Marketing the Nissan Micra and Tata Nano Using Social Media Harvard Case Solution & Analysis

Scenario

The massive growth and global interaction on social media has enabled many businesses to gain the fame and expand their businesses to the global international markets. Many businesses have used this method to attract a large customer market to increase their sales and business.

Nissan, a Japanese multinational automobile manufacturer, also used this way to enter into one of the most potential market for its vehicles. In spite of their global presence, Nissan was not a well-known brand in India. The company was planning to enter in a market where the majority of the market share was in the hands of one company.

Nissan initiated its operations in India by introducing Nissan Micra. The car was a hatchback and has every feature to meet the needs of the Indian market. However, despite of extensive marketing, the car did not prove to be a success in the Indian market. The company launched many promotional campaigns to boost up the sales, even engaging a Bollywood star as the brand ambassador, but none of it worked for the company.

The company further expanded the promotion through social media which involved the participation of the general public to promote the sales of the car. The promotion enhanced the sales, but still the sales were comparatively lesser than the previous year.

On the other side, Tata is the local and well-known brand of India. It is already present and established in India for more than a century. They are present in almost every industry and are not only conducting their business, but are also helping and sustaining India through their extensive CSR campaigns.

In 2009, considering the need of the Indian market, Tata launched Nanoto upgrade the transportation of Indian families from two wheelers to four. The car was launched as the most economical, in terms of both fuel and price. The car gained an immediate success and popularity and boosted the revenues of the company.

Tata also used the social media marketing campaign to promote Nano. For the sake of promotion campaign, the company collaborated with MTV. They initiated a series of streaming shows which involved the participation of general public. This not only promoted the vehicle, but increased the sales of Nano as well.

The same social media campaign worked for Tata but not for Micra. This is a difference which created the financial and social differences in the sales and profitability of products of both the companies.

Analysis

Nissan’s Promotional Campaign

Nissan’s promotional campaign is based on the traditional way of promotion which involved the engagement of some famous celebrity. The celebrity being popular among the general public, makes the people to buy more of that product. Celebrity endorsement strategy is one of the most common and successful strategy which is used by most of the companies globally.

In the second stage of the promotion, the company altered their existing strategy by involving the general public to promote their product. The people immediately get involved in the campaign which made the campaign successful, not only in terms of popularity of the product, but in financial terms as well.

Being an international company, the Nissan faced difficulties to make its cars famous in the eyes of general public. They strived through promotional campaigns to make the people aware of their arrival in India and of their vehicles. Most of the Indian population are used to of using the local brands and products as compared to international ones. They are more focused on buying the products which are manufactured by local companies. This shows the behavioral and psycho graphic side of the Indian buying behavior which is different from the buying behavior of many other countries.

Strategic Logic

Although, Micra is a bit technologically advanced in comparison to Maruti, but there other competitors who have the equal technological capacity in their cars. These competitors includes Ford and Hyundai. These companies, together with Maruti Suzuki, are selling the same type of cars with more or less similar features and therefore, are significant threat to Nissan.

Nissan, being a new entrant in the Indian market, adopted the market penetration strategy. The reason for this strategy is that the company is entering in a market, which already has the cars of the same caliber and technology. The market of the product as well as the product itself, both already exists in the market. Therefore, the company adopted the penetration strategy to enter and successfully establish their business in the market.Marketing the Nissan Micra and Tata Nano Using Social Media Case Solution

The social media campaign of the Nissan focuses specifically on the needs and demands of the India market. The company knows the affection and place of the celebrities, especially Bollywood celebrities, in the minds of Indian citizens and therefore, the company used this technique to capture the new market......................

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