1. RENEWING THE NISSAN BRAND
`
Presented by : Mahendra Bohra
Anitty.S
E.P.John
Bhuvaneswari.G
Susheel.S
Bikash Sahu (1st year MBA. Sec-B)

2. VISION / MISSION
 VISION
 Nissan : Enriching People’s 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.

3. NISSAN BACKGROUND
1933 – Started as Jidosha Seizo Co. Ltd
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 – Nissan’s decline started

4. Reasons for decline
 Lack of individual identity
 Loss of the brand image
 Volume driven , not profit driven culture
 Increased debts

5. 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.

6. 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 like”240z”, “Datsun 510 sedan” but
slowly became just an value addition models after
Toyota and Honda.

7. 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.

8. (B illions of Y en)
3500
3000
2500
2000
1500
1000
500
0
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001

9. 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 company’s internal financial
structure.

10. High Costs, Production Lag, Over Capacity Unrelated
Outdated Product Line, Keiretsu System Investment
Deep Debts
Low Margin PRODUCTION High
High Fixed Interests
Cost
PROFITS INVESTMENTS
Between Branches
Between Departments
Outdated
Between Global Divisions Models
DECLINE No New
OF Designs
NISSAN
COMMUNICATION PRODUCTS
Poor Marketing
HR MARKETING
Poor Brand
Labor Problems Perception
Culture Dealers

12. Carlos ghosn
 He was the man responsible for the most
remarkable corporate turnaround ever.
 He is French born and was a part of the Nissan’s
alliance with Renault.
 He restructured entire policies of the company.
 He had proper assessment and knew the exact
missing elements in Nissan

13. 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.

14. Ghosn’s plans
 Ensured financial discipline in the company.
 Communicated the goals and targets boldly.
 Restructured the organizational structure.
 Introduced new marketing strategies.
 Nissan 180

15. NISSAN REVIVAL PLAN’S
OBJECTIVE
The objective is to free resources from non-strategic,
non-core assets and investment more in
core business - cars - while at the same significantly
reducing Nissan’s debt.
“The aim is to grow the company, not
shrink it.” said Ghosn.

16. Financial ascertainment
 Restoring profits: from current 1.5 % to 4.5 %
 He made clear and bold statements “if I don’t 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 .

17. NISSAN 180
 To sell 1 Mn additional units.
 Achieve op margins of 8%
 Zero net automotive debt.

18. 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 CFT’s.
 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.

19.  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 marketers inputs making
them more consumer friendly.

20. CROSS FUNCTIONAL TEAMS
 Most cross-functional teams are
dysfunctional
 Most companies aren’t aware of this
problem
 The irony is that cross-functional teams
are the arteries of an Organization

21. COMMUNICATIONS
 Between Branches
 Between Departments
 Between Global Divisions

22. STRUCTURE OF CROSS FUNCTIONAL TEAM
CEO (Hanawa chairman)
COO (Ghosn President)
Executive committee
The name of CFT Domestic Oversea Produc North
Planning R&D Purchase Admin. Europe Others
(members) sales sales -tion America
1. Growth of business（50） * ○（２） ○ ○ ○ ○
（３） （１ （２） （２）
2.Purchase （12） ）
○ ○ ◎ ○ ○ ○ ○
3.Production （10） （３） （１ （４） （１） （１） （１） （１
） ）
4.R&D（13）
○ ◎ ○
5.Marketing（10） （１） （６ （１）
）
6.General admin. （10） ○ ◎ ○ ○ ○
（１） （９） （１ （１） （１
7.Finance & cost（12） ） ）
○（４） ◎ ○ ○ ○
8.Cut of the model （13） （１） （１ （２） （２）
）
9.Org. & decision （12） ○（１） ○ ○ ◎ ○ ○
（１） （１ （５） （１） （１）

23. 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

24. 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.

25. 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.