The Marketing mix of Nissan analyses the 4Ps of Nissan, which includes the Product, Price, Place and Promotion of Nissan. Car manufacturing has a vast function, which further involves the attachment of several smaller functions, which are intricately integrated to form a significant production facility. This function is known for its accuracy as there is no margin for errors in its existence, and the company producing cars cannot take any chances with the outcome, as the yield is expected to be of topmost quality and have an exceptionally long life, enduring varied conditions in terms of operation or driving.
All the major car production companies have a long legacy backing their name and brand reputation, and this experience has supported these companies to grow manifold within all these years, becoming market leaders or significant shareholders on their own. One such name in car manufacturing is that of Japanese motor vehicle giant Nissan, which has a long car manufacturing and exporting history. It was established in 1914 when the name of DAT produced the first car, and the company’s original registration was Datsun, which continued till 1933 when it was first produced under the name of Nissan.
Currently, the company has a stronghold in many Asian countries, and after the 1999 pact with French giant Renault, its stature has risen in other parts of the world as well. Nissan and Renault are now collectively operating in many countries, y providing the same models of cars with different names, and Renault has significant voting stakes in Nissan. Nissan is the sixth largest car manufacturer in the world. In contrast, it is considered the most significant Japanese participant in some countries, such as China, Russia, and Mexico. It enjoys a substantial proportion of the market in several other nations. It provides the latest and off-the-hook models to its target audience of customers. It has been operating three major auto brands, Nissan, Datsun, and Infiniti, each with its niche and appeal.
- Type: The automobile manufacturer
- Industry: Automotive
- Founded: 1933
- Founder: Yoshisuke Aikawa
- Headquarters: Nishi-ku, Yokohama, Japan
- Area served: Worldwide
- Key people: Makoto Uchida ((Chairman) and Ashwani Gupta (CEO)
- Number of employees: 227,000
Following is the marketing Mix for Nissan:
Table of Contents
Nissan Product Strategy
Nissan offers a varied product range for its customers and appeals beyond categories and segments, which is very important for a firm that appeals to customers from across segments and has to function without market restrictions. Car industries worldwide have four segments in which the vehicles are categorized among these segments based on their features, but majorly according to pricing, which further appeals to customers accordingly.
Nissan has an advantage in that it offers cars across segments and categories and has a varied range of Hatchbacks and SUVs that appeal to different categories of customers, right from basic small car models (Micra and Go), sedan models (Sunny), luxury cars, and SUVs such as X-Trail. This strategy has helped Nissan to capture various markets and has provided it the advantage of having respectable proportions and market share. However, because of a lack of product depth, Nissan has never been among the top car manufacturers and has also lagged in the global market.
As of my last update in April 2023, Nissan’s product mix includes vehicles catering to various market segments.
The product mix of Nissan in 2023 is as follows (Source)
- Sedans: Nissan offers several models in the sedan category. Popular models include: Nissan Altima: A mid-size sedan known for its comfort and efficiency; Nissan Maxima: A full-size sedan with a more luxurious and sporty feel; Nissan Sentra: A compact sedan offering good fuel economy and a lower price point.
- SUVs and Crossovers: Nissan has a strong presence in this category with models like: Nissan Rogue: A compact crossover that’s one of Nissan’s bestsellers, known for its versatility and technology features; Nissan Murano: A mid-size crossover focusing on luxury and comfort; Nissan Pathfinder: A larger SUV with more seating and towing capacity suitable for families; Nissan Armada: A full-size SUV with significant power and towing capabilities.
- Trucks: Nissan’s truck line is more limited but includes: Nissan Frontier: A mid-size truck known for its durability and off-road capabilities; Nissan Titan: A full-size pickup truck with more power and towing capacity.
- Electric Vehicles (EVs): Nissan has been a pioneer in electric vehicles, with models like: Nissan Leaf: One of the world’s best-selling electric cars, known for its affordability and efficiency.
- Sports Cars: Nissan also offers performance-focused vehicles: Nissan GT-R: A high-performance sports car with exceptional speed and handling; Nissan 370Z: A sports coupe known for its classic design and engaging driving experience.
- Commercial Vehicles: Nissan also has a range of commercial vehicles, primarily popular in specific markets like Europe and Asia.
- Discontinued Models: Some models, such as passenger cars like the Nissan Juke, have been discontinued but are still relevant in the used car market.
- Future Models: Nissan is continuously evolving its lineup, focusing on more electric and hybrid vehicles and introducing new models and updates to existing ones.
- This overview is based on Nissan’s lineup as of early 2023, and the company might have introduced new models or discontinued existing ones since then.
Nissan Pricing Strategy
Depending upon its strategy of offering vehicles across segments and categories, the pricing function directly correlates with the product function. Nissan has been known to provide reasonable and logical prices for its cars. This is the reason for its widespread popularity and reliance. It has a varied price catalog, which further appeals to and attracts customers from all income groups. Also, in the car and auto industry, a significant aspect of consideration is the after-sales function and maintenance factor of a car, and Nissan has an advantage in this section as well because its spares are nominally priced, apart from rational service and maintenance charges across the company-owned workshop network.
Nissan’s pricing strategy is a sophisticated blend of market-oriented and competitive approaches designed to cater to services to a diverse customer base while maintaining a competitive edge in the global automotive market. Here are the key aspects of Nissan’s pricing strategy:
- Value-Based Pricing: At the core of Nissan’s pricing strategy is offering value for money. This approach involves setting prices based on the perceived value of their vehicles to customers, balancing quality, features, and price competitiveness. For example, the Nissan Leaf is priced to make electric vehicle technology accessible to a broader audience.
- Competitive Pricing: Nissan closely monitors the pricing strategies of its key competitors in different market segments, ensuring its pricing remains attractive and competitive. This is evident in highly competitive segments like mid-size sedans and compact SUVs, where Nissan models are priced comparably to their direct competitors.
- Market Penetration Pricing: Nissan often employs a market penetration pricing strategy in emerging markets. This marketing strategy involves setting lower initial prices to quickly gain a substantial market share, attract many buyers, and establish a strong foothold in the market.
- Price Skimming for New Innovations: Nissan sometimes adopts a price skimming approach for newly launched models or vehicles with innovative features. This involves setting higher initial prices for early adopters gradually lowering the prices as the market matures and competition increases.
- Segmented Pricing Strategy: Understanding the diversity of its customer base, Nissan employs a segmented pricing strategy. This means pricing is adjusted based on target market segments, geographies, and customer groups. For instance, luxury models like the Nissan GT-R are priced significantly higher, targeting a niche market segment.
Nissan’s pricing strategy is dynamic and multifaceted, designed to maximize market penetration, cater to a diverse customer base, and respond effectively to competitive market dynamics. It’s a fine balance between maintaining profitability and offering competitive pricing across its varied product range.
Nissan Place Strategy
Nissan has more than 300 dealerships across India strategically placed across the country. Nissan also has an integral advantage of being present in Asia’s manufacturing and export hub, which has locus points around Japan, India, and Singapore, aiming to export worldwide further, apart from a robust dealer network of Nissan and Renault. Regarding the sales and service function, Nissan has strategically placed its complete dealership network in almost all major cities and related popular towns to strengthen. This placement has paid back by making its Micra model one of the most popular hatchbacks in India, with high sales.
Nissan’s place strategy is as follows:
- Global Network of Manufacturing Plants: Nissan operates multiple manufacturing facilities worldwide, ensuring local production in key markets like Japan, the United States, and Europe, reducing logistics costs and meeting regional demand effectively.
- Extensive Dealership Network: The company maintains a global dealership network, offering sales, service, and parts, which helps maintain a strong local presence and customer relationships in various regions.
- Strategic Alliances: Nissan has formed strategic alliances, like the Renault-Nissan-Mitsubishi Alliance, to share resources and technology, enhancing its global reach and efficiency in production and distribution.
- Emphasis on Emerging Markets: Nissan focuses on expanding in emerging markets such as China, India, and Brazil, tailoring its product offerings to suit local preferences and economic conditions.
- Adaptation to E-commerce and Digital Platforms: Recognizing the shift in the automotive industry towards digital sales channels, Nissan is increasingly integrating online platforms for vehicle sales and customer engagement, aligning with contemporary consumer buying behaviors.
Nissan Promotion Strategy
It has a nominal promotion plan, a complete mixture of combined promotional activities across mediums and publications. Apart from running advertisement campaigns on television, print and social media platforms, the internet, and a combination of charity events, Nissan organizes rallies and outdoor events for its customers in the form of fun drives for cities and specialized club-based off-road events for customers from its SUV portal, which attracts further customers. Also, the signing up of viral Bollywood star Ranbir Kapoor has proved in its favor with high Micra sales.
Nissan’s promotion strategy is as follows:
- Integrated Marketing Communications: Nissan employs a mix of advertising, public relations, and digital and marketing efforts, utilizing platforms like television, print media, and social media to create a consistent brand message and engage with customers globally.
- Event Sponsorships and Partnerships: The company actively engages in sponsorships and partnerships with major sports events and environmental initiatives to enhance brand visibility and associate with values important to its customer base.
- Customer-Centric Promotions: Nissan focuses on customer-centric promotional activities, including attractive financing options, seasonal discounts, and loyalty programs, to attract and retain customers in various market segments.
Some Recent Video ads and Print ads of Nissan are:
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