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Nissan and Tata Case Study

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* What are the strategic objectives for the Micra and the Nano?

Strategy Objectives of Micra and Nano Objectives of Micra | Objectives of Nano | * Increase sales * Gain brand awareness * Become the Top1 seller in B2 category * Obtain popularity in social media | * Increase sales * Alter people from riding motorcycle to driving Nano * Let people involve social media of Tata * Gain attention from youth |

Both Nissan and Tata wants to increase their sales in India, which I think, is their most important goal.

Separately, for Nissan, they corporate with the most popular Bollywood actor, Ranbir Kapoor, to produce a series of TV commercials, which show up the unique and competitive features of Micra to public, to gain the brand awareness of unknown Nissan Micra. In addition to the TV commercials, they also partnered with Kapoor producing a film, The New Star of India, to engage younger consumers and jumpstart sales. During the film producing process, they associated with Facebook to select co-actors, in order to receive a high social media popularity. Furthermore, since Nissan Micra has lots of competitors, such as Maruti Swift, Ford Figo, and Hyundai i10 and i20, Nissan also wanted to become the most popular car in B2 category by using social media.

For Tata Nano, because of the long history of Tata company and the exist brand awareness of Tata, their goals are different from Nissan. Tata company wanted to let public use Nano to alter their two wheel motorcycle, because Nano is the cheapest car in the world. In addition, Tata partnered with MTV to conduct a TV show, Nano Drive with MTV, obtain public awareness of Nano. Most importantly, during this process, Nissan also used Facebook to connect people, which led them receive lots of fans(or potential customers). Because of the low price of Nano, the youth of India can be a strong potential customer, Tata used some commercials to attract more awareness from youth.

* How is each brand positioned? Brand Position of Micra and Nano Micra | * New competitor for other B2 hatchback manufacturers in India * Newcomer in India vehicle market | Nano | * Long history in India * Alternation to motorcycle |

* Nissan Micra According to the case study, Nissan Micra was firstly sold in July 2010(Tybout M. Alice, “Marketing the Nissan Micra and Tata Nano Using Social Media”, page 1, 2013.) Nissan Micra was a newcomer in India vehicle market. Moreover, Nissan Micra was a new brand in B2 hatchback category competing with other B2 hatchbacks, such as Maruti Swift, Ford Figo, and Hyundai i10 and i20.

* Tata Nano Because of Tata company has a long history and the brand “Tata” is a symbol of India, Tata Nano is well known in India public. In addition, the price of Tata Nana is the lowest car price of the world, so Nano can be an alternate for two wheels motorcycle.

3. What is the goal for each social media campaign?

Micra | Nano | * Expanding sales by gaining brand awareness in social media because of limitation by using commercials * Obtain younger customers attentions * Build solid relationship in social media(frequent reaching and commenting) * Promoting other models | * Maintain awareness that Nano is an alternation of motorcycles * Gain fans on social media in order to get awareness * Re -state or highlight the feature of Nano |

* Micra * Because of the limitation in sales of cooperating with Ranbir Kapoor(only 12000 Micra were sold after releasing the commercials, which isn't a dramatic increase), Nissan decided to engage in social media to gain more public awareness. * In order to attract younger customers to follow on Nissan’s Facebook, and build a solid relationship with these young potential customers, Nissan launched the project that The New Star of India. In this campaign, Nissan obtained more than 500000 fans on its Facebook page. Thanks for the wide spreading of social media, people can share the event to their friends and encourage their friends or family to engage in this campaign. * After gaining the fans by launching The New Star of India campaign, Nissan received a high brand awareness in India, which help Nissan promote other models of car in India. For instance, Nissan Sunny was sold very in India.

* Nano * Compared to other vehicle manufacturers, Tata used the social media in different ways. Tata Nano is defined as a alternative of two wheels motorcycles, so the commercials emphasis the various features of the car, such as the car’s lowest price, its large capacity, and the long mileage. * In Nano Drive with MTV campaign, Tata caught the chance to launch India’s first social streaming show. This gives Tata to gain over 1.5 million fans on its facebook page, which means a significant brand awareness. More importantly, after the incredible success of the first season, Tata launched the second season two(2013) and season three(2014). In these two seasons, people can continuing engage in commenting and voting for the four teams, and they can also decide which teams will compete in season two prior the streaming show.(Tata “Nano Drive with MTV is back. Retrieved May 18, 2013, form http://www.business-standard.com/article/news-cd/tata-nano-drive-with-mtv-is-back-113051800580_1.html.) During these three seasons, Tata proved that Nana can be a comfortable car for driving long trip and in tough road conditions.(Nano Drive with MTV, from http://www.mtvindia.com/drive/.)
4. How well does each campaign align with the goal you articulated for the campaign and the brand positioning? (and why?) Based on the Figures and the content in the case study, it shows that the Micra’s campaign didn't meet the goals they anticipated but Nano’s campaign performed successfully. In Figure 2, statistic shows that one month after the end of campaign, the sales of Micra was continuing going down, and in the following months, the sales of Micra didn't comeback to the peak(in middle February, 2011). On the contrast, the decrease of sales in Nano stopped after Tata launched the campaign Nano Drive with MTV(middle of Jun, 2012), and the sales of Nano started to increase in middle of July, 2012. For Micra, I think the failure of its campaign is because Nissan Micra positioning. Statistic shows that the GDP per capita in India is US1595.7.(Data of GDP per capita, from http://data.worldbank.org/indicator/NY.GDP.PCAP.CD.) The Micra is positioned as B2 hatchback and priced at 5.96-6.42 lakhs(equal to $9610.76 in 2015). The price is much higher than the GDP per capita in India, so that the most of India people cannot afford it. Moreover, for the rest of India people who can afford the hatchback car, they have other cheaper options provided by Maruti, Ford and Hyundai. These manufacturers offer some cheaper B2 hatchback cars , such as Maruti Swift and Ritz, Ford Figo, Hyundai i10, compared to Nissan Micra. So why do customers choose expansive Micra rather than other cheap ones? That doesn't make sense. In addition to the pricing and positioning, the social media campaign itself also has a significant drawback—the continuity. The New Star of India campaign was run from Sep. 2011 to March. 2012; however, after March 2012, Nissan took no big actions to communicate with their fans on Facebook. It is obviously that people’s awareness of Nissan Micra would be eroded by other news. For Tata Nano, they can succeed in the social media campaign because they have explicit brand positioning; and based on this positioning, they priced Nano in a reasonable level. Nano was priced at 1 lakh, which equal to $1512.88 in Sep 25, 2015. This price meets the purchase ability of majority India people, especially the middle class in India who have the annual income of at least $4000 from 2000-2010(India, Middle-class Nation. Retrieved September 8, 2010, from http://www.forbes.com/2010/09/07/india-economic-reform-prosperity-markets-economy-oxford-analytica-middle-class.html.) Furthermore, the continuity of Nano’s campaign is implemented. They launched not only one seasons of Nano Drive with MTV, but also used the fans they collected in season one to continuing produce and release season two and season three in order to catch people’s awareness and build relationship with them.

5. How effective is each campaign? What metrics would you recommend to determine effectiveness, and why? * Micra Nissan used lots of implements to promote Mricra: traditional ads, New Star of India campaign, social media, and partnering with Ranbir Kapoor. The traditional media ads are not very effective because of the result of this campaign was not implemented. Only 12000 Micra were sold from July 2010 to March 2011. However, the New Star of India campaign relatively approached to the strategy goal. The results shown that after launching this campaign, Nissan become one of the top car brand on Facebook in India, and more than 500 test drives booked through Facebook. In addition, during this campaign, from Jan 2012 to Feb 2012, Micra sales increased.

* Nano Tata combined of advertising and social media to promote Nano. Many types of customers were involved in the commercials, which I think, because Tata has the geographical advantages that they have done businesses in India for a long time and they know needs of India people. In addition, Nano’s advertising is stick closely to its positioning, alternative for two wheels motorcycles. In Nano Drive with MTV campaign, Nissan received over 1.5 million fans on its Facebook page. As a result, Nano’s sales increased and in Jun 2012, Nano ranked third in segment. Most importantly, Nano Drive with MTV has been produced and released for 3 seasons, it became the most popular Tv show in India, which gives Tata Nano opportunities to increase sales in the future.

* Metrics to determine effectiveness * Ongoing Analytics—Ongoing monitoring that tracks activity over time Because both of Nissan Micra and Tata Nano used social media to promote their product, I think Ongoing Analytics is very important to measure effectiveness. Each follower’s activity on their Facebook pages is worth to monitoring and tracking, this give them a sense that which followers are active; so they can categorize their followers into cold followers, warm followers and follow-up followers, etc. Then, these followers can be the cold potential buyers, warm potential buyers in the future.

* Serviceable Addressable Market—SAM is the part of the total addressable market (TAM) that can actually be reached.

Micra and Nano are in different hatchback category(B2 for Micra, and Nano for A). They need to know which markets they can reach. This is very important not only in measuring effectiveness, but in planing their campaigns

* Breakeven Sales Each of them spent significant money in their campaigns, so it is essential to do breakeven analysis. This helps them decide whether it is worth to continuing spending money on their campaigns or not.

6. How could your team use a tool like the Claritas Prizm Segment Explorer to create a more effective campaign?

By using Claritas Prizm Segment Explorer, we can use the PRIZM section to check the preferences of a certain area residents. For example, when we are creating a campaign for Nissan Micra, we need to do some advertising. However, sometimes we struggle in where we should place the ads. PRIZM gives us answer, using the information from this section by entering zip code, we know where the residents in that certain area prefer to shop. Consequently, our ads can reach them more often, and gain more awarenesses. In addition, this tool also gives us residents’ demographics traits from area to area. We can use their income information to determine which products we should promote to them, and how much we should price our products. Sometimes the target audience income influence us pricing the products; and sometimes we can increase our price in the same product by providing additional services for high income people, since they prefer to have more shopping or using experience.

Bibliography
Tybout M. Alice, “Marketing the Nissan Micra and Tata Nano Using Social Media”, page 1, 201
Tata “Nano Drive with MTV is back. Retrieved May 18, 2013, form http://www.business-standard.com/article/news-cd/tata-nano-drive-with-mtv-is-back-113051800580_1.html
Nano Drive with MTV, from http://www.mtvindia.com/drive/
Data of GDP per capita, from http://data.worldbank.org/indicator/NY.GDP.PCAP.CD
India, Middle-class Nation. Retrieved September 8, 2010, from http://www.forbes.com/2010/09/07/india-economic-reform-prosperity-markets-economy-oxford-analytica-middle-class.html.

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