Table of Contents
Marketing Mix Decisions
Implementation and Evaluation
The Nissan Leaf is the first to enter the all-electric vehicle market. However, due to the current recession and the research and development costs put into designing the Leaf, our financial performance has been declining. Furthermore, there is still a lack of consumer faith in all-electric vehicles due to unsuccessful launches of other electric vehicles and competitors are ready to launch their own all-electric vehicle models. Our main objectives are to increase awareness of the leaf and attain 40% of the all-electric vehicle market by the end of 2012. The purpose of this report is to address the above issues and provide an action plan. Our recommendation is to partner up with local governments to make owning a Leaf more feasible, by creating more charging stations and providing electric vehicle subsidies. To increase the demand for this, Nissan should hold test-drive events throughout various cities to promote the Leaf. Though it will spread through North America, we plan to focus on Vancouver and Toronto as they are the greenest in Canada, and as well as New York City, Los Angeles, Chicago in the United States because they are expected to be the earliest electric vehicle adopters (Byrne, 2011).
Strengths: * The 1st mass-marketed 100% electric vehicle * Safe (Top Safety Pick of 2011) * Few maintenance and operations costs * Quiet * Smartphone application * Nissan is known for innovation
| Weaknesses: * Limited traveling radius * Charging time * Battery performance degrades over time * Financial difficulties
| Opportunities: * Increasing green awareness * Recovery in auto sales * Battery technology is innovating quickly * Partnerships * Potential to dominate electric vehicle market
| Threats: * Range anxiety * Lack of consumer faith * Fierce competition * Recession * Few charging stations
In the US, the transportation sector was greatly affected by the recession from 2008 to 2010, as consumer expenditure for transportation declined by 11% from 2008 to 2009 and barely increased by 0.2% in 2010 (Bureau of Labor Statistics, 2011). In 2010, the global automobile manufacturing industry’s total sales volume is $728.3 billion, with a compounded yearly growth rate of 2% from 2006-2010 (Datamonitor, 2011). Canadian auto market is very small comparing with the US. It’s only about 10% of the US market in 2007. The 2008 recession had significant impact on the North American automobile industry. Auto sales in North America had declined by 16% from 2007 to 2008, and another 26% from 2008 to 2009. Although sales recovered by 17% from 2009 to 2010, motor vehicle sales in North America is still well below the pre-recession level (Industry Canada, 2010). Hybrid vehicle sales in North America also declined by 11% from 2007 to 2008 (US Department of Energy, 2010). Since the recovery in 2009, growth of the automobile industry is forecasted to increase, with an anticipated compounded yearly growth rate of 4.2% from 2010-2015. At the end of 2015, total revenue of the industry could reach 896.4 billion (Datamonitor, 2011). 1.3
The automotive market is highly competitive. As the 6th largest automaker by revenue, Nissan mainly competes with leading manufacturers around the...
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