Media Plan Final

Table of Contents
Executive Summary………………………………………………………………………………………………………………………..3
Situation Analysis………………………………………………………………………………………………………………...…….4-42
History of the Market……………………………..…………………………………...………………………………...……….4-9
Nissan: History and Current State…………………………………..………………...…………………………………….…10-16
Distribution Channels……………….……………………………………………………………………………………...….17-19
Product Consumer: Demographics, Psychographics and Buyer Habits.………………………....………………..…….........20-38
Target Consumer Profiles..………………………………………………………………………………………………….....39-42
Competitive Analysis………………………………………………………………………………………………………..…….…..43-78
Toyota Motor Corp. ……………………………………………………………………………………………………….…..44-50
Chevrolet, Division of General Motors………………………………………………………………………...……………...51-58
Ford Motor………………………………………………………………………………………………………….....….……59-65
Hyundai Motor Company………………………………………………………………………………………………….…..66-72
Honda Motor Company Ltd. ……………………………………………………………………………………………….....73-78
Media Plan…………………………………………………………………………………………………………………………...79-115
Overview………………………………………………………………………………………………………………….…...80-84
Media Selections and Rationale…………………………………………………………………………………...…….…….85-97
Media Considered But Not Recommended……………………………………………………………………….................98-101
Seasonality of Media Buys………………………………………………………………………………………………….102-109
Decision Dates and Cancellation Flexibility…………………………………………………………………….................110-116
Appendix A…………………………………………………………………………………………………………………………117-120
Appendix B: Sources……………………………………………………………………………………………………………………121

2

Executive Summary

As Nissan hopes to increase multicultural Millennial share of market specifically targeting Hispanics, African
Americans, and Chinese, it is imperative for the company to understand what makes this target
unique. Research conducted by CPMedia concludes findings that the multicultural Millennial target would
best be reached through a combination of national, local, and interactive components. Thus, we have
included national print and network TV, in combination with outdoor advertising in four specific DMA’s,
strategically picked for their high density of multicultural Millennials in order to maximize the number of
targets we reach in addition to the frequency in which we reach them. Further, we allocated a large
percentage of the budget to cover Internet advertising because the target is more likely to spend their time
online than engaged in any other media. We have incorporated non-traditional buys into the plan that utilize
celebrity endorsements that the target can ethnically identify with, which also contain a strong call to action
to visit the Nissan YouTube page. With this creative campaign CPMedia has created an overall message that
encompasses the idea of individuality through the tagline, Free to be you. Free to be Nissan. The overall
message in the campaign will appeal to the multicultural Millennial’s desire to be unique and stand out.
Through these specific media buys and the non-traditional approach of identifying with your target, you will
generate future revenues with the multicultural Millennials.

3

History of the Market

4

Nissan vs. the Market
Primary Players
Automotive Industry Market Share
Wall Street Journal - September 20111 General Motors
GM
Other 19.7%
30% Ford Motor

Toyota Motor Corp.

Ford Nissan Motor Corp., Ltd.

16.6%
Honda Motor
Hyundai Company Ltd.
4.9%
Toyota Hyundai Motor
Company
Nissan
Honda
8.8% 11.5%
8.5%
Nissan’s total market share is 8.8%; however these six competitors comprise 70% of the market.
5
1"Auto Sales - Markets Data Center." Wall Street Journal. Web. 07 Oct. 2011. <http://online.wsj.com/mdc/public/page/2_3022-autosales.html>.

How Nissan is Gaining Market Share

• Only 100% electric vehicle in
market compared to
competitors

• Focus on manufacturing 100%
electronic, emission-free
vehicles (ESFLOW & LEAF)2

• Beginning 2013, Exclusive automobile for
New York City TLC (Nissan NV200)3

2Nissan Cars, Trucks, Crossovers, & SUVs | Nissan USA. Web. 06 Oct. 2011. <http://www.nissanusa.com/>. 6
3Ibid.

Share Price Comparison
Automotive Share Prices4
Day-end September 28, 2011

$67.85
$70.00

$60.00

$50.00

$40.00
$29.21
$25.25
$30.00 $21.00
$16.55
$20.00
$9.86

$10.00

$-
Ford Motor Co. General Motors Honda Motor Hyundai Motor Nissan Motor Toyota Motor
Co. Co., Ltd. Co., Ltd. Co., Ltd. Corp

7
4Web. 28 Sept. 2011. <http://www.mergentonline.com/competitors.php?compnumber=6050>.

Revenue Comparison
Automotive Revenue Comparison 20105
(000)
$229,400,000
Toyota Motor Corp.

General Motors Co. $135,600,000

Ford Motor Co. $129,000,000

Honda Motor Co. $108,000,000

Nissan Motor Co. $106,000,000

Hyundai Motor Co. $100,400,000

8
5Web. 28 Sept. 2011. <http://www.mergentonline.com/competitors.php?compnumber=6050>.

Company Market Value
Nissan’s market value, observed at the fiscal year end, is approximately $40 million. It ranks third in
market value when compared to the primary players of the automotive market. 6

Company Name Ticker Market Value ($ - 000) EPS* Yield % β**

Toyota Motor Corp. TM 105,547.39 $1.68 1.60% 0.71

Ford Motor Co. F 43,927.34 $1.74 2.39

Nissan Motor Company Ltd. NSANY 39,321.47 $1.71 1.58

General Motors Co. GM 36,763.97 $4.75

Nissan Earnings Per Share
(Justification of Market Value)

Q1 EPS: 0.56
Q2 EPS: 0.57
Q3 EPS: 0.46
Q4 EPS: 0.18
Year EPS: 1.79
*EPS denotes Earnings Per Share
**β denotes Beta (investment risk) where average Beta is
equal to 1.00

6"Nissan Motor Co ADS." NetAdvantage. Web. 15 Oct. 2011.
<http://www.netadvantage.standardandpoors.com/NASApp/NetAdvantage/cp/companyAllCompetitors.do://>. 9

Nissan
History and Current State

10

Nissan Motor Co., Ltd.
A Brief Overview

History7
• Nissan Motor Co., Ltd. date of establishment: December 26, 1933
• The founder of Nissan was Yoshisuke Aikawa, who planned to produce 10,000 – 15,000
units per year.
• The first Datsun passenger car emerged off the assembly line in April of 1935
• Nissan’s original slogan was "The Rising Sun as the flag and Datsun as the car of choice.”

Nissan Motor Co., Slogan: SHIFT_The way you move

Future Outlook8
• Nissan announced a six-year business plan called "Nissan Power 88."
• It calls for growth across new markets for the six fiscal years ending March 31, 2017
• During this 6 year plan Nissan plans to deliver an all-new vehicle every six weeks
• Nissan’s global portfolio will have 66 vehicles and will cover 92% of all markets and
segments under this plan
• Also, by 2017 the company aims to achieve a global market share of 8%

7"NISSAN | CORPORATE INFORMATION | Outline of Company TOP." Nissan Motor Company Global Website. Web. 08 Oct. 2011. <http://www.nissan-
global.com/EN/COMPANY/PROFILE/>. 11
8“Nissan Motor Co." Business Summary. Sun. 09 Oct. 2011. <www.netadvantage.standardandpoors.com>

The Product Itself
Product History
2011:
Nissan introduces the
1968:
Leaf trying to reach their
1933: The first car styled
100% electricity 0 emission
Nissan Motor Co., Ltd. is for the U.S. market is
objective.
established in Japan9 1958: launched, the Datsun 510.
The first Datsun sedan
is sold in America.

1975:
Datsun becomes the top
1937: U.S. vehicle imported.
The Datsun Type 15 is the 1993:
first mass produced Japanese Nissan celebrates 10 years of
vehicle. Other Type 15 models manufacturing cars in the U.S. ,
include a mini pickup and Altima tops sales records, and
delivery van. the Maxima surpasses one million
cars sold.
12
9"Nissan Heritage." Nissan USA. Web. 13 Oct. 2011. <http://www.nissanusa.com/about/heritage/the-early-days.html>.

Ad Spending for 2010

Spending Overview10

• In 2010 Nissan Motor Co. spent at total of $866,435,000 on media in the United
States, which gave it a ranking of 42 out of the 100 companies that spent the
most in media.

• Of the different channels of media that Nissan allocated its budget to, the
categories that received the most amount for 2010 were:
• Network TV
• Cable TV
• Spot TV

13
10"Advertising Age." Advertising Agency & Marketing Industry News - Advertising Age. 20 June 2011. Web. 28 Sept. 2011. http://adage.comdatacenter/marketertrees2011/.

Where is the Money Going?
9.35% 0.03% 0.05% Sales (000)
0.00%
0.91% Magazines 81,029
0.67% B-to-B Magazines 242
Local Magazines 399
0.01% Spanish-language Magazines 22
0.04% Newspaper 7,878
National Newspaper 5,829
29.54%
Spanish-language Newspaper 126
22.67% Outdoor 360
Network TV 196,427
Spanish-language Network TV 22,882
Spot TV 92,990
10.67% Syndication 186
Cable TV 99,031
10.73% Network Radio 638
11.43% 2.64%
Local Radio 9,933

1.15% Internet 92,487
* Unmeasured 255,976
0.07%
0.02% Nissan’s total Ad Spending is approximately $866 million
*A specified breakdown of unmeasured spending can be found in the appendix
Fiscal Year Ending 201011
14

Advertising Seasonality
Nissan Advertising Seasonality12

The most significant pattern
observed with Nissan
advertising expenses is that
they do not advertise in Q4
and spend significantly less
money in Q1 when compared
to the other quarters of the
year. It’s possible that the
company is saving funds to
spend the most amount
possible in Super Bowl
advertising. They could also
be waiting to spend more
money advertising newer
models, which come out at
the start of the year.

Also, in 2009 Nissan spent
considerably more on
advertising than in 2010 and
2011; however, it seems they
are spending more and more
each year, and each quarter
since then.

15
12 Bloomberg L.P. (2011). ARD Advertising Expenses graph for Nissan Motor Corp. 2000 to 2011. Retrieved Oct. 6, 2011 from Bloomberg terminal.

SWOT Analysis

Strengths Weaknesses
 Industry’s first fully electric vehicle  Low market share
 Affordable  Overall low gas mileage
 Exclusive automobile for New York City TLC  Mediocre brand image
 Red Tent Event  Advertising spending towards a small
 Nissan Power 88 percentage of potential customers

SWOT

Opportunities Threats
 Media plan focus towards multicultural  High direct competition (other car companies)
Millennials  Exclusive sponsorship deals already signed by
 Improve upon product line’s gas mileage competition
 Promote big sales and new model releases  Media waste
 Public transportation leverages target audience
Enhanced sponsorships
Creative buys geared towards target
16

Distribution Channels

17

Exclusive Nissan Dealerships
• Nissan’s exclusive dealerships are located in 49 states, excluding Hawaii.
• In total Nissan owns 1,065 exclusive dealerships throughout the United States
• The concentrated regions where Nissan places the most dealerships are: California,
Texas, New York, and Florida13

18
13 "Find a Nissan Dealer | Nissan USA." Nissan Cars, Trucks, Crossovers, & SUVs | Nissan USA. Web. 27 Oct. 2011. <http://www.nissanusa.com/apps/dealerlocator>.

Nissan’s National Tent Event

• Nissan’s National Tent Event is an annual end of summer sale, which aims to get rid of
their old models in preparation for the releases of new models in September.

• The Tent Event runs from July to September each year.

• This is promoted and hosted at ALL local Nissan dealers
• Red and white tents are placed at dealerships to promote the seasonal deals

• Nissan chooses to spend heavily during Q3 (i.e. July, August and September). This is in
preparation for the Tent Event, the biggest dealership sales promotion of the year and for
the new models released in September.14

19
14 2011 Nissan Tent Event | Nissan National Tent Event | Come Save Today!! Web. 27 Oct. 2011. <http://www.thenissantentevent.com>.

Product Consumer
Demographics, Psychographics & Buyer Habits

20

Product Consumer
Demographics

Who is the target demographic?15
• The target demographic for this initiative is
Multicultural Millennials, ages 18-29, in the African
American, Hispanic and Chinese segments.
• The target is comprised of 57% men and 43% women.
• The MC Millennial is 41% more likely than the
average to have a household income of $60,000+ and
32% more likely than the average to have attended
college.
• In terms of occupation the MC Millennials are highly
likely to work in the Arts, Design, Entertainment,
Sports and Media industry; and are 186% more likely
than the average to do so. The second most common
occupation this target holds is in Sales/Office, and the
Multicultural Millennials are 60% more likely than the
average to hold a position in this field.

21
15Nissan Client Brief

Target Demographic Population
Of the United States population, there are a total of 7,750,700 Multicultural Millennials which accounts for
approximately 2.44% of the population. Further broken down by demographic, African American, Hispanic
and Chinese Millennials account for 1.07%, 1.28% and .09% of the total population respectively. Thus, when
allocating budget and media buys, the largest percent of the budget corresponds to the largest demographic,
Hispanic Millennials, followed by African American Millennials, and last Chinese Millennials. While this
target may be a small percentage of the entire U.S. population, it still accounts for close to 8,000,000 people,
which has the potential to create large sales volume increases for Nissan. 16

22
162010 U.S. Census

Product Consumer
Demographics

• Big purchase decisions are based on style, function, quality and reliability.
• Want to be defined by their choice in music, art, and celebrity association.
• A cause or incentive is necessary to follow a mass brand.
• Internet, Television, and Magazines are the three most popular medias for
relaxation.17

Media Index

Internet: All 3 186
Television: Source of Information and Relaxation 207
Magazines: Source of Relaxation only 643
Radio: Source of Inspiration only 141
Radio: Source of Relaxation only 130

Note: Information, Relaxation, and Inspiration = Internet: All 3
23
17Nissan Client Brief

Psychographics
Attitudes Towards Cars and Driving

• Nissan’s target often drive by themselves for a sense of freedom.
• Nissan’s target feel that their car should express their personality.
• The research shows that, overall, Nissan’s demographic is independent.
These users consume products that can be personalized and fit their lifestyles.18
African
Asians Hispanics
Americans
Sample 3,526 39 38 325
MY CAR SHOULD EXPRESS MY (000) 65,212 1,735 1,577 2,850
PERSONALITY Vertical 30% 35% 56% 33%
Horizontal 100% 2.66% 2.42% 4.37%
Index 100 119 187 112
Base 30% 0.79% 0.72% 1.30%

Sample 2,840 36 23 263
(000) 54,113 1,416 952 2,572
OFTEN DRIVE BY SELF FOR
Vertical 25% 29% 34% 30%
SENSE OF FREEDOM
Horizontal 100% 2.62% 1.76% 4.75%
Index 100 117 136 121
Base 25% 0.65% 0.44% 1.18% 24
18Simmon Choices 3

Psychographics
Attitudes Towards the Ideal Car

Car Attitudes
• African American, Chinese, and Hispanic
Millennials have formed their own attitudes towards Agree Completely Index
cars. Seek out bold, innovative designs that 180
stand out from others
• Their ideal car is fast, exciting, friendly to the
Seek out vehicles that support my 166
environment, makes use of technology, and allows
commitment to the environment
them to include their own personal style.
Having a fun vehicle to drive is a top 152
consideration
• They will choose a car based on looks and style.
Look forward to technology advances in 139
• The target is: new vehicles
• 80 times more likely to “seek out designs Enjoy personalizing my vehicles to 134
that stand out from others” reflect my individual tastes
• 66 times more likely to “seek our cars that Consider myself to be an automotive 125
support their commitment to the environment” enthusiast
• 34 times more likely to “enjoy personalizing Generally purchase the most expensive 116
their vehicle”19 model with all luxury appointments

25
19 Nissan Client Brief

Psychographics
Attitudes Toward Car Purchases

• Asians, overall, are 213 times more likely to purchase a Japanese, Korean or other Asian originated
vehicle in their next vehicle purchase. Asian Millennials are 212 times more likely to make this purchase
than the average individual. All Asians are 107 times more likely to purchase a new Nissan, and 31 times
more likely to own a Nissan than the average population.
• Hispanic Millennials and Hispanics overall are not highly likely to purchase a Nissan, but the segment
follows the average of Nissan purchases.
• African Americans overall are 46 times more likely than the average to have most recently acquired a
Nissan.20
Asian
Next vehicle Japanese, Korean
or Other Asian Bought a new Nissan

Sample 228 Sample 52
(000) 3,474 (000) 709
Vertical 37% Vertical 7.49%
Horizontal 14% Horizontal 8.96%
Index 313 Index 207
Sample 1.59% Sample 0.32%
26
20Simmon Choices 3

Psychographics
Reasons for Driving
MRI Fall 2010 Automotive21

Adults Race: Race: Spanish spoken
Reasons Target Drives:
18 - 29 African American Asian in home

3 times 20 times 13 times 5 times
Commute to Work
less likely less likely more likely less likely
Other Driving for Work
less likely less likely less likely less likely
Leisure
Errands
28 times 8 times 6 times
Transport Others Average
less likely less likely less likely
Other
more likely less likely less likely more likely

• According to MRI, adults 18-24 are 91 times more likely to describe their reasons for driving as other.
This pattern of being the most relevant information is seen again for African Americans as well as
Hispanics. Asians are the only segment who responded that they were 13 times more likely to use a car
to commute to work as the primary reason for driving.

27
21 MRI Mediamark Reporter. Fall 2010. Web. 19 Oct. 2011. <http://www.mriplus.com.rlib.pace.edu/account/home.aspx>.

Psychographics
Attitudes Towards Nissan

• Nissan car-buyers were evaluated in conjunction with the target audience. There was no significant data
regarding African American Millennials and Asian Millennials in regards to their preferences towards
Nissan. However, Hispanic Millennials and Millennials overall are likely to favor Nissan.
• Hispanic Millennials are 45 times more likely to have most recently acquired a Nissan than the average
individual. Millennials – overall – are 29 times more likely to have most recently acquired a Nissan and
34 times more likely to have acquired a Nissan within no specific timeframe than the average individual.
Millennials are 31 times more likely than the average to own a Nissan. With significance in the Millennial
age range, the target audience may be reached through their social environments and word of mouth
buzz.22
Note: In this instance, “own” denotes an owner of a Nissan that has obtained the Nissan by no specific means. “Acquire” denotes an individual
that has obtained a Nissan for oneself, by oneself (as in bought for oneself).

Millennials
Own a Nissan Recently acquire a Nissan
Sample 309 Sample 390
(000) 3,744 (000) 4,584
Vertical 9.40% Vertical 12%
Horizontal 24% Horizontal 24%
Index 131 Index 134
28
22Simmon Choices 3

Psychographics
Attitudes Towards Technology
Technology Interests
Agree Completely Index
I am first among my friends to • Millennials are 113
213
try new technology. times more likely to try
I am fascinated by new new technology.
164
technology.
Technology helps make me
134
more organized.
I like to read reviews before • Millennials are 33 times
133
buying new technology. more likely to read
Computers can be a good reviews.23
116
source of entertainment.
When I find new technology I
typically recommend it to 114
people I know.
29
23 Nissan Client Brief

Psychographics
Attitudes Toward Electronics

• It is clear that the target demographic holds an exponentially favorable attitude towards electronics.
African Americans, Asians and Hispanics (ages 18-29) are 101%, 208% and 106%, respectively, more
likely than the average to pay anything for an electronic product that they want. With this directional
research we can conclude that because the target is willing to pay anything for an electronic product they
want, they place this kind of technology in high regard; this is something to consider when appealing to
their attitudes in a campaign.
• Additionally, the Millennial African Americans, Asians and Hispanics are 133%, 198% and 64%,
respectively, more likely than the average to be the first of their friends to have new electronic equipment.
This demonstrates the target can be considered purchasing leaders among their peers.24
African
Asians Hispanics
Americans

Sample 2,517 62 45 388
(000) 22,479 988 779 1,789
Vertical 10% 21% 32% 21%
PAY ANYTHING FOR
Horizontal 100% 4.40% 3.47% 7.96%
ELECTRONIC PRODUCT I WANT
Index 100 201 308 206

Base 10% 0.45% 0.36% 0.82% 30
24Simmons Choices 3

Psychographics
Attitudes Towards the Media
Nissan Outdoor Advertising

• The target also favorably agreed with the following
statements regarding media attitudes:
• I find television advertising interesting
• Magazines are my main source of entertainment
• I often notice the ads at bus stops
• I often notice ads on trains
• I often notice the ads on buses
• I often notice the ads on taxis

• This demonstrates that Multicultural
Nissan Print Advertising
Millennials do pay attention to
advertising in the above mediums. They
are less likely than the average to listen
to the radio for quick news updates and
do not rely on newspapers to keep
informed.25

25Simmons Choices 3
31

Psychographics
Attitudes Towards Internet and Entertainment

• Millennial African Americans, Asians and Hispanics are 42%, 268% and 49%, respectively, more likely
than the average to view the internet as their prime source of entertainment.
• The target also greatly agrees with the statement “internet is the new way I socialize and meet others” as
well as “internet is the prime source of family entertainment.” These findings allow us to understand that
the target demographic is not just casually on the internet, but rather it is an important component that
affects multiple aspects of their life.26 African
Asians Hispanics
Americans

Sample 3,315 60 68 448
(000) 32,810 1,022 1,359 1,894
INTERNET PRIME SOURCE MY ENTERTAINMENT Vertical 15% 21% 55% 22%
Horizontal 100% 3.12% 4.14% 5.77%
Index 100 142 368 149
Base 15% 0.47% 0.62% 0.87%

Sample 2,871 77 65 445
(000) 29,091 1,256 1,275 2,044
INTERNET NEW WAY I SOCIALIZE/MEET OTHERS Vertical 13% 26% 52% 24%
Horizontal 100% 4.32% 4.38% 7.03%
Index 100 197 390 181
Base 13% 0.57% 0.58% 0.93%
26Simmons Choices 3 32

Psychographics
Focused on African American Millennials

• There are two lifestyle statements that are unique in African Americans Millennials:
• People always ask my advice on a car buy
• I like a new car every two or three years
• The significance of these statements show that this segment considers themselves to be
influencers. African American Millennials are also active consumers in the automotive
market.27
Sample 22
(000) 721
PEOPLE ALWAYS ASK MY ADVICE ON CAR BUY Vertical 15%
Horizontal 2.47%
Index 111
Base 0.33%

Sample 26
(000) 1,054
LIKE A NEW CAR EVERY TWO OR THREE YEARS Vertical 22%
Horizontal 3.43%
Index 153
Base 0.48%
33
27Simmon Choices 3

Psychographics
Focused on Asian Millennials
• 60% of Asians 18 – 29 feel that comfort is the most important thing in a car and 51%
normally drive without any passengers.
• This segment focuses heavily self concept. Asian Millennials are conscious of self-
perception as well as how they are perceived by others.

My car should catch people’s attention

• The following lifestyle statements were significant in Sample 27
support of these insights: (000) 1,199
Vertical 42%
Horizontal 4.77%
• Foreign cars have more prestige than American cars
Index 368
• I like to drive faster than normal
Base 0.55%
• Foreign cars are of higher quality than American cars
• I prefer driving a luxury vehicle I can tell a lot about someone
• I choose a car mainly on looks by the car they drive
• I would pay extra for an engine with more horsepower28
Sample 37
(000) 1,401
Vertical 49%
Horizontal 2.48%
Index 191
Base 0.64%
34
28Simmon Choices 3

Psychographics
Focused on Asian Millenials

American Cars Versus Foreign Cars
• The Asian segment holds different attitudes than the other segments of Nissan’s target. Asian Millennials
hold a higher value in foreign vehicles over American vehicles.
• The segment is 259 times more likely than African American Millennials and 164 times more likely than
Hispanic Millienials to feel that foreign cars hold more prestige than American cars.
• Asian Millennials are also 93 times more likely than African American Milliennials and 99 times more
likely than Hispanic Millennials to feel that foreign cards are of higher quality than American cars.

Cars and Self-Perception
• The segment is 62 times more likely than African Americans and 51 times more likely than Hispanics to
agree with the statement, “My car should catch people’s attention.”
• Asian Millennials are also 77 times more likely than African Americans and 28 times more likely than
Hispanic Millennials to feel that they can tell about someone by the car they drive.29

35
29Simmon Choices 3

Psychographics
Focused on Hispanic Millennials
• Hispanic Millennials are similar to Asian Millennials in the perception of foreign vehicles.
This information is useful to Nissan as these segments are likely to purchase a foreign
vehicle. The segment is similar to African American Milliennials as influencers in the
market.

Foreign cars have more
• The Hispanic Millennials segment was found to prestige than American
be likely to agree to the following statements:
Sample 186
(000) 1,611
• My car should catch people’s attention Vertical 19%
• Options on a car impress me Horizontal 6.41%
• Can tell about someone by the car driven Index 164
• Often in car with more than one person Base 0.74%
• Choose a car mainly on looks30
People always ask my
advice on car buys
Sample 172
(000) 1,638
Vertical 19%
Horizontal 5.62%
Index 144
Base 0.75%
36
30Simmon Choices 3

Buyer Habits
Amount Target Spent in Total

Amount Spent Adults Race: Race: Spanish spoken
in Total on Vehicle: 18 - 29 African American Asian in home

$50,000+
less likely less likely more likely more likely
$30,000 - $39,999
$15,000 - $19,999
Under $10,000
more likely less likely less likely more likely

• When purchasing a new vehicle, Nissan’s target market of adults 18 to 24 years old of African America, Chinese,
and Hispanic race will consider price as one of the most important aspects. According to the above data from MRI
Fall 2010 Product: Automotive, Asians and those who speak Spanish within the home are more willing to spend a
large amount of their money on an automotive vehicle ($50,000 or more). While the average adult 18 – 24 years
old, especially African Americans, stated they are not willing to spend a large amount to buy a vehicle. As the
price of the vehicle reduces, African Americans are more willing to buy, as opposed Asians who display an
opposite pattern. Spanish speaking households are more willing to buy when the price is either high or very low,
but not an in between value. This may be due to income and perceived value of the product according to price.
37

Buyer Habits
How Target Purchased Vehicle

How Target Adults Race: Race: Spanish spoken
Purchased Vehicle: 18 - 29 African American Asian in home

Bought
Leased
more likely less likely more likely more likely
With Cash
With Trade-in
Financing from Dealer
Bank Loan
Credit Union Loan
Financing from Auto 50 times 11 times 27 times 31 times
Manufacturer less likely less likely less likely less likely
• How to purchase a vehicle consists of multiple options as displayed in the chart above. Adults 18 to 24 will choose to lease a vehicle
over buying the product, this is because leasing a vehicle does not require the young buyer to be responsible for the full price only
fixed monthly payments. The data displays that these 3 ethnicity groups are likely to avoid loans and trade-ins to purchase a vehicle
(49-21 times less likely). Financing from Dealer is the most attractive option with only 5-16 times less likely rates.
38

Target Consumer Profiles

39

Target Consumer Profile
Meet Carlos
Profile Highlights
Name: Carlos
Age: 23
Location: Los Angeles, California
Job Title: Retail Manager
Annual HHI: $45,00033
Marital Status: Single

Carlos prefers a foreign vehicle that will catch the
attention of his friends. Carlos feels that foreign cars
are more prestigious than American cars. The new
and innovative vehicles provided by Nissan are ideal
for him. Carlos seeks out vehicles with options that
may impress him and his friends. He feels that he
can tell about someone by the car they drive. Carlos
will choose his next vehicle based on its looks as he
will be driving with more than one passenger.34

33Client
Brief 40
34Simmons Choices 3

Meet Charles
Profile Highlights
Name: Charles
Age: 27
Location: New York, NY
Job Title: Sales Manager
Marital Status: Engaged

Charles, being tech savvy, is the first among his friends to get the latest electronics.
Several Nissan vehicles come equipped with voice command electronic systems which
can help Charles navigate, find local restaurants, and play his favorite music. Charles
spends much of his time online, browsing Yahoo!, or watching funny videos on YouTube.
He works hard and looks for a car that can keep up with his busy life. Good thing the
Nissan Maxima delivers an impressive 290 HP.36
35Client
Brief 41
36Simmons Choices 3

Meet Valerie
Profile Highlights
Name: Valerie
Age: 19
Location: Atlanta, Georgia
Job Title: Student
Annual Income: Dependent
Marital Status: Single

Valerie is a new buyer to the automotive market.
She is likely to buy a new car every two to three
years, which makes her a potential lifetime
buyer of Nissan. Valerie will purchase a car that
expresses her personality. She will be driving
her car alone and will seek out a car that makes
her feel comfortable.38

37Client
Brief 42
38Simmons Choices 3

Competitive Analysis

43

The Competition

Toyota Motor Corp.

44

Toyota Motor Corp.
A Brief Overview
History39
• Toyota Motor Co., Ltd. was founded in 1937 by Mr. Sakichi Toyoda, however Toyoda had
been working toward the inception since 1924.
• In 1957 Toyota Motor Sales Co., Ltd. Was established despite a major financial crisis facing
the company.
• In 1982 the two entities merged to become what we know as Toyota Motor Corp.
• Today Toyota is the world's largest vehicle manufacturer based on sales and production
volume.
Toyota Motor Corp. Slogan: Moving Forward

Outlook for the Future40
• Toyota’s outlook for the automobile manufacturers sub-industry for 2012 is positive, as U.S. demand for
automotive is raising annually. Japanese automakers are recuperating from the recent tragedy at a rapid
rate.

• Toyota is paying full attention to economic factors that may weaken sales
• Due to rising gasoline prices in the U.S., Toyota predicts the possibility of a decrease in sales
volume and vehicle mix
• Rising raw material costs are causing compressions in margins
• Thus, Toyota predicts that growth will occur in smaller trucks and SUVs
39"History of Toyota." TOYOTA MOTOR CORPORATION GLOBAL WEBSITE. 1995-2011. Web. 07 Oct. 2011. <http://www.toyota-
global.com/company/history_of_toyota/>.
40Levy, Efraim. Sector Scorecard: GICS Sub-Industry Summary. Rep. Standard & Poor's, 2011. NetAdvantage. Web. 26 Sept. 2011. 45
<http://http://www.netadvantage.standardandpoors.com.rlib.pace.edu/NASApp/NetAdvantage/cp/companyIndustryPage.do>.

Toyota Motor Corp.

Spending Overview41

• During 2010 Toyota Motor Corp. allocated
$916,524,600 to media buys throughout various
channels of communication.

• When compared to other companies, Toyota was ranked as the 16th company to
spend the most amount of money on media in 2010.

• When compared to Nissan Motor Co. Ltd, Toyota spent significantly more on
media (about $432,158,000). Nissan’s media spending in 2010 totaled to
$484,366,600; Toyota nearly doubled what Nissan spent on media in 2010.

46

Toyota Motor Corp.
0.33% 0.00% Sales (000)
7.65% 0.06%
0.03% Magazine 132,833
1.14% Sunday magazine 5,705
0.03% B-to-B magazine 975
Local magazine 44
0.63%
Spanish-language magazine 559
Newspaper 19,835
National newspaper
35.37% 10,976
21.98% Spanish-language newspaper 607
Network TV 381,432
Spot TV 135,394
Syndicated TV 19,342
Cable TV networks 193,205
Spanish-language network TV 66,261
7.80%
Network radio 1,047
7.57% 11.13%
National spot radio 60
0.99% 1.11% Local radio 4,911
0.28% Outdoor 17,210
0.00% 3.82% Internet (display only) 131,337
0.06% * Unmeasured spending 613,929
*A specified breakdown of unmeasured spending can be found in the appendix
Fiscal Year Ending 201042
47

Toyota Motor Corp.

It seems that after juggling
with the advertising budget
in the early 90’s, Toyota
has progressively spent
more and more on
advertising over the years.
However, in 2003 the
aggressive growth pattern
leveled out and it’s
appropriate to predict that
Toyota’s budget since 2003
has rose, but not in the
exponential way we see in
earlier years. Because of
the 2008 financial crisis
Toyota’s advertising budget
most likely declined during
2008 and 2009. Due to
recalls of their product in
2010, Toyota most likely
increased spending on
advertisements to regain
public trust.43

48
43Bloomberg L.P. (2011). ARD Advertising Expenses graph for Toyota Motor Corp. 2000 to 2011. Retrieved Oct. 6, 2011 from Bloomberg terminal.

Toyota Motor Corp.
Media Buys Compared to Nissan
Toyota vs. Nissan Budget Allocation (by percent) Fiscal Year Ending
40.0%
35.0% 201015
30.0%
25.0%
20.0%
15.0%
10.0%
5.0%
0.0%

Nissan

Nissan Toyota

Both Toyota and Nissan spent high percentages of their respective budgets on similar channels of media: Magazines, Network TV, Spot TV and
Cable TV. While Toyota focused spending on Network and Cable TV, Nissan honed in on Magazines and Spot TV. This allows us to better
understand the consumers both companies are hoping to reach. It’s appropriate to conclude that the target Toyota was attempting to reach in 2010
were heavy Network and Cable TV watchers.

Spanish- Spanish- Spanish-
B-to-B Local Sunday languag National languag languag National
Magazin Newspa Networ Syndicat Cable Networ Local Unmeas
Magazin Magazin Magazin e Newspa e Outdoor e Spot TV Spot Internet
es per k TV ion TV k Radio Radio ured
es es es Magazin per Newspa Networ Radio
es per k TV
Nissan 9.4% 0.0% 0.0% 0.0% 0.0% 0.9% 0.7% 0.0% 0.0% 22.7% 2.6% 10.7% 0.0% 11.4% 0.1% 1.1% 0.0% 10.7% 29.5%
Toyota 7.7% 0.1% 0.0% 0.3% 0.0% 1.1% 0.6% 0.0% 1.0% 22.0% 3.8% 7.8% 1.1% 11.1% 0.1% 0.3% 0.0% 7.6% 35.4%

49

Toyota Motor Corp.
How Toyota is Gaining Market Share
Toyota ’s Sports45
• Toyota is very active in the sports world with from sponsorships to special events. The
company is currently an official sponsor of the FIFA World Cup (soccer) as well as the
IAAF World Championships (track and field).
• Toyota also sponsors various football events during the Unites States football season,
however their current focus is on soccer.
• Motor Sports sponsorships are also a large chunk of Toyota’s annual budget. The
company sponsors races and programs annually as well as participates in motor sports
through their vehicles.
Toyota Believes the Children are Our Future46
• The Fritz Kreisler Violin Competition and the Dream Car Art Contest are two cultural
events that Toyota also sponsors.
• Both contests encourage children and young adults to tap into their full potential and be
their generations leaders, whether it be leading by excellence or leading with
imagination.
45"Sports Sponsorship." TOYOTA MOTOR CORPORATION GLOBAL WEBSITE. 1995-2011. Web. 28 Sept. 2011. <http://www.toyota-
global.com/events/sports_sponsorship/>.
46”Cultural Events." TOYOTA MOTOR CORPORATION GLOBAL WEBSITE. 1995-2011. Web. 28 Sept. 2011. http://www.toyota- 50
global.com/events/cultural_events/.

The Competition

Chevrolet, Division of General Motors

51

Chevrolet
A Brief Overview
History
• General Motors owns Chevrolet, GMC, Cadillac and Buick47
• The company was incepted in Detroit, MI in 1908
• It is the world’s 2nd largest car & truck manufacturer and the largest
in the United States48
• The Chevrolet division was established in 191149
• Founded by racer Louis Chevrolet and original General Motors founder William C. “Billy”
Durant
• Chevy produced cars, crossovers, SUVs, and trucks
• Chevrolet is the 4th largest automotive brand in the world
• 52% of GM’s advertising budget was allocated to Chevy in 2010 50

Chevrolet Slogan: An American Revolution

Current Situation and Future Outlook
• 27% of GM is owned by the United States due to when the company filed for bankruptcy in 2009 51
• GM is confident they will return to normal production by 201152
• The company plans to increase to 12.9 million units of production in 2011
47"Chevy Culture | Chevrolet 100 Years Strong." 2011 Cars, SUVs, Trucks, Crossovers & Vans | Chevrolet. Web. 06 Oct. 2011. <http://www.chevrolet.com/culture/article/chevrolet-centennial/>.
48"Standard & Poor's." Web. 07 Oct. 2011. <http://www.netadvantage.standardandpoors.com/NASApp/NetAdvantage/companyOverview.jsp>.
48"Chevy Culture | Chevrolet 100 Years Strong." 2011 Cars, SUVs, Trucks, Crossovers & Vans | Chevrolet. Web. 06 Oct. 2011. <http://www.chevrolet.com/culture/article/chevrolet-centennial/>.

"Standard & Poor's." Web. 07 Oct. 2011. <http://www.netadvantage.standardandpoors.com/NASApp/NetAdvantage/companyOverview.jsp>.
51ibid.
52
52ibid.

General Motors & Chevrolet

General Motors Spending Overview53

• GM Motors is the third highest spender in advertising in the United States.
• In 2010 alone the company spent $2.87 billion in advertising.
• Highest expenditure is Network TV ($602.5 million)
• Advertising in Spanish-language magazines ($3.6 million)
• Advertising in Spanish-language newspaper ($2.9 million)
• Advertising in Spanish-language network TV ($76.8 million)

Chevrolet Spending Overview
• Chevy began advertising on Hispanic networks in August 2010.
• It was the highest expenditure for GM in 2010 ($1.1 billion)
• 2nd highest advertising expenditure is for GMC at $335 million

53
53"Advertising Age." Advertising Agency & Marketing Industry News - Advertising Age. 20 June 2011. Web. 28 Sept. 2011. <http://adage.comdatacenter/marketertrees2011/>.

General Motors
Sales (000)
13.72% 0.26%
Magazine 393,718
0.07% Sunday magazine 7,516
0.09% B-to-B magazine 2,641
0.13% Local magazine 2,108
Spanish-language magazine 3,642
Newspaper 215,086
24.32% 7.50%
0.96% National newspaper 27,559
0.10% Spanish-language newspaper 2,934
Network TV 17,469
Spot TV 602,547
8.37% 21% Syndicated TV 76,857
0.61% Cable TV networks 188,033

0.56% Spanish-language network TV 41,523
0.30% Network radio 293,618
1.09% 10.23%
National spot radio 31,285
Local radio
2.68% 6.55% 16,091
Outdoor 8,654
1.45% Internet 240,003
* Unmeasured 697,670
Fiscal Year Ending 201054 *A specified breakdown of unmeasured spending can be found in the appendix
54

General Motors
GM
$51,312,000 Goodwrench Ad Spend (2010)55
2% $38,067,000
OnStar 2%
$66,628,000
3%

Buick GM allocated 52% of total
$248,487,000
11% advertising spending to
Chevrolet amounting to a total
Cadillac Chevrolet
$297,126,000 $1,128,746,000
of approximately $1.1 billion
14% 52%

GMC
$335,327,000
16%

55
55Advertising Age." Advertising Agency & Marketing Industry News - Advertising Age. 20 June 2011. Web. 28 Sept. 2011. http://adage.comdatacenter/marketertrees2011/.

General Motors

There was an exponential
increase in GM’s
advertising expenses from
2009 to 2010. This can be
linked to the deep financial
burden GM experienced
before the government
bailout. After the 2008
financial crisis, GM most
likely cut budget from the
most obvious place to cut
from – advertising. Upon
its initial recovery phase in
2009, GM has been able to
up the advertising budget
and will most likely
continue to do so in 2012.
However the increase will
be slight and when
compared to the increase
from 2009 to 2010, it will
seem minimal.56

56
56Bloomberg L.P. (2011). ARD Advertising Expenses graph for General Motors. 2000 to 2011. Retrieved Oct. 6, 2011 from Bloomberg terminal.

General Motors Co.
Media Buys Compared to Nissan
General Motors vs. Nissan Budget Allocation (by percent) Fiscal Year Ending
30.0%
25.0%
201057
20.0%
15.0%
10.0%
5.0%
0.0%

Nissan

Nissan General Motors

• GM spends 10% of advertising on Newspapers, while Nissan spends just over 1%. We can conclude that because of GM’s larger advertising
budget, they can spend larger amounts on different channels of media.
• Nissan spends nearly 50% more on Spot TV than GM in terms of percent respective to their budget
• Nissan’s primary focus on spending is in television media, while GM allocates money to all channels of advertising with a higher focus on
print media.
Spanish Spanish Spanish
- Nationa - -
B-to-B Local Sunday Nationa
Magazi languag Newspa l languag Outdoo Networ languag Syndica Cable Networ Local Unmeas
Magazi Magazi Magazi Spot TV l Spot Internet
nes e per Newspa e r k TV e tion TV k Radio Radio ured
ne ne nes Radio
Magazi per Newspa Networ
nes per k TV
Nissan 9.4% 0.0% 0.0% 0.0% 0.0% 0.9% 0.7% 0.0% 0.0% 22.7% 2.6% 10.7% 0.0% 11.4% 0.1% 1.1% 0.0% 10.7% 29.5%
General Motors 13.7% 0.3% 0.1% 0.1% 0.1% 7.5% 1.0% 0.1% 0.6% 21.0% 2.7% 6.6% 1.4% 10.2% 1.1% 0.6% 0.3% 8.4% 24.3%
57"Advertising Age." Advertising Agency & Marketing Industry News - Advertising Age. 20 June 2011. Web. 28 Sept. 2011. http://adage.comdatacenter/marketertrees2011/. 57

Chevrolet
How Chevrolet is Gaining Market Share

Chevy Leads the Way
• Chevrolet is the automotive volume leader for GM
• Chevrolet focuses on vehicles with higher fuel efficiency than their competitors58

Chevrolet: All American. All the Time.59
•Chevy used the slogan, “Baseball, Hot Dogs, Apple Pie, and
Chevrolet” in the 1970s
•The company focuses on affordability and gas efficiency
The 2008 financial crisis’ effect on gas prices caused a drop in
sales
Chevrolet is an international brand
•Chevy produces vehicles in Central & South America, China, Egypt, Jordan, Kenya,
and South Africa60

582011 Cars, SUVs, Trucks, Crossovers & Vans | Chevrolet. Web. 28 Sept. 2011. <http://www.chevrolet.com/>.
59Lico,Nick. “Chevy takes value, volume message, and wraps it in flag.” Advertising Age 79.34 (2008): C-4. Business Source Premier. EBSCO. Web. 27 Sept. 2011. 58
602011 Cars, SUVs, Trucks, Crossovers & Vans | Chevrolet. Web. 28 Sept. 2011. <http://www.chevrolet.com/>.

The Competition

Ford Motor

59

Ford Motor
A Brief Overview
History
• Henry Ford founded Ford and developed the Model T in October 1903
• In 1913 Ford began mass production in Highland Park, Michigan; Michigan is now home to
Ford headquarters
• Ford is the 2nd largest U.S. motor vehicle manufacturer

Ford Slogan: “Ford. Drive One.”
• Ford Motor Produces:
• Cars
• Crossovers & SUVs
• Trucks
• Hybrids & EVs
• Commercial vehicles61
• “Ford Motor Co. in 2010 had the highest U.S. market-share growth of any automaker, and
Ford became the top-selling nameplate in the U.S. in 2010”
Future Outlook
• Ford was the only company out of the Detroit 3 who survived through the economic downturn
in 2008-2009 without relying on taxpayer bailout (as GM and Chrysler did)
• Due to shrinking U.S. market share, the company has announced restructuring plans in an
attempt to lower its costs
• The company announced plans to discontinue production of Mercury brand vehicles62

61Ford â€
“New Cars, Trucks, SUVs, Hybrids & Crossovers | Ford Vehicles. Web. 01 Oct. 2011. <http://ford.com>. 60
62“Ford Motor." Business Summary. Sun. 09 Oct. 2011. <www.netadvantage.standardandpoors.com>

Ford Motor

Spending Overview63

• As of June 2011 Ford Motor is ranked #13 of the 100 Leading National Advertisers
spending a total of $1.91 billion in U.S. Advertising4
• Ford allocated the majority of its entire budget to the following categories:
• Network TV - $561,555,000
• Internet - $145,369,000
• Magazine - $136,854,000

• The U.S. accounted for 49.1% of the company's worldwide revenue in 2010; 46.1% in
2009; and 42.1% in 2008

• The company reported worldwide advertising costs of
• $3.9 billion in 2010 or 3.02% of net sales
• $3.2 billion in 2009 or 2.75% of net sales

61
63 "2010 U.S Ad Spending." Marketer Trees 2011. Web. 28 Sept. 2011. <http://adage.com.rlib.pace.edu/datacenter/marketertrees2011/>

Media Plan Final

Empfohlen

Empfohlen

Weitere ähnliche Inhalte

Was ist angesagt?

Was ist angesagt? (20)

Ähnlich wie Media Plan Final

Ähnlich wie Media Plan Final (20)

Media Plan Final