Comparison of Nissan and Volkswagen: Target Market and Marketing Mix

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.

Principle of Marketing

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
information secondary data collection method was used. The comparison resulted that
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
Comparison of Marketing Mix...........................................................................................5
CONCLUSION............................................................................................................................8
REFERENCES............................................................................................................................9

INTRODUCTION
This report includes comparative analysis of Nissan and Volkswagen on the basis of their
target market, product, price, promotion and place. Nissan and Volkswagen both are
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.

Comparison of Marketing Mix
Basis Nissan Volkswagen
Produc
t
Mainly product of Nissan is cars and
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
volume car. Infinity car of Nissan
primarily targets and caters American
market the reason is that this is luxury car
brand. Nissan offers a variety of products
and these all products and brands of
Nissan appeals a variety of customers
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
customers of different segments
(Cavallone, 2017). Nissan offers its car
models in basic small car, sedan cars,
luxury cars and SUVs. Through this
product strategy Nissan have managed to
capture different car market and segments.
Volkswagen on the other hand sells
various products ion different countries
and most popular brand and cars of
Volkswagen are Volkswagen
Polo,Volkswagen Tiguan, Volkswagen
Passet, Volkswagen Sirocco,
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
and engine configuration (Tomczak,
Reinecke and Kuss, 2018). Types of
cars offered by Volkswagen are
hatchback, estate, sedan, coupe, SUV,
convertible, crossover and MPV.
Products of Volkswagen also includes
hybrid, duel fuel and electric vehicles.
All these products have been
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.
Price To ensure that along with getting and Price strategy of Volkswagen depends

increasing market share Nissan also needs
to maintain the loyalty of customers this
has priced its products competitively.
Luxury can of Nissan have been priced at
par with competitors and its sports car
because technology and safety features
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
competitively and carry forward its
proposition of value for money. Price of
Nissan varies on the basis of engine
configuration, safety features and trim
levels along with features and comfort
features. This price strategy attracts people
of all the income groups.
on the countries and economies in
which it is selling its cars. It have
competitive pricing policies in certain
economies and premium price policy in
countries where it is considered a
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
depends on competition, quality,
features, demand, segment and
geographical location.
Place Nissan is a global and is available across
the globe (Maugain, 2016). Nissan sell its
cars from two places. First place is its
website, Nissan sells its cars online
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.
Nissan also follows an omni channel
distribution system in which online and
offline stores have been integrated so
customers have easy access to products.
Cars of Volkswagen are available
almost all around the world.
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, Mbugua and
Chege, 2019). Distribution centres of
Volkswagen are very accessible and in

urban areas customers do not have to
travel more than 45 minutes to get
access to Volkswagen distribution
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
meaningfully communicate with
customers and the communication should
include product feature on and off-road
performance of the car, reliability, feature
list, safety features, luxury features.
Nissan also organise advertisement
campaign along with its usual TV, Radio
and Print advertisements. Marketing and
promotion strategy of Nissan focus on 360
degree promotion strategy (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
rallies and outdoor events for its
customers. These events are fun drives for
city, and specialised club based events for
its customers from SUV portal, these
activities attract future customers.
Advertisements of Volkswagen have
always been forceful. Volkswagen uses
360 degree branding strategy to promote
its products. Its aggressive promotional
activities on social media platforms
have helped Volkswagen to remain on
top of the game (Steenkamp, 2017).
Along with these company is using
traditional platforms for promotion like
TV, Newspaper advertisement. To
increase its sells Volkswagen also
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

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. In Marketing 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. In Mobile Marketing Channel. (pp. 103-119). Springer,
Cham.
Steenkamp, J. B., 2017. Global Marketing Mix Decisions: Global Integration, Not
Standardization. In Global Brand Strategy. (pp. 75-109). Palgrave Macmillan,
London.
Tomczak, T., Reinecke, S. and Kuss, A., 2018. Planning the Marketing Mix. In Strategic
Marketing. (pp. 171-221). Springer Gabler, Wiesbaden.