Media Plan - Nissan Leaf

the Nissan Leaf Media Launch 2010 - 2011 Media Plan Craig Schlesinger Jason Wachter

TABLE OF CONTENTS EXECUTIVE SUMMARY 1 SITUATION ANALYSIS Marketing Objectives 2 Market Analysis 3 Primary Competition 5 Brand History & Current Promotions 8 Target 9 Geography 11 Timing & Schedule 12 Media Mix 13 Positioning & Strategy 16 MEDIA OBJECTIVES, STRATEGIES, & RATIONALES Target Audience 17 Media Mix 20 Reach/ Frequency 25 Media Budget 27 Geography 30 Scheduling and Timing 31 Sales Promotions 32 WORK CITED 34 37

EXECUTIVE SUMMARY Objective The Nissan Leaf is an all-electric vehicle entering an expending green vehicle market. As automakers scrable to create the latest eco-friendly technology, Nissan must differentiate the Leaf as an automotive pioneer and an affordable option for environmentally conscious families. the objective is to position the Leaf as an affordable green option and attract 15% of the target audience for a test drive. Target White mothers aged 35-54; with household incomes exceeding $100,000 constitute the primary target market. These consumers are concerned about car pollution and seek environmentally firendly products when they shop. Women in this age group are the key influencers in their familes and are more likely than their male counterparts to make automotive purchase or lease decisions. Schedule The plan will cover August 2010 - July 2011 on a pulsing basis. The plan teases the Leaf’s introduction in Au- gust and builds steam in anticipation of its limited release in five initial test markets. Following a winter lull, the schedule picks up intermittently from March - July 2011, precluding the vehicle’s widespread release later that year. Geography The plan incorporates national only and national + spot advertising for 15 designated test markets. The five initial test markets receive the first wave of spot advertising, and the 10 additional markets are introduced in June 2011. The 15 markets represent roughly 30% of the United States and demonstrate relatively robust sales potential for an all-electric vehicle. R/F Goals August 2011 will carry a 70/3.5 to tease the Leaf’s introduction. GRPs will increase significantly as the vehicle’s test relesase nears, peaking at 80/4.5 nationally and 90/5 in spot markets. The re-introduciton of the campaign in March calls for a modest 75/3.5, and the June/July summer buy in 2011 receives a 70/3 nationally an an 80/4 spot markets in anticipation of the Leaf’s widespread release. Budget The $22 million budget is comparable to mainstream competitors (such as the Prius), and is distributed nationally and amongst 15 spot markets. 26.1% of the budget is allocated to the spot markets to reflect the approximate coverage of these areas and the niche nature of the Leaf. The 73.9% national buy helps reach a significant amount of interested consumers and build substantial reach/frequency figures. Media Mix The budget is distributed across several media types. Heavy National Network TV characterizes a majority of the campaign, supplemented by primetime and late fringe cable, morning radio, and magazines. Most months receive Internet keyword buys, and banner ads on selected sites are scattered to accumulate reach and frequency during increased auto sales periods, and to preclude the Leaf’s test market release. Sales Promotions The campaign will contain two sales promotions. $600,000 will be allocated to a national sales promotion tie-in during the second season of FOX’s hit show, “Glee.” The “Glee Goes Green” promotion will include web pointer graphics and product integration into the show. As part of the “Stay Sustainable” spot market promotion, the Leaf will partner with Four Seasons Hotels in five cities. The Leaf will be used as hotel transportation, and will be made available to guests in one-hour increments to test-drive and tour 1 the city.

SITUATION ANALYSIS: NISSAN LEAF EV I. Marketing Objectives Product The Nissan Leaf is an all-electric, mid-sized hatchback that seats five adults (Nissan 2009). The Leaf, which can travel approximately 100 miles on a single charge, reaches speeds approaching 90 mph (Loh, Motor Trend, 2009). Nissan estimates the Leaf’s energy efficiency converts to a 367 mpg rating, although the EPA has yet to develop a universally accepted mileage rating system for plug-in electric vehicles (SPC Office of Sustainability, 2009). The Leaf is fitted with a zero emission power train and built on a modified C- segment hatchback platform (similar to Nissan’s conventional compact car, the Versa); unlike gas-electric hybrids, the Leaf does not contain an internal combustion engine or tailpipe (Nissan 2009). Nissan (2009) expects the Leaf’s 100-mile range to accommodate roughly 70% of the world’s driving population. A standard outlet can charge the Leaf’s compact lithium-ion batteries in eight hours; a high-voltage charger boosts the car 80% in 30 minutes (Loh). The Leaf’s intelligent transportation (IT) system provides on-demand efficiency diagnostics and related performance information (Nissan, 2009). Price Nissan is yet to reveal a set price range for the Leaf. Most estimates, however, place the price tag at $25,000 – $33,000– comparable to prominent hybrids and similarly sized and equipped C-segment models (Treece, Au- tomotive News, 2009). Nissan expects the Leaf to qualify for government incentives to encourage EV purchases and stimulate demand (Treece). Place Nissan launched the “Leaf Zero Emission Tour” on November 13, 2009 (Nis- san USA, 2009). The tour is scheduled to visit 22 cities in 11 states, beginning in Los Angeles, CA and finishing in New York, NY early next year. Nissan plans to launch the Leaf in five select markets in late 2010. The company will make 5,000 units available to consumers in Portland, OR, Seattle, WA, San Diego, CA, Phoenix/Tucson, AZ, and Tennessee who allow Nissan to monitor their recharging habits for two years (Automotive News, 2009). San Diego Gas & Electric (SDG&E) and Nissan are partnering to prepare an EV-capable infrastructure in Southern California to ready the area for the Leaf’s anticipated 2012 large-scale release (San Diego News 6 Online, 2009). 2

SITUATION ANALYSIS: NISSAN LEAF EV Promotion Nissan wants to establish the Leaf as a prominent green vehicle and a viable alternative to popular gas-electric hybrids; 15% of the target audience should test-drive the vehicle (Falkner). Unlike Nissan’s EV model, mainstream gas-electric hybrids employ ICE and various energy-saving functions to reduce CO2 emissions. Marketing and advertising initia- tives should reflect the Leaf’s all-electric drive train that eliminates greenhouse gases and provides a smooth, environmentally friendly ride, while noting its affordability. II. Market Analysis Emission Standards and Green Technologies The market for green vehicles is multi-layered: there are numerous complex technologies that serve similar functions but have different emission classifications. The Federal Environmental Protection Agency (EPA) employs a tiered ranking paradigm, organizing vehicles into bins to classify their emission levels (Greenercars.org, 2009). The California Air Resources Board (CARB), however, developed a simpler and more comprehensive system to designate vehicle emissions. Most cars and trucks are dually certified according to EPA and CARB standards (Greenercars.org); however, California’s ranking system more clearly categorizes emission levels (as seen below). The CARB system also associates emission levels with Smog Scores to help consumers quantify the effect of their driving on the environment. Figure 1: Emission Ratings Source: Driveclean.ca.gov Emission Standard Examples Smog Score ZEV (Zero Emission Vehicle) Leaf, Tesla Roadster 10 (AT) PZEV (Advanced Tech Partial-Zero Prius, Insight, Civic Emissions) Hybrid 9 SULEV (Super Ultra Low Emission) Volkswagen CC 8 VW Golf TDI, Toyota ULEV (Ultra Low Emission) Corolla 5 Electric vehicles also are classified into several categories. Battery Electric Vehicles (BEVs) do not release tailpipe emissions. They run completely on electricity stored in the car’s battery and are recharged using a standard home or office outlet (CARB Ad- vanced Tech Vehicle Guide, 2008-2009). The Leaf is an all-electric car. 3

SITUATION ANALYSIS: NISSAN LEAF EV Hybrid electric vehicles (HEV) contain an Internal Combustion Engine (ICE) and a battery-powered electric motor. Both propulsion systems are capable of running independently or in conjunction with one another. Most hybrids employ various technologies such as regenerative breaking and engine downsizing to improve fuel economy (Hybridcenter.org, 2009). Ford Hybrid Technology Mazda Tribute Hybrid Technology Plug-in hybrid electric vehicles (PHEV) contain BEV and HEV technologies. Plug-in hybrid electrics are capable of traveling substantial distances using an electric motor; a gasoline engine starts when the battery is nearly depleted (CARB Advanced Tech Vehicle Guide). The combination of battery capabilities and a gasoline engine eliminates range restrictions while providing significant fuel economy. The Automotive Market Automakers sold 13.2 million new vehicles in 2008, an 18 percent drop from the previous year (Vlasic and Bunkley, The New York Times, 2009). New car sales, which had once risen to more than 16 million units annu- ally, are not likely to rebound significantly for several years. Figure 2: Sales Forecasts Sliding gas prices and the poor economy have precipitated shrinking hybrid sales as well (Bunkley, The New York Times, 2009). The Toyota Prius, for instance, had sold 16.9% less vehicles as of October 2009, compared to the previous year (Market Data Center, WSJ.com, 2009). Similarly, sales of the Honda Civic have slid more than 25%. Despite the government’s “cash-for-clunkers” program, JD Power & Associates lowered its sales forecasts to approximately 10 million new vehicles in 2009, a far cry from the more than 15 million new vehicles sold in 2007 (Automotive Digest, 2009). Nissan’s challenge for the Leaf extends beyond the nascent nature of electric vehicles: the slumping economy and relative consumer inertia threaten to thwart the car’s introduction. 4

SITUATION ANALYSIS: NISSAN LEAF EV Current Players in the Market There are several electric vehicles navigating U.S. roads, most of which are produced by smaller start-up companies that have yet to penetrate the mass market. Roughly 500 individuals currently own Tesla Motors’ $109,000 all-electric Roadster; another 800 are on a fairly extensive waiting list (Atiyeh, The Wall Street Jour- nal, 2009). Tesla also secured a $485 million loan from the United States government to jump-start production of its planned electric sedan, the Model S (Automotive News, 2009). Fisker Automotive, another small-scale car manufacturer, received more than $500 million in U.S. government loans to produce its plug-in hybrid electric vehicle, the $87,000 Karma (Thompson, Automotive News, 2009). Fisker plans to launch a more affordable mid-sized electric sedan in 2012 to compete with mainstream electric models (Thompson). Several other automakers are either developing BEVs or PHEVs, or planning to launch current models in the United States. Mitsubishi’s i-MiEV, an all-electric vehicle comparable to the Leaf, is coming to the United States, although the automaker is yet to announce a timetable (Loh). Audi, Daimler, and Ford have announced plans to develop electric vehicles, and Toyota is taking its Prius to another level by developing a PHEV platform for the popular gas-electric hybrid (Reed, FT.com, 2009). III. Primary Competition The Leaf competes with different segments according to its features. The Leaf is similarly sized, priced and equipped to C-segment compact cars. Its body and platform are based on Nissan’s compact Versa, and its dimensions are similar to other moderately priced practical family cars, such as the Honda Civic, Toyota Corolla (and its hatchback variant, the Matrix) (Falkner), Mazda 3 hatchback, and Pontiac Vibe. Drive train and engine- type aside, C-segment vehicles are comparable to the Leaf on several levels. Clean diesel vehicles, such as Volkswagen’s Golf TDI, also compete with the Leaf. The four-door hatchback starts at $22,789 and is powered by a 2.0L four-cylinder turbocharged clean diesel engine (vw.com, 2009). It’s clean diesel drive train offers 30/42-mpg fuel economy. The Leaf, however, is more closely associated with other green vehicles in the market. 5

SITUATION ANALYSIS: NISSAN LEAF EV Toyota Prius The Prius is the most popular gas-electric hybrid. The Prius IV – a more advanced model similar to the Leaf – starts at $26,200 and earns the best fuel mileage in its class (51/48/50). The combination of a 1.8L inline four-cylinder engine and an electric alternating current (AC) synchronous motor generates 134 net horsepower. The Prius employs Toyota’s Hybrid Synergy Drive technology, electronically controlled variable transmission (ECTV), and regenerative braking to offer AT-PZEV fuel efficiency (www.toyota.com, 2009). Honda Insight Honda’s answer to the Prius, the Insight, is a front wheel drive gas-electric hybrid vehicle starting at $21,300. Although priced significantly lower than its main competitor, the Insight offers considerably less fuel efficiency (40/43/41) and less power (the combined propulsion system churns out 98 net horsepower at 5800 rpm). It utilizes Honda’s Integrated Motor Assist (IMA) technology to operate the dual propulsion system, and features the Eco Assist/ECON function to maximize fuel efficiency while driving. (www. automobiles.honda.com, 2009) Honda Civic Hybrid A variation of Honda’s top-selling compact sedan, the Honda Civic Hybrid employs similar technology to its sibling, the Insight. Priced at $25,000, the Civic Hybrid is less fuel efficient (40/45/42) and less powerful (combined net 110 horsepower) than the Prius. It features Honda’s I-VTEC 1.3L engine and IMA technology, but lacks the Eco Assist/ECON feature native to the Insight. (www.automobiles.honda.com). Chevrolet Volt GM’s Chevy Volt is classified as a plug-in electric hybrid, although its website lists it as an E-REV (Extended-Range Electric Vehicle). The Volt, which is expected to launch in 2010, employs a lithium-ion battery (like the Leaf) and a gasoline-powered, range-extending engine. The engine drives an electric generator to propel the car when the battery is depleted. The vehicle only uses gas past the 40-mile threshold. The EPA estimates the Volt gets 230 mpg, a claim around which GM built its initial marketing campaign (Valdes- Dapena, CNNMoney.com, 2009). Although widely praised by critics and reporters, Chevy’s engineers are still tinkering with the fluidity of the Volt’s range-extending engine (Brooke, The New York Times, 2009). 6

SITUATION ANALYSIS: NISSAN LEAF EV The following chart provides a summary of the competitive landscape. Figure3: Competitive Analysis Source: Automobiles.Honda.com, 2009 Make and Fuel Electric Range Base 2008 Model Type Efficiency (mi) MSRP Sales (Comb. MPG) Toyota Prius IV Gas-Electric Hybrid 50 n/a 26,200 Honda Insight EX Gas-Electric Hybrid 41 n/a 21,300 Honda Civic Hybrid Gas-Electric Hybrid 42 n/a 25,000 a Chevrolet Volt Extending Vehicle 230 40 32500b n/ac a DOE est. based on electric motor and range-ext. propulsion b Includes $7,500 government rebate c 2010 launch Competitive Advertising While smaller companies such as Tesla promote their vehicles via word-of- mouth and the Internet (Halliday, Advertising Age, 2009), more prominent manufacturers have teamed with ad agencies to engineer mainstream cam- paigns. Chevy’s Volt has enjoyed generous viral spending and supplementary print ads. Honda proclaims its Insight is the “hybrid for everybody,” and Toyota champions its Prius’ environmental synergy with primetime television spots and out-of-home displays in midtown Manhattan. 7

SITUATION ANALYSIS: NISSAN LEAF EV IV. Brand History and Current Promotions Nissan Motor Corporation Nissan and its primary agency, TBWA/Chiat Day, introduced the “Shift_” campaign in 2006 (Halliday, Advertising Age, 2007). The campaign, which features variations on the phrase, continues to define the Nissan brand and differentiate its models from competitors. The company’s product line features a variety of models, from performance sports sedans to rugged SUVs to practical, family-oriented compact cars. Nissan’s advertising for each of its models reflects the segment in which they compete; advertising for the Versa (the most comparable model in size and specifications to the Leaf), for instance, stresses the vehicle’s reliability, fuel-efficiency, and adequate space. Nissan spent more than $510 million on the Nissan brand in 2007 (TNS Media Intelligence, 2008). This figure includes B2B efforts, Hispanic advertising and outdoor and Internet expenditure (TNS Media Intelligence). The Leaf Nissan aggressively introduced the Leaf in August 2009, slapping the vehicle with various numerical claims to intrigue consumers. Nissan positioned the Leaf as a holistic car – “100% Electric, 100 Mile Range, 100% Torque” (Blanco, Autoblog, 2009). The vehicles unique electric drive train allows it to generate all of its necessary torque at 0 rpm – without, of course, any emissions (Blanco). Nissan also has engaged in social media outlets to fire back at Chevrolet. The General Motors brand has promoted its plug-in electric hybrid, the Volt, as a 230 mpg-rated extended range electric vehicle. Nissan is quick to point out the Leaf offers the equivalent of 367 mpg, using the Department of Energy’s rating system (Blanco). New Media Nissan has spent a notable amount of time promoting the Leaf through various channels of new media. Social networking sites like Facebook.com, Twitter.com, and YouTube.com are helping Nissan create brand awareness among young and technology savvy consumers. In an effort to reach this valuable consumer base, Nissan is promoting “The Nissan Leaf Zero Emis- sions College Scholarship” through these viral sites as well. This contest will run until March when one student with the best entry from each participat- ing school will win $500. 8

SITUATION ANALYSIS: NISSAN LEAF EV Type in “Nissan Leaf” into the Facebook, Twitter, and YouTube search bar and you will be bombarded with countless content covering the vehicle. Listed below are the top returns for each site: CONTENT FOLLOWING HIGHLIGHTS Ò NissanÓ (page) 19,907 fans A Ò Green 2010Ó tab that directs you to Ò The Nissan Leaf Zero Emissions College ScholarshipÓ contest description. Ò Nissan LeafÓ (page) 4,935 fans Extensive information, videos, and pictures about the Leaf. Wall posts that generate excitement and buzz. Ò Nissan LeafÓ 137 members Similar to the Facebook page but with a more involved following. (group) Updates on tour dates and news. Ò Nissan unveils all- 84,753 views 1:44 short video highlighting the Leafs specifications. electric Leaf carÓ Ò New Nissan LEAF 8,518 views 11:36 long video officially unveiling the Leaf to the world. 2010 Global Reveal Ò NissanEVsÓ (page) 2,024 followers Consumers can ask questions to Nissan experts and get responses through Ò the Feed.Ó   V. The Target The target was determined using several key variables that relate to the Leaf and its functionality. Attitudes concerning environmentally friendly products, pollution, and automotive preferences were evaluated across gender, age, and household income levels to narrow the desired audience. With the target firmly established, the aforementioned attitudes were cross-referenced with personality types, media usage, and car buying habits to identify the target’s pain points and focus their thoughts and behavior. Although the primary target (seen below) is the focus of the media plan, secondary and tertiary markets are considered. There are many individuals beyond the age, gender and psychographic classifications who may be interested in an all-electric family vehicle, and the advertising strategy should reflect this. Demographics • White female • Age 35-54 • HHI $100K+ • Married with children in the household • Well educated • Professional employment (Simmons Market Research Bureau, 2005) Hybrid vehicle purchasers are 73 percent more likely to have graduated college plus and 114 percent more likely to have a post graduate degree (MRI Plus, 2008). More than 40 percent of those who own a hybrid vehicle have a household income between $75,000 and $149,999, and their 42 percent more likely to have a professional occupation (MRI Plus). 9

SITUATION ANALYSIS: NISSAN LEAF EV Psychographics White, middle-to-upper-class mothers in this age group who are concerned about car pollution are informed early adaptors. They are willing to pay a premium for environmentally friendly products and consider themselves “smart green” consumers. They are more interested in car’s functionality and safety than its engine displacement and horsepower. Children influence these women, and they demonstrate a particularly high degree of advertising receptivity (SMRB). Figure 4: Target Psychographics (index) Source: Simmons 2006, Base: Target Concerned about car Pay more for environmentally pollution friendly products Above Average Informed 110 110 Above Average Child Influence 112 135 Above Average Smart Green 192 263 Above Average Ad Receptivity 126 128   According to VALS analysis, the target is a Thinker/Innovator hybrid (Strategic Business Insights, 2009). Thinkers are well-educated informed consumers who are privy to current events and trends. Innovators, however, are early adaptors receptive to new ideas and technology. They are more likely to purchase high-end, niche products and associate with a trendy lifestyle (Strategic Business In- sights). Automotive Buying Habits Women in the target age group are more likely than their male counterparts to be the most influential decision makers. They are 56 percent more likely than their male counterparts to make the decision to buy a car for the family, and they often buy cars brand new (SMRB). Figure 5: Target Buying Habits, Male vs. Female (index) Source: Simmons 2006 Male A35-64 Female A35-64 Car Purchase Decision; Children in HH 105 156 Most Inf. In HH Purchase Decisions 103 115 Car Good For Family Important 96 112 Buy Cars Brand New 97 111   Although women aged 55 years and older exhibit strong tendencies for eco-friendly products, they are less likely to have children present in the household or accumulate the target income level. Younger women (35-54), however, are more likely than any other age group to have children in the household and to have a household income above $100,000. Older women also are less likely to be 10 in the market for a new car (SMRB).

SITUATION ANALYSIS: NISSAN LEAF EV Figure 6: Target Buying Habits, Age Group Comparison (index) Source: Simmon 2006 F, A25-34 F, A35-44 F, A45-54 F, A55-64 F, A65+ Parent/Guardian Children? 104 128 121 103 79 HHI $100K - $149,999 98 131 140 87 30 HHI $150K - $249,999 101 117 129 121 20 Next Vehicle: New? 95 102 106 110 94   VI. Geography Nissan should focus initial advertising in the five test markets: Portland, OR, Seattle, WA, San Diego, CA, Phoenix/Tucson, AZ, and Tennessee (Automotive News). Customers in these select markets will have the first opportunity to own a Leaf; Nissan should include spot heavy-up media buys in these areas. The recommendation is to purchase additional media in the five aforementioned test markets and the ten additional markets that demonstrate particularly strong potential for Leaf receptivity. Figure 7: Spot Markets Brand Development Indices (BDI) indicates several Source: Falkner Attachment promising markets for Nissan’s Leaf campaign. Sales Weighted volumes for both the Nissan Versa (30% weight) and Market Index the Toyota Prius (70%) were used to calculate a weight- Nashville, TN* n/a ed BDI. The Prius was weighted more heavily because San Francisco, potential Leaf drivers are more interested in the hybrid/ CA 190 electric category, rather than a particular brand. The Washington, DC 143 Category Development Indices (CDI) also was assessed Boston, MA 142 to underpin the geographic strategy (BDI and CDI were New York City, weighted 80% and 20%, respectively). LMA indices for NY 140 household income and environmental and technologi- San Diego, CA* 138 cal affinities were fused with the BDI/CDI weighted in- Providence, RI 136 dices to calculate a comprehensive analysis of the most Portland, OR* 132 encouraging markets (population also was considered). Los Angeles, CA 129 The following chart indicates the strongest candidates Hartford, CT 126 for auxiliary media buys. Miami, FL 124 The markets shown in Figure 8 consist of individuals Denver, CO 119 interested in new technology and the environment. Baltimore, MD 116 These areas also are relatively wealthy – most contain Seattle, WA* 116 sizeable populations of individuals with household Phoenix, AZ* 111 incomes exceeding $100,000. * Indicates test market   11

SITUATION ANALYSIS: NISSAN LEAF EV VII. Timing and Schedule Product Life Cycle Hybrid-electric and full-electric vehicles are relatively new in the automotive market. The Leaf is one of the most recent electric vehicles, and is entering the introduction stage of the product life cycle. The Leaf’s freshness necessitates an offensive advertising strategy to tote the car’s benefits and differentiate it from its hybrid- electric (Prius, Insight, etc.) and full-electric (Volt) competitors. Purchase Cycle Vehicles often are leased for 36 or 48-month periods. Purchased cars, however, typically are kept for longer by today’s consumers – improved quality and a slumping economy have contributed to raising the average age of cars on the road approximately three years (Vlasic & Bunkley, The New York Times, 2009). Hybrid consumers are likely more cognizant of changing technologies; newer, more fuel-efficient models pique their interest. Nissan has not determined a sales plan for the Leaf; some options include leasing the vehicle and the battery pack to control costs, or selling the vehicle to consumers and leasing the battery pack (Rowley, Business Week, 2009). Seasonality & Timing Dealers slash prices in the winter months (particularly in January) when most consumers are more likely to avoid buying a new car. Car sales spike when automakers phase out older models in the summer months, and again when newer models are introduced towards the end of year. The Leaf’s initial test-market launch is due for November 2010. The recommendation is to advertise competitively in the months leading to the initial launch, and target the launch markets specifically. It is important to establish a presence among the vast automotive landscape and entrench the Leaf as a newfangled electric pioneer and the latest vehicle to hit showrooms. The client should maintain light spending through the winter months when dealers are cutting prices for older model years, and spend more heavily during the spring and summer in anticipation of a the Leaf’s widespread release. 12

SITUATION ANALYSIS: NISSAN LEAF EV VIII. The Media Mix Target The target’s media usage reflects their education level and the ideals with which they associate. Women in this age group who are concerned about the environment are relatively light users of television. They are more inclined to read magazines and newspapers than actively use the Internet, and they demonstrate an average affinity for radio (SMRB). The following chart shows target indices for the heaviest (Quintile 1) usage of prominent media types.Purchase Cycle Figure 8: Target Heavy Media Usage (index) Source: SMRB Smart Concerned About Car Pay More Eco-Friendly Quintile I (Heaviest) Greens Pollution Products Cable TV 85 103 100 Prime Time TV 101 96 95 Magazines 121 113 114 Newspapers 124 119 117 Radio (Drive Time) 101 98 101 Internet Active (Home/Work) 89 102 107   Accordingly, members of the target audience who are willing to pay more for environmentally products register high magazine involvement (113) and Internet advertising receptivity (116). They also are attuned to product placement: they are 93 percent more likely notice brand name product usage in television, and 134 percent more likely to remember a brand name placed in their favorite programs. The target demonstrates an above average inclination for research and information gathering (109), suggesting a desire to make informed decisions. The Competition The Nissan Leaf’s prominent C-Segment and Hybrid competitors spent nearly $290 million on advertising and marketing in 2007 (TNS Media Intelligence). The spending data is cumulative for the entire year and covers a variety of media types, including television, print, online and outdoor. Spending is heavily concentrated in television, accounting for 56.6% of total competitor spending (TNS Media Intelligence). The primary competition used newspapers (2.9%) and radio (3.86%, including network, national spot, and local) rather sparingly, whereas magazines (11.24%) accounted for far more of aggregate media expenditure (TNS Media Intelligence). The client’s $22 million budget is comparable to GM’s spending for its two Chevrolet compacts (which were included to provide some indication as to how the automaker might market its plug-in electric Volt), and is nearly equivalent to Toyota’s Prius expenditure. Although Honda’s Civic/Hybrid and Mazda 3’s media spending trumps Nissan’s budget for the Leaf, the client can use alternative media 13 types and creative executions to compete adequately.

SITUATION ANALYSIS: NISSAN LEAF EV Figure 9: SOV Aggregate Source: TNS MAKE AND MODEL TOTAL (000) TOTAL % Chevy Cobalt $21,640.30 7.46% Chevy HHR $22,404.40 7.73% Honda Civic/Hybrid $88,170.65 30.41% Toyota Prius $27,200.60 9.38% Toyota Corolla $32,148.25 11.09% Mazda 3 $83,690.25 28.86% Nissan Versa $14,713.20 5.07% Hybrid vehicles dominated television expenditure – the Civic/Hybrid and the Prius accounted for nearly half of the competition’s spending in network, spot, and cable TV. Toyota spent more than half (52.85%) of its Prius budget on Network television (TNS Media Intelligence). Figure 10: SOV % by Medium Source: TNS MAKE AND MODEL NET TV SPOT TV CABLE TV TOTAL Chevy Cobalt 3.10% 2.52% 2.14% 7.46% Chevy HHR 14.20% 0.29% 8.57% 7.73% Honda Civic/Hybrid 27.35% 40.43% 29.64% 30.41% Toyota Prius 23.89% 8.13% 13.94% 9.38% Toyota Corolla 1.25% 22.98% 1.28% 11.09% Mazda 3 30.20% 17.06% 41.06% 28.86% Nissan Versa 0.00% 8.59% 3.38% 5.07% However, the Honda Civic/Hybrid and Toyota Prius only represent 17.25% of U.S. Internet spending for C- Segments and Hybrids, indicating a strong option for the client’s media strategy. The Honda Civic/Hybrid vastly outspent the Toyota Prius in print, accounting for 32.77% of national magazine expenditure and 23.89% of spending in national newspapers. Toyota eschewed national newspaper spending for heavier television buys, and the Prius only comprised 0.60% of national magazine expenditure (TNS Media Intelligence). The media mix varied significantly depending on the make and model; however, radio largely was neglected. Chevrolet spent nearly 80% of its HHR budget on network television and national magazines; foregoing local buys to accumulate a greater reach. 14

SITUATION ANALYSIS: NISSAN LEAF EV Toyota spent more than half of its Prius budget on network TV; however, the manufacturer also spent more than 30% in spot markets to build frequency. Most competitors spent lightly on untraditional media (web, outdoor); the client should consider an unconventional strategy to exploit ignored media types (TNS Media Intelligence). Figure 11: Media Mix by Brand Source: TNS NETNET SPOT CABLE SPOT CABLE NATL NATL US US MAKE AND AND MODEL TV TV TV TV MAKE MODEL TVTV MAG MAG NEWSP NEWSP NEWSP NEWSP WEB WEB OUTDOOR OUTDOOR Chevy Cobalt Chevy Cobalt 8.63% 12.11% 8.63% 12.11% 1.38% 25.57% 1.38% 25.57% 0.00% 0.00% 3.08% 3.08% 3.84% 3.84% 0.23% 0.23% Chevy HHR HHR Chevy 38.14% 38.14%1.34% 1.34% 5.33% 42.59% 5.33% 42.59% 0.00% 0.00% 0.17% 0.17% 2.43% 2.43% 0.00% 0.00% Honda Civic/Hybrid Honda Civic/Hybrid 18.67% 47.67% 18.67% 47.67% 4.69% 12.11% 4.69% 12.11% 0.26% 0.26% 0.37% 0.37% 3.12% 3.12% 0.00% 0.00% Toyota PriusPrius Toyota 52.85% 31.06% 52.85% 31.06% 7.15% 7.15% 0.72% 0.72% 0.00% 0.00% 0.91% 0.91% 7.30% 7.30% 0.00% 0.00% Toyota Corolla Toyota Corolla 2.33% 74.33% 2.33% 74.33% 0.56% 10.16% 0.56% 10.16% 0.00% 0.00% 0.02% 0.02% 4.51% 4.51% 0.00% 0.00% Mazda 3 Mazda 3 21.72% 21.20% 21.72% 21.20% 6.84% 6.84% 0.00% 0.00% 0.86% 0.86% 7.07% 21.84% 7.07% 21.84% 6.53% 6.53% Nissan Versa Nissan Versa 0.00% 60.67% 0.00% 60.67% 3.20% 22.95% 3.20% 22.95% 0.00% 0.00% 1.90% 10.98% 1.90% 10.98% 0.00% 0.00% Recommendations The recommendation is to spend competitively in television to maintain a strong presence and avoid obscurity. Television allows for a variety of creative executions as well. Cable television delivers a narrow target audience, and spot television is useful for building frequency in large, metropolitan markets where the Leaf is likely to garner consideration. Magazines also carry a well-educated, specific audience, and allow for explanatory and visual creative and relevant editorial. Radio represents a cost effective medium useful for frequency builds. Personal Media Net- work charts demonstrate the target’s tendency to listen to morning radio. The Internet provides an unsaturated medium and endless creative possibilities. The Leaf’s positioning as a newfangled, state-of-the-art vehicle lends itself well to the trendy nature of the web. Events provide a unique one-to-one interaction with the target market. Accordingly, Tesla Motors and Fisker Automotive - smaller automakers with limited advertising budgets - promote their expensive EV models predominately via events and the Internet (Halliday, Advertising Age, 2009). The client should allocate spot spending according to approximate market coverage, spending more heavily in more populated areas and controlling cost in less potent markets. National spending will account for a majority of the budget; however, the spot allocation is important to reinforce promotion in the most buoyant cities. 15

SITUATION ANALYSIS: NISSAN LEAF EV IX. Positioning and Strategy The client should position the Leaf as a cutting-edge, ultramodern and affordable vehicle for the family. Nissan should stress the Leaf’s ample driving range (100 miles) and the moderate price tag. Although compact and hybrid vehicles serve as the prominent competition, the client should elucidate the car’s incomparable conve- nience and revolutionary technology. It is important to educate the target about EVs and assuage fears concerning performance and handling (Par- pis, Adweek, 2009). Test drives and expert reviews can shape the target’s perception; Nissan must stress the car’s unique power curve and polished fluidity. The Leaf’s serene engine is an indication of its grace and refine- ment, nimbly attacking the road while dutifully conserving the environment. Dan Neil of the Los Angeles Times (2009) attests to the Leaf’s quickness and agility, claiming, “the car spools out velocity in one continuous, syrupy stream.” Neil gushes about the car’s handling and punch, explaining that the electric motor’s infinite variability allows it to maintain traction in and out of turns. Neil explains, “when gasoline-powered cars sleep at night, they dream of being electric” (Los Angeles Times, 2009). In many ways the Leaf is similar to the Prius: an early-mover among automotives and the first mass-marketed vehicle to stain gear ratios a shade of green. The Leaf takes eco-friendly engineering a step further, trading gas pumps for outlets and combustible engines for electric ones. It’s not the lone EV on the road, but it’s the first that doesn’t apologize for price or appearance. With a deceptively smooth engine and crafty styling, the Leaf represents vehicular ingenuity down to the last detail. It is, in every sense of the word, electric. “ When gasoline-powered cars sleep at night, they dream of being electric. ” 16

OBJECTIVES. STRATEGIES. RATIONALE. I. The Target Objective Middle-to-upper class white mothers, aged 35-54, constitute the primary target audience for the Nis- san Leaf. Aim the advertising at this specific audience for 12 months to capture 15% of the audience for a test drive and establish the Leaf as a greener alternative to better-known hybrid brands. Strategy The target was determined using several key variables that relate to the Leaf and its functionality. Attitudes concerning environmentally friendly products, pollution, and automotive preferences were evaluated across gender, age, and household income levels to narrow the desired audience. With the target firmly established, the aforementioned attitudes were cross-referenced with personality types, media usage, and car buying habits to identify the target’s pain points and focus their thoughts and behavior. Although the primary target (seen below) is the focus of the media plan, secondary and tertiary markets are considered. There are many individuals beyond the age, gender and psychographic classifications who may be interested in an all-electric family vehicle, and the advertising strategy should reflect this. Demographics • White female • Age 35-54 • HHI $100K+ • Married with children in the household • Well educated • Professional employment (Simmons Market Research Bureau, 2005) Hybrid vehicle purchasers are 73 percent more likely to have graduated college plus and 114 percent more likely to have a post graduate degree (MRI Plus, 2008). More than 40 percent of those who own a hybrid vehicle have a household income between $75,000 and $149,999, and their 42 percent more likely to have a professional occupation (MRI Plus). Psychographics Members of the target audience are active individuals who value their families and leisure activities. Although they are concerned about accomplishments and moving forward in their occupation, they are more likely to cherish social events and spend time with their families. They value health and fitness, and are more likely than other demographic groups to take risks and seek original experiences. Individuals in the target market take advantage of their time and fill their day with various activities. They seek information and are interested in international events. They are constantly moving around 17 for their children, and often make decisions with their families in mind.

OBJECTIVES. STRATEGIES. RATIONALE. Figure 1: LIfestyles and Activities Source: SMRB, Base: Target Smart Worried About Pay More for Eco- Greens Car Pollution Friendly Products Sports/Exercise 1X/wk 121 112 117 Like to do Unconventional Things 125 116 111 Enjoy Taking Risks 116 113 113 Enjoy Spending Time w/ Family 103 103 103 How I Spend Time More Important Than Money 112 107 110   Rationale White, middle-to-upper-class mothers in this age group who are concerned about car pollution are informed early adaptors. They are willing to pay a premium for environmentally friendly products and consider themselves “smart green” consumers. They are more interested in car’s functionality and safety than its engine displacement and horsepower. Children influence these women, and they demonstrate a particularly high degree of advertising receptivity (SMRB). Figure 2: Target Psychographics Source: SMRB. Base: Target Concerned about car Pay more for environmentally pollution friendly products Above Average Informed 110 110 Above Average Child Influence 112 135 Above Average Smart Green 192 263 Above Average Ad Receptivity 126 128   According to VALS analysis, the target is a Thinker/Innovator hybrid (Strategic Business Insights, 2009). Think- ers are well-educated informed consumers who are privy to current events and trends. Innovators, however, are early adaptors receptive to new ideas and technology. They are more likely to purchase high-end, niche products and associate with a trendy lifestyle (Strategic Business Insights). Automotive Buying Habits Women in the target age group are more likely than their male counterparts to be the most influential decision makers. They are 56 percent more likely than their male counterparts to make the decision to buy a car for the family, and they often buy cars brand new (SMRB). 18

OBJECTIVES. STRATEGIES. RATIONALE. Figure 3: Target Buying Habits, Male vs. Female Source: SMRB, Base: Target Male A35-64 Female A35-64 Car Purchase Decision; Children in HH 105 156 Most Inf. In HH Purchase Decisions 103 115 Car Good For Family Important 96 112 Buy Cars Brand New 97 111   Although women aged 55 years and older exhibit strong tendencies for eco-friendly products, they are less likely to have children present in the household or accumulate the target income level. Younger women (35- 54), however, are more likely than any other age group to have children in the household and to have a household income exceeding $100,000. Older women also are less likely to be in the market for a new car (SMRB). Figure 4: Target Buying Habits, Age Group Comparison Source: SMRB, Base: Target F, A25-34 F, A35-44 F, A45-54 F, A55-64 F, A65+ Parent/Guardian Children? 104 128 121 103 79 HHI $100K - $149,999 98 131 140 87 30 HHI $150K - $249,999 101 117 129 121 20 Next Vehicle: New? 95 102 106 110 94   19

OBJECTIVES. STRATEGIES. RATIONALE. II. Media Mix Objective Use a variety of media types to reach the target when they are most engaged and likely to respond positively to the message. Buy space across national platforms - emphasizing primetime television, morning radio, and magazines - to capture a large percentage of the desired audience. Supplement national buys with spot-heavy- up television and local radio in 15 spot markets. Strategy Magazines The target audience consists of well-educated, progressive individuals who often read leisurely. Members of the target concerned about the environment use magazines rather heavily. Magazines represent high-engage- ment mediums that reach a large percentage of the target market and offer favorable editorial content. Figure 5: Print Source: SMRB, Base: Target Magazines (QI) Newspapers (QI) Worried About Car Pollution 112 115 Pay More For Environmental Products 108 119 Above Average Smart Greens 115 126 Car Works For Family Important 103 103   Network/ Cable TV Network television constitutes a high reach medium suitable for a national automobile campaign. The recommendation is to advertise nationally in content-appropriate vehicles that garner sizeable C3 ratings for the target. The client should supplement national buys with additional spot advertising on local stations. A sales promotion will be embedded into Fox’s hit show, “Glee,” to unconventially reach members of the target. Cable television can deliver a specific audience whose behavior and opinions match those of the Leaf’s target. Cable enables the client to advertise in particular vehicles that white mothers in this age group view often. Cable also offers national and spot options to maximize reach and frequency in the most promising markets. 20

OBJECTIVES. STRATEGIES. RATIONALE. Figure 6: Television Source: SMRB, Base: Target Cable TV (QI) TV All Day (QI) TV Prime (QI) Worried About Car Pollution 108 96 94 Pay More For Environmental Products 104 120 102 Above Average Smart Greens 101 101 88 Car Works For Family Important 105 107 99   Although women in this age group do not demonstrate as strong an affinity for television as they do for print, it is important to maintain a presence on cable and network channels to match competitor exposure. Internet The Internet also offers a highly targeted audience. The Internet delivers active, engaged individuals expecting to interact with the medium. There are endless creative and aperture possibilities: Leaf advertisements can appear via keywords or next to related articles on predetermined websites. Figure 7: Internet Source: SMRB, Base: Target Internet (QI) Worried About Car Pollution 99 Pay More For Environmental Products 85 Above Average Smart Greens 90 Car Works For Family Important 103   Despite rather unimpressive indices, the client should maintain a web presence to reach engaged individuals on specific websites. Members of the target who are willing to pay more for environmentally friendly products are receptive to Internet advertising (116). Keywords will be bought in all months (excluding June/July 2011 during the spot market sales promotion) to maintain a web presence. Radio Personal Media Network responses indicate the target’s affinity for morning radio. The plan consists of reach- building media types (i.e. network television, magazines); radio provides a high-frequency medium for the Leaf’s messaging. It is important to build frequency with radio advertisements in spot markets where individuals are more likely to consider the Leaf. Radio buys will increase during the summer months when television viewing usually declines. Figure 8: Radio Source: SMRB, Base: Target Radio Drive (QI) Radio All Day (QI) Worried About Car Pollution 101 88 Pay More For Environmental Products 99 108 Above Average Smart Greens 103 114 98 21 Car Works For Family Important 111  

OBJECTIVES. STRATEGIES. RATIONALE. Rationale Network Television Women in the target audience watch network television dramas and situational comedies. It is important to advertise in vehicles that pull large C3 ratings to account for commercial and live-plus-three-day viewing. $6 million will be spent across FOX properties to qualify for the sales promotion opportunity. Other network dramas and sitcoms were included based on strong C3 ratings and high C3 indices. Nissan should advertise in content-neutral or content-positive vehicles, avoiding lowbrow shows (i.e. NBC’s Biggest Loser 8). The following chart indicates favorable vehicles for Leaf advertising and their respective C3 and PL+7 ratings and indices. Figure 9: Network Programming Source: C3 PL+7 Network Program Name C3 Index PL+7 Index NBC 30 ROCK 4.45 166 5.87 180 NBC OFFICE 4.88 160 6.72 173 FOX GLEE 4.96 154 7.64 175 CBS 60 MINUTES 5.45 125 5.96 126 ABC BROTHERS & SISTERS 6.68 116 9.02 128 FOX FRINGE 3.02 114 4.29 123 ABC GREY'S ANATOMY-THU 9PM 8.92 110 13.54 127 SO YOU THINK CN DANCE- FOX TUE 2.64 106 4.12 122 CBS GOOD WIFE, THE 6.21 104 7.92 112 ABC DESPERATE HOUSEWIVES 7.63 102 10.58 114 The Early Morning Network TV portfolio will include news-oriented programs, such as CBS’s The Early Show, NBC’s Today Show, and ABC’s Good Morning America and The View. Cable Television Cable TV represents an opportunity to reach a specific audience. Target audience members demonstrate an affinity for several cable networks, listed below. These networks contain various female-oriented programs that provide an outlet for women in this age group. MSNBC, a more liberal-leaning cable news channel, also pulls a large number of viewers from the target. The high index for CNN, another cable news network, further evidences with the target’s appetite for information. Figure 10: Cable Source: Simmons 2006 Above AVG Smart Pay More Envrnmt Worried About Car Channel Greens Prods Pollution A&E 101 110 116 Bravo 132 138 107 Oxygen 132 115 114 TBS 104 98 102 MSNBC 128 116 105 CNN 100 115 119 E! 104 122 119 22

OBJECTIVES. STRATEGIES. RATIONALE. Several vehicles are popular among members of the target audience. Prominent cable news programs and popular sitcoms highlight this list of eight specific shows. Figure 11: Cable Programming Source: Simmons 2006 Above AVG Smart Pay More Envrnmt Worried About Car Program (Channel) Greens Prods Pollution E.R. (TNT) 118 118 119 Inside Actors Studio (Bravo) 123 113 102 Sex & The City (TBS) 100 112 105 Everbody Loves Raymond (TBS) 105 90 105 E! Hollywood Story (E!) 101 134 119 Larry King Live (CNN) 115 129 115 Lou Dobbs Tonight (CNN) 115 107 124 Anderson Cooper 360 (CNN) 110 115 93 Radio Members of the target audience listen to select radio formats, two of which are news or talk-oriented. Adult Contemporary and Adult Alternative scored well among individuals in the desired group, and CHR was chosen as a format to which women in this age group are likely to listen with their children. Several syndicated programs, such as Delilah and AT40 with Ryan Seacrest, offer favorable programming and likely draw significant listeners from the target audience. Figure 12: Radio Source: Simmons 2006 Above AVG Smart Pay More Envrnmt Worried About Car Format Greens Prods Pollution Adult Alternative 194 192 161 Adult Contemporary 103 115 112 CHR 86 108 106 All News 122 121 105 News/Talk 120 116 106 Variety 157 145 126 Internet The Leaf is well represented on Social Media Sites such as Facebook and Twitter (it tweets from the tag @ NissanEVs). The continuous keyword buys and banner ads on selected websites will draw more traffic to the social media already in place. Internet advertising will be directed at popular news websites that attract high- income, well educated women, such as NYTimes.com and MSNBC.com, and lifestyle pages such as Treehugger. com and Women’s Health’s flagship site. 23

OBJECTIVES. STRATEGIES. RATIONALE. Magazines Several publications recorded high six-month readership indices amongst members of the target audience. Most magazines are female-specific, but women in this target group also demonstrate an affinity for a select few general interest or news publications. Figure 13: Magazine Source: Simmons 2006 Above AVG Smart Pay More Worried About Car Publication Circulation* Greens Envrnmt Prods Pollution Better Homes & Gardens 7,634,197 105 105 110 Fitness 1,555,217 123 114 122 InStyle 1,738,787 118 117 130 Martha Stewart Living 2,025,000 135 113 127 The New Yorker 1,048,782 178 145 167 O, The Oprah Magazine 2,397,697 112 99 110 People Magazine 3,615,858 102 105 111 Time 3,360,135 127 117 114 Vogue 1,298,480 119 102 127 Multiplatform Presence. 24

OBJECTIVES. STRATEGIES. RATIONALE. III. Reach/ Frequency Objective/Strategy Achieve 70/3 reach/frequency in August 2010 to tease the Leaf’s introduction. Increase national reach/frequency to 80/4 in September and 80/4.5 in October/Nobember in anticipation of the test market release. Maintain only an Internet presence during winter months when sales dip, and rein- troduce nationally in March with a 75/3.5, and again in June with a 70/3. Spot markets should peak in October/Nobember at 90/5 and hit a minimum 80/4 in June/July 2011 to preempt the widespread release. Media buys represent a pulsing schedule. Rationale The recommendation is to buy across platforms and use a diversified media mix to achieve desired reach and frequency goals. Maximum national GRPs will be reached before the car is introduced in November 2010. The client should hit significant national reach figures because it is introducing a new, high-involvement product with a highly original campaign, and supplementing the media schedule with a tie-in sales promotion. Spot markets will receive higher frequency figures to differentiate the Leaf from its competitors and reach potential consumers more often. Employ the Internet throughout the campaign to reach engaged consumers with keywords and banner ads on targeted sites. Figure 14: Internet R/F Adjustments Source: Falkner Handout Nat'l Nat'l MFP MFP Month Impressions Type Intended R Intended F R F 10-Aug 5 mm Keyword 70 3 68 2.5 10-Sep 10 mm/5 mm Keyword/Banner 80 4 74 2.75 10-Oct 10 mm/5 mm Keyword/Banner 80 4.5 74 3.25 10- Nov 10 mm/5 mm Keyword/Banner 80 4.5 74 3.25 Spot Intended Spot MFP MFP Month Impressions Type R Intended F R F 10-Sep 10 mm/5 mm Keyword/Banner 85 4.75 79 3.5 10-Oct 10 mm/5 mm Keyword/Banner 90 5 84 3.75 10- Nov 10 mm/5 mm Keyword/Banner 90 5 74 3.75 10-Mar 10 mm/5 mm Keyword/Banner 90 4.75 84 3.5 25

OBJECTIVES. STRATEGIES. RATIONALE. Using the Ostrow Model, it was determined that the Leaf’s newness necessitates an offensive approach with higher reach and frequency goals. The Leaf faces stiff competition from established hybrids (i.e. Prius) and bal- lyhooed newcomers (the Volt). The campaign’s freshness and the various editorial possibilities, however, ease frequency objectives and allow Nissan to stay within the proposed budget. An all-electric vehicle demands more customization and creativity than that of a standard, evenly-distributed campaign. The product’s introduction calls for high reach figures nationally and more frequency in spot markets. The first five test markets receive the initial spot advertising. National buys and spot heavy-up in the 10 additional markets begins in Spring/Summer 2011 in anticipation of the Leaf’s widespread release. Reach/frequency goals were determined to conform to budget restrictions, and accomodate the Leaf’s newness and the unique nature of the automotive industry. Figure 15: Ostrow Model Part I: Marketing Factors That Affect Frequency Add/Subtract Estabished ibrand? (Not, it is a new national brand) 0.2 High Market share? (No, initial introduction) 0.2 Dominant brand? (No, initial introduction) 0.2 High brand loyalty? (Not to the Leaf, but for Nissan and hybrids) 0.1 Long purchase cycle? (Yes, once every 3-4 yrs, if that) -0.2 Product used occasionally? (Product used everyday) 0.2 Need to beat competition? (Yes, new entrants and established models) 0.2 0.9 Part II: Copy Factors That Affect Frequency Simple Copy? (Varies by medium, existing complex themes) 0.1 Copy more unique than competiton? (yes, creative introductory campaign) -0.2 Continuing campaign? (no, this is a new campaign) 0.2 Product sell copy? (Yes, combination of image and product) 0.1 Single kind of message? (differs according to medium) 0.1 To avoid wear out: new messages (Yes, Copy strategy is fresh and new) -0.2 Larger ad units (introductory will be large [i.e. FP), but overall, avg.) -0.1 0 Part III: Media Factors That Affect Frequency Lower ad clutter (No, cars ads are ubiquitous and hybrids are gaining) 0.2 Compatible editorial? (Yes, news is eco-centric) -0.2 Attentiveness high? (Print/net: yes; TV: not as much) -0.1 Continuous advertising? (Pulsing schedule with constant buys) -0.1 Few media used (moderate-to-high media mix) 0.2 Opportunities for media repetition? (Average: cable is high; print is lower) -0.1 -0.1 0.8   26

OBJECTIVES. STRATEGIES. RATIONALE. IV. Media Budget Objective 26.1 percent of the budget will be allocated to the 15 identified spot markets, reflecting the approximate coverage of these areas. 73.9 percent of the budget will be spent nationally. Sales promotions will constitute roughly three percent of the budget, and one percent will be allotted to contingency. Strategy Budget breakdown by geography and media type is shown below: Figure 16: Budget National Media $ Amount National % Cumulative % Net TV-Prime $7,527,300.00 46.30% 34.22% Net TV-Early Morning $1,161,500.00 7.14% 5.28% Net Cable - Prime $2,859,300.00 17.59% 13.00% Net Cable - L Fringe $546,700.00 3.36% 2.49% Net Radio - Morning Drive $1,013,100.00 6.23% 4.61% Magazines - Womens $1,535,800.00 9.45% 6.98% Internet $847,500.00 5.21% 3.85% Sales Promotion $600,000.00 3.69% 2.73% Contingency $165,000.00 1.01% 0.75% National Total $16,256,200.00 100.00% 73.90% Spot Media $ Amount Spot % Cumulative % TV-Prime $4,283,800.00 74.60% 19.47% Spot Cable $680,600.00 11.85% 3.09% Radio - Morning Drive $683,100.00 11.90% 3.11% Sales Promotion $50,000.00 0.87% 0.23% Contingency $45,000.00 0.78% 0.20% Spot Total $5,742,500.00 100.00% 26.10% Gross Total $21,998,700.00 Budget $22,000,000.00 Difference $1,300.00 27

OBJECTIVES. STRATEGIES. RATIONALE. Spot market expenditure was determined based on each area’s percentage of the aggregate spot population, as shown below: Figure17: Source: MSA Falkner % Spot Market Population Spending ($) New York City, NY 25.71% $1,476,396.75 Los Angeles, CA 17.59% $1,010,105.75 Miami, FL 7.40% $424,945.00 Washington, DC 7.25% $416,331.25 Boston, MA 6.13% $352,015.25 San Francisco, CA 5.74% $329,619.50 Phoenix, AZ* 5.71% $327,896.75 Seattle, WA* 4.52% $259,561.00 San Diego, CA* 4.07% $233,719.75 Baltimore, MD 3.65% $209,601.25 Denver, CO 3.37% $193,522.25 Portland, OR* 2.97% $170,552.25 Providence, RI 2.19% $125,760.75 Nashville, TN* 2.08% $119,444.00 Hartford, CT 1.62% $93,028.50   *denotes initial test market The winter months (December 2010 - February 2011) receive no mainstream expenditure. Auto sales usually dip during these months (Market Data Center, WSJ.com, 2009). The Leaf also will have a continuous presence on network TV because of the tie-in sales promotion ($600,000) with Fox’s “Glee.” April and May also are off-months to save money and advertise more heavily in the summer, closer to the Leaf’s widespread release. June/July 2011 are the only months that do not receive Internet advertising. These summer months are ideal for a five market sales promotion partnership with the Four Seasons Hotel ($50,000) to provide target consumers with a hands-on experience. $650,000 is dedicated to sales promotions. Rationale 26.1 percent of the budget is dedicated to spot advertising to reflect the approximate coverage (29.31%) of the 15 markets. The Leaf is not a general interest product; rather, it attracts a highly segmented market of upper- to-middle-class eco-conscious consumers. It is important to introduce the vehicle nationally, but maintain a strong presence in promising spot markets. The Leaf’s $22 million budget rivals that of the Toyota Prius and Chevrolet’s Cobalt and HHR models. Mazda and Honda, however, spend nearly four times for the 3-Model and Civic/Civic Hybrid, respectively. The adjust- ed SOV breakdown below shows the Leaf’s spending relative to the competition in 2007. The budget limits the Leaf’s SOV; several competitors spend more and are able to build higher reach and frequency. 28

OBJECTIVES. STRATEGIES. RATIONALE. The budget requires the client to use more cable and radio to build frequency in lieu of more expensive print options (i.e. newspapers). Figure 18: Make and Model SOV Source: TNS MAKE AND MODEL TOTAL (000) TOTAL % Chevy Cobalt $21,640.30 6.94% Chevy HHR $22,404.40 7.18% Honda Civic/Hybrid $88,170.65 28.26% Toyota Prius $27,200.60 8.72% Toyota Corolla $32,148.25 10.31% Mazda 3 $83,690.25 26.83% Nissan Versa $14,713.20 4.72% Nissan Leaf $21,998.70 7.05% TOTAL $311,966.35 100.00% The recommendation is to spend more heavily on Network TV than the competition’s average as part of the “Glee” sales promotion on Fox, and to build reach across dayparts. More money will be spent in cable TV to target the Leaf’s specific audience. Although web advertising is below the competition’s average, it is distributed throughout the campaign and provides a continuous advertising presence. The recommendation is to use radio more heavily to build frequency (especially in spot markets) and control costs (TNS Media Intelli- gence). Figure 19: Media Mix by Brand Source: TNS MAKE AND  SPOT  US  MODEL NET TV  TV CABLE TV  MAG WEB RADIO Chevy Cobalt 8.63% 12.11% 1.38% 25.57% 3.84% 2.86% Chevy HHR 38.14% 1.34% 5.33% 42.59% 2.43% 0.00% Honda  Civic/Hybrid 18.67% 47.67% 4.69% 12.11% 3.12% 0.00% Toyota Prius 52.85% 31.06% 7.15% 0.72% 7.30% 0.00% Toyota Corolla 2.33% 74.33% 0.56% 10.16% 4.51% 0.00% Mazda 3 21.72% 21.20% 6.84% 0.00% 21.84% 12.63% Nissan Versa 21.72% 60.67% 3.20% 22.95% 10.98% 0.00% AVERAGE 21.72% 35.48% 4.16% 16.30% 7.72% 2.21% ADJ. LEAF MIX 34.22% 19.47% 16.09% 6.98% 3.85% 7.72% 29

OBJECTIVES. STRATEGIES. RATIONALE. V. Geography Objective The media buy for the Nisan Leaf will contain a mix of national only and national spot heavy-up expenditure. Spot advertising will occur in the five initial test markets beginning in September 2010 and continue until Novem- ber. The 10 additional markets will receive spot heavy-up advertising beginning in June 2011 in anticipation of the vehicle’s widespread release. Strategy Nissan will employ an offensive strategy to aggressively introduce the brand into a rapidly growing hybrid market. The lull in advertising during the winter months reflects the nationwide drop in auto sales, and is not explicit to any specific market. The first five markets were included automatically in the spot portfolio. The 10 additional markets were chosen according to the following criteria: • Weighted BDI for the Toyota Prius (70%) and Nissan Versa (30%) • Weighted CDI (regional) for Nissan (75%), Toyota (20%), and Chevrolet (5%) • Weighted Development Index – BDI (80%) and CDI (20%) • Weighted LMA index for Wildlife/Environment (30%), Science/New Tech (30%), and Income $100K+ (40%) • Weighted Development Index (75%) and LMA Index (25%) • Inclusive Weighted Index plus population coefficient (percentage of spot population) Figure 20: Markets Market Weighted Index Rationale Source: MSA Falkner Nashville, TN* n/a San Francisco, CA 190 National advertising is important to reach as many members of Washington, DC 143 the target audience (and auxiliary demographics) as possible. Boston, MA 142 New York City, NY 140 Spot advertising, however, is important to preempt the Leaf’s San Diego, CA* 138 release in the first five test markets, and build frequency in the Providence, RI 136 most promising MSAs. Electric vehicles are a niche product; Portland, OR* 132 the Leaf appeals to a select group of relatively affulent, edu- Los Angeles, CA 129 Hartford, CT 126 cated, and family-oriented individuals. It is important to spend Miami, FL 124 more in spot markets that contain populations of consumers Denver, CO 119 who are more likely to purchase (or express interest in) a Leaf. Baltimore, MD 116 Seattle, WA* 116 Phoenix, AZ* 111   The Prius was weighted 70% because its sales are more indicative of the probable purchasing distribution for the Leaf, a similarly green vehicle. The BDI was weighted more heavily than the CDI because the CDI only accounted for regions, whereas the BDI figures were market- specific. LMA indices were weighted according to the most appropriate categories – average market affluence is more representative of the composition of hybrid consumers. The Devel- opment Index was weighted higher to reflect the sales figures for the most appropriate competitor (Prius). The population coefficient was added to eliminate smaller fringe markets and 30 include larger MSAs with comparable potential.

OBJECTIVES. STRATEGIES. RATIONALE. VI. Scheduling and Timing Objective Achieve modest reach to tease the Leaf’s introduction, and maximize reach during the car’s release. Achieve the highest reach/frequency combinations during pulsing months to preclude test market release and match competitor spending. Network TV, Cable TV, and magazines will be used nationally and in spot markets during all months; radio will be used more in the summer months (June/July 2011) when television viewing declines. Internet advertising will be employed during all months (except during June/July spot market promotion). Strategy Figure 21: Flight MONTH NATIONAL? SPOT? PROMO INTERNET This strategy apportions spot advertising according to Aug-10 X X the Leaf’s availability; the advertising accompanies the Sep-10 X X X1 X car’s test market and widespread release. Personal 1 Oct-10 X X X X 1 Nov-10 X X X X Media Networks of members of the target audience Dec-10 X1 X suggest weekday television viewing occurs during the Jan-11 X1 X early morning, primetime, and late fringe day-parts. Feb-11 X 1 X Weekend television viewing is more evenly scattered, Mar-11 X X 1 X but morning and evening viewing are still the most Apr-11 X1 X May-11 X popular time slots. Radio is used most frequently in Jun-11 X X X 2 the morning, and Internet usage peaks during the day. Jul-11 X X X2   *X1 indicates Network TV tie-in promotion to last full season of “Glee.” *X2 indicates five spot market sales promotion partnership with the Four Seasons Rationale It is important the Leaf is introduced nationally in August/September 2010 to compete with rival brand advertising. Automotive expenditure increases during the late summer and early fall months as new models replace last year’s vehicles. The introduction should be powerful and amass widespread interest, especially from the target audience. The spot advertising in the five test markets should preclude the Leaf’s release in these cities. It is unnecessary to maintain high reach/frequency levels and national exposure because automotive sales usually decline during the winter months, and the Leaf’s mass-market release occurs roughly one year after the initial test market release. Heavy Network TV expenditure coincides with the first few episdoes of “Glee’s” second season. Radio advertising increases during June/July to take advantage of a smaller television audience. The Internet is used in every month (except during the June/July spot market promotion); most off-months receive 10 million impression keyword buys and one million impression banner ads for targeted websites. May receives a more generous five million impression buy to coincide with Memorial Day sales. The Leaf’s spot advertising should increase towards the end of the month when dealers are more likely to slash prices to fulfill sales quotas. These expenditure spikes, however, only should occur when the Leaf is available in showrooms – it is unnecessary to advertise according to this monthly regiment from August-October 2010. 31

OBJECTIVES. STRATEGIES. RATIONALE. VII. Sales Promotions Objective The Leaf will launch two major sales promotions that will resonate with the target and generate word-of-mouth buzz. The two promotions include a national integrated sponsorship in network television as well as a nationwide test drive event marketing partnership with the Four Seasons Hotel & Resort. Glee Goes Green Presented by the Nissan Leaf For its sophomore run, the Leaf will sponsor Fox’s new hit show; “Glee.” The multiplatform sponsorship will run for the entirety of the second season from September 2010 (season premiere) until May 2011 (season finale). “Glee” attracts a substantial amount of the Leaf’s target audience; this vehicle pulls a 4.96 C3 rating for women between the ages of 35-54 with household incomes exceeding $100,000. $6 million will be spent across Fox properties to qualify for the $600,000 sponsorship that includes the following: • Nissan Leaf product integration in the season 2 premier. Drivers ed will be given in the Leaf vehicle. • 1x Billboard in the episode that will direct traffic to online content. • Digital presence on Fox.com with links to the Nissan Leaf website for more information. $500,000 integration fee + $100,000 online presence $600,000 Integrated Sponsorship 32

OBJECTIVES. STRATEGIES. RATIONALE. “Stay Sustainable” Partnership with the Four Seasons Hotel & Resort Nissan will provide four vehicles to Four Seasons hotels located in Boston (142 Weighted Index), Los Angeles (129), Miami (124), New York (140), and San Francisco (190). The Leaf will be used as hotel transportation, and will be made available to guests in one-hour increments to test-drive and tour the city. The sponsorship will run towards the end of the schedule, in June and July of 2011. Summer months provide favorable conditions for travel and sightseeing, and the Four Seasons attracts a an up-scale demographic. Nissan will incur the opportunity cost of selling or leasing each vehicle to a customer (est. $300/month/ vehicle based on lease rates for comparably priced vehicles), and liability/insurance costs to cover vehicle theft or repairs. Nissan will not have to pay for the actual sponsorship, however – the Leaf will be used in lieu of the hotel’s usual fleet. The partnership is mutually beneficial: Nissan will provide a heuristic experience for consumers, and the Four Seasons will generate public goodwill via an associa- tion with a sustainable product. Sponsorship cost breakdown: 20 Nissan Leaf units at $600 each...................$12,000 Liability/Insurance...........................................$38,000 Total cost for promotion.......$50,000 33

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Media Plan - Nissan Leaf

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Media Plan - Nissan Leaf — Document Transcript