Comparison of Nissan and Volkswagen: Target Market and Marketing Mix
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This report includes a comparative analysis of Nissan and Volkswagen on the basis of their target market, product, price, promotion, and place. Findings reveal differences in strategies and target audience, as well as variations in product offerings, pricing policies, distribution channels, and promotional activities.
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Executive Summary This report included comparison of Nissan and Volkswagen car companies on the basis of two aspects one is their target market and other is their marketing mix. For collection of informationsecondarydatacollectionmethodwasused.Thecomparisonresultedthat strategies of both these companies differ on all these aspects and in some aspects Volkswagen is more effective than Nissan like its place strategy and product strategy.
Table of Contents INTRODUCTION.......................................................................................................................4 Findings........................................................................................................................................4 Comparison of Target Market............................................................................................4 Comparisonof Marketing Mix...........................................................................................5 CONCLUSION............................................................................................................................8 REFERENCES............................................................................................................................9
INTRODUCTION This report includes comparative analysis of Nissan and Volkswagen on the basis of their targetmarket,product,price,promotionandplace.NissanandVolkswagenbothare automobile manufacturer and both companies are multinational which makes them each other's competitors. Nissan is a Japanese automobile company and Volkswagen is a German auto maker. Both the companies are equally old and Nissan as founded in 1933 and Volkswagen was founded in 1937. All these reasons and success of both the companies in international market make them competitors. Findings Comparison of Target Market Nissan considers and communicate that digital Natives are its target market. For this they have changed their advertising process. Companies have also altered their marketing strategy and this strategy have designed the way it suits to growing digital market (Shareef, Dwivedi and Kumar, 2016). One important reason behind change in target audience is that car company have said that design of its latest vehicles haver been prepared in collaboration with digital natives and design team of the company. In this important question raises is that who are digital natives? Answer to this question is that digital natives are those people who are born after 1980. in this Nissan have targeted younger generation as their potential customers. On the other hand target market of Volkswagen's targeting strategy offers specific product to specified segment of the group (Guetta, Coutenceau and Ishigami, 2018). More specifically target audience of the car company is between 18 and 34 years old and baby boomers. Though customers of Volkswagen are from divers group but there are some common features of its customers and target customers these are confident, individualistic and have desire to be centre of attention. These people love drive, spirited design and German engineering. On the basis of this comparison of target market and target audience it can be concluded that though both the companies are operating in same industry, customers they target people they want to sell their car are different (Rubin, Hatch and Schultz, 2017). Nissan want to sell its car to people who are digital native in contrast Volkswagen want to sell its car to baby boomers and young people who are confident and individualistic. This difference in target audience also differentiate their marketing and promotion strategy.
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Comparisonof Marketing Mix BasisNissanVolkswagen Produc t MainlyproductofNissaniscarsand product line of Nissan is huge. Nissan have many companies under its name and these are Nissan Micra, Nissan terrano, Nissan GTR, and Nissan Sunny (Santos, 2017). Nissan is seller of budget and most volumecar.InfinitycarofNissan primarilytargetsandcatersAmerican market the reason is that this is luxury car brand. Nissan offers a variety of products andtheseallproductsandbrandsof Nissanappealsavarietyofcustomers from different segment. Nissan offers its products in all type of car categories and in which its product line consist of range of Hatchback and SUVs which appeal to customersofdifferentsegments (Cavallone, 2017).Nissan offers its car modelsinbasicsmallcar,sedancars, luxurycarsandSUVs.Throughthis product strategy Nissan have managed to capture different car market and segments. Volkswagenontheotherhandsells various products ion different countries andmostpopularbrandandcarsof VolkswagenareVolkswagen Polo,Volkswagen Tiguan, Volkswagen Passet,VolkswagenSirocco, Volkswagen Touran, Volkswagen Jetta, Phaeton, Eos, and Beetle. Offering of Volkswagen cars depends on level of localization,features,size,comfort, seating and capacity, option and power andengineconfiguration(Tomczak, Reineckeand Kuss,2018). Typesof carsofferedbyVolkswagenare hatchback, estate, sedan, coupe, SUV, convertible,crossoverandMPV. Products of Volkswagen also includes hybrid, duel fuel and electric vehicles. Alltheseproductshavebeen categorized in major 5 categories and all these categories have separate product line. From these customers can chose product which best suits them according to their price and taste. Quality of the products of Volkswagen is also higher than its competitors. PriceToensurethatalongwithgettingandPrice strategy of Volkswagen depends
increasing market share Nissan also needs to maintain the loyalty of customers this haspriceditsproductscompetitively. Luxury can of Nissan have been priced at par with competitors and its sports car becausetechnologyandsafetyfeatures have been priced at premium (Maugain, 2016). Datsun car of Nissan which have been designed and developed for emerging markets and this car have also been priced competitivelyandcarryforwardits proposition of value for money. Price of Nissanvariesonthebasisofengine configuration,safetyfeaturesandtrim levelsalongwithfeaturesandcomfort features. This price strategy attracts people of all the income groups. onthecountriesandeconomiesin whichitissellingitscars.Ithave competitive pricing policies in certain economies and premium price policy in countrieswhereitisconsidereda premium brand and customers are ready to pay premium price for its cars. Cars of Volkswagen which are highly priced have higher quality (Steenkamp, 2017). Hence the pricing of Volkswagen dependsoncompetition,quality, features,demand,segmentand geographical location. PlaceNissan is a global and is available across the globe (Maugain, 2016). Nissan sell its cars from two places. First place is its website,Nissansellsitscarsonline through its website and other place from where Nissan sell its products are through wholesalers they than distribute to retailers and then retailers sell to customers. Nissan includes its retailers which ensures that its products are available all over the country. Nissanalsofollowsanomnichannel distribution system in which online and offlinestoreshavebeenintegratedso customers have easy access to products. CarsofVolkswagenareavailable almostallaroundtheworld. Manufacturing facilities of Volkswagen also exist in several countries of the world. In relation with availability of the cars these are available online as well as offline. Each car of Volkswagen car is manufactured and distributed to key locations so that channels can easily access the cars and can get delivery on time. Company also penetrate emerging economies(Githinji,Mbuguaand Chege, 2019). Distributioncentresof Volkswagen are very accessible and in
urban areas customers do not have to travelmorethan45minutestoget accesstoVolkswagendistribution centres. This is why its sales of very high. As for now company only needs to look at rural areas. promo tion Nissan understands how important it is to meaningfullycommunicatewith customers and the communication should include product feature on and off-road performance of the car, reliability, feature list,safetyfeatures,luxuryfeatures. Nissanalsoorganiseadvertisement campaign along with its usual TV, Radio and Print advertisements. Marketing and promotion strategy of Nissan focus on 360 degreepromotionstrategy(Maugain, 2016). To push across its message of high performance and high quality of material Nissan utilize customers' interaction. The promotional campaign of Nissan includes ralliesandoutdooreventsforits customers. These events are fun drives for city, and specialised club based events for itscustomersfromSUVportal,these activities attract future customers. AdvertisementsofVolkswagenhave always been forceful. Volkswagen uses 360 degree branding strategy to promote its products. Its aggressive promotional activitiesonsocialmediaplatforms have helped Volkswagen to remain on topofthegame(Steenkamp,2017). Alongwiththesecompanyisusing traditional platforms for promotion like TV,Newspaperadvertisement.To increaseitssellsVolkswagenalso allows customers to buy cars through leasing. On the basis of above discussion of products, price, place and promotion of Nissan and Volkswagen it can be concluded that strategies of both these companies differ in all these aspects. Product strategy of Volkswagen includes more products in it and have focused more
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on quality on the other hand Nissan have focused on availing products to cater everyone's needs. Price of the Nissan differs on the basis of features and quality while price of Volkswagen differs on the basis of geographical location and on the basis of perception of people along with quality and features. In relation with place both these products are available online and offline but accessibility of the products of Volkswagen is more efficient than Nissan this has increased sells of Nissan. Promotion strategy of Nissan is more effective as they organize events like rallies and activities which help in creating experience for customers and customers can connect more with the brand. CONCLUSION On the basis of above discussion it can be concluded that Nissan and Volkswagen both are multinational automobile companies and sell its cars all over the world. These companies for this vary reason are competitors of each other. There are various aspects on which these companies are functioning similar but there are factors like target market on which they differ. Along with target market marketing mix which includes product, price, place and promotion strategies also differ from each other. Followed by this conclusion it is recommanded that- Nissan can also use the strategy of selling cars through lease. This is because price and cost is main and significant concern of everyone and this is more suitable for cars of less price. Another factor in which Volkswagen is ahead of Nissan is its accessibility which is main reason behind its higher sells. Nissan should also follow this strategy.
REFERENCES Books and Journals Cavallone, M., 2017. The TES Marketing Mix. InMarketing and Customer Loyalty.(pp. 83- 126). Springer, Cham. Githinji, M. N., Mbugua, D. and Chege, P. M., 2019. Application of Marketing Mix Strategies and the Effect on Market Performance of Motor Vehicle Dealers in Kenya. Guetta, O., Coutenceau, E. and Ishigami, K., 2018, January. Renault Nissan new Software Strategy. Maugain, O., 2016. The ‘devicefication’of the car: Adding personal vehicles to the digital marketing mix.Applied Marketing Analytics.2(1). pp.57-72. Rubin, J., Hatch, M. J. and Schultz, M., 2017. Renewing the Nissan Brand. Santos, F., 2017.Volkswagen group.(Doctoral dissertation). Shareef, M. A., Dwivedi, Y. K. and Kumar, V., 2016. Target Marketing and Development of the Communication Channel. InMobile Marketing Channel.(pp. 103-119). Springer, Cham. Steenkamp,J.B.,2017.GlobalMarketingMixDecisions:GlobalIntegration,Not Standardization.InGlobalBrandStrategy.(pp.75-109).PalgraveMacmillan, London. Tomczak, T., Reinecke, S. and Kuss, A., 2018. Planning the Marketing Mix. InStrategic Marketing.(pp. 171-221). Springer Gabler, Wiesbaden.