Kamis, 08 Oktober 2009

GRAND LIVINA MARKETING MIX

INTRODUCTION

Customers demand variety, but variety often means extra costs because separate platforms had to be developed, which is not cheap. Company has to answer this challenge with maximize the use of platform.

The waiting ended sometime in 2004, Nissan began to develop new products specifically for the “general markets”. This included China, a giant market with much promise and ASEAN. Toyota had already announced its “multi–purpose vehicle” (MPV) project which was intended to provide appropriate products for developing markets around the world and the MPV models were conceived to be cheaper to produce.

Coming in later may have been disadvantageous in one way but it also allowed Nissan to see what Toyota was doing and how well its MPV strategy worked and certainly it has been quite a success. For Nissan then, the challenge was to come up with a global product that would meet the needs of the same markets that Toyota’s MPV project targeted but unlike Toyota, which is very rich, Nissan could not afford to develop an entirely new platform and had to make ue of common platforms. Nevertheless, the product development cost was said to be around US$ 120 Million.

The choice was the B – platform which was already used for some Nissan and Renault models and could be adapted for MPV, the body style deemed suitable for a large number of markets. The product plan called for the new model to be produced entirely outside Japan, something which has not been the case in the past where there has usually been a ‘mother plant’ in Japan. Because of this approach, it also took a bit longer than usual because extra and more significant investments were needed in other countries and the right ones needed to be selected as production hubs for the model even thought the engineering and design work was all done in Japan.

China was the first country in the world to get the new model called Livina Geniss (also called “Jun Yi”) when it was launched on November, 2006. After China Nissan had looked at ASEAN and saw the biggest MPV market in this area was Indonesia so it was the best place to make the model for the region and pumped in money to refurbish its own plant in West Java to produce the first right hand drive variant of the model.

After years of seeming neglect, Nissan is aiming to regain its share in the ASEAN region, and one of the targeted segments is the “multi–purpose vehicle” (MPV) space dominated by Toyota. In Grand Livina, Nissan now has the weapon to take the fight to the Innova and Avanza.

In Indonesia market, Grand Livina is creating the awareness and re–branding of Nissan Indonesia in market’s mind after so long people only recognize Nissan products are “expensive product” such as Terrano, X-trail and Serena. This awareness and re–branding is planed since 2002. Since that period, Nissan Indonesia was built dealer and service spot in many big cities in Sumatra, Java, Bali, Kalimantan and Sulawesi.

The size of the Grand Livina is closer to that of an Avanza than the Innova, but the Nissan sits lower. There’s still 185mm of ground clearance which is important in many Asian markets because of floods and bad roads. The sills and seat height have been thoughtfully positioned so that the hit point is at a more comfortable level for people to slide in, rather than climb in.

Grand Livina is special designed by Nissan Technical Center, Atsugi for ASEAN customers live style and need. They need family car which high of flexibility, functional and comfortable.


COMPANY PROFILE

When Renault formed its alliance with Nissan on March, 2004 and basically rescued the Japanese carmaker from becoming history, the priority in the initial years was to quickly fix the product lines since products are crucial to success. During the 1990’s, Nissan’s product lines had stagnated and customers wandered away, causing a sales decline which only compounded its massive financial problems. Because the recovery was such a massive task, priority was given to the markets which would be able to provide quick returns and these were the USA and Europe and of course, the domestic line-up also needed to be quickly updated.

Other smaller markets like the rest of Asia just had to wait till the big markets were stabilized and Nissan was in a better financial position. This is why it seemed like Nissan was not doing anything for this region (In terms of new products) and did not even announce any plans to make use of the benefits of the ASEAN Free Trade Area (AFTA).

In 2006, the global sales amount to 5.9 million vehicles and represent 9% of the worldwide market. The Renault-Nissan Alliance ranks among the world's leading four automakers. It includes five brands: Nissan and Infiniti for the Nissan group and Renault, Dacia and Samsung for the Renault group.


The Alliance develops and implements a strategy of profitable growth and sets itself the following three objectives:

  • To be recognized by customers as being among the best three automotive groups in the quality and value of its products and services in each region and market segment.
  • To be among the best three automotive groups in key technologies, each partner being a leader in specific domains of excellence.
  • To consistently generate a total operating profit among the top three automotive groups in the world, by maintaining a high operating profit margin and pursuing growth.


On the strength of the numerous synergies generated by the Alliance over the past seven years and the performance of both companies, Renault and Nissan assert their ambitions for the future.



Nissan Motor Co., Ltd.

As per Mach, 2007 the corporate data of Nissan Motor Co., Ltd are :
Company Name
NISSAN MOTOR CO., Ltd
Headquarters
17-1, Ginza 6-chome, Chuo-ku, Tokyo 104-8023 JapanTEL.03-3543-5523
Registered Head Office
2, Takara-cho, Kanagawa-ku, Yokohama-shi, Kanagawa 220-8623 Japan
Date of Establishment
December 26, 1933
Business Outline
Manufacturing, sales and related business of automotive products, industrial machinery and marine equipment.
Paid-in Capital
605,813 million yen
Stock Information
Number of authorized shares : 6,000,000,000
Common stock : 4,520,715,112
Number of share holder : 198,340
Number of Employees
32,746 (non-consolidated basis)*186,336 (consolidated basis)**


Note :
The company was jointly established on December 26, 1933, as Jidosha Seizo Co.,Ltd. (president: Yoshisuke Aikawa), by Nihon Sangyo Co., and Tobata Imono Co., to manufacture and sell Datsun cars and parts. On June 1, 1934, Nihon Sangyo (Nissan) became the company’s sole owner and changed the company name to Nissan Motor Co., Ltd.
1. * Includes 257 non–permanent workers.
2. ** Includes 20,607 non–permanent workers.
For the details please see the appendices 01.


PRODUCT


A Product is physical thing that can be made in a factory and then shipped out through a channel of distribution to a customer’s home.
A product offer has three characteristics. Those are Physical, Function and Symbolic.


Physical
The physical element is the tangible part of the offer. It can be seen, felt, transported. The majority of our purchases are product offers that have a physical present.
From the grand Livina’s exterior size, you would not imagine that three rows of seats can be installed but the Nissan designers managed it in a fairly roomy – for its class – cabin although the ceiling is low for a MPV. The third row seat is set at a reasonable height off the floor though like other MPVs in this class, it can do with extra height.


Presently for the Indonesia market, the Grand Livina has petrol engines from two different Nissan power plant families mated to either five or six-speed manuals or four – speed automatic transmotion. The smaller engine is a 1.5 – litre HR15DE while the larger one is a 1.8 – litre MR18DE (which also gets a 6 – speed manual transmissions). Both engine families are quite new and were jointly developed by Nissan and Renault.


The chassis is quite straightforward with independent Mac Pherson struts in front and a simple H – shaped torsion beam axle with stabilizer at the rear. As complete technical details were not available, it is uncertain if the suspension has the ‘ripple control’ feature in the rear dampers and a rebound spring, which is found in some of the B – platform models. It’s the same layout as what you’d find under some Nissan and Renault models introduced in the past few years.


Function
Function is what product offer does for us. It could be accuracy, Clarity, Operations or the size.
With shared technologies, the 4 – cylinder engines have claims of class – leading torque levels and lightness as well as 30% less friction than earlier Nissan engines in the same class. An interesting feature of these engines is the length of the four intake manifold branches which were acoustically – tuned for a pleasant engine sound. The sound pressure also rises as the engine speed increases to enhance the sensation of acceleration.


Both engines are DOHC, 16 – valve designs and have Continuous Valve Timing Control (CVTC) on the inlet valves to broaden the powerband and outputs are as follow:
HR 15DE : 109ps/6000rpm, 148.2 Nm/4400rpm
MR 18DE : 128ps/5200rpm, 175.7 Nm/4800rpm
The suspension is good enough for the loads that are expected for the Grand Livina. The chassis frame handles load well but explained that the Grand Livina was developed with comfort in mind and a monocoque chassis is better in that respect.


In spite of the floor being 185 mm off the ground, the sills and seat heights have been thoughtfully positioned so that the hip point is at a more comfortable level for most people to slide in rather than climb in.


It is not a complaint, though and for those who make a change from the passenger car to the Grand Livina, it would be welcomed as they would have a similar driving position. The 1,5 litre engine provided adequate performance as the vehicle is lighter than Avanza, it also run smoother too, but it might not match the low rev torque response of the Toyota engine. The 1,8 litre felt very lively and had a very nice exhaust note as well.
For the specific feature of the Grand Livina, please see appendices 02


Symbolic
The symbolic or psychological or emotional values of a product offer are usually the deciding factor.
As mention before, that for so long people recognize Nissan as en “Expensive Car” only affordable for particular segmentation. Even though by using Grand Livina, Nissan has plan to re-positioning and creating new awareness of Nissan in the mind of the market.

PRICE


Price is the money or other consideration for which a thing is bought or sold.
Thus price determines what actually changes hands between the buyer and seller.
Since launched on April 2007 up to August 2007 the sales quantity of Grand Livina was 1,413 units. Grand Livina is MPV car with the price around IDR to IDR Which the actual deman is not as much as the lower class such Kijang, Rush, Avanza with the price around IDR 100 – 150 Million.


For the detail Price, please see the price list of Grand Livina as per December, 2007 in appendices 03.


Value
Value according to Worsam is defined as the intangible package of benefits that the decision – making unit believes attached to the product offer.
Strategy.


PROMOTION MIX


The 4 tools in the promotions mix are all tools of communication. Each operates in its own way to achieve its own objectives. The 4 tools are always used in combination.


The promotions mix is defined as the set of promotional tools that are used to communicate with customers and consumers.
Here are the 4 tools of promotional mix:


Public Relations
The British Institute of Public Relations defines PR as the planned and sustained effort to establish and maintain goodwill and mutual understanding between an organization and its publics. In the simple word public relation is about reputation; the result of what you do, what you say and what others say about you.


As Indonesia was the first market in ASEAN to get the Grand Livina which is also built here, Nissan Asia – Pacifics invited members of the media from Malaysia and the Philippines to drive the Grand Livina in Bali prior to the launch last month. The test – drive route covered a distance of about 200km over varying surfaces and conditions.


Advertising
Advertising is also a non – personal form of communication. It works through media to its target audiences. Advertising uses paid – for space and so, within limits, a marketer can specify how an advert should appear.
According to Kotler advertising is defined as any paid for non – personal presentation and promotion of ideas, goods or services by an identified person.


To create the awareness people about Nissan Grand Livina, this product advertised them self by using above the line such as magazine (Marketing magazine, Business Week magazine, Tempo, etc), several programs and channels in the Television channel, Newspaper, Tabloid and Radio.
The bellow the line advertising which Nissan used to advertise the Grand Livina is billboard in the strategy place.


Sales Promotion
Sales promotion (SP) is the third non – personal tool. It works close to the individual customers, but there is no personal contact between people.
According to Kotler sales promotion is defined as giving short – term incentives to encourage purchase or sale of a product offer.
PT. Nissan Indonesia gives free or bonus V – cool sunscreen for the Grand Livina which you bought before certain period.

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