Nissan Automobiles: PESTLE Analysis and Marketing Mix Strategies

This report offers a comprehensive analysis of Nissan Motors, examining the external environment through the PESTLE framework, which includes political, economic, social, technological, legal, and environmental factors. It explores how these factors influence Nissan's operations and profitability across different countries. The report delves into Nissan's marketing communications mix, discussing its objectives and impact on decision-making. It also provides strategic recommendations for improvement and concludes with a summary of the key findings. The analysis covers Nissan's global operations, including its partnerships, market position, and responses to external challenges, providing a detailed overview of its business strategies and performance.

Running head: NISSAN AUTOMOBILES
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Name of the Student
Name of the University
Author Note

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Executive Summary
The report is based on the analysis of different factors related to the external environment,
which can affect the various aspects of the organization including the political environment,
the economic environment, social environment, technological development, legal factors, and
the environmental factors as well. The organization that is taken into consideration is Nissan
Motors. Nissan is analysed based on the countries in which they operate and the different
issues that the organization needs to face. The PESTLE framework is used to analyse the
operations and profitability of Nissan in the market. This helps in examining the ways by
which these issues affect the organization.
The second part of the report throws light on the Marketing Communications Mix of
the company. The concept of marketing communications mix has been discussed along with
its application to Nissan. The objectives of the company behind the strategic marketing mix
have been discussed. The marketing mix of a company tends to have a huge influence on the
decisions of the company, which have been considered. The report also provides
recommendations to the company and summarizes the report in the conclusion.

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Table of Contents
Introduction....................................................................................................................4
Part 1..............................................................................................................................5
PESTLE Analysis of the external environment of Nissan Motors................................5
Political Factors..........................................................................................................5
Economic Factors.......................................................................................................6
Social Factors.............................................................................................................7
Technological Factors................................................................................................7
Legal Factors..............................................................................................................8
Environmental Factors...............................................................................................9
Importance of PESTLE Analysis...................................................................................9
Part 2............................................................................................................................10
Marketing Communications Mix of Nissan.................................................................10
Objectives of Marketing Communications Mix:......................................................13
Influence of the Marketing Communication mix on the policy and Decision making
of Nissan...............................................................................................................................15
Effectiveness of the organization`s response...........................................................15
Recommended areas of improvement......................................................................16
Conclusion....................................................................................................................16
References....................................................................................................................18
Appendices...................................................................................................................21

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Appendix 1...............................................................................................................21
Appendix 2...............................................................................................................21
Appendix 3...............................................................................................................22
Appendix 4...............................................................................................................22
Appendix 5...............................................................................................................23
Appendix 6...............................................................................................................23

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Introduction
The report is based on the analysis of the effects that the external environment of an
organization has on its operations and the profitability as well. The external factors related to
the organization are analysed based on the different factors including political environment,
economic factors, social factors, technological factors, legal factors and the environmental
factors. The organization that is taken into consideration for this analysis is Nissan Motor
Company Ltd. The company is commonly known as Nissan and it has its origins in Japan,
with it has headquartered in Nishi-Ku Yokohama (Nissan-global 2018). Nissan mainly
operates in the automobile industry and sells the cars under brand names like Nissan, Datsun
and Infiniti. Nissan Motor Company Ltd. had made a partnership with Mitsubishi Motors and
Renault in the year 1999 (Birnleitner2014).
Nissan had earned the position of the sixth highest automaker organization of the
world in the year 2013. The organization has been holding this position after other large
automobile organizations like, Toyota, General Motors, Volkswagen Group, Hyundai Motor
Group and Ford. The alliance of Nissan and Renault has also held the fourth position in the
automobile industry of the world. Nissan is also considered to be the highest manufacturer of
electric vehicles in the whole world and they had global sales of around 275,000 electric
vehicles within the year 2016. The organization was named Nissan Motors in the year 1934.
The plant of Nissan in Yokohama was established ultimately in the year 1935 (Dubey and
Gunasekaran2015).
The first car was manufactured by Nissan in the same year and they had started
manufacturing airplanes, trucks and engines for the Japanese Army. In the year 1966 Nissan
Motors merged its operations with Prince Motor Company and they had launched many
upmarket cars which included models like Gloria and the Skyline. Nissan aimed for

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expanding their operations in the foreign market in the 1950s. The small cars range of Nissan
was aimed towards Australia which was considered to be the largest market of cars in the
year 1950. The organization also expanded its operations in the other parts of the world
including the United States of America. Nissan was able to capture the US market
successfully in the year 1973 when the oil crisis occurred and the demand for small cars
increased (Eva et al. 2014).
Nissan launched its new brand which was named as Nissan Sunny so that they can
meet the demands of the American consumers. Nissan then planned the expansion of its
operations in Europe so that the delivery costs and the tariffs related to exports can be
decreased. In the year 2001, a manufacturing plant of Nissan was established in Brazil and
following this, the organization further opened its operations in India with the name Nissan
Motor India Pvt Ltd. The global alliance partner of Nissan was Renault which invested more
than 990 million dollars so that the organization can establish its plant in Chennai, India.
Nissan penetrated into the market of the Middle East in the year 1957 and its first car was
sold in Saudi Arabia in the same year. The external environment of Nissan Motors will be
further analysed with the help of PESTLE framework (Frynas and Mellahi2015).
Part 1
PESTLE Analysis of the external environment of Nissan Motors
Political Factors
Nissan has been outsourcing the processes related to the production of its cars from
many countries other than Japan which are mainly, located in South America and Asia. The
government of the different countries where Nissan has set up its operations during the last
few years has been setting many rules which are related to benefit of the economy and
thereby produce the highest GDP. The political factors of the area where the organization is

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located can influence the rules and regulations of that country and the measures related to
security which can impact the strategic decisions that are taken by Nissan (Grünigand
Kühn2015). The change that can occur in the political scenario of the country and the trends
in politics can affect the strategic decisions that are taken by Nissan. The political situation of
the developed and the developing are different from each other and Nissan has its operations
in both these types of countries. The strategy of Nissan in the developed countries is different
from the strategy that is formulated by the organization in the developing countries. The local
rules and regulations of the countries where Nissan operates affect the local production of the
organization and the plants as well. Nissan needs to design its products and plants in the
different areas in such a way so that the requirements of the consumers can be satisfied
(Ho2014).
Economic Factors
The economic factors of the countries that can affect the operations and profitability
of Nissan are related to the attributes like, exchange rates, population growth, interest rates,
segment size and demand of the products offered by the organization. The buying power and
behaviour of the consumers towards Nissan are affected by the economic conditions of the
country. The power of purchasing the products of the organization that are offered by Nissan
are considered by Nissan so that they can gain sustainable profits in the market. The GDP of
the country depends on the sales and profitability of the organizations which operate in the
market. The balance margin of the investments that are made in the country is a major factor
that needs to be considered while Nissan operates in that area (Hosseinzadeh et al. 2016). The
auditing process of Nissan needs to be considered so that the latest laws related to taxation in
the country can adapted within the systems of the organization. The economic position of the
country where Nissan has its operations affects the profitability. The taxes that are levied on
the different products that are offered by Nissan in the country affect the prices of the cars.

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The economic position can also define the products of the organization that can be offered to
the consumers. The economy of the country also decides the buying behaviour of the
consumers of that country and the buying capacities as well (Izogo and Ogba2015).
Social Factors
The social factors that are a major part of the PESTLE framework can affect the
product offering and the profitability of the organizations. The point of view and the opinion
of the people about the products that are offered by the organization is important. The
approach of the consumers towards the cars that are produced by Nissan is a major impact of
the social factors on the organization. The rate of urbanization is quite high in Japan as
compared to the Asian countries where Nissan has its operations. This provides huge benefits
to the organization in the operations that they have in Japan. The social factors can further
help the organization in increasing their profits and improve their operations as well
(Izogo2015). However, the social factors of the developed and the under developed countries
are different from each other. Nissan needs to consider the social factors and position of the
people in the under developed countries and design their products and offerings accordingly.
The developed countries have a vast market for the organizations like Nissan, however, it can
be quite difficult for the organizations to fascinate the consumers of those countries. On the
other hand, the social situations of the under-developed countries are much more welcoming
towards new and fascinating products and offerings. The social environment of the countries
can therefore affect the products and the prices of the organizations (Kew and
Stredwick2017).
Technological Factors
The changes in technologies related to the manufacture of the different vehicles affect
the sales and profitability of the organization. The improving technologies help in increasing
the production of the organization and this will in turn increase the profitability. The

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changing technologies also affect the pricing policies of the organizations. The technological
factors of the developed and the developing countries affect Nissan in different ways. The
developed countries are able to provide the latest technologies much faster than the
developing countries. Nissan can ensure the smooth operations in the different plants of the
organizations and the ways by which the vehicles of the organization can be promoted
properly to the right people are also ensured with the help of new technologies (Micieta,
Binasova and Haluska2015). The competition in the automobile industry is growing with
each passing year and technology can impact the ways by which the organizations can create
competitive advantage in the market. Nissan needs to focus on the usage of state of the art
technology and latest equipments so that they can compete with the other automobile
organizations in the market. Nissan also needs to incorporate the latest technologies in the
products and offerings so that they can create a huge base of customers in the developed as
well as the developing countries of the world. The usage and incorporation of latest
technologies in the products of the organization can therefore help Nissan in increasing the
profitability (Rakesh 2014).
Legal Factors
The legal factors related to the different countries of the world where the organization
operates, affects the policies that are related to the production and sales. The strict laws of the
different countries related to the environment and the safety issues of the customers affects
the design of the products that are manufactured by Nissan. The designs that are formulated
by Nissan need to have copyrights so that they can gain competitive advantage in the market.
The automobile market is highly competitive in nature and every organizations needs
improvement in the products that they offer so that they face the competition and increase
their customer base. Laws and regulations related to the business organizations in the country
need to be followed by Nissan (Rothaermel2016). This can further bring changes in the

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policies of Nissan itself and can affect the profits as well. The local customary laws need to
be followed by Nissan Motors so that they can maintain a longer term in the country. The
laws and regulations of the relevant country affect the operations of the organization in many
ways including the change of policies. The legal aspects of the country where Nissan operates
affect the operations of the organization and the profitability as well. The laws of the different
countries are the major driving force for the organizations. Therefore, it can be said that, the
legal situation and strict laws of any country can affect the profitability of the organization
(Rushton, Croucher and Baker 2014).
Environmental Factors
The rules related to the environment are required to focus on the various policies that
are required for automobile manufacturing. The major focus of Nissan Motors will be related
to the zero emission or energy efficient vehicles. The environmental issues have become
important for any type of organization in the present situation. This is the major reason why
the organizations need to make their operations sustainable in nature so that it does not have
any adverse effect on the environment (Simon, Fischbach and Schoder20140. The
environmental factors now play an important role in the operations of the organizations,
especially of the automobile industry. The climatic changes have brought major focus on the
environmental issues and therefor Nissan must put major focus on the rules related to the
safety of the environment and the relevant regulations as well.
Importance of PESTLE Analysis
PESTLE analysis has been used to analyse the different factors related to Nissan
Motors. The political situation of the country where Nissan is operating affects the policies,
operations and the profitability of the organization. The economic situation of the developed
or the developing countries where Nissan has its operations affects the profitability and the

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pricing of the organization as well. The social situation of the countries is also important for
the products and offerings of Nissan and the mind-set of the people of that area. The
technological factors related to the production of Nissan can also affect the pricing of the cars
manufactured by the organization (Toma and Marinescu2015). The strict laws related to the
countries where Nissan has its branches also affects the trade policies of the organizations.
The environmental factors hold major importance in the present situation and this affects the
ways by which Nissan operates in the countries as the automobile industry can affect the
environment in many ways.
Part 2
Marketing Communications Mix of Nissan
Marketing can be described as a broad component that will be able to include product
research and development, purchasing and distributing the good to the consumer. It also
involves activities like pricing and event communication. Communication mix can be
described as the particular processes, which are used in order to promote the product or the
company to the given group of customers (Hollensen 2015). It can be stated as the sum total
of the activities of a company in order to make sure that the target audience is aware of the
product and promotes it in the market. Certain versions of the promotional mix of a company
include all the five elements whereas certain elements include a sixth element, which refers to
the event sponsorship.
The first element of the Communication Mix of a company comprises of:
Advertising
This is the most popular and the most common element of the marketing
communication mix. Ery often these two are taken to be the same thing. Advertising is a paid

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form of advertising in which a business pays the advertising agency to deliver the message
through a paid medium. This is done to attract the larger audience (Webster and Lusch 2013).
This is also an expensive method of reaching out to the consumers whereby, the whole target
audience gets to see the advertisement at once.
Personal Selling
Personal selling is very often combined with direct marketing techniques. Many
companies tend to employ a large sales force in order to make sure that they are able to
complete their targets and [promote the value of the goods to the consumers (Nissan-global.
2018). It is generally observed that the companies, which offer high products, tend to
emphasize more on personal selling as a marketing mix.
Discounts and Promotions
To establish themselves in the market many companies tend to promote their products
in the initial stage of the product life cycle through promotions and discounts (Armstrong et
al. 2015). These also tend to be expensive from the companies point of view but this is an
intelligent method if a company is trying to create demand for the product.
Public Relations
Public relations can be considered extremely similar to advertising as it involves
communicating the message of the company through a mass media medium. However, unlike
marketing one does not have to pay for public relations. Any article, which brings up the
name of the business, tends to act as a source of advertisement for the company. The main
disadvantage of any company is that the PR cannot be controlled (Gordon 2013). With good
reviews, some articles also tend to promote bad aspects of the company, which affect its
sales.

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Direct Marketing
Direct Marketing can be described as a combination of both sales promotions as well
as personal selling. The message, which the company wishes to portray to the consumer, is
conveyed to it through mediums like direct mail. These mails are sent in bulk, which is
customized, to specific audience. Print surveys also serve as a source of appealing to the
consumer.
Event Sponsorship
Event sponsorship means advertising, which is generally paid. The company pays for
the presence at an entertainment, non-profit or community event (Charter 2017). Through the
sponsorship, the company receives various benefits like booths, gifts and literature and most
importantly coming in front of the eye of the public.
Marketing Communication Mix of Nissan
Nissan makes use of all the elements of the marketing mix t promote its product.
These are:
 Advertising- Nissan invests highly in advertising and advertises through all the
mediums. The advertising campaigns that are generally used by the company include
magazine, TV ads, billboards and mails. Refer to Appendix 2 for an example (Sinha
and Mishra 2014). Nissan believes that its main target audience will usually view the
product and car being the primary product, discuss with their family, before purchase.
Hence, Nissan advertises in various lifestyle, business as well as luxury mediums like
magazines and yearly books to grab the attention of the audience. It utilizes different
advertising techniques for different consumer segments.

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 Public Relations- Nissan wants to change the way it is perceived in the market and
wants to alter its position all around the globe. It has a the line of electric cars, for
which it wants to make sure that people do not just perceive it as a normal product but
a car of the future. It applies real life situations to sell the products (Perreault Jr,
Cannon and McCarthy 2013). Recently, to associate itself as a common car for
common people, it introduced some of its cars as a part of the New York City taxi
fleet.
 Sales promotion- As a part of its sales promotion and specially so in the lean season,
Nissan comes up with a variety of special deals for the new customers with features
that include:
o extended warranty
o free maintenance
o Free servicing
 Personal selling- As stated earlier there are certain companies that tend to use its
sales force as a medium to persuade the consumers to buy the given products (Sheth
and Sisodia 2015). There is a sales team at every showroom of the car dealers, who
are paid as per their performance and have certain set targets for every month. This
increases the sales of the company tenfold.
 Social media- Nissan realizes the power of social media and considers social media
marketing as a part of their communication mix. The products of Nissan are new and
tend to attract discussions all around the globe. Due to the power of the social media,
the medium is a great source of attention for the company.

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Objectives of Marketing Communications Mix:
The marketing communication mix comprises of long-term marketing plans for the
company, which are intended at increasing the performance and value of the brand over some
time. Sale promotion can be described as short-term inducements to buy a particular product.
However, communications strategy is a long-term plan for the organization.
The objective of the Marketing Mix of Nissan is as follow:
Increase awareness
Nissan aims to increase the awareness of the brand amongst its consumers. When the
company enters newer markets it becomes extremely important for the company to make sure
that the consumers are aware of the product and its uses (Hult, Ferrell and Pride 2013). Once
the company becomes established, they have a closely relayed goal or aim at maintaining the
top of mind awareness, which just tends to remind the customers of its existence.
Change the attitudes of the customers
Very often, the consumers tend to be extremely judgemental and pick up pre-
conceived notions about the company. Nissan aims to break these barriers and make sure that
the company understands the aims and objectives of the company in general so that they are
able to understand the effort the company puts behind every product and praise the company
for their efforts.
Influence the intention of the Purchase
Through its advertising, the company also aims to influence the customer and
instigate them to purchase a product. They try to tune the advertising as a need, which then
tends to have an impact on the mindset of the consumers (Boone and Kurtz 2013). This shall
perk up the sales.

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Stimulate a Test Drive
Very often, a company tries to attract a target audience by simply instigating the
customers to take a drive. The company believes that once a company has taken a test drive,
it improves the chances of the company to sell the product. In the next step, the product
speaks for itself and a large crowd of customers is attracted to the given car.
Drive Brand Switching
Very often, the customers have been using a particular product for too long and this
makes them feel like they need to change their product (Armstrong et al.2014). Hence,
Nissan engages in a communication Mix Strategy that then attracts the customers and enable
the company to increase their revenue.
Influence of the Marketing Communication mix on the policy and Decision making of
Nissan
The characteristic features of the product do not matter if the marketing mix of the
organization is weak. Therefore, the marketing aspect of the company tends to have a huge
influence n the polices of the company. Every aspect of the business functions is based on
customer perception of the company. The decision making of the company is also largely
affected by the medium of marketing it chooses (Burns and Bush 2013). As the social
networking marketing has greatly involved and the actions if the company are always under
speculation, Nissan makes sure that its activities do not contain any flaw and its decisions are
greatly made after keeping in mind their components of the marketing mix.
Effectiveness of the organization`s response
As stated earlier, the company has realized the importance of the communication mix
strategy of the organization and makes sure that its efforts are at par with the requirements of

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the industry. The competition in the industry is extremely fierce and this is not forgotten by
Nissan (Peck et al. 2013). In order to combat with the markets, the company has a strong
communication strategy, which comprises of Personal selling, Social media marketing,
Public Relations and Advertising technique. Hence, Nissan has been quite successful in
promoting its products it the consumers in the organization (Kato et al. 2013).
Recommended areas of improvement
Although Nissan has been performing very well, in the given section certain
recommendations have been provided which shall guide in the organization in performing
better in its communication strategy:
 Using push strategies- If Nissan starts using Push strategies for its marketing Mix, the
company will be able attract a larger crowd. It needs to make use of smart strategies,
which makes the users realize the strength of the company as compared to its
competitors. This will enable the customers to purchase their products.
 Giving discounts- The company also needs to give discounts to the customers during
lean seasons. Many times when the price of fuel goes down then the company should
take advantage and increase the price of the product (Schmidt and Simchi-Levi 2013).
When the fuel price goes up, the company can use this strategy and decrease the price
of the cars so that the sales increase.
 Explore emerging markets- There are various markets, which have not yet been
explored by the company. There is a large capability in these countries. If the brand is
able to promote the products in those countries where the purchasing power of the
customers is expected to grow, the company will be able to increase its revenue
considerably.

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Conclusion
Therefore, from the discussion it can be stated that Nissan has been putting consistent
effort to become a leader in the market and to make sure that it is able to attract a larger
crowd for its products. Through the PESTLE Analysis, it could be identified that the
company tends to keep into consideration the various players that are present in the external
environment of the firm and sees to it that the players in the external market influence its
policies and decision-making. The first part of the essay concentrates on the external market
itself.
The second task concentrates on the marketing communication mix of the Nissan
automobile company. The report discusses the various components of marketing
communication mix and associates the concepts with the various factors of the company. The
communication mix strategy of the company has been elaborated in detail along with the
objectives of each strategy. The manner in which this mix tends to influence the decisions of
the company had also been provided in the company. The recommendations as to what can be
provided to the mix in order to attract the crowd have also been given. Nissan has been
performing adequately and by following the recommendations, the company will be able to
perform well in the dynamic environment.

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Appendices
Appendix 1
Appendix 2

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Appendix 3
Appendix 4

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Appendix 5
Marketing Billboard of Nissan
Appendix 6

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Financial Highlights of the company