Strategic planning & management essay on: Nissan Leaf (Electric Segment)
Introduction:
Nissan Motor is a Japanese company which deals in the manufacturing of automobiles. Nissan has been referred to as one of the largest manufacturers of hybrid cars all across the globe. The approximate sale for the company has been recorded as 3.7 million passenger cars in 190 countries. The enterprise is engaged in the manufacturing as well as sales of the automobiles, passenger cars along with the supply of the automobiles parts. Nissan makes its presence in the following countries i.e. New Zealand, Europe, China, Africa and North America.
In order to prepare the marketing plan for the Nissan Leaf (Electric Segment) the following marketing tools shall be implemented. Firstly, the market trend analysis shall be done which would help to understand the market for the electric cars such as Nissan Leaf. Once the market analysis has been done, the 4 P’s of marketing i.e. Price, Place, Product & Promotion shall be kept in mind so as to see what strategies shall be implemented to increase the overall sales of the electric cars. The SWOT Analysis for Nissan Leaf will help to focus upon the internal strengths, weaknesses and stress upon the opportunities and the potential threats.
Market Trend Analysis: Majority of the electric car manufacturers have plans to introduce a three plug in electric vehicles in Australia in the coming years. With the change in consumer preferences the market for electric vehicles has increased. It has been forecasted that, by 2030 quarter of cars will be on roads in Australia. Though, the customers are not persuaded with the benefits of electric vehicles (EV), but this has not stopped the big manufacturers to stop manufacturing the EV’s. The demand of customers for electric vehicles (EV) have increased therefore some of the big manufacturers such as Renault Nissan, Mitsubishi have announced an increase in the levels of production by 50% – 60%. Based upon the market trend analysis for the Australian electric vehicles (EV), it has been said that the scope of the market, size of the market, electric vehicle’s sales capacity, issues & trends shall be kept in mind by the manufacturers so as to practice better policy making. The market analysis for Australia states that, EV will consume approximately 6TWh annually.
Marketing Mix: The 4P’s of marketing mix which shall be taken into consideration have been discussed as follows:
Þ Product: The name of the car which is to be marketed in Australia is Nissan Leaf. While promoting this product in the Australian market, the focus shall be on three things such as safety, eco friendly & comfort to the population. Focusing on these three parameters will provide Nissan leaf competitive advantage as compared to its competitors. The product shall emphasize upon the eco friendly aspects with a blend of improvised technology. The consumers shall be made understood that; there is no need to change the driving habits. Discussion regarding the price of the car shall be left to the dealers whereas Nissan shall focus upon the quality as well as the practicality of the car. This will provide Nissan Leaf a sustainable competitive advantage as compared to its direct or in-direct competitors. It will also provide Nissan Leaf the opportunity to expand the sales by replacing the fuel driven car by an electric car.
Þ Promotion: In order to promote electric cars such as Nissan Leaf in Australia intensive distribution strategies shall be used. It has been reported that, TV spots are an effective medium for performing promotional activities. But, at the same time television is not the best method to narrow down the selected markets. In order to promote the electric cars such as Nissan leaf in Australia we need to physically active the various people such as the cyclists, runners, gym goers, people looking for fuel alternative vehicles for their kids, buying family vehicles, etc. In order to promote the same, PR connections can be made with the help of the various social media mediums such as internet, social networking sites, blogs, youtube, etc. The print media shall be used in order to promote electric cars (EV) in the Australian market. The main focus of print advertisement will be to emphasize on the eco friendly aspect of the electric cars (EV). Various advertising agencies shall be hired to improve the perception of the consumers regarding the electric vehicles (EV). The most effective strategy shall be formulated in order to implement the best positioning strategy in the Australian market. In Australia spring is the season when more cars are manufactured in sold amongst the population. Therefore, advertising electric vehicles (EV) in the spring season will be an apt marketing strategy for the same.
Þ Price: Price would be referred to as one of the major barriers in case of Nissan leaf. It has been reported that, most of the people would not prefer to buy an electric car as it is quite an expensive deal. Therefore, the prices charged shall be in such a manner which would prove the technology used as well as address the needs of the customers. It shall be kept in mind by the automakers that some of the key issues shall be taken into consideration which would help the electric cars segment to move successfully in the Australian market. The prices charged by Nissan Leaf shall be less or at par with the prices charged by it direct or indirect competitors. The prices shall be such which provide value to the quality of product delivered to the customers. The organization shall set the prices keeping in mind some of the aspects such as advanced technology, advanced interiors, safety measures, exteriors and level of performance provided by the same.
Þ Place (Distribution): The distribution strategy which shall be focused by Nissan leaf would be both direct & indirect methods. The direct method of distribution would take into consideration that, Nissan shall have more number of showrooms amongst the Australian markets. It would be recommended to Nissan that more number of showrooms shall be opened at those places where better control over distribution can be made. Use of in-direct channels shall be used in places where there are no dealers for the same. In those areas use of the authorized dealers shall be used to sell the cars. The use of both direct as well as indirect distribution strategies will help to increase the levels of sales in Australian market.
SWOT Analysis: The SWOT Analysis of Nissan is as follows:-
| StrengthsÞ Financial Position: One of the major strengths for Nissan Leaf is the global financial position. The financial position of the enterprise can be calculated on the basis of 3 key areas i.e. liquidity, profitability & solvency.Þ Global Brand: Based upon the various surveys conducted by Business houses, Nissan Leaf has been referred to as one of the leading global brands.
Þ Brand strength provides Nissan Leaf competitive advantage as compared to its direct or indirect competitors. Þ Alliance with Renault: The alliance with Renault has provided Nissan Leaf with greater advantages. After collaboration of Nissan with Renault has helped to widen its scope of operation. Þ The alliance with Renault has helped Nissan Leaf to boost its profitability, sales as well as market capitalization. |
WeaknessesÞ Time lag in product innovation: Nissan has launched two products in comparison to the 14 products launched last year. This company has been referred to as late comer with regards to innovation of the product.Þ No diesel technology: One of the major weaknesses for Nissan Leaf (electric segment) would be the lack of diesel technology used. Diesel technology has been regarded as one of the upcoming technologies which help to reduce the fuel consumption & reduce the levels of emissions in to the atmosphere.
Þ It has been regarded that, spending huge amount of money in developing a hybrid segment car will not be a good option. Þ A survey conducted by various researchers states that buying hybrid vehicles have declined in the recent years. Therefore, investing such amounts in manufacturing hybrid vehicles would be wastage of money as no one will be willing to buy the same. |
| OpportunitiesÞ One o f the major opportunities for Nissan Leaf are to concentrate upon various countries & widen its scope of operations.Þ In order to expand its operations, Nissan Leaf shall focus upon the Asian markets.
Þ The conglomerate with Renault, Renault Nissan Purchasing Organization (RNPO) has been established. This has been referred to as one of the major opportunities for Nissan Leaf to create an efficient organization which can achieve high levels of purchasing power. |
ThreatsÞ One of the major barriers or threats which are attached along Nissan Leaf is in regards to the price attached to it.Þ The rise in the prices of the commodity can be referred to as one of the major threats for electric segment cars.
Þ High levels of competition in the electric car segment will add as a future threat for Nissan Leaf. Þ With stagnant sales number, the overall automobile industry has been significantly affected. Due to market saturation, the product development strategy demands high levels of innovation. Þ Approximately two third of the Australian population reported that, it would be quite an expensive deal to buy an electric vehicle. Þ Cross cultural aspects can be referred to as one of the major barriers in case of Nissan Renault. |
Goal Setting: The goals of Nissan Leaf (electric segment) would be to increase the awareness of electric cars to 100% of the consumers in order to notify that the technology has improved. The second goal set by the enterprise would be to make 100% of the urban areas sustainable for the electric vehicles. Lastly, their aim is to double the sales by the end of the year.
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