TABLE OF CONTENTS Acknowledgements Dedication Executive Summary ----------------------------------------- 01 Chapter 1 (Introduction) ---------------------------------------- 03 Chapter 2 (Industry Overview) --------------------------------------- 08 Chapter 3 (Company Analysis) ---------------------------------------- 15 Existing Product line ---------------------------------------- 16 External Environment ---------------------------------------- 21 Internal Environment ---------------------------------------- 51 SWOT Analysis ---------------------------------------- 67 Growth-share matrix ---------------------------------------- 75 PEST Analysis ---------------------------------------- 78 Customer Environment ---------------------------------------- 81 Marketing Strategies ---------------------------------------- 91 Marketing Mix --------------------------------------- 94 Chapter 4 (Competitor Analysis) ---------------------------------------- 101 SWOT ---------------------------------------- 102 Marketing control ---------------------------------------- 108 Target Market ---------------------------------------- 110 Marketing Mix ---------------------------------------- 112 Chapter 5 (Scenarios) ---------------------------------------- 115 Scenario 1 ---------------------------------------- 116 Scenario 2 ---------------------------------------- 118 Chapter 6 (Recommendations) ---------------------------------------- 119 Appendices ----------------------------------------- 122 ACKNOWLEDGEMENTS We feel blessed by the grace of God for endowing us with the capabilities and knowledge to complete this project. We also realize that this project would not be what it is without the invaluable support of our instructor, Ms. Ayesha Pervaiz, whose constant support and evaluation has allowed for us to get this far. We are also indebted to our parents for their constant support and supervision. We acknowledge their love and high tolerance levels as being the primary reasons for our success. DEDICATION We dedicate this Term Project Report to Our Parents and Friends Whose unwavering support and encouragement has been an essential towards the completion of this project. EXECUTIVE SUMMARY 1 This project is a detailed research about the marketing strategy of our client Nissan Sunny and its competitor Mitsubishi Lancer. On the ground of our research we have made an analysis and reached the conclusion that Nissan Sunny is a car of a competent quality, but doesn’t follow a marketing strategy as such, due to which it is not a famous brand amongst the car users in Pakistan. Our group undertook this task of re-launching this car in Pakistan. Since this car has the potential to be amongst the leading car brands of the country, but lacking the proper marketing strategy it has failed to impress the consumers. The research was based on information which our group gathered from the internet, the General Manager of Ghandhara Nissan Northern Region and Senior General Manager, Mr. Shahid Ikram, Senior General Manager, Corporate Affairs, Dewan Mushtaq Group, and one of ex-board of directors’ members of Ghandhara Nissan. The information about the customer tastes and preferences was carried out through survey forms/questionnaires. The compilation of the report was carried out by the group once the required information was gathered. We have also provided tables and charts in our report to make it easier for the user of this report to get the idea of the related topics at a glance. We have given a detailed account of the problems faced by Nissan sunny in relation to its competitors; also the group has come up with recommendations and alternative solutions to these issues complemented with the practical implications of those recommendations. Our group has put in a lot of effort to research, analyze and compile this project and we hope that everyone who uses this research will find the information ample and it will be beneficial for them. 2 INTRODUCTION 3 NISSAN Nissan as Global Company Nissan Motors Co. Ltd is a Japanese automobile manufacturer which formerly marketed vehicles under Datsun Brand name. The company’s main offices are located in the Ginza area of Chuoka, Tokyo but Nissan is currently planning to move their headquarters to Yokohama, kanagawa. by 2010, with construction starting in 2007.In 1999, Nissan entered an alliance with Renault S.A of France to expand their brand. Nissan is among the top three Asian rivals of the ‘’big three’’ in US, competing to be the market leader. Currently they are the third largest Japanese car manufacturer. Nissan VQ engines i.e. 2.0 l to 4.0 L piston engines have featured among the world’s best Engines for 12 straight years, since its award’s inception. Nissan has produced an extensive range of mainstream cars and truck, initially for domestic consumption but exported around the world since the 1950s.Nissan also sells a small range of keicars, mainly as a joint venture with other Japanese manufacturers like Suzuki or Mitsubishi Nissan does not develop these cars. Nissan also has shared model development of Japan domestic cars with other manufacturers, particularly Mazda, Subaru, Suzuki and Isuzu. 4 Nissan’s Operations in Pakistan In context Of Pakistan, Ghandhara Nissan Limited (GNL) is a group Company of Bibojee Services (Pvt.) Limited which was incorporated in 1981 as a Private Limited Company having the sale licensee for the distribution of Nissan vehicles in CBU condition in Pakistan; later in 1992 it was converted in to a Public Company listed in Karachi Stock Exchange. GNL has Technical Assistance Agreement with Nissan Motor Co. Japan and joint Venture Agreement with Nissan Diesel Co. Japan for the progressive Assembly of Passenger Cars, Light Commercial Vehicles and Heavy Duty Vehicles. GNL’s Car and Truck Plants are located at Port Qasim adjacent to each other. It is the only Automobile Company in the country assembling complete range of products i.e. passengers cars, light commercial vehicles and heavy-duty trucks and buses. The company is committed to achieve high quality products, customers’ satisfaction, market leadership, contribution in the economic growth of Pakistan and comply with all regulatory and other requirements for making the environment user friendly. Mitsubishi Mitsubishi Motors Corporation was established on April 22, 1970. The main reason behind its incorporation is the Development, design, manufacture, assembly, sales and purchase, importing and other transactions relating to automobiles and to component parts and replacement parts of said automobiles. 5 Company products The current line of the companies products are as follows. • Colt • Colt Plus • Delica D:5 • Eclipse • Eclipse Spyder • Grandis • Gallant • Minica • Triton • Pajero Mini • Outlander • Pajero 6 • Minicab Dewan Mushtaq Motor Company (pvt) limited In Pakistan Mitsubishi products are supplied by DMMC (Dewan Mushtaq Motor Company (Pvt) Limited). DMMC is the only Distributor and Progressive Manufacturer of Mitsubishi Passenger Cars and Light Commercial Vehicles in Pakistan. Its present line of activities includes the following: • Providing sales of Mitsubishi, Daihatsu, Vitz, Mercedes, BMW vehicles to its customers. DMMC has established 3S dealership across Pakistan. • Provides after sales and support services. • Ensures the availability of spare parts. 7 INDUSTRY OVERVIEW 8 The current scenario for the automobile industry is in boom but is still facing numerous challenges. The introduction of Tariff Based system (TBS) seems quite indifferent to protecting local industry. In the new system, there is preferential treatment for new auto manufactures, which is counter productive to the overall development of the auto industry .At the same time, the liberalization of imports of used cars and new cars through gift scheme, transfer of residence and rising auto financing rates have somehow restricted to little extent the growth of the industry. After a healthy double digit growth for the lasts two years, the industry showed a modest growth of 8.1%.During the period under review, a total of 164,340 units were produced against 152010 units by 21.8 and 12.8 respectively, over the same corresponding quarters of the last years, where as the last two quarters of the last two quarters ending December and March 2007 showed decline of 0.5% and 1.9 % respectively. In other sectors, the tractors production grew 8.1% due to improvement in agriculture. The LCV, buses and Trucks posted growth of 27.3% and total of 46008 units were produced against 36,155 units in the same period last year. The automobile industry in Pakistan in general operates under franchise and technical cooperation agreements with leading world manufacturers and can be broadly categorized into various segments, i.e. cars and light commercial vehicles (LCVs), two and three wheelers, tractors, trucks and buses and vendor industry. The automotive industry contributed over Rs 30 billion to the government exchequer in the form of duties and taxes in FY03, with a contribution of Rs 17 billion from the top four manufacturers alone. The industry has achieved a phenomenal growth of 50.2 percent in 2005- 06 and increased competition has led to the introduction of innovative products as well as a decline in financing costs. 9 INDUSTRY PROFILE Since its inception Suzuki has been enjoying the position as market leader in small car segment. While Honda and Toyota compete for the high price segment of the market. Suzuki commenced production in 1983 eyeing the small and LCV car segment,