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the small Nissan car (Code: c175)

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the small Nissan car
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 Read the case given below and answer the questions given at the end.

 

CASE STUDY – 1


In 1992, Micra, the small Nissan car, cost $20,000 in Denmark. That made it the most expensive car in its class. The price of the new model was up 20 per cent from the year before. Historically, only 35.4 per cent of Micra owners buy another Micra. The reason usually given is price. Moreover, due to the continuing recession, car sales in Denmark were at their lowest in 30 years. Only 9,000 small cars are sold each year, in a good year in Denmark. 
To make the problem even more difficult, marketing costs had increased by at least 10 per cent in each of the past five years. Nissan Denmark addressed this situation by developing and executing a truly innovative database marketing programme. They  were able to do this because they had very little to lose and much to gain:


(i) Given the economic situation described above no one inside or outside the company expected success.

(ii) Even a small success would be greeted with great satisfaction.

(iii) Management was willing to take a chance on a really bold programme because the situation was becoming quite critical.

Working with their advertising agency, management decided that the only way to reverse the trend was to develop and execute an ongoing relationship-building campaign, specially targeting currently satisfied customers. This new programme was in addition to the ongoing print campaign, the objective of which had been awareness of the Nissan to chnance Micra. This campaign had been running in Denmark for several years. The advertising agency brought in a research firm and a direct marketing agency to assist in the development and execution of the new relationship building campaign. Nissan Denmark had several objectives, some short-term and others long-term. The key was using a test drive to motivate the previous or the current Micra owners to purchase the new Micra.The first short-term objective was to sell 200 Nissan Micras through a test drive programme. The second was to reduce the average marketing cost below the current $400 per car. The first long-term objective was to develop an ongoing communication/relationship maintenance programme for current Micra owners. The second was to develop ongoing methodology to target the highest sales potential customers. By accomplishing these objectives, Nissan could develop targeted mailing to get potential buyers to test drive a new Micra, or other Nissan models as part of an ongoing promotional programme. Nissan accomplished all its objectives, both short-term and long-term, by a few steps that were carefully organized and managed. By hiring both a direct marketing agency and a respected market research firm, Nissan and its general advertising agency ensured that whatever programme was developed was based on a higher level of expertise than the ad agency alone would have been able to provide to the client. Together, all four team members - client, general agency, direct marketing agency and research firm, developed marketing questions, hypotheses and an initial approach to the problem.


Questions:
1. What marketing research methods were used by Nissan Micra for its sales?
2. Develop a strategy outline and a mailing plan for the clients.
3. Prioritize the mailing and develop a data-driven plan.

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