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Harvard Case - Managing Consumer Touchpoints at Nissan Japan

"Managing Consumer Touchpoints at Nissan Japan" Harvard business case study is written by Thales S. Teixeira, Nobuo Sato, Akiko Kanno. It deals with the challenges in the field of Marketing. The case study is 17 page(s) long and it was first published on : Sep 8, 2015

At Fern Fort University, we recommend Nissan Japan implement a comprehensive customer-centric strategy focused on enhancing the customer experience across all touchpoints. This strategy will leverage digital technologies, data analytics, and a customer-centric organizational structure to improve brand loyalty, drive sales, and maintain Nissan's position as a leading automotive manufacturer in Japan.

2. Background

This case study focuses on Nissan Japan's struggle to manage consumer touchpoints effectively in a rapidly evolving market. The company faces challenges in adapting to changing consumer preferences, increasing competition, and the rise of digital channels. Nissan's traditional approach to marketing and sales, relying heavily on dealerships and mass media advertising, is proving less effective in reaching and engaging today's digitally savvy consumers.

The main protagonists in this case are:

  • Nissan Japan's management team: Seeking ways to improve customer engagement and drive sales.
  • Nissan's marketing and sales departments: Responsible for developing and executing marketing strategies and managing customer interactions.
  • Nissan's customers: Representing a diverse group with varying needs and preferences, increasingly relying on digital channels for information and purchasing decisions.

3. Analysis of the Case Study

To analyze Nissan Japan's situation, we can utilize a framework combining Marketing Management, Customer Relationship Management (CRM), and Digital Marketing principles.

Marketing Management:

  • Market Segmentation: Nissan needs to identify and target specific customer segments based on demographics, psychographics, and buying behavior. This will enable them to develop tailored marketing messages and offers.
  • Product Positioning: Nissan needs to clearly define its brand positioning in the Japanese market, highlighting its strengths and differentiating itself from competitors. This will involve emphasizing key features, benefits, and values that resonate with target customers.
  • Marketing Mix (4Ps): Nissan needs to optimize its product, price, place, and promotion strategies to effectively reach and engage target customers. This includes:
    • Product: Focus on developing innovative products that meet evolving customer needs and preferences, including electric vehicles and autonomous driving technologies.
    • Price: Develop a flexible pricing strategy that considers customer value perception, competitor pricing, and market conditions.
    • Place: Expand distribution channels beyond traditional dealerships to include online platforms, mobile apps, and partnerships with other retailers.
    • Promotion: Shift focus from mass media advertising to digital marketing channels like social media, search engine optimization (SEO), and content marketing to reach digitally savvy consumers.

Customer Relationship Management (CRM):

  • Customer Journey Mapping: Nissan needs to map the customer journey across all touchpoints, identifying key moments of truth and opportunities for improvement. This will help them understand customer needs and expectations at each stage of the buying process.
  • Data-Driven Marketing: Leverage data analytics to gain insights into customer behavior, preferences, and purchasing patterns. This will enable Nissan to personalize marketing messages, optimize pricing, and tailor product offerings to individual customers.
  • Customer Loyalty Programs: Develop loyalty programs that reward repeat customers and encourage engagement. This will help build long-term relationships and foster brand advocacy.

Digital Marketing:

  • Social Media Marketing: Develop a strong social media presence to engage with customers, build brand awareness, and drive traffic to online platforms.
  • Content Marketing: Create valuable and engaging content that educates and entertains customers, building trust and authority.
  • Search Engine Optimization (SEO): Optimize website content and online presence for search engines to improve visibility and attract organic traffic.
  • Search Engine Marketing (SEM): Utilize paid search advertising to reach targeted audiences and drive traffic to Nissan's online platforms.

4. Recommendations

1. Implement a Customer-Centric Organizational Structure:

  • Establish a dedicated customer experience team: This team will be responsible for developing and implementing a customer-centric strategy across all touchpoints, including marketing, sales, service, and after-sales support.
  • Empower employees to make decisions: Give employees at all levels the authority to address customer issues and resolve problems quickly and efficiently.
  • Foster a culture of customer focus: Encourage employees to prioritize customer satisfaction and build strong relationships with customers.

2. Leverage Digital Technologies and Data Analytics:

  • Develop a comprehensive CRM system: This system will collect and analyze customer data to gain insights into their needs, preferences, and buying behavior.
  • Implement a data-driven marketing strategy: Use customer data to personalize marketing messages, optimize pricing, and tailor product offerings to individual customers.
  • Invest in digital marketing channels: Shift marketing budget from traditional media to digital channels like social media, SEO, and content marketing to reach digitally savvy consumers.

3. Enhance the Customer Experience Across All Touchpoints:

  • Optimize the online customer experience: Improve the usability and functionality of Nissan's website and mobile apps, making it easy for customers to research, purchase, and manage their vehicles.
  • Streamline the dealership experience: Improve the efficiency and customer service at dealerships, ensuring a positive and hassle-free experience for customers.
  • Create a seamless after-sales experience: Provide excellent customer service and support throughout the ownership lifecycle, including maintenance, repairs, and parts replacement.

4. Develop a Strong Brand Positioning and Value Proposition:

  • Clearly define Nissan's brand positioning: Highlight Nissan's strengths and differentiate itself from competitors in the Japanese market.
  • Develop a compelling value proposition: Communicate the unique benefits and value that Nissan offers to customers, emphasizing key features, technologies, and customer service.

5. Basis of Recommendations

These recommendations are based on the following considerations:

  • Core competencies and consistency with mission: Nissan's core competencies lie in automotive design, engineering, and manufacturing. The recommendations align with Nissan's mission to provide innovative and reliable vehicles that meet the needs of its customers.
  • External customers and internal clients: The recommendations prioritize the needs of Nissan's customers and internal clients, ensuring a positive experience for all stakeholders.
  • Competitors: The recommendations consider the competitive landscape in the Japanese automotive market, focusing on differentiating Nissan from its competitors and building a strong brand position.
  • Attractiveness: The recommendations are expected to improve customer satisfaction, drive sales, and enhance Nissan's profitability.

Assumptions:

  • Nissan has the resources and commitment to implement these recommendations effectively.
  • The Japanese automotive market will continue to evolve towards digital channels and personalized customer experiences.
  • Nissan's customers are receptive to digital marketing and personalized communication.

6. Conclusion

By implementing these recommendations, Nissan Japan can effectively manage consumer touchpoints, improve customer engagement, drive sales, and maintain its position as a leading automotive manufacturer in Japan. The company will need to embrace a customer-centric approach, leverage digital technologies and data analytics, and continuously adapt to the evolving needs and preferences of its customers.

7. Discussion

Alternatives:

  • Continuing with the current strategy: This would likely result in declining sales and market share as Nissan loses ground to competitors who are better at engaging with digitally savvy consumers.
  • Focusing solely on digital marketing: While digital marketing is essential, it's not a complete solution. Nissan needs to integrate digital channels with traditional touchpoints to create a seamless customer experience.

Risks:

  • Resistance to change: Some employees may resist changes to the organizational structure or processes.
  • Data security concerns: Collecting and analyzing customer data requires robust security measures to protect customer privacy.
  • Technological challenges: Implementing digital technologies and data analytics requires significant investment and technical expertise.

Key Assumptions:

  • Nissan has the resources and commitment to implement the recommendations effectively.
  • The Japanese automotive market will continue to evolve towards digital channels and personalized customer experiences.
  • Nissan's customers are receptive to digital marketing and personalized communication.

8. Next Steps

Timeline:

  • Month 1: Establish a customer experience team and begin developing a customer-centric strategy.
  • Month 3: Implement a CRM system and start collecting customer data.
  • Month 6: Launch a data-driven marketing campaign targeting specific customer segments.
  • Month 9: Optimize the online customer experience and streamline the dealership experience.
  • Month 12: Evaluate the effectiveness of the new strategy and make adjustments as needed.

Key Milestones:

  • Improved customer satisfaction scores: Measure customer satisfaction across all touchpoints and track progress over time.
  • Increased sales and market share: Monitor sales performance and market share to assess the impact of the new strategy.
  • Enhanced brand loyalty: Track customer retention rates and brand advocacy to measure the effectiveness of the customer-centric approach.

By taking these steps, Nissan Japan can successfully navigate the evolving automotive landscape and maintain its position as a leader in the Japanese market.

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Case Description

In 2015, Nissan was third place in the Japanese auto market, behind Toyota and Honda. The challenge of increasing market share was that 80% of car shoppers who were non-Nissan owners did not consider Nissan during their purchase process. This process involved three main consumer touchpoints: mass media advertising, internet auto websites and the physical dealerships. In the last 5 years, the importance of the dealers in influencing car sales had greatly diminished as consumers researched and chose which make and brand of car to buy online, going to the dealer only to negotiate price, purchase and receive the car. Given this trend, how should Nissan's top marketer make changes in how Nissan manages these three key consumer touchpoints? And how to better integrate them to maximize sales.

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