Marketing Plan for Nissan Leaf

MARKET ANALYSIS

Social ecologist, Peter Drucker, said "Every social and global issue is a business opportunity just waiting for the right kind of inventive entrepreneurship, the right kind of investment, the right kind of collective action." Nissan took advantage of the green movement by creating and producing the new LEAF (backronym for Leading, Environmentally friendly, Affordable, Family car) as the first all-electric mainstream vehicle available for the American consumer.

The green movement can be traced back as far as the 8th century to the Medieval Green Revolution that showed concern for air contamination, water contamination, soil contamination, and waste mishandling. The first signs in the United States, however, were in 1739 when Benjamin Franklin petitioned to stop waste dumping and abolish tanneries in Philadelphia and in the 1830s with Henry David Thoreau's novels, Maine Woods and Walden. Influenced by these men, John Miur influenced politicians to preserve nature for the public good and in 1916, President Woodrow Wilson established the National Park Service. It was not until a series of natural and manmade disasters in the late 1980s that consumers had "green" concerns. This led to the "green consumer bandwagon" when green went mainstream for the first time, but with the failure to meet the expectation of the consumer - biodegradable trash bags degraded too quickly, florescent bulbs that gave off an ugly light, recycled paper products that had a sandpaper texture and cleaners that didn't clean - all while being hard to find and expensive, consumer interest declined. In 2006, Al Gore with his documentary, An Inconvenient Truth, brought the green movement back into the public eye. "Green" went mainstream for the second time. In just one year, trademark applications for green terms and phrases increased over 30% and proposed marked with the word "eco" increased nearly 90%.

The "green" marketplace is one of the fastest growing sectors in the United States economy. According to MarketResearch.com, "$230 billion a year is spent on goods considered sustainable products and services." And according to DoubleClick Performics, "when choosing between two similar products, 83% of consumers are extremely or very likely to choose the environmentally friendly option." Thus, it came as no surprise when automotive industry entered the market. In 2009, Pike Research did a study and found that 85% of consumers stated that improved fuel efficiency would be an important factor when choosing their next vehicle and 65% survey respondents interested in electric vehicles are willing to pay an average 12% premium price, above the price of a standard gasoline vehicle. In 2010, Nissan entered the green market when the LEAF became available to the public at a competitive price.

Market Description

The sustainability of peak oil, the point in time when the maximum rate of global petroleum extraction is reached, causes an increase in gas prices and shortages of oil and gas. With 50% of the oil consumed in the United States being used to power vehicles, there is a greater need for electric vehicles that reduce the dependency on petroleum, like the Nissan LEAF. In a 2009 study from Pike Research, it is estimated that there will be 610,000 electric vehicles on the roads in the United States by 2015.

(Gartner & Wheelock, 2009)

Product Review

Nissan, headquartered in Japan, has been a leader in the automotive industry by producing an extensive range of cars and trucks. Since 1933, Nissan has been evolving as an automaker from the Datsun Type 11 to the Altima, America's best selling sedan and currently to the LEAF, partaking in the green movement by producing a car made solely of recycled parts in a factory that is powered by wind turbine energy. The Nissan LEAF is an all-electric five-door midsize hatchback. At the point of operation, the LEAF produces no tailpipe pollution or greenhouse gas emissions.

Nissan has teamed up with various companies to provide additional support and service to their customers. Nissan is collaborating with Aerovironment to provide consumers with in home docking stations to charge their vehicle. Nissan has also teamed up with a cellular network that would send data between Nissan and the vehicle. Nissan would also be able to notify customers when the vehicle needs to be charged and is not plugged in. Customers would also be able to pre-heat and pre-cool their vehicle through by sending a text message.

In the past year the Nissan LEAF won the 2010 Green Car Vision award, the 2011 European Car of the Year award. In addition to the awards, the Nissan LEAF ranks as the most efficient EPA certified vehicle for all fuels ever.

The LEAF is currently available for consumers to purchase in Europe (Portugal, Ireland, and the United Kingdom), Japan and the United States. Later this year, the LEAF will be available to consumers in Netherlands, Australia, and Canada and for governmental use in China and Mexico. Eventually, the LEAF will be available for either consumer or governmental use in 33 countries worldwide.

Competitive Review

The Nissan LEAF has multiple competitors in the automotive industry. The following is a listing of current competitors and how they compare to the LEAF:

2011 Nissan LEAF 2011 Chevrolet Volt 2011 Toyota Prius 2011 Honda Civic Hybrid Sedan

KEY FEATURES Standard engine/motor AC electric motor AC electric motor with gas engine AC electric motor with gas engine AC electric motor with gas engine

Electric motor range 100 Miles* 40 Miles n/a n/a

Electric motor horsepower 80KW/107hp 111KW/150hp 60KW/80hp 15KW/20hp

Electric motor torque 207 lb-ft 273 lb-ft 153 lb-ft 76 lb-ft

Battery charge time 7 hours 4 hours n/a n/a

Battery type lithium-ion lithium-ion nickel metal hybride nickel metal hybride

Gasoline enginge size no gasoline engine 1.4-liter DOHC 4-cyl. 1.8-liter DOHC 4-cyl. 1.4-liter SOHC 4-cyl.

Gas tank no gas tank 9.3 gallons 11.9 gallons 12.3 gallons

Tailpipe n/a standard standard standard

Vehicle sound for pedestrians (VSP) forward and reverse driver activated, forward only n/a n/a

Regnerative braking system standard standard standard standard