1. INTERNATIONAL MARKETING MANAGEMENT
AN ANALYSIS OF GLOBALIZED AND CUSTOMIZED APPROACHES TO
MARKETING MANAGEMENT
GROUP 4 | SECTION A |BATCH 2012-14 | IIFT DELHI
TEAM MEMBERS
1. Amanpreet Kalra (6A) 2. Nishant Philip (27A) 3. Ritankar Roy (35A)
4. Snigdha Bal (42A) 5. Srinidhi Rajshekhar (43A)
Organizations Analysed || NISSAN MOTOR CO., LTD & IKEA

2. Country Price Remarks Product Remarks DistributionRemarks Advertising
necessary styling THE CAAAAAR
India
other benefits
small is necessary
&
small is sufficient
PRICE|SEATING|MPG INITIAL ADVERTISING
USA THROUGH DRAG RACES
22 VARIANTS VIDEO GAME WINNER
SOCCER MOM COMPETITION
COLLEGE GRADUATE RACE TRACK SCHOOLS
FAMILY OF 5
INTERSTATE WORK
TRAVELLER
PLATFORM ADVERTISING SELLS THE
Russia COMMONIZATION AMBIENCE,
AND ….COMFORT…..SHIFTING
MUTUAL USAGE OF EXPECTATION
FACILITIES WITH
AVTOVAZ
ST PETERSBERG
DFL MIDTERM KNOWLEDGE IS POWER
China STRESSES ON
PLAN TECHNOLOGICAL
INNOVATION
CROSSOVER TOUGHNESS…
UK VEHICLES URBAN PROOF
AVERAGE
INVESTMENT
JACK OF ALL TRADES
MASS LOCALIZATION FOCUSES ON HIGH
Brazil OF 82% ADRENALINE
INNOVATE AND SHIFT …FASHION

3. AGENDA
 Product: Globalization vs. Adaptation.
 Price: Globalization vs. Customization
 Distribution Channels: Globalization vs. Customization
 Communication including Advertising (include both print and video advertisements)
 Overall Marketing Strategy
It's the most Everyman
store in retail. It Synergies at the back-
crosses income, age, end & exclusivity at the
gender, nationality. It is front end that’s what
truly a wonder ensures success.

4. NISSAN INDIA || THE DESI MARKETING MIX

5. Nissan Product Strategy for India :
Nissan has 22 models in India based on the following analysis:
Major Indian consumer needs –
1. The necessary styling must ensure the vehicle stands out; this is pivotal as the basic
styling which is a sunk cost and leaves very little room for exclusive modelling ,
therefore the models launched must ensure exclusive styling without burdening the
cost factor.
2. “ other benefits “ is a huge attraction factor in India therefore Nissan tied up with
Hover automotive to provide value-added services to customers throughout the
vehicle ownership lifecycle
3. “Small is necessary & small is sufficient “ The Indian automobile density per km
makes it a deciding factor for sale to the salary bracket of 6-8 lacs per annum
"India is a strategic market for the future of Nissan. Not only is there tremendous potential, but
Nissan is well positioned to play a key role by delivering attractive, affordable vehicles to Indian
consumers," - Carlos Tavares, executive vice president, NML

6. kitna deti hai…..
Nissan Micra
An indirect pricing strategy
Nissan Micra XE ( 18.06 ) but the major selling point of
Nissan Micra XE Plus (18.06 ) the Micra range has been its
Nissan Micra XL ( 18.06 ) mileage.
Nissan Micra XV (18.06 )
Nissan Micra Diesel XV (23.08 )
Nissan Micra Diesel XV Premium (23.08 ) The after sale usage cost has
Nissan Sunny been the main selling point
Nissan Sunny XE (16.95 )
Nissan Sunny XL (16.95 )
of the Nissan.
Nissan Sunny XV (16.95 )
Nissan Sunny Diesel XL (21.64 )
Nissan Sunny Diesel XV ( 21.64 )
Nissan Evalia
Nissan Evalia XE (19.33 )
Nissan Evalia XE Plus ( 19.33 )
Nissan Evalia XL ( 19.33 )
Nissan Evalia XV (19.33 )
Nissan Teana
Nissan Teana XL (11.07 )
Nissan Teana XV ( 11.07 )
Nissan X-Trail
Nissan X Trail LE (14.42 )
Nissan X Trail SLX MT (14.42)
Nissan X Trail SLX AT (13.29 )

7. Nissan India Price strategy
• Features generally found in high end sedans and offered the car at an affordable
cost. It is the first sedan to be launched below Rs 6,00,000 bracket in the segment,
and consequently opened up new markets in Indian families searching for a
car in the mid-size segment.
•The Sunny is tagged between Rs 5.88 lakh and Rs 8.78 lakh (ex-showroom,
Delhi). The base version of the sedan is cheaper by a whopping Rs 87,000
compared to the entry-level petrol variant of new entrant Skoda Rapid which
starts upwards of Rs 6.75 lakh.
In a country that has a history of being partial to the small car, it is Nissan’s mid-sized
sedan, the Sunny, and not its hatchback, Micra that is being driven out of showrooms
in droves, and in turn establishing Japan’s second largest carmaker as a force to be
reckoned with in India’s cutthroat passenger vehicle market. - Ghosn

8. Nissan India || Distribution Channel
Localisation has a major role to play in Nissan’s ability to price the vehicle competitively.
As with its other mass segment offering Micra , localisation content of the Sunny stands
at around 85 per cent.
The company has developed a vendor base of 96 suppliers in India, more than half of
which operate close to the manufacturing unit in Oragadam, Chennai.
Nissan also sells premium SUV X-Trail, luxury sedan Teana and sports car 370Z which are
imported as completely built units from Japan.
The company has rolled out 185,359 in less than two years of commissioning its
manufacturing facility in Chennai and exports over 80 per cent of its annual production to
more than 100 countries in Europe, West Asia and Africa.
The company is the third largest exporter of passenger vehicles in India and has shipped
89,615 units till February this financial year.
Abdul Majeed, partner and leader (automotive practice), Pricewaterhousecoopers : “Nissan came in late but they quickly set up
capacity and commenced sales in both in domestic and overseas markets simultaneously. This helped them to ramp up quickly when
compared with other manufacturers.”

9. NISSAN USA
After much tinkering, several near misses, confused conversations with
American police officers, a drag race up a hill with a VW bug, and a car
accident that took out Shin Maki's front teeth, the team returned to Japan.
Through broken teeth, Shin Maki reported to Nissans board that, with some
modifications, Nissan cars and trucks could be sold in the states .

10. Nissan product strategy in USA
Nissan has a varied strategy for USA,
More than 22 different utility based models across 6 segments
Major product classification would be based on price, mileage, commercial usage ,
seating capacity
Price : range of $ 11000 - $100,000
Seating capacity : 2-8
Miles per gallon – has a range scale which goes upto 92 on the electric car segment and
as low as 12 miles per gallon
Both internal indicators and external measurements show marked increases in Nissan’s brand
strength over the past year. With its market leadership in the EV segment and its new Infiniti
global headquarters in Hong Kong, Nissan is delivering a powerful, unified message of
innovation and excitement to consumers around the globe. - Andy Palmer Executive Vice
President

11. NISSAN USA product Strategy NISSAN USA Pricing Strategy
The product variation results from the  Nissans pricing strategy is contrary to
varied nature of the buyer: the normal belief, at the heart of its sales
-The soccer mom in the USA
-The college graduate  Nissan manages a price range from as
-The family of 5 low as 11000 USD to 100,000 USD as the
-The interstate work traveller base cost for vehicles
 The price diversity exists because of
-Each segment requires a versatile the sheer enormous market size
modifications of the tech specs &  The price ranging has locational trends
variation in terms of seating and body with higher end cars being sold in the
USA states like Los Angeles and the the
-Higher purchasing power lowest priced cars sold in Utah
-Lesser servicing costs due to localised  The pricing strategy is essential
availability of technicians and spares because it caters to segments:
therefore the investment requirement City dwellers
is routed to product innovation Suburban Housholds
 corporates
Commercial requirements
The mileage cost is a factor as many of
the potential buyers require interstate
transport and prefer map driving to
flights

12. Nissan USA Distribution channel:
To help Nissan strengthen and consolidate its network, Nissan Logistics Corporation (NLC)
was established to handle logistics procurement for North American-made parts. NLC acts
as a distribution network, arranging for the consolidation and transportation of parts from
suppliers to Nissan's assembly plants in Mexico and Japan.
Nissan Mexicana, S.A. de C.V., (NMEX), was established in 1961 as an importer and
distributor of Datsun vehicles. In 1966, NMEX began producing vehicles, including the
Sentra for North America, and became the first Japanese-owned automobile production
facility in North America.
In 1990, Nissan North America Inc. (NNA), was created to coordinate all of Nissan's various
activities in North America to enhance the design, development, manufacturing, and
marketing of Nissan vehicles. In 1998, the two organizations merged operations under the
Nissan North America, Inc., name. NNA's mission is to provide all Nissan and Infiniti
employees and dealers with the tools they need for constant improvement and consumer
satisfaction. Headquartered in Franklin, Tennessee, NNA coordinates all operations in the
United States, Canada, and Mexico including automotive styling, consumer, and corporate
financing and engineering.

13. NISSAN UK
Graham Smith, automotive sector leader at KPMG
Management Consulting, agrees that Nissan has the right
product range for the economic climate. He says: 'People are
not as brand "snobby" as they once were. Nissan's range
appeals to the British car buyer.'

14. UK Nissan Product & Price strategy||
Nissan triumphantly revealed record UK sales,
achieving its highest-ever market share of
5.34% and becoming a top-five manufacturer
for the first time - overtaking BMW, Peugeot,
Citroen and Toyota.
the brand has succeeded by taking advantage
of wider market trends with its 'crossover'
vehicles Qashqai and Juke, which do not
Major product and price inspirations:
conform to traditional car-industry segments.
-to move the brand's pivot point away
'Smaller SUV concepts are popular at the
from Micra and instead focus on cross-
moment. The cars are not necessarily great
car leadership, with Qashqai and Juke.
at any one thing, but by being a jack-of-all-
That has been supported by other 'halo'
trades - Andrew Jackson, head of automotive
products such as the GTR and Leaf
analysis at Datamonitor
electric vehicle
-in 2013 and 2014 there will be six major
product launches, and the ambition is to
grow to a 6% share in the market in the
longer term, expanding our share among
younger, more-suburban consumers.

15. TOTAL COST CONTROL || NISSAN UK SUPPLE AND DISTRIBUTION STRATEGY

16. SIMULTANEOUS DEVELOPMENT OF VEHICLE TARGET PROFIT AND OVERALL BPLAN is the
key to nissan motors channeling in UK
The UK has been a cornerstone of Nissan manufacturing since 1986, with the
Sunderland plant (in northeast England) setting important benchmarks for quality and
efficiency in Europe and around the world.
The British branch of Nissan was the first Japanese transplant company set up in
Europe.
From the moment of its arrival, the company recognised the traditional relationship
between customer and supplier was insufficient to guarantee top quality.
Nissan UK therefore developed its own partnership system called Pre-Production
Quality Assurance.

17. NISSAN THE WAY AHEAD AND THE GLOBAL DIVERSITY STRATEGY

19. NISSAN GLOBAL SALES ASSUMPTIONS

20. Nissan sale by region resulting from adaptive strategies

21. Nissan GROUND BASICS PRIOR MARKET ADAPTATION AND LOCALIZATION EXTENT

22. V STRATEGY – VERSATILITY BASED ON LOCALIZATION

23. v STRATEGY AND RESULTS IN TERMS OF SALES DUE TO 80 % LOCALIZATION

24. Nissan strategy fro Russia, India, China and Brazil

29. BACKGROUND
IKEA is a privately held, international home products company that designs and
sells ready-to-assemble furniture such as beds, chairs, desks, appliances and
home accessories. It is the world's largest furniture retailer.
It is known for its modern architectural designs on various types of appliance
and furniture, often associated with a simplified eco-friendly interior design.
The IKEA website contains about 12,000 products and is the closest
representation of the entire IKEA range and is the world's third-largest consumer
of wood, behind The Home Depot and Lowe's.
IKEA stores
around the
world

30. PRODUCT
IKEA products are identified by single word names. Most of the names are
Scandinavian in origin. Although there are some notable exceptions, most
product names are based on a special naming system developed by IKEA. The
following gives IKEA’s naming convention:
 Upholstered furniture, coffee tables, rattan
furniture, bookshelves, media storage,
doorknobs: Swedish placenames (for
example: Klippan)
 Beds, wardrobes, hall furniture: Norwegian
place names
 Dining tables and chairs: Finnish place names
 Bookcase ranges: Occupations IKEA Kitchen and Bookcase ranges
 Bathroom articles: Scandinavian lakes, rivers
and bays
 Kitchens: grammatical terms, sometimes also
other names
 Chairs, desks: men's names
 Fabrics, curtains: women's names
 Garden furniture: Swedish islands

31. PRODUCT
 Carpets: Danish place names
 Lighting: terms from music, chemistry, meteorology, measures, weights,
seasons, months, days, boats, nautical terms
 Bedlinen, bed covers, pillows/cushions: flowers, plants, precious stones
 Children's items: mammals, birds, adjectives
 Curtain accessories: mathematical and geometrical terms
 Kitchen utensils: foreign words, spices, herbs, fish, mushrooms, fruits or
berries, functional descriptions
 Boxes, wall decoration, pictures and frames, clocks: colloquial expressions,
also Swedish place names
Examples: DUKTIG (meaning: good, well-behaved) is a line of children's
toys, OSLO is a name of a bed, BILLY (a Swedish masculine name) is a popular
bookcase, DINERA (meaning: (to) dine) for tableware, KASSETT (meaning:
cassette) for media storage. One range of office furniture is
named EFFEKTIV (meaning: efficient, effective), SKÄRPT (meaning: sharp or
clever) is a line of kitchen knives.
A notable exception is the IVAR shelving system, which dates back to the early
1970s. This item is named after the item's designer.

32. PRODUCT
 IKEA publishes an annual catalogue, considered to be
the main marketing tool of the retail giant, consuming
70% of the company's annual marketing budget.
 The catalogue is distributed both in stores and by
mail and prints approximately 175 million copies
worldwide annually, more than 3 times as much as
the Bible.
 In common with some other retailers, IKEA has
launched a loyalty card in some of its locations called
"IKEA family". The card is free of charge and can be
used to obtain discounts on a special range of products
found in each IKEA store.
In conjunction with the card, IKEA also publishes and
sells a printed quarterly magazine titled IKEA Family
Live which supplements the card and catalogue.

33. PRICE
The cheapest IKEA prices in the world can be found in Poland. Its prices ranked
by far the lowest when comparing prices both including and excluding VAT.
Here are the cheapest (left) and most expensive (right) countries for IKEA:
The following shows the price comparisons in different regions:

34. PRICE
The following shows the price comparisons among European countries:
Prices in the Big 4 (above), Eastern Europe (bottom left) and Scandinavia (bottom right)

35. PRICE
The following shows the GDP per capita at PPP vs. IKEA Prices (USD):
Interpretation of the Map on the left:
The darker the country in the “GDP”
heat map and the lighter the country in
the “IKEA Price” heat map, the more
affordable, in theory, the IKEA products
for that country should be. Thus, USA is
amongst the cheapest and China is
amongst the most expensive (above).

36. PRICE
The table below shows
how all 33 countries
ranked for the following:
 Avg. Prices on IKEA
products (USD) –
cheapest to most
expensive
 GDP per capita (PPP) in
USD – most wealthy to
least wealthy
 Most Affordable –
highest IKEA PPP Rate to
lowest rate

37. DISTRIBUTION
 Distribution Services functions as the wholesaler for IKEA, securing local storage
capacity for stores and purchasing products from suppliers all over the world.
 Products are shipped from suppliers to distribution centers, where they are unloaded,
stored in racking, and then re-loaded onto road transport vehicles when ordered by stores.
The fundamental goal is to handle goods as efficiently as possible.
 In some cases, goods are shipped directly from suppliers to stores, or held on the dock
of a distribution center for just a short time before being shipped out again.
 IKEA Distribution Services is reacting to the growing number of online orders with a
new order tracking system to help it manage deliveries. It installed the data capture
system Nucleus IS from Zetes to increase visibility of orders after they leave its distribution
centre. It also integrated an electronic Proof of Delivery (ePOD) system to provide
customers with a printed receipt of delivered items.

38. DISTRIBUTION
The key components of IKEA’s distribution channel in all countries are as follows:
 Store distribution manager: The store distribution manager analyses the
supply chain, ensuring distribution centres can accommodate the volume of
goods required by stores.
 Customer distribution manager: The customer distribution manager is
responsible for operating and developing the order distribution business, from
warehouse to customer.
 Transport operational coordinator: The transport operational coordinator is
the lynchpin between IKEA and its carriers, ensuring an efficient flow of goods.
 Warehouse operations manager: The warehouse operations manager ensures
efficiency within the distribution centre and responds to the needs of the supply
chain.
 Quality manager: The quality manager is responsible for quality control in the
warehouse and efficiency of delivery to the customer.
 Transport business developer: The transport business developer builds and
maintains relationships between IKEA and its carriers whilst negotiating mutually
beneficial transport scenarios.
 Goods flow coordinator: The goods flow coordinator secures the highest
product availability to the customer with the lowest possible supply chain costs.

39. DISTRIBUTION
IKEA is owned and operated by a
complicated array of not-for-profit
and for-profit corporations. The
corporate structure is divided into two
main parts: operations and
franchising. Most of IKEA's operations,
including the management of the
majority of its stores, the design and
manufacture of its furniture, and
purchasing and supply functions are
overseen by INGKA Holding, a private,
for-profit Dutch company. Of the IKEA
stores in 36 countries, 235 are run by
the INGKA Holding. The remaining 30
stores are run by franchisees outside
of the INGKA Holding.
In Australia, IKEA is operated by two companies. Stores located on the East Coast
including Queensland, New South Wales and Victoria are owned by INGKA Holding.
Stores elsewhere in the country including South Australia and Western Australia are
owned by Cebas Pty Ltd. Like elsewhere, all stores are operated under a franchise
agreement with Inter IKEA Systems.

40. PROMOTION
 IKEA’s 70% of IKEA’s marketing budget is
spent on publishing catalogs.
 All promotional strategies have a common
theme of making home better, be it the UK-
wide "Home is the Most Important Place in the
World" advertising campaign in 2007 with “Not
For Sale” signboards or Thai advertisement with
slogan "A better everyday life at home“ in 2011.
 In 2010, IKEA launched an advertisement for
UK & Ireland called "Happy Inside" which had
100 cats lying on IKEA furniture in the flagship
IKEA store in Wembley, London.
 It also focuses on Outdoor promotion. In 2009, just before the new store opened
in Southampton, the MV Red Osprey of Red Funnel was re-painted in an entirely yellow
and blue livery to celebrate the opening of the new IKEA store in Southampton.
In March 2010, IKEA developed an event in four important Metro stations in Paris, in
which furniture collections are displayed in high-traffic spots, giving potential customers a
chance to check out the brand's products.

41. PROMOTION
 In 2008, IKEA paired up with the makers of
popular video game The Sims 2 to make a stuff
pack called The Sims 2 IKEA Home Stuff,
featuring many IKEA products.
 In April 2011, an advertising campaign for
which aims to discover whether men or
women are messier in the home launched. The
strategy behind the campaign is that domestic
clutter leads to arguments, leading to an
unhappy home, which IKEA wants to prove can
be avoided with better storage.
 Viewers will be directed to a new Facebook
page for the brand, where they are able to
vote as to who they believe is the messiest,
and submit proof using videos and photos
through an app created especially for the
campaign

42. Overall Marketing Strategy
Our IKEA vision is something that we've found is universally understood, from Moscow
to the United States and especially in Atlanta. This vision includes IKEA's catchphrase of
'You do a little. We do a little. And together we save a lot’
-Linda Mee, Store Manager of IKEA Atlanta, US
Message
Ecosystem Targeting
4Ps Positioning

43. Products Beautifully Crafted and
Appealing

44. Keeping Costs Low Through Self
Assembly Packs

46. Targeted Middle Class Across the World
For the Ikea brand is the same
everywhere from Warrington
to Warsaw The basic
stripped-down, well-designed
and, most importantly, low-
cost items are identical. The
company has ignored
traditional conventions of
furniture retailing, whereby
products are geared to local
tastes, and instead it offers
the same "typically Swedish
product range”
- Market Week Journal

47. Huge Stores Located Outside Urban
Areas
IKEA stores were usually
located outside urban
areas, isolated from other
shops. This was done
intentionally so that IKEA
could create a complete
shopping experience for
customers

48. Circular Store Design
The stores were
constructed in the
form of a circle, to
allow shoppers to
view all sections of
the store.

49. Easy Shopping at the Store
Play area
Catalogue and signage
No parking hassles

50. Uniform Product Range: Bestsellers
Ivar Storage System
Billy Bookcase
Lack side table

51. With 131 stores in 27 countries its huge volumes, cheap out-of-town
sites, and dedication to keeping costs low through self-assembly packs
means that unlike some other furniture retailers Ikea has coped with
the recession in major markets including the UK and Sweden. The
company is likely to continue with its winning formula whether it is
targeting consumers in Birmingham or Beijing
- Helen Jones, Marketing Week Journal