Strategic Marketing Report: PESTLE, Entry Modes, and Nissan

This report provides a detailed analysis of Nissan's strategic marketing approach, focusing on its potential launch of electric cars in the Romanian market. It begins with an executive summary and an introduction highlighting the importance of marketing in adapting to changing consumer demands and expanding business operations. The report then delves into a PESTLE analysis, examining the political, economic, social, technological, legal, and environmental factors influencing Nissan's operations, particularly in Romania. Following this, the report explores various market entry modes, including exporting, joint ventures, and strategic alliances, considering their associated risks and legal procedures. The report also discusses market segmentation and targeting, emphasizing the importance of understanding customer needs and preferences. Finally, the report evaluates Porter's generic strategies, providing recommendations for Nissan's strategic positioning in the competitive automotive market. The report aims to provide insights into Nissan's strategic marketing decisions and their implications for the company's growth and success in the Romanian market.

Strategic
Marketing

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................1
INTRODUCTION...........................................................................................................................2
1. PESTLE Analysis of NISSAN ..........................................................................................1
2 Different modes of market entry.........................................................................................3
3 Market segmentation and targeting critically evaluate the potential target.........................5
4 Porter Generic strategy........................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

EXECUTIVE SUMMARY
Marketing is one of the sector which is effective for delivering knowledge about product
and services. It is essential to work according to need and it helps to deliver changes in product
and services. There are possibilities that due to working in association and this helps to knowing
what changes has to be made in product. Nissan is the association on which this report is based.
There is use of policies which makes changes in roles and responsibilities. There is use of latest
techniques through which they are working to know what has to be done through which goals
can be achieved. There is discussion about PESTLE which show impact of external forces which
are significant for growth of business. This helps to take care and reduce negative impact on
operations.
Nissan is world wide brand, so they have to enter in market through various modes such
as exporting, joint venture, strategic alliance, etc. Marketing segmentation is helpful in dividing
various customers and hence it is easy for workers to deliver product as per category of
customers. There are various ways through which customers are divided. But the basis must be
relevant and this makes changes in delivering product. As per taste, culture, need, etc. demand of
customer various. Manager has to first analyse customer and then product must be delivered.
There is requirement of various techniques through which company can reduce its cost and
increment in sales of possible. To perform business operations effectively, it is essential to
motivate workers and provide them direction to perform business operations in effective manner.
This helps to improve goodwill and brand image of Nissan.
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INTRODUCTION
Marketing is the segment which keeps in contact of consumer. As these days
modifications are taking place in demand of customers so it is essential to renovate some features
of product and services and this is effective for improving image in market. Manager must use
technique which helps to contact more people at at time. As per change in product and services,
it is essential to change marketing media too. Marketing of product can be performed with
consideration of products and this is effective for knowing what improvements can be done.
When managers are thinking to expand business, then there is requirement of various approaches
which is beneficial for organisational growth (Routledge.Gilmore, 2011). This report is based on
Nissan which is a Japanese auto-mobile company. This has headquarter in Yokohama, Japan.
Nissan is thinking to launch electric care in Romania market. Romania market is selected by
managers of Nissan because this country has developing economy so it is easy to create
awareness about electric cars. Resources are cheap at Romania so it is easy raise resources and
optimal use is possible. As this market is new for Nissan, so growth prospects are more. In this
report there is discussion about PESTLE analysis, modes of entry in market, concept of market
segmentation, Porter Generic Strategies.
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1. PESTLE Analysis of NISSAN
There are various macro-environment factors that directly or indirectly affect overall
operation and functions of company. Thus, it is important to taken into account all external
forces available in the form of political, technological, economical, social etc. In the given
report, Nissan Motor Company Ltd. Has decided to introduce an electric car in Romania. The
decision is taken with an aim of reducing air pollution, protect environment and save fuel which
is really important in today's scenario. The demand for using electric car in Romania market.
Considering the fact, Nissan has finally come upon on a decision to launch series of electric car
in brand new market called Romania (Gerritsen and van Olderen, 2014).
PESTLE analysis is identify one of the main and useful part of external factor which is
followed by each and every company. This factor support the business to identify impacts on
political, economical, social, technological, legal and environmental effects on the business
activities and functions. Pestle analysis of the Nissan are described as below:
Political Factors: Business entity outsources different process of production from
various nations then Japan like in Romania. These are the factors that interprets government
intervention and its influence on in business operation and activities. Then legal authority can set
few rules and regulations for the sector to follow the local initiatives or resources for the
betterment of own economy as well as produce maximum level of gross domestic product.
Political dynamics consists entire security and rules of political calculate that force the enterprise
to modify their strategic decision as per this. Political Stability in Romania comes out as a big
opportunity for NISSAN because this imply that there is minimal tension prevail in Romanian
market in term of government interference. Thus, chances of attaining higher growth increases
tremendously. Nissan also require to run into Emission Standards whereby it is a necessity that
fix a particular boundary of the pollution make by an automobile industry that are discharged to
the situation. Emissions that are state tested include hydrocarbon, sulfur oxide carbon monoxide
and many others. There is also guard standards or quality that should be proved before the
Nissan vehicle is lawfully supply to the marketplace.
Economic factor: It includes exchange rates, taxation, population growth, segment size,
interest rate, purchasing power and demand of the populations are highly required to be followed
by Nissan business to have maximum sustainable advantages (Harding, 2017). The gross
domestic product of the nation and retain the balance boundary in the finance are the essential

factors require to be hold in mind. Further essential domain for Nissan is to be kept in brain is the
evaluation of the auditing activity of the organisation and the accomplishment of the current
taxation laws.
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Social factor: It is another important factor which highly impacts on the profitability and
performance of company in marketplace. In this Nissan produce their quality products and
services to the customers at affordable price, it help the company to develop growth and success
of society. Nissan can welfare from these dynamics and variation like the customer approach
towards vehicles or car that has a effective response (Hunt, 2015). Beside this urbanization rate
is maximum in Japan, thus such kind of factors can support for more earnings. Another, Nissan
must depend on regarding the clients of the underdeveloped nations and their budget.
Technological factor: This is one of the main and essential factor that save the time and
cost of company as well as assist them to gain competitive advantages within predetermined time
period. In this Nissan use new technology of production which help to manufacture the cars and
modify their information systems. Both are valuable for the company to run their business
operations smoothly and advertise the vehicles or car to the accurate population via accurate
means is very essential for Nissan. With the increasing rivalry in the marketplace it has been
necessary on the organization to emphasis on the government of the art technology as well as
apply the best or current equipment while the manufacture.
Legal factors- This is one of the important factor which has to be considered by
managers of Nissan. There are some laws which are essential to be followed to run business in
society. There are various legal laws which are significant for its growth. This is important to
know what can be done through which changes are accepted by managers. When there is change
in laws then managers of Nissan has to change their policies. This affects business operations
and employees may get confused. It is important to work according to these laws otherwise there
is interference of government and this affects image of Nissan brand. It is important to know
what can be done through which are essential to make changes. Sometimes it creates problems in
working because of change in legal laws (Lee and Carter, 2011).
Environmental factors- Environmental factors means external nature related components
which gets affected due to use of techniques which are significant for business growth. It is
important to work according to environment and this helps to work according to need and
requirement of society. There are changes taking place in market and this affects business
operations. It is essential to alter plans and policies through which material does not get
damaged. There is change in environment of various country in which Nissan operates.
Sometimes due to environmental factors there is problem arise in transportation. So manager has
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to keep factors win mind which are effective for growth of business. It is essential to take actions
which are relevant for reducing negative impact on business operations. Managers of Nissan are
launching electric car in Romania market so they must use techniques which are environmental
friendly (Liebl, 2015).
2 Various market entry modes
Various types of of market entry modes that are accessible in given market and through
which organization can extend its business activity in new market of another nation. Risk
associated with each type of market mode varies from one another which should be successfully
considered by each entrepreneur. In general, there are 2 main mode of market entry i.e. non-
equity and equity. The mode of equity envelops wholly owned subsidies and joint ventures
whereas on the contrary non-equity mode include contractual agreements and export. Discussed
below are some common mode of entering into foreign market are as follows:-
1) Exporting:- It alludes to the way toward offering goods & services manufactured in nation
home country to host country. It additionally classify into 2 sections namely direct export &
indirect export.
 Direct Export: This method widely recognized as in this exporting product chiefly
produced in home country. This market entry mode laid stress on expanding the scale of
economies of home nation. In direct exporting, there is less engagement of distribution
channel.
 Indirect Export: In this, trading of goods is mostly done via locally based
intermediaries. Further such intermediary either sell products directly to target consumer
or to import wholesalers.
Legitimate Procedure: Every organization who wishes to expand its business operation into
new market through mode of exporting its goods, will undoubtedly follow every single laws &
regulation related with export ordinance of Romania i.e. Council Regulation No. 2913/1992.
Likewise organization is required to satisfy all lawful paper work related with this method
(Meidan, Moutinho and Chan, 2015).
2) Joint Venture:- It refers to an agreement that happens between at least two organizations or
individuals to work jointly for a specific reason or undertaking. Profits and losses are shared
equally by all members who have entered into an agreement. Five main objective of this market
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entry mode encompasses technology sharing, reward/risk sharing, joint product development,
shared governance and ownership.
Lawful Procedure: Under this, partners of JV needs to give all fundamental data concerned
with their specific task. There are different agreement for this mode of market entry that is
required to follow by the firm who wishes to expand its business through this mode of market.
They have to clarify its motivation behind this task & how the project will give profit to society
& its individuals (Meissner, 2012).
Strategic Alliance: It refers to an agreement that mainly takes place between 2 or more parties
that have mutually decided to share resources in order to achieve common objective that equally
benefits both parties. Basically, in this form of market entry two companies come together and
decide to pool resources. However this is only for certain period of time and it lasts up-to their
purpose aren't fulfilled.
Legal Procedure: If firm enters into new market by this method, it requires to explicit clear vital
objectives, appropriate accomplice, sharing data, staff trade etc. Likewise the organization
requires to fill the statement initially related with Romania Ordinance of Joint Venture .
Recommended market entry mode for NISSAN in Romania:
After assessing various modes of entry in market, it can be said that NISSAN can successfully
expand its business activities and operations in Romania by Strategic Alliance. According to the
given situation, NISSAN is introducing its electric car in Romania market. This is seen as the
most appropriate entry mode for them as by using this entry mode, it becomes substantially
simpler & accessible for the company to launch its new car in new market. The selected mode of
market entry principally laying stress on developing new goods and services instead of
introducing present product in the market. Apart from that, this entry mode assists NISSAN in
getting high competitive advantage in market over their rivals exist in Romania market. As the
organization is absolutely new to market, it require to gather more data or information with
respect to preferences and taste of target group, existing political components that effect
organization's general activity and capacities, rivalry that already exist in market as well as
numerous other important variables (O'Malley, Story and O'Sullivan, 2011). However, it
becomes troublesome for single company to develop strategies and do all tasks appropriately.
This is the primary motivation behind why administrators of NISSAN have chosen to go with
Strategic Alliance is mainly used for business extension. By choosing this market entry mode,
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NISSAN with the assistance of another vital accomplice recognizes winning possibilities in the
market of Romanian market and get it within defined time-frame which empowers company to
effectively launch or dispatch its new good in Romanian market of (Preston, 2012).
3 Critically evaluate Market segmentation and targeting
There are varieties of customer associated with Nissan and they have different demand.
When managers of Nissan is thinking to come with some new concept then they have to select
criteria on the basis of which they can bifurcate customers and increment in sales, profits and
brand image is possible. Market segmentation means to divide various customers in different
divisions. This helps to deliver goods as per group of customers. This helps to avoid other
activities and help to satisfy customer effectively. As Nissan is thinking to launch electric care in
Romania market so there are four ways on which customers can be bifurcated. They are
discussed in detail as under-
Demographic segmentation- This is division on the basis of age, caste, culture, sex,
group, etc. In this easy division of product is possible. Through this manager will display product
according to their taste. So it is easy for customer to select product. In case of Nissan when
managers are thinking to launch electric car in Romania market, then hey targets customers on
the basis of their use and purpose.
Behavioural segmentation-There is difference in taste of customer on the basis of their
behaviour. As per this segmentation, there is difference in behaviour of customers on the basis of
situation. This is effective for analysing changes and take actions which are significant for
growth of sales and customer satisfaction.
Psycho-graphic segmentation- As there is difference in lifestyle, living of standard,
income, etc. so there is difference in heir demand too (Rundh, 2011). It is essential to serve
product as per this basis. This helps to curtail useful activities and this helps to get use of policies
which are significant for growth of business. This diversification is tough but it must be analysed
by managers as per their experience and knowledge.
Geographic segmentation- There are various countries in which Nissan operates. It is
important to work according to area in which business operates. As per area there is difference in
use of car and hence demand also varies. This helps to increase profitability and production of
company.
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From the above discussion it is clear that company has to make policies as per demand of
customer. This is effective for growth of business. When managers of Nissan is thinking to
launch electric care in Romania market, then this helps to provide satisfaction to customer. There
must be division of customers on the basis of geographic and Psycho-graphic segmentation
(Sunkada, Verizon Patent and Licensing Inc, 2011). This helps to know what changes are
significant for growth of business and this makes changes in business operations. When customer
wants to purchase electric car then they will be displayed by managing changes which are
effective and significant for growth of business. If there is low income person they will come
with be served accordingly. This helps to satisfy customer demand by showing them relevant
products. Through electric care there is no damage to environment and hence there is support
from Romania government. Targets and goals of Nissan can be achieved effectively with this
segmentation of customers. When managers are clear about demand of customers then they can
reduce their production cost and time and resources are used optimally.
4 Porter Generic strategy
Strategies are the methods which are required to be taken place in market and this must
be according to market. As there are many changes taking place in business environment, so
manner has to motivate and monitor workers through which thy can work according to targets.
There are setting of goals by managers and leader has to take acre that actions are performed in
significant manner or not. It is important to know what changes are made and then use
techniques through which employees get motivated. Manager has to first analyse employee's
perception and then motivate them as per their perception. To get positive results it is important
to communicate to workforce so this helps to work according to market. Mainly in Nissan there
are three stargates which are effective for growth of association. They are discussed as under-
Cost leadership strategy: Cost leadership is the technique which is required to be
considered by managers and this is effective for reducing cost and increasing profits. As in case
of Nissan they are thinking to launch electric car, so this helps t work according to planning
(Tomczak, Reinecke and Kuss, 2018). There are various resources which are required to know
what can be done through which they can reduce cost and increase profits. Resources which are
readily available and of good quality has to be considered. While making changes it is essential
to select technique which is up to the mark and has provide satisfaction to customer. There are
various raw material which has to be kept at place where they are safe. There must not be over
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and under stock, so it is essential to plan proper and then this helps to know actions which are
significant for reducing cost. Basically managers of Nissan use this technique to reduce cost and
improve profits (Wrenn and Mansfield, 2014).
Differentiation strategy: In auto-mobile company, competition is much more. As per this
principle, it is important to create something different from competitors. So sales get improved.
There are possibilities that due to use of this technique brand image of Nissan gets improved and
managers has to expand money on research and development. These days changes are much
needed by consumer, so it is essential to work according to society demand. Electric car can be
launched in market when managers are of flexible and dynamic nature. There is use of
techniques which are significant for market growth. While making changes there is need of
factors which are significant for market and then this must be effective for growth of association.
Focus strategy: There are some gaols and targets which has to be considered by
managers and business operations are performed in appropriate way. This is effective for growth
of business and improves image of Nissan. Manager has to make changes in working style, so
targets can be achieved on time. It is essential to know what can be done, this can be effectively
applied to business operations when it is delivered to subordinates properly. Nissan must use
democratic leadership through which business operations can be performed in effective way.
There are changes in goals and objectives, so it must be delivered to employees and they are
aware of reason behind performing specific actions.
From the above discussion it is clear that to run business in appropriate manner, there is
need of leadership and direction through which they can work according to need of business
environment. As there are many modifications which are taking place in market. For Nissan
proper change in plans has to be made according to planning. Through using these techniques
there is use of policies which are significant for making changes in business operations. There
must be proper analysis so they can work according to market demand (Dibb, 2012). Nissan is
thinking to launch electric care, so they must analysis market and the take actions according to
requirement.
CONCLUSION
From the above discussion it is clear that company has to make marketing strategies
through which they can know about improvement areas in product and services. It is essential to
contact customers which are efficient for growth of business. Marketing is the sector which is
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