1. Identify the trends and changes that are occurring in the market that impact your chosen product’s customers. Specifically, consider trends and changes in the areas of Technology, Regulatory, Economics, Demographics, and Socio-Cultural happenings in this marketplace.
Technological Forces: Trends: * Automation: Many individuals prefer cars with automatic features so that it eases them to drive. New features attract them and tend to buy such cars than other normal cars. * More number of companies are trying to be perfectionist in their own way as this car also provides a quiet drive as they do not have conventional fossil fuel engines. * New cars do not give warranties.
Changes: * More user friendly with 4.3 inch touch screen, charging and energy data read out, IPod connectivity etc. Besides people can stay connected to this car remotely through computers and mobile phones. * People spending less on repairs as these are streamlined and therefore contain less number of parts.
Regulatory Forces: Trends: * People in Canada are benefitted from fair price starting from $30,000 with high quality services. Therefore increased awareness as a smart green car which neither uses petrol nor diesel is an ethical business practice followed. * Nissan Leaf undergoes through rigorous technical tests for ensuring safety. Although, it has been awarded “Top Safety Pick” by Insurance Institute for Highway Safety (IIHS) which recognizes vehicle for excellent performance in four passenger safety tests. Changes:
* Many vehicles present a false interpretation of their product therefore all the claims has to be precise for Nissan Leaf in order to follow the code by Advertising Standards Canada to safety advertising to minor and children etc. Whereas, it has LATCH (Lower Anchors and Tethers for Children) system especially designed for the safety of child’s door locks.
Economic Trends: Trends: * People have other options for spending less money like buying used cars. * Looking at the macroeconomic forces, during recession period where unemployment levels rise and consumers had less money to spend could buy electric car with more features included.
Changes: * People who want to spend less and at the same time have a luxurious car can buy this according to the average disposable income. Consequently, the NISSAN LEAF provides affordable price with high quality.
Demographic Forces: Trends: * Age:- 25-34 years * Early adopters- mainly technology fanatics, starting a family, non-traditional families to be precise. * Corporate users * Busy people * Green thinking enthusiasts * Average Income: $40,000 to $50,000
Changes: * Accessible features with innovative and easy interface. * Selection of multiple languages so it becomes easier to understand and read. * Creating some features that can help easing corporate users to record their meetings and give them a reminder.
Socio Cultural Forces:
Trends: * Environmental Awareness: “Smart Green” car; no use of gas; fully electrical and global warming * Healthy and fitness conscious * More into social media: Facebook, twitter to make people completely aware of what this product consists. * Relate them to entertainment world and would love music ( IPod attachment plug) Changes:
* Can also introduce USB plug in and not only IPod plugin.
Trends: * NISSAN LEAF has many features which cannot be found in other cars of same price. * Customers do not want to waste time re-fueling their car again and again.
Changes: * Advertising the brand heavily can improve the usage of the product as well as improving long distance radius.
2). Review the competitive environment for your chosen product. Specifically, provide details on 3 direct competitors and 2 indirect competitors, focusing on comparing the 4 “P”s for your own product versus the competitor’s product.
Direct Competitors: 1) Ford Focus 2) Honda Insight 3) Toyota Prius C
MARKETING MIX| Marketing Mix| NISSAN LEAF| FORD FOCUS| HONDA INSIGHT| TOYOTA PRIUS C| Product| * All- electric, mid- sized hatchback that seats five adults. * 100 miles on a single charge with 90 kmph.| * Electric car with 5-door hatchback * Class- Compact * Range: 76mi (122km)| * Hybrid EV * Integrated Motor Assist system to operate dual propulsion system * Subcompact and compact car * 0-60mph in 10.3 seconds * Feature ECON/ Eco Assist to maximize fuel efficiency while driving.| * Fully hybrid; gasoline – electric subcompact hatchback * 134 net horsepower * ECTV- Electronically controlled variable transmission| Price| $30,000| $39,300| $18,500| $20,950|
Place| Authorized dealers and buyers can resell| Authorized dealers| Authorized dealers| Authorized dealers| Promotion| Social Media, Newspaper, Internet, Billboards, Car Magazines, Auto Shows and TV (Promotional Strategies- Zip cars, rental cars etc.) and “ECOtality” backing is an important public relations strategy so a lot of time and effort will be spent here.| Social Media, Newspaper, Internet, Billboards, Car Magazines and TV (Promotional Strategies- Zip cars, rental cars etc.)| Social Media, Newspaper, Internet, Billboards, Car Magazines and TV (Promotional Strategies- Zip cars, rental cars etc.)| Social Media, Newspaper, Internet, Billboards, Car Magazines and TV (Promotional Strategies- Zip cars, rental cars etc.)|
Indirect Competition: 1) Volkswagen Jetta 2) Volvo V60
Marketing Mix| Marketing Mix| NISSAN LEAF| VOLKSWAGEN JETTA| VOLVO V60| Product| Electric Hybrid| Diesel Hybrid- small family car; 4-door sedan with sport seats| Diesel Hybrid- 5-seat wagon| Price| $30,000| $27,590| $20,950|
Place| Authorized dealers| Authorized dealers| Authorized dealers| Promotion| Social Media, Newspaper, Internet, Billboards, Car Magazines, Auto Shows and TV (Promotional Strategies- Zip cars, rental cars etc.) and “ECOtality” backing is an important public relations strategy so a lot of time and effort will be spent here.| Social Media, Newspaper, Internet, magazines.| Social Media, Newspaper, Internet, Magazines.|
Nissan SWOT analysis 2013| Strengths| Weaknesses (Internal Factors)| 1. Strong financial performance 2. Strategic partnerships 3. Innovative culture 4. Growing brand reputation 5. No Engine Noise 6. 90 mph max speed 7. Cheap to own 8. Runs on electricity 9. Smart Features 10. Green| 1. Product recalls 2. Expensive 3. Range changing a lot depending on weather conditions 4. 100 mile range 5. Long charging time| |
Opportunities| Threats(External Factors)| 1. Growing global demand for environment friendly vehicles 2. Growth through acquisitions 3. Increasing fuel prices 4. Support from Government 5. Technology developing fast 6. People caring about environment 7. Cleaner Electricity | 1. Declining fuel prices 2. Global competition in automotive industry 3. Rising raw material prices 4. Natural disasters 5. Appreciating yen exchange rates 6. Competitors- indirect as well as direct as mentioned previously. 7. Lack of charging stations|
4). Identify at least 3 distinct market segments for your chosen product (For example, Boomers, Students, Families, Early Adopters, etc.). Briefly describe each, and how they currently interact with your product or service.
The three distinct target marketing segments: * Corporate Individuals * Early Adopters * Families Corporate Individuals: Under this segment, people who are busy working and have no sufficient time to waste on re-fueling their car. These corporate may lie between the ages of 25-34 years. They might be quick learners and are technology fanatics. They may also be green enthusiast at the same time.
Early Adopters: Under this segment, people who are trend setters and are more active on social sites can use this product. People who go accordingly set the trends and look beyond their status and average income. They love to live a lavish luxurious life with ease of benefits of the car.
Families: This 5-seater car is way good for families especially in Canada where the weather changes constantly and during cold weather the feature of seats getting warmed is applicable whereas dual airbag function for the safety of front seats and children at the back too.
To conclude, NISSAN LEAF makes it easier for people to travel across with the radius it provides. It can be easily driven into metro areas. Henceforth, it is certainly a best product for above mentioned fragments.
5). Choose a single target market from the 3 above to focus your marketing plan on. Develop a detailed Target Market. Your Target Profile can be submitted as a “Day in the Life”, a Collage, or any other format you deem appropriate that helps answer the question “Who is the primary market to purchase my product?”(ie: who is Most Likely to buy the most from me?)
The primary market to purchase would be families. The comfy seats with hatchbacks and also a lot of storage space at the back attract them. They can go out on a picnic without worrying about the gas price or filling in the gas. That’s how it becomes easier. Additionally, you can plug in your IPod to play music and huge touch screen to easy navigate through options available.
Create a Positioning Statement and Tagline for your product (refer to pg 134 for a description of a Positioning Statement and the elements that are included in one). MARKET POSITIONING MAP NISSAN LEAF
High (Price) Low (Battery Life)| Ford Focus Electric $39,300 (Miles Per Charge) 110Nissan Leaf SV $30,000 (Miles Per Charge) 106 High (Battery Life) | Toyota Prius C $20,950(Miles Per Charge) 53Honda Insight $18,500(Miles Per Charge)41| |
“ The Nissan Leaf is positioned in the electric vehicle market as a great value, yet very high safety rating and at the same time a reasonable amount of battery life; Perfect for those who do city driving; spending less on gas while helping save the world from pollution.”
NISSAN LEAF TAGLINE & SLOGANS It is apparent that the primary audience characteristic targeted is concern for the environment. The slogan, “innovation for the planet,” clearly depicts that Nissan Leaf aims to be environmental friendly and is for like-minded readers. The blue background, overflowing from the color of the car, is also a deliberate implication of nature, specifically the ocean. Continuing on the theme color, the change in the text color to put “the planet” in yellow implores the reader to think of the sun, another key symbol of the natural environment.
Conclusion: The promotional strategy of the Nissan LEAF is complicated as it covers many areas of concern (technological advancements, consumer faith, saving the environment and provide saving and provide saving on fuel for consumers). Because of this, a wide range, but consistent message is needed to both provide immediate awareness, long term sales and strong positioning.