Case Study - Nissan Prolonged success for auto manufacturers is likely to come f

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Case Study - Nissan Prolonged success for auto manufacturers is likely to come from their ability to sell cars in rapidly developing countries like Russia, Brazil, India, and Indonesia. However, selling cars in these emerging markets can be complicated, especially for foreign companies. Nissan is one company that has struggled to expand into emerging markets: its overall share of auto sales is 6%, but its share in Brazil is just 1.2%. With the goal of increasing its global reach, Nissan announced it would revive the Datsun brand name, and develop six new vehicles specifically designed for emerging markets growing middle classes. The company aimed to produce modern, stylish cars that appeal to consumers visually, and more importantly, fit into their budgets In bringing back the Datsun brand, Nissan in effect created a distinctive identity for the unique set of cars that comprised its new global venture. The emerging middle class wants cars, but it can't afford to spend $15,000 to $20,000 on a family sedan. Thus, automobile companies like Nissan need to create small, extremely affordable cars; to do so, they must often take a bare bones approach. That means no air conditioning, no passenger air bags, and no power windows. While Datsun will provide entry into the market, the Nissan brand will continue to be sold as upscale, feature-rich cars. Per Ammar Master, an analyst at LMC Automotive in Bangkok, "Datsun could bring in volumes at the lower end of the market...While the Nissan brand will continue to move upmarket." Dawson, C. (2012, October 02). For Datsun revival, Nissan gambles on $3000 model Fox News Auto. Retrieved from http://www.foxnews.com/auto/2012/10/02/for datsun-revival-nissan-gambles-on-3000-model.html Siddharth, P., Mukai, A., & Hagiwara, Y. (2012, March 21). Nissan revives Datsun after three decades to boost sales. NewsmaxFinance. Retrieved from newsmax.com/Finance/ mpani issan-Datsun-sa id/4 ars Winter, C. (2012, March 21). Behind the birth, death, and rebirth of Datsun, Bloomberg Businessweek. Retrieved from www.businessweek.com/articles/2012- in eath-and-re-birth-of-dat

Explanation / Answer

EXTERNAL ENVIRONMENTAL FACTORS:

(A) The micro environment consists of the factors that directly impact the operation of a company.
(B) The macro environment consists of general factors that a business typically has no control over. The success of the company depends on its ability to adapt.

MICRO ENVIRONMENTAL FACTOR:small forces within the company that affect its ability to serve its customers.

There are five factors that affect the micro environment: suppliers, customers, marketing intermediaries, financiers, and public perceptions.

MACRO ENVIRONMENTAL FACTORS:these are the larger societal forces that affect the microenvironment.

There are six factors that affect the macro environment, and these include economic, socio cultural, political, legal, technical, and environmental considerations.

one product: nissan objective is to manufacture a car that a common man can afford. so they will focus on that one product.

one message: the products will be visually appealing and modern. the message should be clear.

pdoduct invention:This needs a totally new idea to fit the exclusive conditions of the market. This is very much a strategy which could be ideal in a Third World situation. The development costs may be high, but the advantages are also very high.

product adaptation: The product is adapted to fit usage conditions but the communication stays the same. The assumption is that the product will serve the same function in foreign markets under different usage conditions.

nissan adapted the product invention decision when it developed six new datsun models for emering market for middle class people.they decided to bring in a whole new product which would need a lot of investment but the future result will be profitable.

(c) (i) the term used here is loss leaders.

A loss leader is a product or service at a price that is not profitable but is sold or offered in order to attract new customers or to sell additional products and services to those customers.it is a form of price discrimination because products are sold on different prices that are not their actual price.

(ii) nissan might choose this approach because they want to attract the customers by lowering their prices. this way they want to expand their business circle.

(iii) this would be successful only if nissan introduce this kind of offer after short interval of time. this would keep the customers attached with nissan.

(iii)

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