32% decline from
2017.
 Nissan Motor annual revenue for 2017 was $108.996B, a 7.73% increase from
2016.

MARKET POTENTIAL
 MARKETING GOALS
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.

4P’s OF NISSAN
PRODUCT:
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.
PRICE:
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.

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.

Nissan showrooms are availabe in all metro-politan cities of Inida .

MONITOR AND CONROL PLAN:

 Cost forcast

 Execute the updated management plan

 Schedule forecas

FINANCIAL HIGHLIGHTS:
MARKETING BUDGET OF NISSAN

REVENUE OF NISSAN: