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Promotional Activity of Nissan Company
Promotional Activity of Nissan Company
Promotional Activity of Nissan Company
Nissan is going to analyze the market with its new trends and the demands of the
clients in the market. The vehicle brand needs to study the market and it is
focusing on the hybrid and fuel efficient cars and other vehicles. The company is
now preparing the new vehicles and their spare parts, which will be provided in
the market and these vehicles will also be provided in the emerging economies of
the world. The brand has maintained its manufacturing plants and it should
enhance the production capacity so that it can prepare more vehicles in these
plants annually.
This company has a very little promotion plan, which is a complete mixture of
combined promotional activities and is carried out across mediums and
publications. Apart from running advertisement campaigns on televisions, print
media, on the internet and a combination of charity events. Nissan organizes
rallies and outdoor events for its customers, in the form of fun drives for cities
and specialized club based off road events for customers from its SUV portal,
which attracts further customers. Also, the signing up of highly
popular Bollywood star Ranbir Kapoor has proved in its favor with high sales of
Micra.
Nissan must have its own distinct value so that customers will choose Nissan cars.
When combined, their activities to produce such value can be likened to the
management of a fruit orchard in which "fruit" is planted and raised. The process
is defined as having the following three phases.
1. Harvest Plan
First, they develop a plan for commercializing the technology. They clarify the
value the technology holds for the target customers, who have been clearly
defined based on the technology's performance and functions, as well as the time
frame for the provision of the technology. They are not developing technology
simply for technology's sake. They try to formulate plans in conjunction with
social needs and market demands in order to provide in a timely fashion value
that pleases customers.
2. Seeding & Growth
Next, they plan the strategy and implementation that will make the Harvest Plan a
reality. They specify what elemental technologies are needed in order to make
the Harvest Plan a reality and form strategies for developing them quickly and at a
high level of quality. Their plan and implement partnerships with universities and
suppliers, lobby government officials, establish new organizations and structures,
make regular progress reviews, and continuously improve the technology after it
has been introduced.
3. Soil Enrichment
This phase includes fundamental technologies and basic research, which are
required competencies for continuing to create value in the long term. Some
examples are technologies that improve reliability, which form the soil of the
orchard, analysis and measurement technologies, and material technologies. In
order to raise quality in the car manufacturing process, which runs from research
and advanced development to car development, it is necessary to enrich the
"soil" of the orchard with technology management that covers human resources
and intrinsic company processes.
Nissan's "orchard" includes a number of key technology areas, including the
environment and safety. They discuss Harvest Plans for each area and plan and
develop technologies for each over the mid and long terms.
“1.2GPa Ultra High Tensile Strength Steel with High Formability” vehicles’ weight
and size have increased in recent years with the pursuit of safety and comfort.
Weight reduction is an unavoidable path for automotive manufacturers, in order
to improve on fuel consumption and reduce CO2.
Around View Monitor with Parking Guide the Around View Monitor system shows
a bird's-eye view of the vehicle, so the driver can tell at a glance the relationship
between the vehicle, parking lines and obstacles. Intuitive images will help guide
the driver in smarter parallel and garage parking.
Around View Monitor the Around View Monitor is a support technology that
assists drivers to park more easily by better understanding the vehicle’s
surroundings through a virtual bird’s-eye view from above the vehicle.
Intelligent Auto Headlights by this advance system of headlights will be
automatically turn on during rain or twilight, helping to improve the visibility of
your vehicle
In the early 2000s, when Carlos Ghosn hero worship was nearing its peak and
Nissan shares were surging, the turnaround king repeatedly told investors that a
chief executive should be limited to five years in the top job. After nearly two
decades in charge, abruptly ousted as chairman, condemned for his longevity by
his handpicked successor and under arrest in Tokyo, Mr. Ghosn may wish he had
taken his own advice. With each passing year of the Ghosn era, say analysts,
Nissan’s standards of internal oversight and self-discipline looked increasingly
threadbare. The company “had literally no governance structure”, said Koji Endo,
head of the equity research department at SBI Securities. To some, the crisis now
engulfing Nissan is a positive sign for Japan. On Thursday, the Japanese carmaker
said it would set up a special committee led by external directors to strengthen
their rules over director pay and other governance measures. Higher standards of
governance appear to be prevailing. Entrenched management that suppressed
criticism is being dislodged and greater oversight over big decisions is being
demanded. This and other recent Japanese scandals at Toshiba and Kobe Steel,
said the head of one of Japan’s largest asset managers, are the “gifts of
governance reform”.
That, say analysts, is why Nissan’s current meltdown may have been on the cards.
As one former investor in the company described the problems: “It was a
complete failure of corporate governance and complete failure for anyone to
criticise Carlos Ghosn”. Mr. Ghosn’s early comments on tenure, say motor
industry analysts, were among many public statements that helped forge his
image as a bright new light in the dark governance voids of corporate Japan. His
strategies, which included severing overly ties with suppliers and insisting upon
merit-based (rather than age-based) promotion, gave him the aura of a pioneer. If
only more Japanese companies could follow that lead, argued foreign investors.
But in recent years, long before his spectacular downfall this week, Mr. Ghosn’s
image as a force for progress had unraveled. Corporate governance in Japan, said
Zuhair Khan, head of research at Jefferies, has moved on; Mr. Ghosn’s Nissan has
not. That failure, he said, makes the company stand out in 2018 — three years
after the introduction of Japan’s corporate governance code. “We were not
particularly surprised that Nissan had another scandal,” Mr Khan wrote in a note
to clients, “The company’s board structure raised many red flags in 2017 and the
improvements in the board in June 2018 were superficial.”
There is another problem and that is Nissan Motor is recalling 1.21 million cars in
Japan, and its handling of the mess raises questions about how one of the
industry's best damage control artists succumbed to complacency.
For automakers, recalls come with the territory. When they are constructing a
product with 30,000 parts, at some point there is bound to be a problem. The key
is how companies respond, and Nissan Motor has been considered a role model
for the right way to do it -- even once earning praise from former U.S. Transport
Secretary Ray LaHood.
But Nissan's current scandal is not your typical recall situation, since there may be
nothing wrong with the vehicles themselves. The issue was a sloppy system in
which quality inspections were being done by unqualified personnel. After a
transport ministry check uncovered the problem in mid-September, the carmaker
initially took a wrong turn.
Nissan cites staff shortage for improper tests, plans more inspectors. YOKOHAMA
(Reuters) - Nissan Motor Co Ltd (7201.T) on Friday blamed a lack of trained staff
for improper final inspections at its car plants in Japan for over 20 years, and said
it would increase the number of inspectors as part of a plan to improve
compliance.
Last month, Nissan issued a recall for 1.2 million vehicles - including all passenger
cars produced for sale in Japan over the past three years - after discovering that
uncertified inspectors were for decades signing off on vehicle checks required by
the transport ministry for cars sold in the country.
Nissan said an investigation found that “nonconforming final inspections” were
the norm by the 1990s at the plants, and could even have existed since 1979 at its
Tochigi plant.
The company did not give proper consideration to inspections when cutting staff,
it said in a report outlining the findings as well as countermeasures that it
submitted to the government.
“Headcount reduction rates allocated to each plant applied uniformly across the
whole plant, and special consideration was not given to secure final inspectors,” it
said.
“Therefore, the plants had a shortage or no surplus in the number of final
inspectors.”
It said it would increase the total number of final inspectors by about 85 by the
end of March, an increase of over 20 percent from current levels.
Production lines at some plants have been slowed to around 40 percent to 80
percent of their usual speeds while staffing is expanded, the company said, adding
that there could be some impact on exported vehicles.
The misconduct itself does not affect export vehicles, and all required safety
checks were performed on the affected cars. But the scandal has tarnished
Nissan’s brand at home, and along with a data falsification scandal at compatriot
Kobe Steel Ltd (5406.T), has raised questions about compliance and quality
control at Japanese manufacturers.
Nissan Chief Executive Officer Hiroto Saikawa said the main cause of the problem
was not a staff shortage per se, but rather a disconnect between rules and reality
on the ground.
From the shop floor standpoint, there was a gap between the reality and the
requirements for certifying final inspectors, which we didn’t resolve, and which
resulted in non-compliance”.
He said he will return part of his compensation this year because of the scandal,
although he declined to unveil an amount. He said he would continue in his role
to ensure countermeasures are carried out and Nissan regains customers’ trust.
Nissan expects the recall alone will cost it 25 billion yen ($222.10 million), and last
week shaved its full-year operating profit forecast as it braces for the fallout at
home.
The company said on Friday that it was assigning a new corporate vice president
to oversee all plants in Japan, and increasing the number of quality assurance
managers as well as managers in charge of final inspections at each plant by one
to a total of two each.
Domestic rival Subaru Corp (7270.T) has also been hit by compliance issues after it
also admitted that it had not been following proper inspection issues going back
around 30 years. As a result, it plans to recall around 400,000 cars sold in Japan.
($1 = 112.5600 yen)
Nissan team to tackle inventory problems NASHVILLE -- Early last year, Nissan
executives began using the phrase "the right car at the right place at the right
time" like a mantra.
But it's more than that.
Nissan has assembled a team of sales managers, forecasters, planners, retailers,
factory engineers and logistics managers in North America and Japan to execute
its right-car mission.
After spending the past two years redesigning, reintroducing and repricing most
of its vehicle lineup, the automaker is convinced that all of its products are
competitive in their segments, and in some cases segment-leading.
But one problem continues to hold the franchise back -- a U.S. inventory chain
with a few holes in it, says Fred Diaz, Nissan Division senior vice president for U.S.
sales, marketing, parts and service.
"We've got a huge initiative under way to get this right," Diaz says. "Rather than
trying to assess market needs from here at our headquarters or relying on our
retailers to guess, we're designing a new approach to make sure we can deliver
the right car at the right place at the right time."
The process will give Nissan's sales regions more voice in production planning and
make it easier for dealers to find cars in the factory order banks.
Touring sales regions
Diaz says the right-car mission is the topic of weekly meetings at Nissan
headquarters in suburban Nashville. And the right-car team will spend January
and February touring the U.S. sales regions to gather input to create a new
inventory system.
"We're finding little holes in the product lines," says Diaz, who joined Nissan in
April from Chrysler Group, where he was CEO of the Ram truck brand and CEO of
Chrysler de Mexico. "We'll get it right. But it's an extremely complicated process."
Last summer, Diaz quizzed his dealers on why Nissan's mid-sized Frontier pickup
wasn't selling better. Ford Motor Co. has vacated the segment, leaving Toyota's
Tacoma and the Frontier to vie for more sales.
Dealers told Diaz that the Frontier's engine was wrong. It came with a V-6, but it
needed a more fuel-efficient four-cylinder.
Diaz found that Nissan's U.S. production capacity for four-cylinder engines had
been reassigned.
"We were producing V-6s that nobody wanted," he says.
The company redirected capacity at its flexible Decherd, Tenn., engine plant to
begin churning out four-bangers for the Frontier. In December, despite being
fairly long in the tooth, Frontier sales were up 47 percent to 5,411 from
December 2012. He declines to forecast how high Frontier sales might go now.
Inventory shortages
In the past 90 days, Nissan also has been tackling inventory shortages of its Versa
subcompact, Maxima sports sedan, redesigned Sentra compact and certain tech
packages of its volume-leading Altima mid-sized sedan.
Nissan management has spent recent months working with its dealer advisory
board to rewrite the rules of the company's dealer stair-step incentives. Retailers
across the industry have decried stair steps for pressuring them to push sales
onto the market to meet aggressive sales targets.
Nissan wants the sales concept to work, believing it could be a powerful tool in its
quest to capture a 10 percent U.S. market share -- up from 7.3 percent for 2013.
But to get there, inventory planning must improve, dealers told Diaz. In order to
sell 100 extra vehicles during a stair-step period, a dealership needs to have the
right vehicles on hand.
Nissan was addressing the problem when Diaz arrived last year. His boss, the
newly promoted chairman for Nissan North America, Jose Munoz, has urged
dealers to help the company improve its inventory planning. This year, Nissan will
begin pushing more decision-making out into the sales regions for planning and
ordering.
Stocking the right vehicles is the key to selling more, says Brad Fenton, a
multifranchise dealer with Nissan stores in Oklahoma and Missouri who helped
rewrite Nissan's stair-step plan.
"We haven't been able to do that effectively in the past, to order and stock the
right product to do it," says Fenton, who also is chairman of the Nissan National
Dealer Advisory Board.
"Jose has firmly committed to making it work -- he is behind the plan of 'right car,
right place, right time.' He's committed to giving us what we need to achieve it."
Another problem known as “The problem with "no problem"
Japanese automakers follow strict quality control regimens at every stage of the
assembly process. So their vehicles go through numerous checks before a final
"complete car inspection." Nissan may have believed some of these final
inspections could be done by people with only limited experience, but the
Ministry of Land, Infrastructure, Transport and Tourism says otherwise.
By law, only certified inspectors can check things like engines and brakes.
Nissan responded by having two middle managers, including the one in charge of
corporate communications, speak to reporters on Sept. 29. They said they did not
know when checks by unqualified inspectors began, but that there is "no
problem" because the inspections were made. Nissan said it would suspend
deliveries of thousands of cars to allow for re-inspections, making the "no
problem" assertion unconvincing.
Nissan was flooded with complaints from not only customers but dealers as well.
Nissan CEO Hiroto Saikawa held his own news conference and said: "I apologize
from the bottom of my heart. This should not have happened in the world of
manufacturing."
Stressing the company puts top priority on customer safety, he said Nissan would
recall 1.21 million cars, including vehicles that have been delivered but not yet
placed on the mandatory re-inspection list. "We are prepared to pay the cost of
over 25 billion yen ($221.5 million)," he said.
Two other relatively recent recall cases underscore the difference a CEO can
make.
Takata issue is consider the recalls of defective air bags made by Takata, which
filed for bankruptcy earlier this year as a result of the scandal. As criticism grew in
the U.S., including from Congress, Takata's top management stonewalled. The
matter was complicated by the company's role as a parts supplier -- automakers
are ultimately responsible for recalls. But in public hearings, Takata inflamed
consumer anger by repeating groundless claims that its products were safe.
The problem was eventually pinned on driver error, but at the height of the
scandal, CEO Akio Toyoda attended a public hearing in the U.S. and apologized for
Toyota's slow response. His promise to ensure transparency by assigning the
investigation to a third party changed the course of the story.
It may be unfair to compare Toyota and Takata -- two companies of drastically
different scale. Clearly, however, taking responsibility and arranging a transparent
investigation played a role in the different outcomes.
Nissan is well-aware how these things work. In fact, its procedures for deciding
recalls were seen as an industry template.
A technical committee is tasked with deciding whether to recall a product;
Nissan's board is not allowed to weigh in. This is meant to avoid the impression
that decisions hinge on corporate interests. The committee examines whether a
recall is necessary from a purely technical point of view.
LaHood, the U.S. transport secretary who blasted Toyota for dragging its feet on
the safety issue, lauded Nissan's approach in May 2010. After hearing then CEO
and current Chairman Carlos Ghosn explain the company's quality assurance
system in Japan, LaHood said Nissan would become the model for making recall
decisions.
A day before his visit to Nissan, LaHood had visited the Toyota head office and
urged executives to improve communication, referring to the recall issue. It was
almost as if he was using Nissan to needle Toyota, but his praise did elevate
Nissan's reputation.
This time, however, Nissan's technical committee was unable to prevent the
misstep, since the recall is not about product quality per se.
So there are some major issues that cause numerous problems for the company.