Media Plan Final

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The attached plans book is a detailed media plan for Nissan Motor Co. utilizing a $100M budget for buys within April 2013 - March 2014.

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Media Plan Final

  1. 1. .
  2. 2. Table of ContentsExecutive Summary………………………………………………………………………………………………………………………..3Situation Analysis………………………………………………………………………………………………………………...…….4-42 History of the Market……………………………..…………………………………...………………………………...……….4-9 Nissan: History and Current State…………………………………..………………...…………………………………….…10-16 Distribution Channels……………….……………………………………………………………………………………...….17-19 Product Consumer: Demographics, Psychographics and Buyer Habits.………………………....………………..…….........20-38 Target Consumer Profiles..………………………………………………………………………………………………….....39-42Competitive Analysis………………………………………………………………………………………………………..…….…..43-78 Toyota Motor Corp. ……………………………………………………………………………………………………….…..44-50 Chevrolet, Division of General Motors………………………………………………………………………...……………...51-58 Ford Motor………………………………………………………………………………………………………….....….……59-65 Hyundai Motor Company………………………………………………………………………………………………….…..66-72 Honda Motor Company Ltd. ……………………………………………………………………………………………….....73-78Media Plan…………………………………………………………………………………………………………………………...79-115 Overview………………………………………………………………………………………………………………….…...80-84 Media Selections and Rationale…………………………………………………………………………………...…….…….85-97 Media Considered But Not Recommended……………………………………………………………………….................98-101 Seasonality of Media Buys………………………………………………………………………………………………….102-109 Decision Dates and Cancellation Flexibility…………………………………………………………………….................110-116Appendix A…………………………………………………………………………………………………………………………117-120Appendix B: Sources……………………………………………………………………………………………………………………121 2
  3. 3. Executive SummaryAs Nissan hopes to increase multicultural Millennial share of market specifically targeting Hispanics, AfricanAmericans, and Chinese, it is imperative for the company to understand what makes this targetunique. Research conducted by CPMedia concludes findings that the multicultural Millennial target wouldbest be reached through a combination of national, local, and interactive components. Thus, we haveincluded national print and network TV, in combination with outdoor advertising in four specific DMA’s,strategically picked for their high density of multicultural Millennials in order to maximize the number oftargets we reach in addition to the frequency in which we reach them. Further, we allocated a largepercentage of the budget to cover Internet advertising because the target is more likely to spend their timeonline than engaged in any other media. We have incorporated non-traditional buys into the plan that utilizecelebrity endorsements that the target can ethnically identify with, which also contain a strong call to actionto visit the Nissan YouTube page. With this creative campaign CPMedia has created an overall message thatencompasses the idea of individuality through the tagline, Free to be you. Free to be Nissan. The overallmessage in the campaign will appeal to the multicultural Millennial’s desire to be unique and stand out.Through these specific media buys and the non-traditional approach of identifying with your target, you willgenerate future revenues with the multicultural Millennials. 3
  4. 4. History of the Market 4
  5. 5. Nissan vs. the Market Primary PlayersAutomotive Industry Market ShareWall Street Journal - September 20111 General Motors GM Other 19.7% 30% Ford Motor Toyota Motor Corp. Ford Nissan Motor Corp., Ltd. 16.6% Honda Motor Hyundai Company Ltd. 4.9% Toyota Hyundai Motor Company Nissan Honda 8.8% 11.5% 8.5%Nissan’s total market share is 8.8%; however these six competitors comprise 70% of the market. 51"Auto Sales - Markets Data Center." Wall Street Journal. Web. 07 Oct. 2011. <http://online.wsj.com/mdc/public/page/2_3022-autosales.html>.
  6. 6. Nissan vs. the Market How Nissan is Gaining Market Share • Only 100% electric vehicle in market compared to competitors • Focus on manufacturing 100% electronic, emission-free vehicles (ESFLOW & LEAF)2 • Beginning 2013, Exclusive automobile for New York City TLC (Nissan NV200)32Nissan Cars, Trucks, Crossovers, & SUVs | Nissan USA. Web. 06 Oct. 2011. <http://www.nissanusa.com/>. 63Ibid.
  7. 7. Nissan vs. the Market Share Price Comparison Automotive Share Prices4 Day-end September 28, 2011 $67.85 $70.00 $60.00 $50.00 $40.00 $29.21 $25.25 $30.00 $21.00 $16.55 $20.00 $9.86 $10.00 $- Ford Motor Co. General Motors Honda Motor Hyundai Motor Nissan Motor Toyota Motor Co. Co., Ltd. Co., Ltd. Co., Ltd. Corp 74Web. 28 Sept. 2011. <http://www.mergentonline.com/competitors.php?compnumber=6050>.
  8. 8. Nissan vs. the Market Revenue Comparison Automotive Revenue Comparison 20105 (000) $229,400,000Toyota Motor Corp.General Motors Co. $135,600,000 Ford Motor Co. $129,000,000 Honda Motor Co. $108,000,000 Nissan Motor Co. $106,000,000Hyundai Motor Co. $100,400,000 85Web. 28 Sept. 2011. <http://www.mergentonline.com/competitors.php?compnumber=6050>.
  9. 9. Nissan vs. the Market Company Market Value Nissan’s market value, observed at the fiscal year end, is approximately $40 million. It ranks third in market value when compared to the primary players of the automotive market. 6 Company Name Ticker Market Value ($ - 000) EPS* Yield % β** Toyota Motor Corp. TM 105,547.39 $1.68 1.60% 0.71 Ford Motor Co. F 43,927.34 $1.74 2.39 Nissan Motor Company Ltd. NSANY 39,321.47 $1.71 1.58 General Motors Co. GM 36,763.97 $4.75 Nissan Earnings Per Share (Justification of Market Value) Q1 EPS: 0.56 Q2 EPS: 0.57 Q3 EPS: 0.46 Q4 EPS: 0.18 Year EPS: 1.79*EPS denotes Earnings Per Share **β denotes Beta (investment risk) where average Beta isequal to 1.006"Nissan Motor Co ADS." NetAdvantage. Web. 15 Oct. 2011.<http://www.netadvantage.standardandpoors.com/NASApp/NetAdvantage/cp/companyAllCompetitors.do://>. 9
  10. 10. NissanHistory and Current State 10
  11. 11. Nissan Motor Co., Ltd. A Brief Overview History7 • Nissan Motor Co., Ltd. date of establishment: December 26, 1933 • The founder of Nissan was Yoshisuke Aikawa, who planned to produce 10,000 – 15,000 units per year. • The first Datsun passenger car emerged off the assembly line in April of 1935 • Nissan’s original slogan was "The Rising Sun as the flag and Datsun as the car of choice.” Nissan Motor Co., Slogan: SHIFT_The way you move Future Outlook8 • Nissan announced a six-year business plan called "Nissan Power 88." • It calls for growth across new markets for the six fiscal years ending March 31, 2017 • During this 6 year plan Nissan plans to deliver an all-new vehicle every six weeks • Nissan’s global portfolio will have 66 vehicles and will cover 92% of all markets and segments under this plan • Also, by 2017 the company aims to achieve a global market share of 8%7"NISSAN | CORPORATE INFORMATION | Outline of Company TOP." Nissan Motor Company Global Website. Web. 08 Oct. 2011. <http://www.nissan-global.com/EN/COMPANY/PROFILE/>. 118“Nissan Motor Co." Business Summary. Sun. 09 Oct. 2011. <www.netadvantage.standardandpoors.com>
  12. 12. The Product Itself Product History 2011: Nissan introduces the 1968: Leaf trying to reach their 1933: The first car styled 100% electricity 0 emission Nissan Motor Co., Ltd. is for the U.S. market is objective. established in Japan9 1958: launched, the Datsun 510. The first Datsun sedan is sold in America. 1975: Datsun becomes the top 1937: U.S. vehicle imported. The Datsun Type 15 is the 1993: first mass produced Japanese Nissan celebrates 10 years of vehicle. Other Type 15 models manufacturing cars in the U.S. , include a mini pickup and Altima tops sales records, and delivery van. the Maxima surpasses one million cars sold. 129"Nissan Heritage." Nissan USA. Web. 13 Oct. 2011. <http://www.nissanusa.com/about/heritage/the-early-days.html>.
  13. 13. Nissan Motor Co., Ltd. Ad Spending for 2010 Spending Overview10 • In 2010 Nissan Motor Co. spent at total of $866,435,000 on media in the United States, which gave it a ranking of 42 out of the 100 companies that spent the most in media. • Of the different channels of media that Nissan allocated its budget to, the categories that received the most amount for 2010 were: • Network TV • Cable TV • Spot TV 1310"Advertising Age." Advertising Agency & Marketing Industry News - Advertising Age. 20 June 2011. Web. 28 Sept. 2011. http://adage.comdatacenter/marketertrees2011/.
  14. 14. Nissan Motor Co., Ltd. Where is the Money Going? 9.35% 0.03% 0.05% Sales (000) 0.00% 0.91% Magazines 81,029 0.67% B-to-B Magazines 242 Local Magazines 399 0.01% Spanish-language Magazines 22 0.04% Newspaper 7,878 National Newspaper 5,829 29.54% Spanish-language Newspaper 126 22.67% Outdoor 360 Network TV 196,427 Spanish-language Network TV 22,882 Spot TV 92,990 10.67% Syndication 186 Cable TV 99,031 10.73% Network Radio 638 11.43% 2.64% Local Radio 9,933 1.15% Internet 92,487 * Unmeasured 255,976 0.07% 0.02% Nissan’s total Ad Spending is approximately $866 million *A specified breakdown of unmeasured spending can be found in the appendix Fiscal Year Ending 201011 1411"Advertising Age." Advertising Agency & Marketing Industry News - Advertising Age. 20 June 2011. Web. 28 Sept. 2011. http://adage.comdatacenter/marketertrees2011/.
  15. 15. Nissan Motor Co., Ltd. Advertising Seasonality Nissan Advertising Seasonality12 The most significant pattern observed with Nissan advertising expenses is that they do not advertise in Q4 and spend significantly less money in Q1 when compared to the other quarters of the year. It’s possible that the company is saving funds to spend the most amount possible in Super Bowl advertising. They could also be waiting to spend more money advertising newer models, which come out at the start of the year. Also, in 2009 Nissan spent considerably more on advertising than in 2010 and 2011; however, it seems they are spending more and more each year, and each quarter since then. 1512 Bloomberg L.P. (2011). ARD Advertising Expenses graph for Nissan Motor Corp. 2000 to 2011. Retrieved Oct. 6, 2011 from Bloomberg terminal.
  16. 16. SWOT Analysis Strengths Weaknesses Industry’s first fully electric vehicle  Low market share Affordable  Overall low gas mileage Exclusive automobile for New York City TLC  Mediocre brand image Red Tent Event  Advertising spending towards a small Nissan Power 88 percentage of potential customers SWOT Opportunities Threats Media plan focus towards multicultural  High direct competition (other car companies)Millennials  Exclusive sponsorship deals already signed by Improve upon product line’s gas mileage competition Promote big sales and new model releases  Media waste  Public transportation leverages target audienceEnhanced sponsorshipsCreative buys geared towards target 16
  17. 17. Distribution Channels 17
  18. 18. Distribution Channels Exclusive Nissan Dealerships • Nissan’s exclusive dealerships are located in 49 states, excluding Hawaii. • In total Nissan owns 1,065 exclusive dealerships throughout the United States • The concentrated regions where Nissan places the most dealerships are: California, Texas, New York, and Florida13 1813 "Find a Nissan Dealer | Nissan USA." Nissan Cars, Trucks, Crossovers, & SUVs | Nissan USA. Web. 27 Oct. 2011. <http://www.nissanusa.com/apps/dealerlocator>.
  19. 19. Distribution Channels Nissan’s National Tent Event • Nissan’s National Tent Event is an annual end of summer sale, which aims to get rid of their old models in preparation for the releases of new models in September. • The Tent Event runs from July to September each year. • This is promoted and hosted at ALL local Nissan dealers • Red and white tents are placed at dealerships to promote the seasonal deals • Nissan chooses to spend heavily during Q3 (i.e. July, August and September). This is in preparation for the Tent Event, the biggest dealership sales promotion of the year and for the new models released in September.14 1914 2011 Nissan Tent Event | Nissan National Tent Event | Come Save Today!! Web. 27 Oct. 2011. <http://www.thenissantentevent.com>.
  20. 20. Product ConsumerDemographics, Psychographics & Buyer Habits 20
  21. 21. Product Consumer Demographics Who is the target demographic?15 • The target demographic for this initiative is Multicultural Millennials, ages 18-29, in the African American, Hispanic and Chinese segments. • The target is comprised of 57% men and 43% women. • The MC Millennial is 41% more likely than the average to have a household income of $60,000+ and 32% more likely than the average to have attended college. • In terms of occupation the MC Millennials are highly likely to work in the Arts, Design, Entertainment, Sports and Media industry; and are 186% more likely than the average to do so. The second most common occupation this target holds is in Sales/Office, and the Multicultural Millennials are 60% more likely than the average to hold a position in this field. 2115Nissan Client Brief
  22. 22. Target Demographic Population Of the United States population, there are a total of 7,750,700 Multicultural Millennials which accounts for approximately 2.44% of the population. Further broken down by demographic, African American, Hispanic and Chinese Millennials account for 1.07%, 1.28% and .09% of the total population respectively. Thus, when allocating budget and media buys, the largest percent of the budget corresponds to the largest demographic, Hispanic Millennials, followed by African American Millennials, and last Chinese Millennials. While this target may be a small percentage of the entire U.S. population, it still accounts for close to 8,000,000 people, which has the potential to create large sales volume increases for Nissan. 16 22162010 U.S. Census
  23. 23. Product Consumer Demographics • Big purchase decisions are based on style, function, quality and reliability. • Want to be defined by their choice in music, art, and celebrity association. • A cause or incentive is necessary to follow a mass brand. • Internet, Television, and Magazines are the three most popular medias for relaxation.17 Media Index Internet: All 3 186 Television: Source of Information and Relaxation 207 Magazines: Source of Relaxation only 643 Radio: Source of Inspiration only 141 Radio: Source of Relaxation only 130 Note: Information, Relaxation, and Inspiration = Internet: All 3 2317Nissan Client Brief
  24. 24. Psychographics Attitudes Towards Cars and Driving• Nissan’s target often drive by themselves for a sense of freedom.• Nissan’s target feel that their car should express their personality.• The research shows that, overall, Nissan’s demographic is independent. These users consume products that can be personalized and fit their lifestyles.18 African Asians Hispanics Americans Sample 3,526 39 38 325 MY CAR SHOULD EXPRESS MY (000) 65,212 1,735 1,577 2,850 PERSONALITY Vertical 30% 35% 56% 33% Horizontal 100% 2.66% 2.42% 4.37% Index 100 119 187 112 Base 30% 0.79% 0.72% 1.30% Sample 2,840 36 23 263 (000) 54,113 1,416 952 2,572 OFTEN DRIVE BY SELF FOR Vertical 25% 29% 34% 30% SENSE OF FREEDOM Horizontal 100% 2.62% 1.76% 4.75% Index 100 117 136 121 Base 25% 0.65% 0.44% 1.18% 2418Simmon Choices 3
  25. 25. Psychographics Attitudes Towards the Ideal Car Car Attitudes • African American, Chinese, and Hispanic Millennials have formed their own attitudes towards Agree Completely Index cars. Seek out bold, innovative designs that 180 stand out from others • Their ideal car is fast, exciting, friendly to the Seek out vehicles that support my 166 environment, makes use of technology, and allows commitment to the environment them to include their own personal style. Having a fun vehicle to drive is a top 152 consideration • They will choose a car based on looks and style. Look forward to technology advances in 139 • The target is: new vehicles • 80 times more likely to “seek out designs Enjoy personalizing my vehicles to 134 that stand out from others” reflect my individual tastes • 66 times more likely to “seek our cars that Consider myself to be an automotive 125 support their commitment to the environment” enthusiast • 34 times more likely to “enjoy personalizing Generally purchase the most expensive 116 their vehicle”19 model with all luxury appointments 2519 Nissan Client Brief
  26. 26. Psychographics Attitudes Toward Car Purchases• Asians, overall, are 213 times more likely to purchase a Japanese, Korean or other Asian originated vehicle in their next vehicle purchase. Asian Millennials are 212 times more likely to make this purchase than the average individual. All Asians are 107 times more likely to purchase a new Nissan, and 31 times more likely to own a Nissan than the average population.• Hispanic Millennials and Hispanics overall are not highly likely to purchase a Nissan, but the segment follows the average of Nissan purchases.• African Americans overall are 46 times more likely than the average to have most recently acquired a Nissan.20 Asian Next vehicle Japanese, Korean or Other Asian Bought a new Nissan Sample 228 Sample 52 (000) 3,474 (000) 709 Vertical 37% Vertical 7.49% Horizontal 14% Horizontal 8.96% Index 313 Index 207 Sample 1.59% Sample 0.32% 2620Simmon Choices 3
  27. 27. Psychographics Reasons for Driving MRI Fall 2010 Automotive21 Adults Race: Race: Spanish spoken Reasons Target Drives: 18 - 29 African American Asian in home 3 times 20 times 13 times 5 times Commute to Work less likely less likely more likely less likely 19 times 27 times 12 times 9 times Other Driving for Work less likely less likely less likely less likely 16 times 39 times 16 times 31 times Leisure less likely less likely less likely less likely 20 times 39 times 28 times 25 times Errands less likely less likely less likely less likely 28 times 8 times 6 times Transport Others Average less likely less likely less likely 91 times 15 times 2 times 10 times Other more likely less likely less likely more likely • According to MRI, adults 18-24 are 91 times more likely to describe their reasons for driving as other. This pattern of being the most relevant information is seen again for African Americans as well as Hispanics. Asians are the only segment who responded that they were 13 times more likely to use a car to commute to work as the primary reason for driving. 2721 MRI Mediamark Reporter. Fall 2010. Web. 19 Oct. 2011. <http://www.mriplus.com.rlib.pace.edu/account/home.aspx>.
  28. 28. Psychographics Attitudes Towards Nissan• Nissan car-buyers were evaluated in conjunction with the target audience. There was no significant data regarding African American Millennials and Asian Millennials in regards to their preferences towards Nissan. However, Hispanic Millennials and Millennials overall are likely to favor Nissan.• Hispanic Millennials are 45 times more likely to have most recently acquired a Nissan than the average individual. Millennials – overall – are 29 times more likely to have most recently acquired a Nissan and 34 times more likely to have acquired a Nissan within no specific timeframe than the average individual. Millennials are 31 times more likely than the average to own a Nissan. With significance in the Millennial age range, the target audience may be reached through their social environments and word of mouth buzz.22Note: In this instance, “own” denotes an owner of a Nissan that has obtained the Nissan by no specific means. “Acquire” denotes an individualthat has obtained a Nissan for oneself, by oneself (as in bought for oneself). Millennials Own a Nissan Recently acquire a Nissan Sample 309 Sample 390 (000) 3,744 (000) 4,584 Vertical 9.40% Vertical 12% Horizontal 24% Horizontal 24% Index 131 Index 134 2822Simmon Choices 3
  29. 29. Psychographics Attitudes Towards Technology Technology Interests Agree Completely Index I am first among my friends to • Millennials are 113 213 try new technology. times more likely to try I am fascinated by new new technology. 164 technology. Technology helps make me 134 more organized. I like to read reviews before • Millennials are 33 times 133 buying new technology. more likely to read Computers can be a good reviews.23 116 source of entertainment. When I find new technology I typically recommend it to 114 people I know. 2923 Nissan Client Brief
  30. 30. Psychographics Attitudes Toward Electronics• It is clear that the target demographic holds an exponentially favorable attitude towards electronics. African Americans, Asians and Hispanics (ages 18-29) are 101%, 208% and 106%, respectively, more likely than the average to pay anything for an electronic product that they want. With this directional research we can conclude that because the target is willing to pay anything for an electronic product they want, they place this kind of technology in high regard; this is something to consider when appealing to their attitudes in a campaign.• Additionally, the Millennial African Americans, Asians and Hispanics are 133%, 198% and 64%, respectively, more likely than the average to be the first of their friends to have new electronic equipment. This demonstrates the target can be considered purchasing leaders among their peers.24 African Asians Hispanics Americans Sample 2,517 62 45 388 (000) 22,479 988 779 1,789 Vertical 10% 21% 32% 21% PAY ANYTHING FOR Horizontal 100% 4.40% 3.47% 7.96% ELECTRONIC PRODUCT I WANT Index 100 201 308 206 Base 10% 0.45% 0.36% 0.82% 3024Simmons Choices 3
  31. 31. Psychographics Attitudes Towards the Media Nissan Outdoor Advertising• The target also favorably agreed with the following statements regarding media attitudes: • I find television advertising interesting • Magazines are my main source of entertainment • I often notice the ads at bus stops • I often notice ads on trains • I often notice the ads on buses • I often notice the ads on taxis• This demonstrates that Multicultural Nissan Print Advertising Millennials do pay attention to advertising in the above mediums. They are less likely than the average to listen to the radio for quick news updates and do not rely on newspapers to keep informed.2525Simmons Choices 3 31
  32. 32. Psychographics Attitudes Towards Internet and Entertainment• Millennial African Americans, Asians and Hispanics are 42%, 268% and 49%, respectively, more likely than the average to view the internet as their prime source of entertainment.• The target also greatly agrees with the statement “internet is the new way I socialize and meet others” as well as “internet is the prime source of family entertainment.” These findings allow us to understand that the target demographic is not just casually on the internet, but rather it is an important component that affects multiple aspects of their life.26 African Asians Hispanics Americans Sample 3,315 60 68 448 (000) 32,810 1,022 1,359 1,894 INTERNET PRIME SOURCE MY ENTERTAINMENT Vertical 15% 21% 55% 22% Horizontal 100% 3.12% 4.14% 5.77% Index 100 142 368 149 Base 15% 0.47% 0.62% 0.87% Sample 2,871 77 65 445 (000) 29,091 1,256 1,275 2,044 INTERNET NEW WAY I SOCIALIZE/MEET OTHERS Vertical 13% 26% 52% 24% Horizontal 100% 4.32% 4.38% 7.03% Index 100 197 390 181 Base 13% 0.57% 0.58% 0.93%26Simmons Choices 3 32
  33. 33. Psychographics Focused on African American Millennials• There are two lifestyle statements that are unique in African Americans Millennials: • People always ask my advice on a car buy • I like a new car every two or three years• The significance of these statements show that this segment considers themselves to be influencers. African American Millennials are also active consumers in the automotive market.27 Sample 22 (000) 721 PEOPLE ALWAYS ASK MY ADVICE ON CAR BUY Vertical 15% Horizontal 2.47% Index 111 Base 0.33% Sample 26 (000) 1,054 LIKE A NEW CAR EVERY TWO OR THREE YEARS Vertical 22% Horizontal 3.43% Index 153 Base 0.48% 3327Simmon Choices 3
  34. 34. Psychographics Focused on Asian Millennials • 60% of Asians 18 – 29 feel that comfort is the most important thing in a car and 51% normally drive without any passengers. • This segment focuses heavily self concept. Asian Millennials are conscious of self- perception as well as how they are perceived by others. My car should catch people’s attention• The following lifestyle statements were significant in Sample 27 support of these insights: (000) 1,199 Vertical 42% Horizontal 4.77%• Foreign cars have more prestige than American cars Index 368• I like to drive faster than normal Base 0.55%• Foreign cars are of higher quality than American cars• I prefer driving a luxury vehicle I can tell a lot about someone• I choose a car mainly on looks by the car they drive• I would pay extra for an engine with more horsepower28 Sample 37 (000) 1,401 Vertical 49% Horizontal 2.48% Index 191 Base 0.64% 3428Simmon Choices 3
  35. 35. Psychographics Focused on Asian MillenialsAmerican Cars Versus Foreign Cars• The Asian segment holds different attitudes than the other segments of Nissan’s target. Asian Millennials hold a higher value in foreign vehicles over American vehicles.• The segment is 259 times more likely than African American Millennials and 164 times more likely than Hispanic Millienials to feel that foreign cars hold more prestige than American cars.• Asian Millennials are also 93 times more likely than African American Milliennials and 99 times more likely than Hispanic Millennials to feel that foreign cards are of higher quality than American cars.Cars and Self-Perception• The segment is 62 times more likely than African Americans and 51 times more likely than Hispanics to agree with the statement, “My car should catch people’s attention.”• Asian Millennials are also 77 times more likely than African Americans and 28 times more likely than Hispanic Millennials to feel that they can tell about someone by the car they drive.29 3529Simmon Choices 3
  36. 36. Psychographics Focused on Hispanic Millennials • Hispanic Millennials are similar to Asian Millennials in the perception of foreign vehicles. This information is useful to Nissan as these segments are likely to purchase a foreign vehicle. The segment is similar to African American Milliennials as influencers in the market. Foreign cars have more• The Hispanic Millennials segment was found to prestige than American be likely to agree to the following statements: Sample 186 (000) 1,611• My car should catch people’s attention Vertical 19%• Options on a car impress me Horizontal 6.41%• Can tell about someone by the car driven Index 164• Often in car with more than one person Base 0.74%• Choose a car mainly on looks30 People always ask my advice on car buys Sample 172 (000) 1,638 Vertical 19% Horizontal 5.62% Index 144 Base 0.75% 3630Simmon Choices 3
  37. 37. Buyer Habits Amount Target Spent in Total MRI Fall 2010 Automotive31 Amount Spent Adults Race: Race: Spanish spoken in Total on Vehicle: 18 - 29 African American Asian in home 61 times 41 times 71 times 18 times $50,000+ less likely less likely more likely more likely 49 times 44 times 41 times 26 times $30,000 - $39,999 less likely less likely more likely less likely 39 times 38 times 21 times 17 times $15,000 - $19,999 less likely less likely less likely less likely 7 times 15 times 28 times 4 times Under $10,000 more likely less likely less likely more likely • When purchasing a new vehicle, Nissan’s target market of adults 18 to 24 years old of African America, Chinese, and Hispanic race will consider price as one of the most important aspects. According to the above data from MRI Fall 2010 Product: Automotive, Asians and those who speak Spanish within the home are more willing to spend a large amount of their money on an automotive vehicle ($50,000 or more). While the average adult 18 – 24 years old, especially African Americans, stated they are not willing to spend a large amount to buy a vehicle. As the price of the vehicle reduces, African Americans are more willing to buy, as opposed Asians who display an opposite pattern. Spanish speaking households are more willing to buy when the price is either high or very low, but not an in between value. This may be due to income and perceived value of the product according to price. 3731 MRI Mediamark Reporter. Fall 2010. Web. 19 Oct. 2011. <http://www.mriplus.com.rlib.pace.edu/account/home.aspx>.
  38. 38. Buyer Habits How Target Purchased Vehicle MRI Fall 2010 Automotive32 How Target Adults Race: Race: Spanish spoken Purchased Vehicle: 18 - 29 African American Asian in home 27 times 27 times 6 times 13 times Bought less likely less likely less likely less likely 22 times 7 times 31 times 16 times Leased more likely less likely more likely more likely 21 times 42 times 7 times 11 times With Cash less likely less likely less likely less likely 49 times 49 times 23 times 37 times With Trade-in less likely less likely less likely less likely 31 times 6 times 16 times 5 times Financing from Dealer less likely less likely more likely less likely 38 times 47 times 24 times 21 times Bank Loan less likely less likely less likely less likely 34 times 24 times 26 times 33 times Credit Union Loan less likely less likely less likely less likely Financing from Auto 50 times 11 times 27 times 31 times Manufacturer less likely less likely less likely less likely • How to purchase a vehicle consists of multiple options as displayed in the chart above. Adults 18 to 24 will choose to lease a vehicle over buying the product, this is because leasing a vehicle does not require the young buyer to be responsible for the full price only fixed monthly payments. The data displays that these 3 ethnicity groups are likely to avoid loans and trade-ins to purchase a vehicle (49-21 times less likely). Financing from Dealer is the most attractive option with only 5-16 times less likely rates. 3832 MRI Mediamark Reporter. Fall 2010. Web. 19 Oct. 2011. <http://www.mriplus.com.rlib.pace.edu/account/home.aspx>.
  39. 39. Target Consumer Profiles 39
  40. 40. Target Consumer Profile Meet Carlos Profile Highlights Name: Carlos Age: 23 Location: Los Angeles, California Job Title: Retail Manager Annual HHI: $45,00033 Marital Status: Single Carlos prefers a foreign vehicle that will catch the attention of his friends. Carlos feels that foreign cars are more prestigious than American cars. The new and innovative vehicles provided by Nissan are ideal for him. Carlos seeks out vehicles with options that may impress him and his friends. He feels that he can tell about someone by the car they drive. Carlos will choose his next vehicle based on its looks as he will be driving with more than one passenger.3433Client Brief 4034Simmons Choices 3
  41. 41. Target Consumer Profile Meet Charles Profile Highlights Name: Charles Age: 27 Location: New York, NY Job Title: Sales Manager Annual HHI: $65,00035 Marital Status: Engaged Charles, being tech savvy, is the first among his friends to get the latest electronics. Several Nissan vehicles come equipped with voice command electronic systems which can help Charles navigate, find local restaurants, and play his favorite music. Charles spends much of his time online, browsing Yahoo!, or watching funny videos on YouTube. He works hard and looks for a car that can keep up with his busy life. Good thing the Nissan Maxima delivers an impressive 290 HP.3635Client Brief 4136Simmons Choices 3
  42. 42. Target Consumer Profile Meet Valerie Profile Highlights Name: Valerie Age: 19 Location: Atlanta, Georgia Job Title: Student Annual Income: Dependent Annual HHI: $66,00037 Marital Status: Single Valerie is a new buyer to the automotive market. She is likely to buy a new car every two to three years, which makes her a potential lifetime buyer of Nissan. Valerie will purchase a car that expresses her personality. She will be driving her car alone and will seek out a car that makes her feel comfortable.3837Client Brief 4238Simmons Choices 3
  43. 43. Competitive Analysis 43
  44. 44. The CompetitionToyota Motor Corp. 44
  45. 45. Toyota Motor Corp. A Brief Overview History39 • Toyota Motor Co., Ltd. was founded in 1937 by Mr. Sakichi Toyoda, however Toyoda had been working toward the inception since 1924. • In 1957 Toyota Motor Sales Co., Ltd. Was established despite a major financial crisis facing the company. • In 1982 the two entities merged to become what we know as Toyota Motor Corp. • Today Toyota is the worlds largest vehicle manufacturer based on sales and production volume. Toyota Motor Corp. Slogan: Moving Forward Outlook for the Future40 • Toyota’s outlook for the automobile manufacturers sub-industry for 2012 is positive, as U.S. demand for automotive is raising annually. Japanese automakers are recuperating from the recent tragedy at a rapid rate. • Toyota is paying full attention to economic factors that may weaken sales • Due to rising gasoline prices in the U.S., Toyota predicts the possibility of a decrease in sales volume and vehicle mix • Rising raw material costs are causing compressions in margins • Thus, Toyota predicts that growth will occur in smaller trucks and SUVs39"History of Toyota." TOYOTA MOTOR CORPORATION GLOBAL WEBSITE. 1995-2011. Web. 07 Oct. 2011. <http://www.toyota-global.com/company/history_of_toyota/>.40Levy, Efraim. Sector Scorecard: GICS Sub-Industry Summary. Rep. Standard & Poors, 2011. NetAdvantage. Web. 26 Sept. 2011. 45<http://http://www.netadvantage.standardandpoors.com.rlib.pace.edu/NASApp/NetAdvantage/cp/companyIndustryPage.do>.
  46. 46. Toyota Motor Corp. Ad Spending for 2010 Spending Overview41 • During 2010 Toyota Motor Corp. allocated $916,524,600 to media buys throughout various channels of communication. • When compared to other companies, Toyota was ranked as the 16th company to spend the most amount of money on media in 2010. • When compared to Nissan Motor Co. Ltd, Toyota spent significantly more on media (about $432,158,000). Nissan’s media spending in 2010 totaled to $484,366,600; Toyota nearly doubled what Nissan spent on media in 2010. 4641"Advertising Age." Advertising Agency & Marketing Industry News - Advertising Age. 20 June 2011. Web. 26 Sept. 2011. http://adage.comdatacenter/marketertrees2011/.
  47. 47. Toyota Motor Corp. Where is the Money Going? 0.33% 0.00% Sales (000) 7.65% 0.06% 0.03% Magazine 132,833 1.14% Sunday magazine 5,705 0.03% B-to-B magazine 975 Local magazine 44 0.63% Spanish-language magazine 559 Newspaper 19,835 National newspaper 35.37% 10,976 21.98% Spanish-language newspaper 607 Network TV 381,432 Spot TV 135,394 Syndicated TV 19,342 Cable TV networks 193,205 Spanish-language network TV 66,261 7.80% Network radio 1,047 7.57% 11.13% National spot radio 60 0.99% 1.11% Local radio 4,911 0.28% Outdoor 17,210 0.00% 3.82% Internet (display only) 131,337 0.06% * Unmeasured spending 613,929 *A specified breakdown of unmeasured spending can be found in the appendix Fiscal Year Ending 201042 4742"Advertising Age." Advertising Agency & Marketing Industry News - Advertising Age. 20 June 2011. Web. 26 Sept. 2011. http://adage.comdatacenter/marketertrees2011/.
  48. 48. Toyota Motor Corp. Advertising Seasonality It seems that after juggling with the advertising budget in the early 90’s, Toyota has progressively spent more and more on advertising over the years. However, in 2003 the aggressive growth pattern leveled out and it’s appropriate to predict that Toyota’s budget since 2003 has rose, but not in the exponential way we see in earlier years. Because of the 2008 financial crisis Toyota’s advertising budget most likely declined during 2008 and 2009. Due to recalls of their product in 2010, Toyota most likely increased spending on advertisements to regain public trust.43 4843Bloomberg L.P. (2011). ARD Advertising Expenses graph for Toyota Motor Corp. 2000 to 2011. Retrieved Oct. 6, 2011 from Bloomberg terminal.
  49. 49. Toyota Motor Corp. Media Buys Compared to Nissan Toyota vs. Nissan Budget Allocation (by percent) Fiscal Year Ending 40.0% 35.0% 201015 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% Nissan Nissan Toyota Both Toyota and Nissan spent high percentages of their respective budgets on similar channels of media: Magazines, Network TV, Spot TV and Cable TV. While Toyota focused spending on Network and Cable TV, Nissan honed in on Magazines and Spot TV. This allows us to better understand the consumers both companies are hoping to reach. It’s appropriate to conclude that the target Toyota was attempting to reach in 2010 were heavy Network and Cable TV watchers. Spanish- Spanish- Spanish- B-to-B Local Sunday languag National languag languag National Magazin Newspa Networ Syndicat Cable Networ Local Unmeas Magazin Magazin Magazin e Newspa e Outdoor e Spot TV Spot Internet es per k TV ion TV k Radio Radio ured es es es Magazin per Newspa Networ Radio es per k TV Nissan 9.4% 0.0% 0.0% 0.0% 0.0% 0.9% 0.7% 0.0% 0.0% 22.7% 2.6% 10.7% 0.0% 11.4% 0.1% 1.1% 0.0% 10.7% 29.5% Toyota 7.7% 0.1% 0.0% 0.3% 0.0% 1.1% 0.6% 0.0% 1.0% 22.0% 3.8% 7.8% 1.1% 11.1% 0.1% 0.3% 0.0% 7.6% 35.4%44"Advertising Age." Advertising Agency & Marketing Industry News - Advertising Age. 20 June 2011. Web. 26 Sept. 2011. http://adage.comdatacenter/marketertrees2011/. 49
  50. 50. Toyota Motor Corp. How Toyota is Gaining Market Share Toyota ’s Sports45 • Toyota is very active in the sports world with from sponsorships to special events. The company is currently an official sponsor of the FIFA World Cup (soccer) as well as the IAAF World Championships (track and field). • Toyota also sponsors various football events during the Unites States football season, however their current focus is on soccer. • Motor Sports sponsorships are also a large chunk of Toyota’s annual budget. The company sponsors races and programs annually as well as participates in motor sports through their vehicles. Toyota Believes the Children are Our Future46 • The Fritz Kreisler Violin Competition and the Dream Car Art Contest are two cultural events that Toyota also sponsors. • Both contests encourage children and young adults to tap into their full potential and be their generations leaders, whether it be leading by excellence or leading with imagination.45"Sports Sponsorship." TOYOTA MOTOR CORPORATION GLOBAL WEBSITE. 1995-2011. Web. 28 Sept. 2011. <http://www.toyota-global.com/events/sports_sponsorship/>.46”Cultural Events." TOYOTA MOTOR CORPORATION GLOBAL WEBSITE. 1995-2011. Web. 28 Sept. 2011. http://www.toyota- 50global.com/events/cultural_events/.
  51. 51. The CompetitionChevrolet, Division of General Motors 51
  52. 52. Chevrolet A Brief OverviewHistory• General Motors owns Chevrolet, GMC, Cadillac and Buick47 • The company was incepted in Detroit, MI in 1908 • It is the world’s 2nd largest car & truck manufacturer and the largest in the United States48• The Chevrolet division was established in 191149 • Founded by racer Louis Chevrolet and original General Motors founder William C. “Billy” Durant • Chevy produced cars, crossovers, SUVs, and trucks• Chevrolet is the 4th largest automotive brand in the world • 52% of GM’s advertising budget was allocated to Chevy in 2010 50Chevrolet Slogan: An American RevolutionCurrent Situation and Future Outlook• 27% of GM is owned by the United States due to when the company filed for bankruptcy in 2009 51• GM is confident they will return to normal production by 201152 • The company plans to increase to 12.9 million units of production in 201147"Chevy Culture | Chevrolet 100 Years Strong." 2011 Cars, SUVs, Trucks, Crossovers & Vans | Chevrolet. Web. 06 Oct. 2011. <http://www.chevrolet.com/culture/article/chevrolet-centennial/>.48"Standard & Poors." Web. 07 Oct. 2011. <http://www.netadvantage.standardandpoors.com/NASApp/NetAdvantage/companyOverview.jsp>.48"Chevy Culture | Chevrolet 100 Years Strong." 2011 Cars, SUVs, Trucks, Crossovers & Vans | Chevrolet. Web. 06 Oct. 2011. <http://www.chevrolet.com/culture/article/chevrolet-centennial/>.50"Advertising Age." Advertising Agency & Marketing Industry News - Advertising Age. 20 June 2011. Web. 28 Sept. 2011. http://adage.comdatacenter/marketertrees2011/."Standard & Poors." Web. 07 Oct. 2011. <http://www.netadvantage.standardandpoors.com/NASApp/NetAdvantage/companyOverview.jsp>.51ibid. 5252ibid.
  53. 53. General Motors & Chevrolet Ad Spending for 2010 General Motors Spending Overview53 • GM Motors is the third highest spender in advertising in the United States. • In 2010 alone the company spent $2.87 billion in advertising. • Highest expenditure is Network TV ($602.5 million) • Advertising in Spanish-language magazines ($3.6 million) • Advertising in Spanish-language newspaper ($2.9 million) • Advertising in Spanish-language network TV ($76.8 million) Chevrolet Spending Overview • Chevy began advertising on Hispanic networks in August 2010. • It was the highest expenditure for GM in 2010 ($1.1 billion) • 2nd highest advertising expenditure is for GMC at $335 million 5353"Advertising Age." Advertising Agency & Marketing Industry News - Advertising Age. 20 June 2011. Web. 28 Sept. 2011. <http://adage.comdatacenter/marketertrees2011/>.
  54. 54. General Motors Where is the Money Going? Sales (000) 13.72% 0.26% Magazine 393,718 0.07% Sunday magazine 7,516 0.09% B-to-B magazine 2,641 0.13% Local magazine 2,108 Spanish-language magazine 3,642 Newspaper 215,086 24.32% 7.50% 0.96% National newspaper 27,559 0.10% Spanish-language newspaper 2,934 Network TV 17,469 Spot TV 602,547 8.37% 21% Syndicated TV 76,857 0.61% Cable TV networks 188,0330.56% Spanish-language network TV 41,5230.30% Network radio 293,618 1.09% 10.23% National spot radio 31,285 Local radio 2.68% 6.55% 16,091 Outdoor 8,654 1.45% Internet 240,003 * Unmeasured 697,670 Fiscal Year Ending 201054 *A specified breakdown of unmeasured spending can be found in the appendix 5454"Advertising Age." Advertising Agency & Marketing Industry News - Advertising Age. 20 June 2011. Web. 28 Sept. 2011. http://adage.comdatacenter/marketertrees2011/.
  55. 55. General Motors Where is the Money Going? GM $51,312,000 Goodwrench Ad Spend (2010)55 2% $38,067,000 OnStar 2% $66,628,000 3% Buick GM allocated 52% of total $248,487,000 11% advertising spending to Chevrolet amounting to a total Cadillac Chevrolet $297,126,000 $1,128,746,000 of approximately $1.1 billion 14% 52% GMC $335,327,000 16% 5555Advertising Age." Advertising Agency & Marketing Industry News - Advertising Age. 20 June 2011. Web. 28 Sept. 2011. http://adage.comdatacenter/marketertrees2011/.
  56. 56. General Motors Advertising Seasonality There was an exponential increase in GM’s advertising expenses from 2009 to 2010. This can be linked to the deep financial burden GM experienced before the government bailout. After the 2008 financial crisis, GM most likely cut budget from the most obvious place to cut from – advertising. Upon its initial recovery phase in 2009, GM has been able to up the advertising budget and will most likely continue to do so in 2012. However the increase will be slight and when compared to the increase from 2009 to 2010, it will seem minimal.56 5656Bloomberg L.P. (2011). ARD Advertising Expenses graph for General Motors. 2000 to 2011. Retrieved Oct. 6, 2011 from Bloomberg terminal.
  57. 57. General Motors Co. Media Buys Compared to Nissan General Motors vs. Nissan Budget Allocation (by percent) Fiscal Year Ending 30.0% 25.0% 201057 20.0% 15.0% 10.0% 5.0% 0.0% Nissan Nissan General Motors • GM spends 10% of advertising on Newspapers, while Nissan spends just over 1%. We can conclude that because of GM’s larger advertising budget, they can spend larger amounts on different channels of media. • Nissan spends nearly 50% more on Spot TV than GM in terms of percent respective to their budget • Nissan’s primary focus on spending is in television media, while GM allocates money to all channels of advertising with a higher focus on print media. Spanish Spanish Spanish - Nationa - - B-to-B Local Sunday Nationa Magazi languag Newspa l languag Outdoo Networ languag Syndica Cable Networ Local Unmeas Magazi Magazi Magazi Spot TV l Spot Internet nes e per Newspa e r k TV e tion TV k Radio Radio ured ne ne nes Radio Magazi per Newspa Networ nes per k TVNissan 9.4% 0.0% 0.0% 0.0% 0.0% 0.9% 0.7% 0.0% 0.0% 22.7% 2.6% 10.7% 0.0% 11.4% 0.1% 1.1% 0.0% 10.7% 29.5%General Motors 13.7% 0.3% 0.1% 0.1% 0.1% 7.5% 1.0% 0.1% 0.6% 21.0% 2.7% 6.6% 1.4% 10.2% 1.1% 0.6% 0.3% 8.4% 24.3%57"Advertising Age." Advertising Agency & Marketing Industry News - Advertising Age. 20 June 2011. Web. 28 Sept. 2011. http://adage.comdatacenter/marketertrees2011/. 57
  58. 58. Chevrolet How Chevrolet is Gaining Market Share Chevy Leads the Way • Chevrolet is the automotive volume leader for GM • Chevrolet focuses on vehicles with higher fuel efficiency than their competitors58 Chevrolet: All American. All the Time.59 •Chevy used the slogan, “Baseball, Hot Dogs, Apple Pie, and Chevrolet” in the 1970s •The company focuses on affordability and gas efficiency The 2008 financial crisis’ effect on gas prices caused a drop in sales Chevrolet is an international brand •Chevy produces vehicles in Central & South America, China, Egypt, Jordan, Kenya, and South Africa60582011 Cars, SUVs, Trucks, Crossovers & Vans | Chevrolet. Web. 28 Sept. 2011. <http://www.chevrolet.com/>.59Lico,Nick. “Chevy takes value, volume message, and wraps it in flag.” Advertising Age 79.34 (2008): C-4. Business Source Premier. EBSCO. Web. 27 Sept. 2011. 58602011 Cars, SUVs, Trucks, Crossovers & Vans | Chevrolet. Web. 28 Sept. 2011. <http://www.chevrolet.com/>.
  59. 59. The CompetitionFord Motor 59
  60. 60. Ford Motor A Brief Overview History • Henry Ford founded Ford and developed the Model T in October 1903 • In 1913 Ford began mass production in Highland Park, Michigan; Michigan is now home to Ford headquarters • Ford is the 2nd largest U.S. motor vehicle manufacturer Ford Slogan: “Ford. Drive One.” • Ford Motor Produces: • Cars • Crossovers & SUVs • Trucks • Hybrids & EVs • Commercial vehicles61 • “Ford Motor Co. in 2010 had the highest U.S. market-share growth of any automaker, and Ford became the top-selling nameplate in the U.S. in 2010” Future Outlook • Ford was the only company out of the Detroit 3 who survived through the economic downturn in 2008-2009 without relying on taxpayer bailout (as GM and Chrysler did) • Due to shrinking U.S. market share, the company has announced restructuring plans in an attempt to lower its costs • The company announced plans to discontinue production of Mercury brand vehicles6261Ford †“New Cars, Trucks, SUVs, Hybrids & Crossovers | Ford Vehicles. Web. 01 Oct. 2011. <http://ford.com>. 6062“Ford Motor." Business Summary. Sun. 09 Oct. 2011. <www.netadvantage.standardandpoors.com>

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