REM054 Project

Fall
2009/201
0
American University Of Science and
Technology
Faculty of Business & Economics
REM- 054 –Management & Marketing Skills

Development
Instructor’s Name: Mrs. Najwa

Karam
RYMCO- NISSAN
SUNNY
Prepared By: Group # 04
Gina Lakiss
Tamara Jurdy
Khaled Darwich
Naji Mabsout
Table of Contents
......................................................................................................................... 1
Table of Contents.............................................................................................2
1.Historical Background...................................................................................4
1.1 Organization’s Historical Background (RYMCO).......................................4
1.2 Product’s Historical background (NISSAN SUNNY)...................................5
Missions and Goals...........................................................................................7
Organizational values and culture....................................................................8
Environmental assessment............................................................................11
External Factors of RYMCO..........................................................................12
Internal Factors of RYMCO...........................................................................13
SWOT Analysis............................................................................................13
MARKET SEGMENTATION, TARGETING AND POSITIONING..............................16
MARKET SEGMENTATION.............................................................................16
TARGETING...............................................................................................24
POSITIONING..............................................................................................28
Conclusion......................................................................................................32
Table of Figures .............................................................................................33
1. Historical Background
1.1 Organization’s Historical Background (RYMCO)
Originally launched to deal with general merchandising, the Rasamny

brothers founded Rasamny Brothers Inc. in the Liberian Republic in
Chapter: Historical Background

1934. The family owned and operated a large business conglomerate that
included representation of brands such as Chrysler, Ford and Honda in the
automotive industry in addition to Palmolive, Colgate and other brands.
In 1957, the Rasamny brothers went on to expand their business and

opened the first showroom and back-offices under the umbrella of Rasamny
Younis Motor Co. (RYMCO) in Beirut and launched their operations as
exclusive dealers of Oldsmobile and GMC.
As a strategic move to grow the company, in 1964 RYMCO built up its own
showrooms, back-offices and after-sales facility in Chiah and added the
Australian brand, Holden, to the company portfolio.
1967, RYMCO introduced the first DATSUN to the Lebanese market

constituting a major turning point in the company's profile.
Unfortunately, the Lebanese war left the Chiah facilities in complete ruin and
forced RYMCO to move from the location to Deir Koubel at first and then to
Choueifat, where a showroom and a service facility were set-up to cater to
customers’ needs.
In 1985, after the Israeli invasion, RYMCO was once again forced to move.
This time the move saw them relocate from Choueifat to Hamra Street and
then to Jal El Baher, which was to later become an official RYMCO branch.
After 1991's ceasefire, RYMCO re-launched its operations from Chiah

where the showrooms, the after-sales facility and company offices saw a
complete restoration.
By 1992, RYMCO proudly participated with Nissan and GMC in the nation's
first every Motor Show.
After 41 years of being a privately owned institution, RYMCO went public in

1998 to become the first and the only automotive dealer to be listed on
Beirut Stock Exchange list.
4
The Chiyah showrooms were given full restoration in 2003; where the re-
opening took place in the presence of Nissan CEO, Carlos Ghosn and then in
2004, RYMCO went on to launch its Infiniti boutique in the heart of
downtown Beirut becoming the first to open a separate facility for Infiniti
outside Northern America.
In 2005, Abdo Sweidan, the newly appointed managing director of RYMCO,

received the 2005 President Award from Carlos Ghosn, CEO of Nissan.

2006 was a record year for RYMCO, as it maintained the No.1 position and
achieved growth across the board for the 7th year in a row.
In 2007, RYMCO achieved a 74% growth over 2006 controlling 21.3% of

the lebanese market, maintaining its number 1 position.
2008 was another record year. RYMCO became the fastest growing
automotive dealer in Lebanon growing its business by 85.7% from 4273 units
in 2007 to 7932 units in 2008, historically no other dealer was able to achieve
those sales figure in Lebanon.
1.2 Product’s Historical background (NISSAN SUNNY)
The Nissan Sunny is a small car from Nissan. It was launched in 1966 as the
Datsun 1000 and although production in Japan ended in 2004, it remains in
production today for the African and American markets. In the US, the later
models were known as the Nissan Sentra; in Mexico, the Sunny is known as
the Nissan Tsuru. The Sunny fit neatly into Nissan model line. It was larger
than the supermini Nissan March (Micra) models, but not as big as the
compact Bluebird models. The latest versions of the Sunny were larger than
the early models, and may be considered compact cars. Earlier versions
(through at least the B11 series) were subcompact cars. All Sunnys through
the 1982 model year used Nissan A engine motors.
1960s-1980s 1990s 2000s

Type
0 1 23 4 5 678 9 012345678 9 012345678 9
Supermi
Micra K10 Micra K11 Micra K12
ni
5
Sunn
Sunny Sunny Tiida
y Sunny B11 Sunny N15 Sunny N16
Small N13 N14 C11
B310
family
Cherr
car
y Cherry N12
N10
Large Bluebird Bluebir Bluebird Primera Primera
Primera P11
family 910 d U11 T12/T72 P10 P12
car Stanza T11

Executiv Laurel Maxima QX Maxima
Laurel C31 Maxima J30 Teana
e car C32 A32 QX A33
Figure 1 Production TimeLine
Figure 2 First Datsun Sunny Figure 3 2011 Nissan Sunny Design Concept
1966
6
Missions and Goals
RYMCO: Enriching people's lives
RYMCO is one of the leading vehicle retail dealerships in Lebanon. RYMCO

was able to capture 21% of the new vehicle retailing market of Lebanon and
commands a considerable size of the used vehicle retailing market. RYMCO
has an automotive dealership arrangement with auto manufacturers from the
US, Japan, Europe and China, and operates a chain of independent
showrooms and stores, a bonded warehouse, and servicing and maintenance

facilities. The most significant brand names represented by RYMCO include
Nissan Motors (Nissan, Infiniti), GMC, Kawasaki, Renault trucks, Nissan Diesel
(UD) and FAW trucks.
RYMCO marine is another unit within RYMCO's operations for sales and
service of boats under the brand name of Gulf Craft. RYMCO provides unique
and innovative automotive products and services that deliver superior
measureable values to all stakeholders.
Figure 4 RYMCO Development Plan
Today, there are 600 million vehicles worldwide; by 2050, statistics show
there may be up to 2.5 billion vehicles1.
Where will the growth occur? Many vehicles will be sold to the rising middle
classes all over the world, particularly in emerging markets such as Lebanon.
A car is an important symbol of freedom, status and personal achievement,
and growing numbers of new drivers will seek affordable transportation and
the benefits that car ownership provides.
Another important trend is the growing demand for a cleaner environment.

Automakers are accelerating the development of products to offer greater
1
According to statistics conducted by Nissan Global in 2007
7
fuel efficiency and fewer CO2 emissions, from more efficient gasoline-fueled
engines to hybrids, clean diesel, electric vehicles and fuel cell vehicles.
The world is changing, and RYMCO is adapting with it. RYMCO has a clear
vision for the future, and are working with passion to achieve it. Their mission
is to enrich people's lives, building trust with their employees, customers,
dealers, partners, shareholders.
RYMCO is committed to promoting: absolute integrity through honesty and

fairness, dedication and loyalty, creativity and innovation, and enrichment of
community through leadership in participation in civic and charitable
endeavors.
Organizational values and culture
8
Organizational culture is defined as the shared values ,principles ,and
traditions that influence the way organizational members act; therefore, all
organizations have cultures but not all cultures equally influence employees'
behavior and actions.
RYMCO is described as having a strong culture where key values are deeply
held and widely shared. The original source of the culture usually reflects the
vision of the founders (Sheikh Rasamny)

RYMCO is characterized by being people orientated where management
decisions take into account the effects of people in the organization, it is
innovating and risk taking-where employees are encouraged to be innovative
.
Management prides itself on its history of experiments with new technologies

and its success in regularly introducing innovative products, so managers and
employees who have a good idea are encouraged to run with it and failures
are treated as learning experiences. The company prides itself on being
market driven and rapidly responsive to the changing needs of its customers.
This is conveyed in the evolution of Nissan sunny and the tremendous
development.
In RYMCO, employees mainly learned their culture from stories that typically
contains a narrative of significant events or people. RYMCO have received
several awards and recognitions
Among the awards and achievements:
- Number 1 Position for Rasamny Younis Motor Company with 7932 car
sold or 22.5% market share and a good 85.7% growth over last year.
- Number 1 Position for Nissan Brand with 6991 car sold controlling 20%
market share along with a good YOY growth of 63.6% over 2008.
- Number 1 Position for NISSAN passenger Vehicles with 5646 units sold
controlling 21.3% from the total sedan market share.
- Number 1 Position for NISSAN SUV with 1086 SUV sold or 17.5% from
the total SUV market share
Year 2008 was another record year. RYMCO became the fastest growing
automotive dealer in Lebanon growing its business by 85.7% from 4273 units
in 2007 to 7932 units in 2008, historically no other dealer was able to achieve
those sales figure in Lebanon.
9
- RYMCO opens a new after sale facility in Monot.
- RYMCO announces the opening of its new Infiniti center in the UK.
- Winning competition at RYMCO Motor Gallery where many cars and

ATV are won.
In May 2009, RYMCO is the first automotive dealer in Lebanon to have signed
on with EcoSecurities to assess, measure, and offset the Company’s carbon

footprint. By becoming carbon neutral, RYMCO takes a giant step towards
achieving its environmental commitment .Mr. Souheil H. Abboud,
EcoSecurities Middle East Regional Director, stated that RYMCO’s decision to
go carbon neutral “not only stands to expand on their environmental
commitments, but will also result in differentiating them from their peers. We
are proud to have worked with RYMCO due to their seriousness in making a
change from an environmental, social and sustainability perspective
Awards:
1995 RYMCO received the MARKET-LEADER Award from Nissan Motor Co.
LTD, for its outstanding contribution to the expansion of Nissan sales in the
Lebanese market .
2003 RYMCO was appointed as the Gold Winner for the 8th Nissan
International Service Technical Contest (Middle East Area Contest).
2004 A special Award was presented by Nissan to RYMCO for achieving the
No. 1 market share among Japanese Brands. President Award for the NSC
(NSC) 2004: "In reference to its continued sales effort and outstanding
performance" "No.1 market share total cars. Target achievement"
2005 RYMCO received the NISSAN Global NSSW Award, for outstanding
performance in Customer Satisfaction Special recognition award in Achieving
No.1 market share among Japanese brands; Mr. Abdo Sweidan, the newly
appointed managing director of RYMCO received the "President Award" for
2005 from Carlos Ghosn CEO of Nissan.
2006 Infiniti Special Recognition Award: "Special recognition award for Infiniti
for the Best Brand Status in the region". GMC Milestone Award for 25.76%
growth in GMC brand sales over 2005.
2007 GMC golden Bar Award was presented to RYMCO in recognition of its
dedication to achieve the highest CSI scores in the region for the After Sales.
10
Best global practice award, for Infiniti outstanding brand performance and
positioning.
2007 Nissan special recognition award : - "No.1 market share over 3 years in
a row: 2005, 2006, 2007"- 2007 General Motors "Chairman Challenge
award":- "In recognition of your success in achieving No.1 market share
among Japanese brands"-
2007 Best product launch: - The Infiniti G35 launch in Beirut down Town

Background.
Best Marketing project for 2008: - Nissan end of year campaign (knockout
punch project)
Environmental assessment
The Lebanese automobile industry had a late start due to several aspects
(civil war, political problems, etc). This section represents an analysis of both
11
internal and external factors affecting the industry. A weak internal market,
lack of resources and production factors are usually adduced as reasons, as
are Lebanon's general economic backwardness and the role played by the
public authorities. However, this section focuses on the internal factors
concerning company strategy and organization as well as the external
factors. A range of factors will be analyzed here after to fully understand
RYMCO environment.
Two Environmental Factors:

–Internal factors – The strengths and weaknesses internal to the organization.
–External factors – The opportunities and threats presented by the external

environment.
External Factors of RYMCO
The External environmental factors are as follows:
Political legal factors: As the Government plays a vital role in forming the
political climate and stability of a country. The policies of a government will
define the corporate and personal taxes, export restrictions, import tariffs,
customs fees etc.
Economic factors: Economy plays a vital role in the success of a company

as RYMCO. The economic growth, inventory levels, inflation rate, future
trends, exchange rates, etc all determine the success of a business.
Socio/Cultural factors: Humans essentially create their own cultural and

social environment; so are Lebanese known by their stereotyping about
German cars and especially Mercedes and BMW; therefore, RYMCO faced and
still facing several challenges in order to change the said socio/cultural factor.
Technological factors: Technology is important because RYMCO must

follow it in order to achieve success. The level of technology determines the
productivity, new products and services, cost and accessibility of services etc.
Demographics: There are many demographic factors affecting RYMCO.
12
Among the demographic factors are distribution of the people in lebanon
.They affect RYMCO positively and negatively .For instance people living in
the Mountains or in the Bekaa Valley will prefer to get more powerful cars to
resist rough terrains.
Competitors: As Lebanon is a free trade market, plenty of competitors

compete RYMCO with similar products as the Nissan Sunny. For Instance,
Toyota Yaris , Kia Centura , Honda Civic and City.

Internal Factors of RYMCO
The Internal environmental factors are as follows:
Suppliers: RYMCO maintained procurement of their products from several

places such as Japan, china, US, and even Mexico.
Distributors: As the sole agents of Nissan in addition to other brands,

RYMCO has established a network of smaller distributors.
Employees: Employees mainly learned their culture from stories that

typically contains a narrative of significant events or people
Shareholders: As one of RYMCO’s goals achieving sustainable profitable

growth; therefore, RYMCO is dedicated towards the shareholders benefits.
SWOT Analysis
The aim of any SWOT analysis is to identify the key internal and external
factors that are important to achieving the objective. SWOT analysis groups
key pieces of information into four categories.
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Strength:
Brand Image: As the Lebanese culture is a high context culture, word of

mouth has a wide affect on the brand image, and since the Lebanese were
satisfied by using this Japanese Vehicle, so year after year is gaining the trust
of Lebanese market.
Market leadership: 21% of the local market, never achieved by any other
competitor.

Easy Availability of spare parts: Nissan sunny spare parts are available at all
RYMCO branches, and almost at all Japanese spare parts retailers.
Dealership network: a large network of RYMCO branches and sub dealers in

different areas in lebanon as ,Chiah, Rawsheh , Khaldeh , Saida , Bekaa ,
Tripoli etc …
Local petrol price: as petrol prices in Lebanon are high in comparison to the
individual income; therefore, Nissan Sunny and similar economical car are
preferable among the majority of Lebanese.
Weakness:
High custom fees: high custom fees is affecting the price of Nissan Sunny
Interest rate (monthly installments): similarly to all car suppliers in Lebanon,

RYMCO faces challenges with customers willing to buy cars through banks
loans due to high interest rates.
Used cars: Lebanese markets are full, without any governmental control, of
used cars suppliers (such as Mercedes and BMW) that are, to a certain
extent, preferred by the Lebanese people.
Not Suitable for all areas: as Lebanon is know with rough terrains, people will
prefer to buy more powerful cars.
Opportunity:
Switching the market towards economical cars: due to high petrol prices in
the local market.
Failure of most competitor models: Most competitors who have introduced

similar cars to Nissan sunny had failed to compete with RYMCO, in regard to
quality/price ratio.
14
Unacceptability of new brands: Most of the newly introduced similar cars (to
Nissan Sunny) were not widely accepted by the market.
Offers for Taxi drivers: RYMCO is offering payments facilities to taxi drivers in
order to shift to the Nissan sunny cars, benefiting from the car’s economical
consumption of petrol.
Threats:
Governmental Increase of excise taxes and VAT: Any increase in taxes and

tariffs will affect RYMCO.
Higher interest rates: Demand on cars will be affected as a result of higher

interest rates.
Reduction in petrol prices: reduction in local petrol prices will make people
shift to other types of cars.
Entrance of new firms: In the context of different competing brands, the

market will be harder to penetrate, and sales for particular brands will
inevitably decrease.
Increase in custom fees: Increase in custom fees will increase the cost of the
imported cars, and thus will decrease the demand of cars.
SWOT ANALYSIS
HELPFUL TO ACHIEVE OBJECTIVES HARMFUL TO ACHIEVE OBJECTIVES
INTERNAL (ATRIBUTES TO THE ORGANIZATION) STRENGTHS WEAKNESSES
EXTERNAL (ATRIBUTES TO THE ENVIROMENT) OPORTUNITIES THREATS
Figure 5 SWOT ANALYSIS
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MARKET SEGMENTATION, TARGETING AND
POSITIONING
MARKET SEGMENTATION
Markets for products are normally divided into segments. By definition, a

market is the aggregate of all the consumers of a given product. Consumers
(the end user), who make up a market; are of varying characteristics and
buying behaviors. There are different factors contributing for varying mind
set of consumers. It is thus natural that many differing segments occur within
a market.
In order to capture this heterogeneous market for any product, marketers

usually divide or disintegrate the market into a number of sub-
markets/segments and the process is known as market segmentation.
16
Market segmentation is the segmentation of markets into homogenous
groups of customers, each of them reacting differently to promotion,
communication, pricing and other variables of the marketing mix. Market
segments should be formed in that way that difference between buyers
within each segment is as small as possible. Thus, every segment can be
addressed with an individually targeted marketing mix.
The importance of market segmentation results from the fact that the buyers
of a product or a service are no homogenous group. Actually, every buyer has

individual needs, preferences, resources and behaviors. Since it is virtually
impossible to cater for every customer’s individual characteristics, marketers
group customers to market segments by variables they have in common.
These common characteristics allow developing a standardized marketing
mix for all customers in this segment.
Through segmentation, the marketer can look at the differences among the
customer groups and decide on appropriate strategies/offers for each group.
This is precisely why some marketing gurus/experts have described
segmentation as a strategy of dividing the markets for conquering
them.
17
Figure 6 Steps of Marketing Process
18
ATTRIBUTES OF EFFECTIVE SEGMENTATION
Market segmentation is resorted to for achieving certain practical purpose.

For example, it has to be useful in developing and implementing effective
and practical marketing programs. For this to happen, the segments arrived
at must meet certain criteria such as:
REASONS FOR MARKET SEGMENTATION
Segmentation is the basis for developing targeted and effective marketing

plans. Furthermore, analysis of market segments enables decisions about
intensity of marketing activities in particular segments. A segment-orientated
marketing approach generally offers a range of advantages for both,
businesses and customers.
1 . Facilitates proper choice of target marketing
Segmentation helps the marketers to distinguish one customer group from

another within a given market and thereby enables him to decide which
segment should form his target market.
2 . Higher Profits
It is often difficult to increase prices for the whole market. Nevertheless, it is

possible to develop premium segments in which customers accept a higher
price level. Such segments could be distinguished from the mass market by
features like additional services, exclusive points of sale, product variations
and the like. A typical segment-based price variation is by region. The
generally higher price level in big cities is evidence for this. When
differentiating prices by segments, organizations have to take care that there
is no chance for cannibalization between high-priced products with high
margins and budget offers in different segments. This risk is the higher, the
less distinguished the segments are.
3 . Facilitates tapping of the market, adapting the offer to the target
Segmentation also enables the marketer to crystallize the needs of target

buyers. It also helps him to generate an accurate prediction of the likely
responses from each segment of the target buyer. Moreover, when buyers
are handled after careful segmentation, the responses for each segment will
be homogeneous. This in turn, will help the marketer develop marketing
offer/programmers that most suited to each groups. He can achieve
specialization that is required in product, distribution, promotion and pricing
19
for matching the particular customer group and develop offers and appeals
for the segmented group.
4 . Stimulating Innovation
An undifferentiated marketing strategy that targets at all customers in the

total market necessarily reduces customers’ preferences to the smallest
common basis. Segmentations provide information about smaller units in the
total market that share particular needs. Only the identification of these

needs enables a planned development of new or improved products that
better meet the wishes of these customer groups. If a product meets and
exceeds a customer’s expectations by adding superior value, the customers
normally is willing to pay a higher price for that product. Thus, profit margins
and profitability of RYMCO increases.
5 . Makes the marketing effort more efficient and economic
Segmentation ensures that the marketing effort is concentrated on well

defined and carefully chosen segments. After all, the resources of any firm
are limited and no firm can normally afford to attack and tap the entire
market without any delimitation whatsoever. It would benefit the firm if the
efforts were concentrated on segments that are more profitable and
productive ones. Segmentation also helps the marketer assess as to what
extend existing offer from competitors match the needs of different customer
segments. The marketer can thus identify the relatively less satisfied
segments and succeed by concentrating on them and satisfying their needs.
6 . Benefits the customer as well
Segmentation brings benefits not only to the marketer, but to the customer
as well. When segmentation attains higher levels of sophistication and
perfection, customers and companies can conveniently settle down with each
other, as at such a stage, they can safely rely on each other’s discrimination.
The firm can anticipate the wants of the customers and the customers can
anticipate the capabilities of the firm.
7 . Sustainable customer relationships in all phases of customer life

cycle
Customers change their preferences and patterns of behavior over time.

Organizations that serve different segments along a customer’s life cycle can
guide their customers from stage to stage by always offering them a special
solution for their particular needs. For example, many car manufacturers
offer a product range that caters for the needs of all phases of a customer life
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cycle: first car for early teens, fun-car for young professionals, family car for
young families, etc. Skin care cosmetics brands often offer special series for
babies, teens, normal skin, and elder skin.
8 . Targeted communication
It is necessary to communicate in a segment-specific way even if product

features and brand identity are identical in all market segments. Such a
targeted communications allows stressing those criteria that are most

relevant for each particular segment (e.g. price vs. reliability vs. prestige).
9 . Higher market Shares
In contrast to an undifferentiated marketing strategy, segmentation supports

the development of niche strategies. Thus marketing activities can be
targeted at highly attractive market segments in the beginning. Market
leadership in selected segments improves the competitive position of the
whole organization in its relationship with suppliers, channel partners and
customers. It strengthens the brand and ensures profitability. On that basis,
organizations have better chances to increase their market shares in the
overall market.
BASES FOR SEGMENTATION
1) Geographic Segmentation
Potential customers are in a local, state, regional or national marketplace

segment. If a firm selling a product such as farm equipment, geographic
location will remain a major factor in segmenting your target markets since
their customers are located in particular rural areas. While for retail store,
geographic location of the store is one of the most important considerations,
in this case city areas are preferred. Segmentation of customers based on
geographic factors are:
a. Region: Segmentation by continent / country / state / district /

city.
b. Size: Segmentation on the basis of size of a metropolitan area

as per its population size.
c. Population density: Segmentation on the basis of population

density such as urban / sub-urban / rural etc.
d. Climate: Segmentation as per climatic condition or weather.
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2) Demographic Segmentation: Segmentation of customers based
on demographic factors are:
a. Age (dominant factor): Segmentation is done on the basis of

age of person. Example RYMCO has segmented its product according
to different age group of people.
b. Income (dominant factor): Segmentation is done on the basis

of income level of a person.

c. Purchasing power (dominant factor): Segmentation done on
the basis of purchasing power of the customer. Examples of different
car segment based on purchasing power are:
 Budget car segment
This segment is sometimes referred to as the small car segment. Competition

in this segment is extreme in Lebanese market.
 Compact car segment
It lies between budget car and family car.
 Family car segment
The purchasing capacity of buyers of this segment is somewhat higher than

that of the budget and compact car segment.
 Premium car segment
This segment represents the buyer who require true world class luxury car.
 Super luxury saloon segment
Buyer in this segment looks for a real super premium segment car.
3) Psychographic Segmentation
Psychographic Segmentation groups customers according to their life-style

and buying psychology. Many businesses offer products based on the
attitudes, beliefs and emotions of their target market. The desire for status,
enhanced appearance and more money are examples of psychographic
variables. They are the factors that influence your customers' purchasing
decision. Activities, Interests, and Opinions (AIO) surveys are one tool of
measuring lifestyle.
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4) Behavioral Segmentation
Markets can be segmented on the basis of buyer behavior as well. Since all
Segmentation is in a way related to buyer behavior, one might be tempted to
ask why buyer behavior-based segmentation should be a separate method. It
is because there is some distinction between buyer’s characteristics that are
reflected by their geographic, demographic and psychographic profiles, and
their buying behavior. Marketers often find practical benefit in using buying
behavior as a separate segmentation base in addition to bases like

geographic, demographics, and psychographics.
Variables of buyer behavior are:
a. Benefit sought: - Quality / economy / service / look etc of the

product.
b. Usage rate: Heavy user / moderate user / light user of a product.
c. User status: Regular / potential / first time user / irregular

/occasional.
d. Brand Loyalty: Hard core loyal / split loyal / shifting / switches.
e. Readiness to buy.
f. Occasion: Holidays and occasion stimulate customer to purchase

products.
g. Attitude toward offering: Enthusiastic / positive attitude / negative

attitude / indifferent / hostile.
1) Behavioral Characteristics
In industrial markets, patterns of purchase behavior can be a basis for

segmentation. Such behavioral characteristics may include:
• Usage rate
• Buying status: potential, first-time, regular, etc.
• Purchase procedure: sealed bids, negotiations, etc.
• APPROACHES IN SEGMENTATION
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TARGETING
There was a time when finding the best customer was like throwing darts in
the dark. Target marketing changed all that. Today's savvy marketers know
that finding their best prospects and customers hinges on well thought out
targeted marketing strategies.

Defining a target market requires market segmentation, the process of
pulling apart the entire market as a whole and separating it into manageable,
disparate units based on demographics. Target market is a business term
meaning the market segment to which a particular good or service is
marketed. It is mainly defined by age, gender, geography, socio-economic
grouping, or any other combination of demographics. It is generally studied
and mapped by an organization through lists and reports containing
demographic information that may have an effect on the marketing of key
products or services.
Target Marketing involves breaking a market into segments and then

concentrating your marketing efforts on one or a few key segments. Target
marketing can be the key to a small business’s success.
The beauty of target marketing is that it makes the promotion, pricing and
distribution of your products and/or services easier and more cost-effective.
Target marketing provides a focus to all of your marketing activities.
Market targeting simply means choosing one’s target market. It needs to be

clarified at the onset that marketing targeting is not synonymous with market
segmentation. Segmentation is actually the prelude to target market
selection. One has to carry out several tasks beside segmentation before
choosing the target market.
Through segmentation, a firm divides the market into many segments. But all
these segments need not form its target market. Target market signifies only
those segments that it wants to adopt as its market. A selection is thus
involved in it.
In choosing target market, a firm basically carries out an evaluation of the

various segments and selects those segments that are most appropriate to it.
As we know that the segments must be relevant, accessible, sizable and
profitable. The evaluation of the different segments has to be actually based
24
on these criteria and only on the basis of such an evaluation should the
target segments be selected.
• PROCESS OF CHOOSING THE TARGET MARKET
The process of choosing the target Market are:
 Choosing the target market is related to, but not synonymous with,
market segmentation.

 Segmentation is the means or the tool; choosing the target market is
the purpose.
 Segmentation can also be viewed as the prelude to target market

selection.
 Choosing the target market usually follows multi-level segmentation

using different bases.
 Choosing the target market involves several other tasks in addition to

segmentation.
 Looking at each segment as a distinct marketing opportunity.

 Evaluating the worth of each segment (sales/profit potential).
 Evaluating whether the segment is:
 Distinguishable.
 Measurable.
 Sizable.
 Accessible.
 Growing.
 Profitable.
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 Compatible with the firm’s resources.
 Examining whether it is better to choose the whole market, or the only a

few segment, and deciding which ones should be chosen.
 Looking for segments, which are relatively less satisfied by the current
offers in the market from competing brands.

 Checking out if the firm has the differential advantage / distinctive
capability for serving the selected segments.
 Evaluating the firm’s resources and checking whether it is possible to

put in the marketing programmes required for capturing the spotted
segments with those resources.
 Finally selecting those segments that are most appropriate for the firm.
• FACTORS TO BE CONSIDERED WHILE TARGET MARKET SELECTION
Target marketing tailors a marketing mix for one or more segments identified
by market segmentation. Target marketing contrasts with mass marketing,
which offers a single product to the entire market.
Two important factors to consider when selecting a target market segment

are the attractiveness of the segment and the fit between the segment and
the firm's objectives, resources, and capabilities.
Market research and analysis is instrumental in obtaining this information.

For example, buyer intentions, sales force estimates, test marketing, and
statistical demand analysis are useful for determining sales potential. The
impact of applicable micro-environmental and macro-environmental variables
on the market segment should be considered.
Note that larger segments are not necessarily the most profitable to target
since they likely will have more competition. It may be more profitable to
serve one or more smaller segments that have little competition. On the
other hand, if the firm can develop a competitive advantage, for example, via
patent protection, it may find it profitable to pursue a larger market segment.
26
 Suitability of Market Segments to the Firm
Market segments also should be evaluated according to how they fit the
firm's objectives, resources, and capabilities. Some aspects of fit include:
• Whether the firm can offer superior value to the customers in the

segment
• The impact of serving the segment on the firm's image
• Access to distribution channels required to serve the segment
• The firm's resources vs. capital investment required to serve the

segment
The better the firm's fit to a market segment and the more attractive the
market segment, the greater the profit potential to the firm.
A firm that is seeking to enter a market and grow should first target the most
attractive segment that matches its capabilities. Once it gains a foothold, it
can expand by pursuing a product specialization strategy, tailoring the
product for different segments, or by pursuing a market.
• RESULTS OF WRONG TARGETING STRATEGY
Ineffective augmentation and targeting led to wrong product offers,

inappropriate marketing appeals, wrong pricing, and overemphasis on the
brand name. No firm can offer single product to satisfy all the segments.
Thus the choice of target marketing for a given industry can decide the fate
of the industry in the market. This is because firms differ in their
competencies, resources, objectives, and strategies.
27
POSITIONING
INTRODUCTION: Positioning is a concept in marketing which was first

popularized by Al Ries and Jack Trout in their bestseller book “Positioning -

a battle for your mind". According to them ‘Positioning is what you do to mind
of the prospect’. They iterate that any brand is valued by the perception it
carries in the prospect or customer's mind. Each brand has thus to be
'Positioned' in a particular class or segment. Example: Mercedes is positioned
for luxury segment, Volvo is positioned for safety.
The position of a product is the sum of those attributes normally ascribed to it

by the consumers – its standing, its quality, the type of people who use it, its
strengths, its weaknesses, any other unusual or memorable characteristics it
may possess, its price and the value it represents.
Although there are different definitions of Positioning, probably the most

common is: "A product's position is how potential buyers see the product",
and is expressed relative to the position of competitors. Positioning is a
platform for the brand. It facilitates the brand to get through to the mind of
the target consumer.
• POSITIONING CONCEPTS: Generally, there are three types of

positioning concepts:
• Functional positions
 Solve problems.
 Provide benefits to customers.
 Get favorable perception by investors and lenders.
• Symbolic positions
 Self-image enhancement.
28
 Ego identification.
 Belongingness and social meaningfulness.
 Affective fulfillment.
• Experiential positions

 Provide sensory stimulation.
 Provide cognitive stimulation.
• APPROACHES OF POSITIONING :
The main positioning strategy is to either developing or reinforcing a

particular image for the brand in the mind of the customer. The main
approaches to positioning strategy are:
• Customer benefits approach.
• The price-quality approach.
• The use or application approach.
• The product user approach.
• The product class approach.
• The cultural symbol approach.
• The competitor approach.
1 . Customer benefit approach:
This is an important positioning strategy. It involves putting the brand above

competitors, based on specific brand attributes and customer benefit. In the
automobiles sector we can see many car RYMCO gives emphasis on different
technical aspects of Nissan Sunny such as fuel efficiency, safety, engine
performance, power windows etc. Generally marketers identify positioning in
respect of product characteristics that have been ignored by the competitor.
29
Often we can see that firms attempts to position their brands along with two
or more characteristic simultaneously, this is done to give an extra edge to
the product from its rival and also helps increase the product’s life cycle.
2 . Price quality approach:

Sometimes brands attempts to offer more in term of service, feature, quality,
or performance. Manufacturer of such brands charge higher prices partly to
cover the cost and partly to communicate the fact that they are of high
quality. In fact in the same product category there are brands, through
comparable in qualities, which appeal on the basis of price. For example
brands like Nissan Sunny that uses quality and price positioning technique
respectively.
3 . The use and application approach: In this strategy the product is

positioned with a use or application approach. For example: Nissan -
Sunny positioned its brand as economic and safe car with enhanced
driving control.
4 . The product user approach: In this approach, the brand identifies and
determines the target segement for which the product will be positioned.
Many brand uses a model or a celebrity to position their product. The
expectation are that a model or a celebrity is likely to influence the
product’s image by reflecting their own image to it. For example:
Nissan Sunny is positioned for all age groups (Legally acquired driving
license).
5 . The product class approach: This approach is used so that the brand
is associated with a particular product category. This is generally used
when a category is too crowded.
6 . The cultural symbol approach: The positioning strategy is based on

deeply entrenched cultural symbol. The use of cultural symbol can help
to differentiate the brand from competitors brands.
7 . The competitor approach: Many brands use competitor as a dominant

plank in their campaign. These brands are positioned following its
competitor. This is an offensive strategy.
30
• PRODUCT POSITIONING AND BRAND POSITIONING
It is essential to understand the relationship between product positioning and

brand positioning. The two terms are synonymously and interchangeably
used, technically they are different.
Product positioning denotes the specific product category / product class in

which the given product is opting to compete. And brand positioning denotes

the positioning of the brand viz-a-viz the competing brands in the chosen
product category.
• CRITERIA’S FOR SUCCESSFUL POSITIONING
Certain criteria are needed to be fulfilled for successful positioning are:
a. Clarity: - While positioning its brand the firm must be able to position
itself in both distinct value, proposition, and to its target audience.
b. Consistency: - Consistency in positioning means keeping the positioning

plank/bases intact for longtime. Planks should be carefully chosen while
positioning. But it does not mean that the firm must change its
positioning bases even though its survival is at stake. The firm must be
flexible to the changing environment.
c. Credibility: - The firm must deliver trustworthy and believable value

proposition. There should be perfect match between promise and action.
d. Competitiveness: - For surviving in this competitive and changing

environment innovative resources, talent pool, competitive advantage,
strong financial backup etc are very important.
Thus we can say that the total process of market segmentation, targeting
and positioning is a very important attribute of marketing mix. All these three
process is very closely interrelated with each other.
Once RYMCO has decided which customer groups within which market
segments to target, it has to determine how to present the product to this
target audience. This allows to exactly addressing the needs and
expectations of the target groups with a tangible marketing mix that consists
of product characteristics, and price.
31
Conclusion

With more than 41 years of experience, RYMCO became the fastest growing
automotive dealer in Lebanon. They have the ability to compete and to
almost impose prices in the local market. As Lebanon is a free trade market,
and since the car industry is characterized by being oligopolistic which
represents that their applied strategy is successful, thus acquiring 21% of the
new vehicle retail local market. Broad Acceptance of Nissan Sunny product,
due to low cost compared to other brands, good after sales service leading to
customer retention, attracting new customers that is represented with buyers
selling their used cars to RYMCO and replacing them with new Nissan cars.
With the major turning point that occurred in Nissan Global especially by
hiring Mr. Ghosn and merging with Renault France, this policy was reflected
in RYMCO Lebanon which witnessed new recruitments among all levels of
managements, starting with the upper management by hiring Mr. Abdo
Sweidan as RYMCO CEO, received the highest award from Mr. Ghosn for his
outstanding performance and customer satisfaction; Consequently reflecting
his performance on all other levels of employees.
Basing on our SWOT analysis, and RYMCO’s professional and successful

performance, we may conclude that RYMCO was able, to a certain extent; to
pin-point the major opportunities and threats in the Lebanese market.
As RYMCO are operating in a heterogeneous market the communication

means implemented between the company and customers; such as,
advertisements, offers, media as radio and TV; for instance, using the
Lebanese folklore in their latest advertisement to attract almost all segments
of the Lebanese community.
Generally speaking, RYMCO was able to benefit from their competitive

advantages to maintain its sustainability as the leading retail vehicle car
supplier in Lebanon.
32
Tamara Jurdy
Gina Lakkis
Khaled Darwish
Naji Mabsout

Table of Figures
Figure 1 Production TimeLine...........................................................................6
Figure 2 First Datsun Sunny 1966....................................................................6
Figure 3 2011 Nissan Sunny Design Concept..................................................6
Figure 4 RYMCO Development Plan..................................................................7
Figure 5 SWOT ANALYSIS...............................................................................15
Figure 6 Steps of Marketing Process..............................................................18
33
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Fall

Faculty of Business & Economics

REM- 054 –Management & Marketing Skills

Instructor’s Name: Mrs. Najwa

1.1 Organization’s Historical Background (RYMCO)

Originally launched to deal with general merchandising, the Rasamny

Chapter: Historical Background

In 1957, the Rasamny brothers went on to expand their business and

1967, RYMCO introduced the first DATSUN to the Lebanese market

After 1991's ceasefire, RYMCO re-launched its operations from Chiah

After 41 years of being a privately owned institution, RYMCO went public in

In 2005, Abdo Sweidan, the newly appointed managing director of RYMCO,

Chapter: Historical Background

In 2007, RYMCO achieved a 74% growth over 2006 controlling 21.3% of

1.2 Product’s Historical background (NISSAN SUNNY)

1960s-1980s 1990s 2000s

Chapter: Historical Background

RYMCO is one of the leading vehicle retail dealerships in Lebanon. RYMCO

Chapter: Historical Background

Figure 4 RYMCO Development Plan

Another important trend is the growing demand for a cleaner environment.

RYMCO is committed to promoting: absolute integrity through honesty and

Chapter: Historical Background

Organizational values and culture

Chapter: Historical Background

Management prides itself on its history of experiments with new technologies

Among the awards and achievements:

- Winning competition at RYMCO Motor Gallery where many cars and

Chapter: Historical Background

Chapter: Historical Background

Two Environmental Factors:

Chapter: Historical Background

–External factors – The opportunities and threats presented by the external

External Factors of RYMCO

The External environmental factors are as follows:

Economic factors: Economy plays a vital role in the success of a company

Socio/Cultural factors: Humans essentially create their own cultural and

Technological factors: Technology is important because RYMCO must

Demographics: There are many demographic factors affecting RYMCO.

Competitors: As Lebanon is a free trade market, plenty of competitors

Chapter: Historical Background

The Internal environmental factors are as follows:

Suppliers: RYMCO maintained procurement of their products from several

Distributors: As the sole agents of Nissan in addition to other brands,

Employees: Employees mainly learned their culture from stories that

Shareholders: As one of RYMCO’s goals achieving sustainable profitable

Brand Image: As the Lebanese culture is a high context culture, word of

Chapter: Historical Background

Dealership network: a large network of RYMCO branches and sub dealers in

Interest rate (monthly installments): similarly to all car suppliers in Lebanon,

Failure of most competitor models: Most competitors who have introduced

Chapter: Historical Background

Higher interest rates: Demand on cars will be affected as a result of higher

Entrance of new firms: In the context of different competing brands, the

INTERNAL (ATRIBUTES TO THE ORGANIZATION) STRENGTHS WEAKNESSES

EXTERNAL (ATRIBUTES TO THE ENVIROMENT) OPORTUNITIES THREATS

Figure 5 SWOT ANALYSIS

Markets for products are normally divided into segments. By definition, a

In order to capture this heterogeneous market for any product, marketers

Chapter: Historical Background

Market segmentation is resorted to for achieving certain practical purpose.

REASONS FOR MARKET SEGMENTATION

Segmentation is the basis for developing targeted and effective marketing