Grand Livina Marketing Plan

EXECUTIVE SUMMARY

Nissan Grand Livina is the latest product of Nissan, launched on April 2007. It is projected as the "people's car", which fulfills the needs of the customers: an economical, wide-spaced vehicle with reasonable price. The objectives of the marketing plan is aligned with Nissan's objectives, which are being one of the Top 5 car manufacturers in Indonesia, increasing profit, and expanding market share.

This plan describes the situation which is currently dealt with, including market share, channels, STP, and SWOT analysis; also designing strategies to achieve the 2008 objectives, which are selling 24,000 units of Grand Livina as a part of the 40,000 units Nissan vehicles and expanding Nissan's market share from 1.8 % to 6.8 %.

COMPANY BACKGROUND

I. Nissan Motor Co., Ltd.

Nissan Motor Co., Ltd., began with Kwaishinsha Motor Works which started its premier car productions in 1914, named DAT. This company went through various names: Kwaishinsha Motorcar, DAT Motorcar, Jidosha-Seizo, and Nihon Sangyo which was known by "Ni-San". The name Nissan Motor Co., Ltd., was officially used on June 1, 1934, with its founder Yoshisuke Aikawa.

Nissan marketed vehicles under the brands Nissan and Datsun until 1983, when Datsun collapsed. The ranking for Nissan was slowly surpassed by Honda. When the financial problems emerged in the 1990s, a French manufacturer, Renault, purchased enough stocks to control Nissan and put Carlos Ghosn as the president and CEO.

Under Ghosn, who introduced Nissan Revival Plan (NRP), Nissan was back in business and named the most spectacular corporate turnarounds in history for its success gaining the highest level of profit in company history and revitalized Nissan and Infiniti's models dramatically. This achievement catapulted Ghosn's name in Japan and the story of Nissan became a part of popular culture. Besides that, Nissan was proclaimed as one of the most prestigious vehicle manufacturer in the world through the machines VG and VQ V6, which included in Ward's 10 Best Engines for 12 years in a row since the award was given.

II. PT Nissan Motor Indonesia

1. 1960s

Nissan was officially entering Indonesia in 1969 by the name Datsun via PT Indokaya which was founded by H. Abdul Wahab Affan and his brothers. The type of vehicles they produced was pick-up, multi purpose (jeep) and sedan with the average production of 750 units/month which were marketed in Jakarta, Bandung, Semarang, Yogyakarta, Surabaya, Bali, Lampung, Bengkulu, Palembang, Padang, Balikpapan, Ujung Pandang, Medan, and Menado.

2. 1970s

In 1974, PT Indokaya produced Datsun Sena which contained 75 % local content to obey the government's suggestion in running localization program for four-wheel vehicles. Average production was 250 units / month.

3. 1980s

On April 14, 1981, Datsun's sole agent was PT Wahana Wirawan. Its first products were Multi Purpose Vehicle (Jeep Nissan Patrol 2800cc 4WD) and sedan Nissan Laurel, Sunny and Stanza (specialized for taxis).

Besides selling Nissan for the public, PT Wahana Wirawan also marketed taxis all over Indonesia. In 1984, a new company was formed, PT Nayaka Wirawan, as the sole distributor, while PT Wahana Wirawan still acted as the sole agent. By the end of 1986, PT Nayaka Wirawan was sold to Indomobil Group and in 1989 PT Nayaka Wirawan was dismissed before becoming PT Indocitra Buana on November 23, 1989.

4. 1990s

Nissan's market areas include Jakarta, Bandung, Semarang, Surabaya for sedan and jeep. In 1989, they marketed sedans such as Nissan Sentra and Cefiro. Nissan Sunny was specialized for taxis, replacing Nissan Stanza. It also had been a change in model, Nissan Sentra became Nissan Genesis.

At that time, Nissan did not have its own assembling plant, CKD units was assembled at Volvo ISMAC in Ancol. When the selling capacity increased with the average of 400 units / month, Indomobil cooperated with Marubeni and Nissan Motor Co., Ltd., decided to build their own assembly plant named ISMAC Nissan Manufacturing or INM at Cikampek, West Java. The company, along with Nissan Motor Co., Ltd planned to build Manufacturing Engine, used domestically and re-exported to Japan.

Besides Nissan vehicles, INM also produced other brands such as Volvo, SsangYong, VW, etc. In terms of marketing Nissan in Indonesia, PT. Indocitra Buana developed several Nissan distributors and auto-repairs on cities all over Indonesia. On August 26, 1997, with the purpose of expanding the retail business in Nissan Group, PT Indomobil Trada Nasional or PT INTAN was formed. Even by law the company had run since 1997, but with the economic crisis, the company could only be active started on January 2000.

On November 1, 1999, PT Indobuana Autoraya was officially joined the Nissan Group. It completed the company structure in Nissan Ssangyong Group into:

Ð'* PT Wahana Wirawan as the sole agent

Ð'* PT Indocitra Buana as the sole distributor

Ð'* PT Indomobil Trada Nasional as Sales Operation (Retailer)

Ð'* PT Indobuana Autoraya as the sole agent for SsangYong

This cooperation ended when Nissan Japan became the majority stockholder and Ssangyong was run by Indomobil Volvo on Oktober 2001.

5. Era 2000

PT Indomobil Trada Nasional specialized in vehicles commerce; New Cars or Used Cars, Accessories Shop, also Nissan's auto-repair representatives. PT Indomobil Trada Nasional owned several branches:

Ð'* Sunter (3s)

Ð'* Halim (1s) as Nissan's auto-repair representative

Ð'* MT Haryono (1s), only showroom

Ð'* Pondok Indah (3s)

Ð'* Pantai Indah Kapuk (3s)

Ð'* Kebon Jeruk (New cars/used cars showroom, accessories shop)

In the middle of 2001, after Nissan joined Renault internationally, in Indonesia a cooperation was formed between Indomobil Group, represented by PT Auto Euro Indonesia and Renault France to market Renault vehicles in Indonesia with early supports of Nissan's management, marketing network, and