RENEWING THE NISSAN

BRAND

VISION / MISSION

VISION

Nissan : Enriching Peoples lives

MISSION

Nissan provides unique and innovative automotive products and services that
deliver superior measurable values to all stakeholders* in alliance with Renault.

* Our stakeholders include customers, shareholders, employees, dealers, suppliers, as well as the communities where we
work and operate.

1933 Started as Jidosha Seizo Co. Ltd

NISSAN BACKGROUND
1934 Changed to Nissan Motor Co. Ltd.
1944 Headquarters Shifted to Tokyo
1950 Acquired Stake in Minsei Diesel Motors Co.
Ltd.
1952 Technological Cooperation with Austin
Motors
1958 Exports to USA
1959 First overseas factory at Taiwan
1966 Merged with Prince Motors Ltd.
1980 Garner the worlds biggest auto market
1990 Nissans decline started

Reasons for decline

Lack of individual identity

Loss of the brand image

Volume driven , not profit driven culture

Increased debts

LACK OF INDIVIDUAL IDENTITY

Spend its resources in copying Toyota.

It lost most of its money competing over

incentives and dealer discounts with
other brands while they were sold at
premium.

It tried to target other brands customer

rather than creating their own image, i.e.
lack of proper segmentation and
targeting.

Thus positioning itself as a follower rather

than leader even when it had the
potential to do so.

Loss of brand image

It entered the American market as an

brand known for its innovation in
engineering but could not maintain it.

The brand stood as the ultimate driving

experience with its models like240z,
Datsun 510 sedan but slowly became
just an value addition models after Toyota
and Honda.

Increased debts

Due to all the above causes the sales of

the company started declining leading to
stagnated debts pilling up.

Also the slow down of the market due to

the increased oil prices added to the
crises.

This debts pressurized the company to

switch to volume driven and not profit
driven in order to generate more revenue
to repay the debts , which further
worsened the situation.

Volume ,not profit driven

Fall in sales lead to the company to

increase the incentives to the dealer to
provide preference to the brand over the
other brands.

They concentrated only on the no of

vehicles sold and not the contribution of
each vehicle.

This weakened the companys internal

financial structure.

Unrelated
Investme
nt

High Costs, Production Lag, Over

Capacity
Outdated Product Line, Keiretsu
System

Deep
Debts

Low
Margin
High
Fixed
Cost

PRODUCTION

High
Interests

PROFITS

INVESTMENTS

Between Branches
Between
Departments
Between Global
Divisions

DECLINE
OF
NISSAN
COMMUNICATION

Labor
Problems
Culture

HR

MARKETING

Outdated
Models
No New
Designs

PRODUCTS

Poor Marketing
Poor Brand
Perception
Dealers

Carlos ghosn

He was the man responsible for the most

remarkable corporate turnaround ever.

He is French born and was a part of the

Nissans alliance with Renault.

He restructured entire policies of the

company.

He had proper assessment and knew the

exact missing elements in Nissan

MISSING ELEMENTS

Clear profit orientation

Focus on customers targeting

Brand positioning

Sense of urgency

Proper communication (internal and

external)

Too much focus on chasing Competitors.

Ghosns plans

Ensured financial discipline in the

company.

Communicated the goals and targets

boldly.

Restructured the organizational structure.

Introduced new marketing strategies.

Nissan 180

NISSAN REVIVAL PLANS

OBJECTIVE
The objective is to free resources from nonstrategic, non-core assets and investment
more in
core business - cars - while at the same
significantly reducing Nissans debt.

The aim is to grow the company, not

shrink it. said Ghosn.

Financial ascertainment

Restoring profits: from current 1.5 % to

4.5 %

He made clear and bold statements if I

dont reach these targets within one and
a half year, I an out. But all the executive
you see around here are out ,too .

Introduced Nissan 180 .

NISSAN 180

To sell 1 Mn additional units.

Achieve op margins of 8%

Zero net automotive debt.

CROSS FUNCTIONAL TEAMS

The key player in the cross functional team

was MARK PERRY the director of the
cross functional team.

His all round knowledge in the marketing ,

engineering , manufacturing combined
formed the back bone of the CFTs.

He was also with the company since the

beginning making him aware of all the
situation first hand.

It changed the perception of we to whole

company rather than just the team.

These teams reduced the

barrier between the design
and engineering thus enabling
the design to realize the
brands true potential.

Encouraged the engineers to

design high performance cars
with involvement of the brand
championship through
marketers.

Now the engineers could

design the cars based on the

CROSS FUNCTIONAL
TEAMS

Most cross-functional teams

are dysfunctional

Most companies arent aware

of this problem

The irony is that crossfunctional teams are the

arteries of an Organization

COMMUNICATIONS
Between

Branches

Between

Departments

Between

Global

Divisions

STRUCTURE OF CROSS FUNCTIONAL

TEAM CEO
(Hanawa chairman)

COO (Ghosn President)

Executive committee

The name of CFT

(members)

Planning

1. Growth of business 50

Domestic Oversea
Produc
North
R&D
Purchase Admin.
Europe Others
sales
sales
-tion
America

2.Purchase 12

3.Production 10
4.R&D 13
5.Marketing 10
6.General admin. 10
7.Finance & cost 12
8.Cut of the model 13
9.Org. & decision 12

Building the brand Nissan

Identifying the brand DNA Ghosn gave the

entire task of marketing and branding to Perry
and Tackes who identified its core elements

Brand personality : bold and thoughtful

Core customer values : people who set their

standards and maximize life

Brand function : fusion of advanced technology

with design for human benefits and provide
superior agility and responsiveness.

Introduced the Nissan timeline as a

remembrance of the Nissan culture

Establishing the individual

brands

Once the corporate brand was developed it

started focusing on the various individual
brand keeping the core values constant.

Altima , maxima , xterra as the cars meeting

the unmeet needs

Each with a different character meeting the

needs and the wants of the different people,
i.e. made especially for them.

The xterra marked the start of the focused

targeting for only rough and adventure
loving people.

SHIFT

It was a simple ad campaign but acted as

the connecter of all the individual brands
to the corporate brand.

Depicted the new and the changing

perspective of the Nissan brand.

Strengthened the corporate brand .

Created public declaration of the brand

Nissan.

THANK
YOU