BPMM 6013 MARKETING BPMM 6013 MARKETING MANAGEMENTMANAGEMENT

Marketing Plan: Tan Chong Motor & Nissan

Group 1Prepared for :

Assosiate Prof. Dr. Filzah Md. IsaPrepared by :

Nurul Hidayah Binti Md Noor 814541Siti Nabilah Binti Sulaiman 815748

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Situational analysis Tan Chong Motor Group is entering its over than

50 years of operation. TCM the only one of distributor in Malaysia that get franchise from Nissan’s company to sold it products which is Nissan and Infiniti.

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o The franchise holder and exclusive distributor of Nissan and Renault vehicles in Malaysia.

o 98 sales branches and authorized dealership outlets nationwide; supported by 91 after-sales service centres.

o Franchise holder and exclusive distributor for trucks and buses under the UD Trucks and Silverbus brands.

o The two assembly plants in Segambut (Kuala Lumpur) and Serendah (Selangor) have very close capacity; both plants together can deliver 100,000 units a year.

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Internal analysis of TCMInternal analysis of TCM

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Internal analysisInternal analysisBusiness divisions:1.Assembly

Motor vehicle2.Sales and distribution

Passenger cars Light Commercial Vehicles Trucks Buses

3.After-sales services Spare part Workshop

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4. Financial products and service Hire purchase Leasing Insurance agency Money lending

5. Property Management and investment Hire purchase Leasing Insurance agency Money lending

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TCM products and services:

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Customer analysis

Why customer prefer Nissan vehicle compare other rivals?Nissan always come with something different in values that can attract customer attention.For example, people choose Nissan Leaf not just because of they aware about environment safety, they actually make shift in value. Saving in fuel cost.

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Characteristic of Nissan buyer:Nissan Leaf – female, age 30s, familiesNissan Grand Livina – customers like to gathering with familyInfiniti – luxury buyer Nissan Murano – male 40s, without child

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Value chain analysis

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Tan Chong Motor SWOT analysisStrength

Good reputationExperienced management and skill

human capitalHigh quality productMarket diversified product

WeaknessLargely dependent on the domestic

automotiveLimited market

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OpportunitiesThe sliding market share from Proton,

Perodua, Honda, and NazaGovernment offer – rebate Investment in Indo-China market

ThreatsNational Automotive Plan put TCM and

Nissan a disadvantage – support national cars

The increase globalization has threat TCM with facing new competition

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Nissan SWOT analysis

StrengthStrong financial performanceStrategic partnershipInnovative cultureGrowing brand reputation

WeaknessProduct recalls

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OpportunitiesGrowing global demand for environment friendly vehicleGrowing through acquisitionIncreasing fuel price

ThreatDeclining fuel priceGlobal competition in automotive industryRising raw material pricesNatural disastersAppreciating yen exchange rates

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Macro-Level External Environment

Political and legal – Malaysia’s highly intricate and complicated policies for automotive industry.

Social - changing of life cycle stages and lifestyle, consumers.

Technological - the alliance with Renault is an advantage in development of automotive technologies which boosted Nissan sales.

Environmental – the preference towards hybrid cars – Nissan Leaf and Serena S-Hybrid

Economic – fuel price hike, Malaysia inflation instability, modest and uneven global growth.

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Competitive Environment

Rivalry among existing firmsTop competitors

UMW Holdings Berhad Sapura Industrial Bhd EP Manufacturing Berhad Yokohama Industries Berhad Boon Koon Group Berhad

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Segmentation, target Segmentation, target market, positioningmarket, positioningo It hard for marketer to satisfy all

customers in market because everyone have their own needs and wants.

o So, marketers decide to divide the market into “segments.”

o Then they identify and profile distinct group of buyers based on demographic, geographic, psychographic, and behavioral that was different among buyers.

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Then, marketer will choose which segment have a big opportunities, then choose it as “target market”.

for the chosen target market, firm will develop market offering, then the offering will be positioning in minds of target buyers as delivering some of values.

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Target market of Nissan

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Market offering

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Infiniti products

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Nissan ALMERAB-segmentTarget market – young family Position – delivering diversify and

unique, which is low cost of ownership.

Nissan NavaraPickup segmentTarget market – business person,

weekend recreational Position – delivering value of dynamic

performance and comfort

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Nissan Grand LivinaMPVs segmentTarget market – for people like

gathering family membersPositioning – delivering the value of

happiness and stress free experience.

S-Hybrid SERENAMPVs hybrid segmentTarget market – people who sensitive

on environment or eco-friendlyPositioning – delivering values of clean

environment and fuel save.

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Nissan Murano SUVs segment Target market – people without children Positioning – delivering value of luxury with

tagline “it hard to get anybody come down.”

Infiniti QX70 Luxury segment Target market – luxury buyers Positioning – delivering value of elegant

muscularity and charismatic performance.

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How Nissan capture their customers?Nissan come into Malaysia by bringing products closely attuned to the needs and desires of their consumers.Their product offering customers a diverse and distinctive selection from the world of Nissan, will be back with superior service through all phases of the ownership experiences.Nissan create product with promises for something, when customer own the cars they will get the value of promises delivering in minds. It can build trust, customers tend to be loyalty for the brand.

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Nissan goal: o Becoming the world biggest seller of battery-

powered autoso Leader in the move to make cars safer by

adding electronic systems capable of preventing accident and injuries.

o “Nissan power 88” – aims to achieve 8% in global market share and to increase its corporate operating profit to a stable 8% by 2016.

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Marketing Mix Strategies

Product/ Branding Strategies – Nissan prominent brand reputationService Strategies – Tan Chong Ekspres Auto Servis Sdn Bhd(TCEAS), to maximize convenience, and minimize queuing, TCEAS encourages reservations on vehicle service appointments via e-booking online facility.Pricing Strategies – competitive price with other foreign cars and pricing above local cars price.Supply Chain Strategies – Completely Knocked Down (CKD), Local Assembly Plant in Segambut and Serendah.

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TCM performance: TCM contributes its record sales achievement from the

support of the media. TCM achieved its highest Nissan sales record in 2012

since its presence in Malaysia for the past 56 years. Nissan is now the No.2 non national car brand in

Malaysia Nissan ALMERA leads Nissan’s strong performance

with more than 1,5000 units booked date. TCM continues to excite consumers with the

introduction of the Updated 2013 Nissan Teana 2.5L

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TCM financial highlight

http://www.tanchong.com.my/financialhighlight.html

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http://www.tanchong.com.my/financialhighlight.html 35

http://www.tanchong.com.my/financialhighlight.html 36

TCM Goal:Be an excellent in automotive businessTCM Objective:Widen the geographic footprint in automotive business ASEAN

That they achieve the goal?TCM get awarded “2013 Nissan Global Award” from Nissan company Nissan also label TCM as “Champion Distributor” because they can sustain the growth well.So, the award Nissan give to TCM as testimony in achieving TCM objective.

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How TCM get trust from Nissan’s company?TCM had maintain sales volume with aging

models, a challenging task when rivals regularly launched new model

Get “2013 Nissan Global Award” as a proof of TCM hard work and dedication to superior performance.

TCM also facing Nissan industry challenging that compete with than 130 National Sales Companies, but TCM still achieved outstanding sales, growth and profitability.

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Future plan:Nissan – become fully electric car, reducing CO2 emissions.TCM – widen the geographic of footprint in automotive business in ASEAN.

What makes Nissan brand strong in Malaysia?Nissan diversify and unique brand, they attract people to experience something that shift in value.

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Suggestion:Nissan should conduct more comprehensive

market research to clearly define their customer needs and wants.

Create dynamic, cohesive campaigns that consistently speak to Nissan customers about the experience after use Nissan vehicle.

Nissan also can increase their after-sales services like give more longer period in warranty.

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