CAD312 – DECEMBER 2011 Ana Alba Alexandria Crutkaew Demetra Halmoukos Min Lu Aaron Martin
TABLE OF CONTENTS List of Figures ............................................................................................. 3 List of Tables .............................................................................................. 5 Executive Summary ...................................................................................... 7 Introduction ................................................................................................. 9 Secondary Research .................................................................................... 10 Industry overview .......................................................................................................................11 Market overview.........................................................................................................................13
Consumer overview.....................................................................................................................20
Qualitative Research .................................................................................. 32 Quantitative Research ................................................................................. 38 Future Recommendations ............................................................................ 47 Appendix A: in-depth interviews transcripts ................................................. 50 Transcript 1................................................................................................................................52 Transcript 2................................................................................................................................55 Appendix B: online survey questionnaire ..................................................... 60 References ................................................................................................. 76
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LIST OF FIGURES Figure 1.1: United States’ Vehicle Sales History........................................................................ 11 Figure 1.2: Average Regular Unleaded Fuel in United States .................................................... 12 Figure 2.1: Fiscal Year Sales in Millions (000) .......................................................................... 13 Figure 2.2: Hispanic Market Share ............................................................................................. 16 Figure 2.3: African-American Market Share .............................................................................. 17 Figure 2.4: Chinese-American Market Share .............................................................................. 18 Figure 3.1: Nissan Key Target Markets ...................................................................................... 20 Figure 3.2: Population of Hispanic-Americans in 1990 and 2000 .............................................. 21 Figure 3.3: Population of African-Americans in 1990 and 2000 ................................................ 22 Figure 3.4: Percent Distribution of African-American Population by Region: 2000 ................. 24 Figure 3.5: Percent Distribution of Chinese-Americans Population by Region: 2000 ............... 25 Figure 3.6: Populations of African-Americans/Asian-Americans/Hispanic-Americans in Four Regions ............................................................................................................... 26 Figure 4.1: Nissan Index Per Segment (Fall 2010) ..................................................................... 27 Figure 4.2: Nissan Index Per Multicultural Segment (Spring 2005 - Fall 2010) ........................ 30 Figure 5.1: Current Brand Owned by Ethnicity .......................................................................... 39 Figure 5.2: Dealership Experience .............................................................................................. 41
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LIST OF FIGURES
Figure 5.3: Brand Preference ...................................................................................................... 42 Figure 5.4: Plan to Spend on Next Car ....................................................................................... 43 Figure 5.5: Media Usage ............................................................................................................. 43 Figure 5.6: Web/Application Usage ............................................................................................ 44 Figure 5.7: Nissan Ratings .......................................................................................................... 45 Figure 5.8: Honda Ratings .......................................................................................................... 46 Figure 5.9: Toyota Ratings .......................................................................................................... 46
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LIST OF TABLES Table 2.1: Fiscal Year Percent Change ......................................................................................14 Table 2.2: Breakdown of Automobile General Market Share 2010-2011 .................................14 Table 2.3: Breakdown of Automobile Multicultural Market Share 2010-2011 .........................15 Table 4.1: Projected Index for Hispanic and African American ................................................29 Table 4.2: Media Consumption by Ethnicity..............................................................................30 Table 4.3: Top Six Media Outlets for Millennials .....................................................................31
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EXECUTIVE SUMMARY AND INTRODUCTION
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EXCECUTIVE SUMMARY As the United States continues to advance in technology, consumers are more conscious with the quality of products they are buying. Their goal is to get their money’s worth and make purchases that are reliable. Automobiles are a purchase that Americans research and contemplate for a considerable amount of time before taking action. Therefore, auto manufacturers are in constant competition with one another to create awareness of their brand. Nissan is one of the top manufacturers in vehicles; but just like their competition, they need to find a way to imprint the minds of consumers. This report reveals where Nissan stands in comparison to its peers, and focuses on the automobile market in the United States. The age group 18-29 and the AfricanAmerican segment were focused on to enhance the effectiveness of Nissan’s campaigns. Secondary, qualitative, and quantitative research were analyzed to find solutions on how Nissan can build brand awareness and loyalty. The competition and consumers within the automobile industry were observed to see how the market was doing, and determine opportunities for Nissan. The economy has had a huge impact on the overall industry with gas prices increasing 54% within an eight-year span, unemployment rates rising, and natural disasters tearing down automobile factories. Consumers have spent more time focusing on the features and benefits that a vehicle has to offer. Efficient gas mileage and updated technology were shown to be highly important factors in purchasing decisions. An advantage for Nissan is growing population rates of Hispanics, African-Americans, and Chinese-Americans in the United States; these three target segments are Nissan’s main consumers. In 2010, Nissan’s competition with other manufacturing brands was very close; but Toyota remained the dominant leader in vehicle sales, followed by Ford, then Chevy, Honda, Nissan, and finally, Hyundai. Recalls and the increase popularity of hybrids affected the
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competition. In addition to this secondary research, interviews were conducted to get more insight on African-American’s perception of the automobile industry. In the qualitative research, the interviews with the two African-American subjects showed what qualities they look for in a vehicle, and the sources they consult prior to purchasing or leasing a vehicle. They both researched cars on the internet, using Kelley Blue Book and Auto Trader. The features they mainly focused on were add-on features of a vehicle, such as GPS navigation and AUX input cable. The two subjects were very passionate about their personal cars, and treated them as a treasure. The quantitative research revealed that Toyota was a topmanufacturing preference among the sample size, while Honda and Nissan fell slightly below. However, Honda was seen as the most-liked brand. In terms of purchasing experience, customer service was the most important factor for Hispanics and African-Americans. With this compiled data and research, specific recommendations are listed to increase Nissan’s success. Nissan has created a powerful empire, but there are ways to increase the brand awareness and brand loyalty among Americans between 18 and 29 years old. Nissan should focus on empathizing with its target market to see how readily-accessible Nissan’s online site is and what features these consumers compare. Also, social media is increasingly more popular among this group, so advertising via sites like Facebook and YouTube would increase awareness. The advertisements they create should grab the audience’s attention, but center on the actual product for sale; a big production could potentially stray from the actual product. Nissan has the potential to be a dominant leader in the automobile industry, and this report can be a stepping stone to lead Nissan in that direction.
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INTRODUCTION The well-being of the automobile industry has a significant impact on auto manufacturers, as well as consumers. This report takes an in-depth look at the automobile industry and analyzes its past and current trends. Secondary research, such as online reports, was analyzed to obtain the best results and provide ideas for advertising of this brand. Through the compiled research, strengths and weaknesses of auto manufacturers are revealed. With this information in hand, gaining an upper hand in the market would be easier. To support the research further, data from online surveys and transcripts of individual depth interviews are analyzed. Surveys were conducted on every level, and real time answers were recorded. Interviews from African Americans were conducted as well to gain more knowledge about the target group. Based on the observations and research gathered, there are recommendations on ways Nissan can gain more leverage in the automobile industry. Competitors are broken down and a comparison is made between them and Nissan in order to gain more knowledge in finding solutions to stand out in the automobile industry. Nissan’s target market includes Hispanic Americans, African Americans, and Chinese Americans from ages 18 to 29. Demographics were researched on each target audience to get a better understanding of Nissan’s current targeting segments. Also, media usage has been researched to conclude whether the right forms of media were used, whether it had best targeted the consumers, and on what scale. With all this information, Nissan would be able to stand out in its campaigns and present itself as a formidable competitor in the automobile market.
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SECONDARY RESEARCH
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INDUSTRY According to research gathered by J.D. Power and Associates, the United States sold 11.5 million light vehicles in 2010, and is estimated to increase their sales by 8.7% by the end of 2011; therefore, the United States is ranked second in the entire world for light vehicle sales. Holding the number one spot is China, which sold 17.2 million light vehicles in 2010 and is estimated to increase sales by 3% in 2011. Falling right behind the United States is Japan. Japan sold 4.8 million light vehicles in 2010; however, they are predicted to decrease sales by 23% in 2011. The United States has had major setbacks since 2008 and is rebuilding the economy they had prior to the global recession. Analyzing the history, purchasing trends, and competition in the automobile industry can reveal underlying issues and possible solutions for automobile manufacturers in the future. Figure 1.1 displays the automobile sales history of the United States over the past decade. It shows how the country dropped 24% in sales between 2000 and 2008. Sales took another dramatic fall of 21% between 2008 and 2009. The main reason for this drop was not from a natural disaster, but from a global recession. In September of 2009, Americans had a combined credit-card debt of $975 billion; consumers were spending money that they did not have due to low-interest rates and financing opportunities. In addition to this debt, gas prices were also increasing.
Source: Ward’s Automotive Reports
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Figure 1.2 shows how fuel prices for regular unleaded gas jumped 54% between 2000 and 2008. People struggled to fill up their gasoline tanks due to this steep rise. Another main reason vehicle sales suffered was because of unemployment rates. Unemployment became more prevalent in late 2008, and the rate reached 9.8% that year; our current unemployment rate is 9.1%. Although the economy had a huge impact on the automobile industry’s success, there was a larger factor that was harder for mankind to control: Mother Nature.
Price in U.S. Dollars
Figure 1.2 Average Regular Unleaded Fuel in the United States 3.5000 3.0000 2.5000 2.0000 1.5000 1.0000 0.5000 0.0000 2000 2003 2004 2005 2006 2007 2008 2009 2010 Year Source: U.S. Census
In March of 2011, Japan was hit with two natural disasters: an earthquake and tsunami. Japan has been a leading vehicle manufacturer since 2008, so these two events caused the automobile industry to be put on hold; cars were not being produced. Japan consumed 6.3% of overall imports to the United States in 2010, so these events affected car manufacturers, which caused automobile prices to increase in 2011. The United States has faced many obstacles hindering the success of the auto industry, but the nation is slowly rebuilding itself. The auto industry is one of the top-contributors for creating jobs. According to the Auto Alliance Association, “the Bureau of Labor Statistics Employment Situation Summary released
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in May indicated that in 2011’s first quarter, 20% of jobs created have been in manufacturing.” This 20% represents about 8 million American jobs. Marketers are seeking opportunities with social media and networking. A website called DriverSide conducted a study that showed 38% of new vehicle shoppers used social media like Facebook to help make their decision on what car to purchase. Fortunately, the automobile industry is becoming more advanced in emissions and features, especially in the United States. In addition, cars and light trucks are becoming more fuel efficient and technologically savvy. Americans are starting to appreciate the cars with the best features for the best price. In March 2010, hybrid-vehicle sales increased by 15% from the previous year. The current conditions of the automobile industry in the United States may not meet the nation’s standards, but they are looking more positive. MARKET OVERVIEW The graph and table below consist of the reported data each company provides for investors each fiscal year based on total sales before expense and operating costs are taken out. Figure 2.1: Fiscal Year Sales in Mill ions (000)
Source: S&P Index
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Table 2.1: Fiscal Year Percent Change Brand Nissan Honda Toyota Ford GM
FY1-FY2 FY2-FY3 FY3-FY4 FY4-FY5 22% -22% -5% 32% 27% -16% -9% 18% 29% -20% -3% 13% 8% -15% -19% 9% -13% -18% -30% 30%
Source: S&P Index
Based on the Breakdown of General Market Share portrayal (Table 2.2) we can get a clear picture of rankings among the major automobile companies. Toyota has maintained dominance as the leader in total sales in the first quarter with 18.40% market share in 2010 and 16.20% in 2011. Ford follows in second place with a 14.10% share in 2010 and 14.20% share in the first quarter of 2011. Chevy follows in third even though its parent company GM was recovering from a Chapter 11 filing which put the company in bankruptcy. Table 2.2: Breakdown of Automobile General Market Share 2010-2011 Brand
Â
Q1 2010 Units
Q1 2010 Share
Q1 2011 Units
Q1 2011 Share
Share +/-
Units +/-
Toyota
289,073
18.4%
321,756
16.2%
-2.2%
11.0%
Ford
221,886
14.1%
282,443
14.2%
0.1%
27.0%
Chevy
206,439
13.1%
279,794
14.1%
0.9%
36.0%
Honda
219,853
14.0%
265,248
13.3%
-0.6%
21.0%
Nissan
151,259
9.6%
187,840
9.4%
-0.2%
24.0%
5.6%
123,393
6.2%
0.6%
40.0%
Hyundai 87,891 Source: NSAC Nissan Case Study
Honda in general has staggered behind in fourth place due to the lack of effective launches compared to competitors in the previous five years such as the Accord Crosstour being
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outsold 2:1 by the Toyota Venza. Nissan takes up fifth place with under 10% market share, and Hyundai has emerged slowly into sixth place with about 6% share. However, as we look closer at the multicultural shares of each company the numbers are much different. This multicultural share consists of various target groups such as the Hispanic Americans, African-Americans, and Chinese-Americans. Table 2.3: Breakdown of Automobile Multicultural Market Share 2010-2011
Toyota
Q1 2010 Units 74,365
Q1 2010 Share 25.00%
22.00%
Share +/-2.60%
Units +/15.00%
Ford
52,069
64,503
16.00%
-0.60%
24.00%
Nissan
13.00%
51,016
13.10%
0.30%
31.00%
29,753
10.00%
41,655
10.70%
0.90%
40.00%
26,414
9.00%
37,917
9.70%
1.00%
44.00%
Hyundai 15,175 5.00% Source: NSAC Nissan Case Study
22,978
5.90%
90.00%
51.00%
Column1
Q1 2011 Units
Q1 2011 Share
85,564
17.00%
38,825
Chevy Ford
Toyota still remains the dominant leader with a share greater than 20%. Honda is ranked second with about 17% market share, a much more significant difference than their position in the entire market. Nissan follows in third with a share of about 13%. Both Chevy and Ford have a considerably lower position in the multicultural segment as most of their sales do not fall in these markets. Hyundai is ranked sixth in the multicultural segment with only about 5% market share but has been making a presence for itself in each segment. In the Hispanic-American segment, Toyota has maintained dominance with a market share between 20-23%. Even with the effects of their 2009 recall where many cars had experienced unintended acceleration, Toyota has been able to salvage their brand image with their recent Venza launch. Honda follows in second steadily growing from 14% to 18% in 2009.
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Its market share flat lined around 17% following the fall season of 2009 where it has continued to maintain its place in the segment. 30%
Nissan has fluctuated in the
Figure 2.2: Hispani c Market Share
Hispanic market with 10-15%
25%
market shares over the past
20% 15%
three years, but has
10%
maintained its place as third in
5%
the Hispanic market. Their
0%
lowest drop to 10% in the winter of 2008 can be Nissan
Toyota
Honda
Ford
Source: NSAC Nissan Case Study
Chevy
attributed to the economic downturn’s effects on
consumer’s willingness to spend. As the economy slowly recovered, Nissan sales began to rise back up to about 14%. Both Chevy and Ford felt the effects of the recession on their sales, as there was little growth in their markets either.
Although one of Nissan’s more established markets, their African-American market share
had declined steadily since mid-2008 after the economic downturn caused Nissan to pull most of their TV spending activities in this segment. Prior to this move Nissan was tied for first with Toyota at 18% market share. While Nissan reduced spending activities in this segment, Toyota and other competitors took this opportunity to increase TV spending to surpass it. Prior to the major 2009 Toyota recalls, it had attained dominance in this segment with 24% market share. However, following the recalls their share decreased significantly to 16% by 2010 although it remained the dominant
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brand. Honda followed Toyota’s increased spending efforts in the African-American market by surpassing Nissan’s 13% share
Figure 2.3: African-American Market Share
with 15% and maintained a lead until 2010. Chevy maintained about a 12-13% from 2008-2010 with little fluctuation. Ford fell below 10
30% 25% 20% 15% 10% 5% 0%
percent in 2008 but in 2009 with new launches such as the Fusion, grew steadily to 13% through 2010.
Nissan
Toyota
Honda
Source: NSAC Nissan Case Study
As seen in Figure 2.5, a clear gap exists in the Asian market as only Toyota and Honda have established their brands within this market for years. Since the largest population of the Asian-American market consists of Chinese-Americans, we can assume that any major differences between brands occur in this market. Since 2008, Toyota has maintained a hold of about 35-40% market share while Honda follows closely with between 25-35%. Nissan began targeting this segment in 2008 and has the third largest market share fluctuating between 6-10%. As for Ford and Chevy (GM), since 2008 they have not been able to surpass 5% market share in the Chinese-American market. Hyundai had entered as the latest to this market in 2010 but has yet to establish a strong footing among this demographic. With an estimated 43% nationwide growth rate and average HHI of $78,000 this segment is increasingly becoming a more attractive market for business. For Nissan to grow in this market there will need to be more focus on inlanguage media spending.
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Figure 2.4: Chinese-American Market Share 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Nissan Toyota Honda Ford Chevy Source: NSAC Nissan Case Study MARKET INSIGHT Recalls cause sales to go down because they make the consumer question the quality and reliability of the vehicle they are considering purchasing or that they already own. Therefore, the communication strategy of Nissan must try to ease those concerns and prove that their cars are reliable despite previous problems. One example of this is the Toyota recalls of 2010. They needed to suspend the sales of eight of their models, which clearly lowered sales because there were less models of their company on the market. In 2009, Toyota was second largest seller of vehicles, closely behind Ford. However, as of last month, Toyota’s United States market share is down 5.5% from that 2009 statistic (from 17% to 11.5 %). This decrease of market share was not only caused by recalls, however those recalls definitely played a role along with the earthquake and tsunami crisis in Japan in March that damaged part plants and cut production. All of these components contributed to fewer cars at the dealerships, and therefore fewer sales.
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Aside from Toyota, all of the major competitors in the car industry experience issues with recalls. Ford’s six most recent recalls all occurred in 2011, and included the E-350, E-250, and E-150 models. They all had issues with their fuel system. Other recalls in Ford’s past were the Ranger, Econoline, and Windstar models in 2003. They offer hybrids of their best selling models, like the Escape, Edge, and Fusion. Chevrolet, which is owned by GM, has had its most recent recalls in its 2011 models of the Colorado, Silverado, Tahoe, Suburban, and Cruze. It even already has a recall of its 2012 Impala due to steering issues. More recalls in its past include the 2005 and 2010 Cobalt and the Pontiac models from 2005 through 2010. The hybrids they offer include the Malibu and Tahoe. Honda’s most recent recalls include the 2011 Pilot and CR-Z, the 2010 Pilot and CR-V, the 2009 Pilot, and the 2006 CR-V. Many of these cars had issues with their seat belts and power train. They offer hybrids versions of their Civic. Hyundai’s recent recalls include the 2010 Tucson and Santa Fe, the 2008 Veracruz and Santa Fe, and the 2007 Santa Fe and Veracruz. They had issues with their air bags and exterior lighting. They also offer a Sonata hybrid. Volkswagen’s most recent recalls are the 2012 Jetta and CC, the 2011 Jetta, and the 2010 Routan. The Jettas all had issues with their engine and exhaust system, and the others had tire pressure problems. This problematic Jetta also comes in a hybrid version. Finally, Nissan’s most recent recalls were the 2012 Altima, the 2011 Altima, the 20042006 350Z. Their hybrid model is called the Leaf. Although Nissan has already had a recall of one of its 2012 models, it falls in the middle to lower end of the rankings in regard to its competitors. Chevrolet and Ford have had many more than Nissan has, and they have already had several in the year 2011. Nissan, however, had its most recent recalls dating back to 2004.
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CONSUMER OVERVIEW Nissan’s target market is composed of three target groups: Hispanic Americans, African Americans, and Chinese Americans ages 18 to 29. According to the 2000 census, Hispanic Americans constitute the largest ethnic target group, accounting for 8,129,214 people, (49% of the total target population), of which 4,424,498 (54 percent) are males and 3,704,716 (46 percent) are females. African Americans, the second largest target market has 6,353,405, (38 percent of total population) which has 3,079,238 male and 3,247,167 female. The third target segments Chinese Americans has 2,119,653 (13 percent of the total target population); contains of 1,052,621 male and 1,067,032 female. Moreover, if divided target market based on age, people whose age from 25 to 29 has the largest proportion of the total population; so from the information above we can conclude that those people whose ages from 25 to 29 especially Hispanic male, African American female and Chinese American female are Nissan’s main target audience.
Figure 3.1 Nissan Key Target Market Hispanic
African‐American
Chinese‐American
13% 49% 38%
Source: U.S. Census Bureau, Census 2000 Summary File 1.
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DEMOGRAPHICS According to the 1990 and 2000 Census, all three target segments Hispanic, AfricanAmerican and Chinese-American have an increasing in their population between the year 1990 to 2000. In Census 2000, 281.4 million residents were counted in the United States of which 35.3 million (or 12.5 percent) were Hispanic. The Hispanic population increased by 57.9 percent, from 22.4 million in 1990 to 35.3 million in 2000 the range for the increase in the Hispanic population was 57.5%. So we can predict that the population of Hispanic will grow 57.5% in the following decade.
number of people
Figure 3.2 Population of Hispanic-Americans of 1990 and 2000 40000000 35000000 30000000 25000000 20000000 15000000 10000000 5000000 0
Population
1990
2000
year Source: U.S. Census Bureau, Census 2000 Summary File 1.
The 2000 Census showed that the United States population on April 1, 2000 was 281.4 million. Of the total, 36.4 million, or 12.9 percent, reported Black or African American. This number includes 34.7 million people, or 12.3 percent, who reported only African American in addition to 1.8 million people, or 0.6 percent, who reported African American as well as one or more other race.
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The 1990 census showed there were 30.0 million African Americans. Using the African American alone population in 2000 shows an increase of 4.7 million, or 15.6 percent, in the total African American population between 1990 and 2000. If the Africa-American alone or in combination population is used, an increase of 6.4 million, or 21.5 percent, results. Thus, from 1990 to 2000, the minimum maximum range for the increase in the African American population was 15.6 percent to 21.5 percent. Figure 3.3 Population of African-Americans of 1990 and 2000 40000000 number of people
35000000 30000000 25000000 20000000 Population
15000000 10000000 5000000 0 1990
2000 year
Source: U.S. Census Bureau, Census 2000 Summary File 1.
The 2000 Census showed that the United States population was 281.4 million on April 1, 2000. Of the total, 11.9 million, or 4.2 percent, reported Asian. This number included 10.2 million people, or 3.6 percent, who reported only Asian and 1.7 million people, or 0.6 percent, who reported Asian as well as one or more other races. The 1990 census counted 6.9 million Asians. Using the Asian alone population in 2000, this population increased by 3.3 million, or 48 percent, between 1990 and 2000. If the Asian alone or in combination population is used, an increase of 5.0 million, or 72 percent, results.
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Thus, from 1990 to 2000, the range for the increase in the Asian population was 48 percent to 72 percent. As Asian population is increasing, there is also an increasing in Chinese population between 1990 and 2000. According to Census 2000, Chinese was the largest detailed Asian group in the United States. A total of 2.7 million people reported Chinese alone or in combination with one or more other races or Asian groups. The 1990 census counted 6,908,638 Asians and also in 1990 the largest proportions of Asian American were Chinese (24 percent) so in 1990 the estimate Chinese population is 1,658,074 compared to the 2000 Chinese-American population above. We can conclude that the range for the increase in the Chinese population was 28%. So we may predict that the population of Chinese- American will grow 28% in the following decade. GEOGRAPHIC DISTRIBUTION More than three- quarters of Hispanics lived in the west or south. In 2000, 43.5 percent of Hispanics lived in the West and 32.8 percent lived in the South. The Northeast and Midwest accounted for 14.9 percent and 8.9 percent. Half of all Hispanics lived in just two states California and Texas. In 2000, 27.1 million, or 76.8 percent of Hispanics lived in the seven states with Hispanic populations of 1.0 million or more (California, Texas, New York, Florida, Illinois, Arizona, and New Jersey). Hispanics in California accounted for 11.0 million (31.1 percent) of the total Hispanic population in Texas accounted for 6.7 million (18.9 percent). The majority of the African American population lives in the South. According to Census 2000, people who reported African American, 54 percent lived in the South, 19 percent lived in the Midwest, 18 percent lived in the Northeast, and 10 percent lived in the West. The South had the largest African American Population, as well as the highest proportion of African American
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in its total population: 20 percent of all respondents in the South reported Black compared with 12 percent in the Northeast, 11 percent in the Midwest, and 6 percent in the West.
Figure 3.4: Percent Distribution of African-Amercican Population by Region: 2000 West South Midwest Northeast 0 percent
10 Northeast 20.7
20 Midwest 11.7
30
40 South 18.8
50
60
West 48.8
Source: U.S. Census Bureau, Census 2000 Summary File 1.
The ten states with the largest African Americans populations in 2000 were New York, California, Texas, Florida, Georgia, Illinois, North Carolina, Maryland, Michigan, and Louisiana. The majority of the Africa American population lives in the South. According to Census 2000, people who reported African American, 54 percent lived in the South, 19 percent lived in the Midwest, 18 percent lived in the Northeast, and 10 percent lived in the West. The South had the largest African American Population, as well as the highest proportion of African American in its total population: 20 percent of all respondents in the South reported Black compared with 12 percent in the Northeast, 11 percent in the Midwest, and 6 percent in the West. The ten states with the largest Black populations in 2000 were New York, California, Texas, Florida, Georgia, Illinois, North Carolina, Maryland, Michigan, and Louisiana.
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Figure 3.5: Percent Distribution of Chinese-Amercican Population by Region:2000 West South Midwest Northeast 0 percent
10 Northeast 20
20 Midwest 12
30
40 South 19
50
60
West 49
Source: U.S. Census Bureau, Census 2000 Summary File 1.
According to Census 2000, of all respondents who reported Asian, 49 percent lived in the
West, 20 percent lived in the Northeast, 19 percent lived in the South, and 12 percent lived in the Midwest. Moreover, Over half of all people who reported Asian lived in just three states. Over half (51 percent) of the Asian population lived in just three states: California, New York, and Hawaii. California, by far, had the largest Asian population (4.2 million), followed by New York (1.2 million), and Hawaii (0.7 million). The ten states with the largest Asian populations in 2000 were: California, New York, Hawaii, Texas, New Jersey, Illinois, Washington, Florida, Virginia, and Massachusetts The two places with the largest Asian populations were New York and Los Angeles. The 2000 Census showed that, of all places in the United States with 100,000 or more population, New York had the largest Asian population with 872,777, followed by Los Angeles with 407,444.
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According to 2000 census, all three segments-Hispanic, African American and Asian have a relatively small group of people in the north region. Among three regions, Hispanics are the largest ethnic group in the North region, having a total of 88,210 people. The population of Hispanic male is greater than its female population, so advertisement should be more focused on males.
number of people
Figure 3.6: Population of African-Americans/ Asian-Americans/Hispanic-Americans In Four Regions
4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 0
NORTH
MIDWEST
SOUTH
WEST
AA
868,210
954,928
2,891,150
427,364
HIS
1,154,985
798,138
2,688,510
3,487,581
462,161
288,876
422,654
945,962
ASIAN
Source: U.S. Census Bureau, Census 2000 Summary File 1.
All three segments: Hispanic, African American, Asian has a relatively small group of people in the Midwest region. African American has the largest population in Midwest. In the African American population, female population (611,783) is almost twice as much as the male population. So in Midwest, African American female is Nissan’s most important target segment. Hispanics are the largest ethnic group in the West region, having total of 3,487,581 people. Hispanic male population is larger than its female population so in west our main target should be Hispanic male. South region having the largest target total population (6002,314)
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when compared to the other 3 regions, more funds should be financed in this region since it has the largest population. African American is the largest ethnic group here. Among African Americans, female population is greater than male population, but not that much, so advertisement should focus on both males and females. In south region the main target audience is African American female. INDEX PER MULTICULTURAL SEGMENT The relationship between each Figure 4.1: Nissan Index Per Segment (Fall 2010)
be observed by analyzing the
160
134
140 120
segment and the Nissan brand can
124
134
106
indexes per segment as seen in 94
100
77
80
Figure 4.1. These indexes show how likely each segment is to buy
60
the Nissan brand. The index
40 20
statistics for Fall 2010 indicate that
0 African American Asian Hispanic
Other
White only
American Indian
Source: MRI Plus
African Americans are 6% more likely than the general population to purchase a Nissan vehicle due to
a 106 index for Fall 2010. The Asian segment is at a 134 index, thus 34% more likely, and the Hispanic population at 24% due to a 124 index. In comparison to other main ethnic segments, the targeted segments currently have some of the highest indexes for fall 2010, as can be seen in Figure 4.1. It is evident that Nissan has a solid following from multicultural consumers.
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Furthermore, the changes in indexes over a period of five years can be observed in Figure X. There has been a steady rise in the number of Nissan vehicle owners for the African American and Hispanic multicultural segments, as opposed to an unstable increase and decrease of the index for Asian consumers. This information shows that emphasis must be placed on developing loyalty within the Asian market because, although it is currently holds highest index, the segment’s behavior over time may be unpredictable. INDEX DEVELOPMENT – CHINESE-AMERICAN SEGMENT As mentioned above, indexes for the Chinese-American segment have been unstable for the past five years. For example, from spring 2005 to spring 2008 the index for this segment dropped by 54% from an index of 168 to that of 77. However, from spring 2008 to fall 2010 this number increased by 74% from an index of 77 to 134. There is also an outlier in the data for the spring of 2008 in which the index dropped by a full 56% over a period of a year. Although the index continues increasing, there has been an overall decrease of 20% over the last five years, which indicates that emphasis must be placed in maintaining a higher index for the ChineseAmerican segment. INDEX DEVELOPMENT – HISPANIC SEGMENT The Hispanic segment has been maintained the second highest in relation to indexes. The figures have been steady over the last five years with only a 14% decrease from 2005 to 2010. It must also be noted that from fall of 2007, this segment’s index demonstrates a steady increase, a total of 28% from 2007 to 2010. If the segment’s index continues to increase steadily, it should maintain an average of 2% increase per year, which would project an index of 138 in the year 2015 (see Table 4.1.)
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Table 4.1: Projected Index for Hispanic and African American Seg ment (based on a 2% and 1.66% increase per year respectively) Year 2011
Hispanic African A. Index Index 126 110
2012
129
113
2013
132
117
2014
135
121
2015
138
125
Source: MRI Plus
INDEX DEVELOPMENT – AFRICAN AMERICAN SEGMENT As previously shown in Figure 4.1, the African American segment is the multicultural target segment with the lowest index. It has also maintained the steadiest index numbers over the past five years with a small increase of 16%. The sharpest decrease can be seen from fall 2005 to spring 2006, when the figures dropped by 25%. From spring 2009 to fall of 2010, a slow but steady increase is evident. The index numbers maintain an average increase of 1.66% per half a year. If this increase continues, the prospect index for 2015 would be 125 (see Table 4.1.) INDEX DEVELOPMENT – RELATED FINDINGS From the index information that has been analyzed, it can be concluded that the African American and Hispanic segments have been the fastest growing. If the growth rates are maintained, the Hispanic segment will reach an index of 138, which will surpass all the current indexes. It is also evident that focus needs to be placed on maintaining a stable growth in the Chinese-American segment as it is unpredictable and very likely to drop quickly.
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Figure 4.2: Nissan Index Per Multicultural Segment (Spring 2005 - Fall 2010) 200 150
African American Asian
100
Hispanic
50 0
Spring Fall Spring Fall Spring Fall Spring Fall Spring Fall Spring Fall 2005 2005 2006 2006 2007 2007 2008 2008 2009 2009 2010 2010
Source: MRI Plus
MEDIA CONSUMPTION Another important factor of the target market is that of media consumption and what are the fastest and most effective ways of reaching the audience. Table 4.2: Media Consumption by Ethnicity TV Households (2010-2011) Internet Audience Average Monthly Cellphone minutes/person
Hispanic
African A.
Asian
13.4 mil.
14.1 mil
4.8 mil.
23.0 mil.
20.6 mil
6.2 mil.
826
1300
692
Source: The Nielsen Company
Table X is a small example of several media habits of each ethnic segment. The African American segment has the most TVs available per household. At 14.1 million, the African American population is much more exposed to television than Asians in the United States, who only have TV available in 4.8 million households. Furthermore, the Hispanic segment has a larger Internet audience at 23 million. Overall, the Asian segment does not have much access to
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television and Internet media usage, this indicates that advertising efforts should be focused on alternative media options. Table 4.3: Top Si x Media Outlets for Millennials Internet: Youtube Internet: Facebook Internet: Yahoo! Mail TV: MTV TV: Comedy Central TV: TBS
Total 70,480 85,088 68,960 38,883 50,187 67,262
Proj 18,443 18,144 12,157 12,769 12,124 10,204
% Across 26.2 21.3 17.6 32.8 24.2 15.2
Source: MRI Plus
Table X shows the top six media outlets for Millenials based on the number of population usage. This information along with the media availability per ethnic household can be used to determine which media outlet will be the most efficient to reach each segment. For example, all three multicultural segments have a higher Internet audience than available TV in their households. Therefore, a strategy would focus on the top visited websites for marketing and advertising efforts.
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QUALITATIVE RESEARCH
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METHODOLOGY The purpose of conducting qualitative research for this study was to attain further knowledge on consumer behavior in the automobile industry. This research focused primarily on the African-American population. Two African-American subjects participated in individual depth interviews. This interview method was chosen in order to get personal responses and eliminate pressure found within group settings. The interviewees built brief rapport with the participants, and proceeded with unbiased questions about the automobile industry. The two participants were not aware that Nissan was the client. Each interview was recorded, transcribed, and analyzed. In order to carry out a proper analysis of each subject’s responses, focus will be placed on the categories: attitude, awareness, and behavior. This will allow the researchers to understand what the subjects know about different car manufacturers, how they feel about each brand, and what factors take part in their purchasing decisions. The following information exposes the responses from the two subjects that were interviewed, and provides insight about consumer behavior in the auto industry. DESCRIPTION OF SUBJECTS AND LOCALE OF RESEARCH The in-depth interviews were with two subjects of the same ethnic group. The first interview was with Max. Max is a 20-year old, African-American male who is from Atlanta and is currently a student at the University of Miami. He is studying biomedical engineering. His interview took place in Richter Library in a reserved study room. The second participant was Marsha. Marsha is a 25-year old female who is also African-American. She is currently studying business at a local college in Miami. Her interview was conducted at her house located in Broward County. Max’s interview was approximately 20 minutes, and Marsha’s interview lasted 15 minutes.
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SUBJECT ONE – MAX The interview with subject one, Max, gave insight on his awareness, attitude, and behavior towards the automobile industry. Max had low awareness about car advertisements. He recalled a Ford commercial, but only remembered vague details about the setting and could not remember the vehicle model the ad was selling. Max did not mention American‐made cars during the remaining interview. The question that followed asked Max about his preference in cars. Max’s first car was a 2004 Cadillac CTS, and he currently drives a 2011 Honda Civic. When asked to name the first three brands that come to mind, he listed: Cadillac, BMW, and Honda. He described these brands as, “…luxury. Also, they seem very clean and efficient.” Max’s ideal car would be a sleek, black SUV, and include an AUX input, good gas mileage, automatic headlights, and black interior with wood grain; he believes Range Rover and BMW would satisfy his dream‐car desires. Based on his responses, he tends to associate luxury brands with quality. In addition, Max listed safety as being the most important factor in buying a car, then design, comfort, reliability, performance, warranty, and lastly, brand. Although he listed brand last, the cars he discussed in the interview show that he perceives higher‐end names as providing better cars. When Max answered questions about his Honda Civic, he focused on the modern designs and the efficient gas mileage. He did not mention price as a determining factor at all, but this could be due to his background and purchasing behavior. During Max’s interview, he did not say or act as if price was a critical factor when buying a car. Price may not play a strong role, because he chooses to lease instead of purchase, or may come from a wealthy family and may not have to worry about budgeting.
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His go‐to sources before leasing a car are Auto Trader.com and Google Search Engine. Overall, he seemed to emphasize gas mileage and design as being the most important features. His passion when expressing his love for his Honda Civic describes the car he is looking for. His ethnic group does not seem to influence his decisions, and consults the internet before taking action. SUBJECT TWO – MARSHA Marsha, subject two, is currently a Nissan vehicle owner. Her answers demonstrate what some of the most important aspects of car buying are to her and why Nissan was her vehicle of choice. In order to better understand her answers, they can be organized in a format that separates awareness, attitude, and behavior. For example, Marsha mentions several brands and commercials that show her top‐of‐mind awareness. When asked about each brand, she clearly remembers that “Zoom, zoom” are words that are directly related to Mazda. She also mentions a recent Ford Fusion advertisement that called her attention to the vehicle’s new shape and “technical features.” Her comments and repeated references to advertisements show that she pays attention to these and they affect her perception and what she remembers about each brand.
In addition, Marsha’s answers created emphasis on certain aspects of car buying and
her attitude towards it. She places a lot of emphasis on technical features such as having an mp3 and navigation option. She also makes several references to the importance of space and being able to have features that help in a family vehicle. Some other features she deems important are reliability, performance, design, and gas mileage. Most importantly, she makes it very clear that she must feel very close to her car. She considers her car a “best friend,” which is even referenced in the way she named her car. She mentions her name is
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“Mea. Because it’s just me and my friend. Me, myself, and her.” This shows how close she feels to her car, which ultimately will make her feel close to the brand, and eventually lead her to develop strong brand loyalty.
As far as behavior, Marsha’s awareness and attitude toward vehicles and vehicle
brands directly affect her purchasing behavior. She makes several references to the way she utilizes advertisements as information: “First, I look at the TV advertisement, then I look online.” From her answers, it is evident that she has a kind of buying ritual when she purchases a car. The advertisements affect the options she considers, then she educates herself with information online from the brand’s website and secondary sites such as “Kelley Blue Book.” She also mentions that she does this so she has enough information before she visits a car dealership. This way, she knows if the dealer is offering her a good deal on each vehicle. It is also important to notice that she is sure she will be looking for a new car in a year or two and she will be leasing it. RELATED FINDINGS
Marsha’s knowledge of Nissan is definitely different from Max’s because she has
owned two Nissan vehicles as opposed to Max’s brand loyalty to Honda. Overall, both interviews demonstrate the importance of online research prior to purchasing a vehicle. Both interviewees mentioned how important it is for them to educate themselves about prices and features on sites such as the brand site, Kelley Blue Book, Auto Trader, and even Google.
Additionally, both respondents placed emphasis on the importance of vehicle
features such as an auxiliary connection, and GPS features. This may suggest that both respondents take their time not only researching about the brand, but also about each
36
specific feature each model has to offer. Another important finding from these in‐depth interviews was the fact that both respondents felt very close to their car. They both feel passionate about the vehicle they drive and the actual brand has become a part of their identity. Neither one of them made any specific references to price when it comes to their purchasing decision.
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QUANTITATIVE RESEARCH
38
METHODOLOGY In addition to qualitative research, quantitative research was used as to gather primary data. In this case, the data-collection method used was an online data questionnaire issued via Facebook to an audience sample of 523 respondents from the University of Miami. CURRENT BRAND OWNED Figure 5.1 shows a basic overview of the current brand owned per segment group. Overall, it can be seen that the preferred manufacturer is currently Toyota, with Honda as the second preferred choice, and Nissan as third. As far as the African-American respondents, 27.27% of the respondents currently own a Toyota, compared to only 4.55% who own a Nissan. Furthermore, the highest percentage of the Asian American respondents currently owns a BMW. This can be seen, as 15.91% of the Asian American survey respondents currently own a vehicle manufactured by this brand. Finally, as per the survey results, the Hispanic American group is dominated by Toyota. 15.97% of Hispanic American respondents currently own this brand of vehicle. Figure 5.1: Current Brand Owned Per Ethnici ty Question 3: What brand is your current car?
Percentage of respondents
Caucasian
Hispanic
African-American
Asian or Asian American
Total
30 25 20 15 10 5 0
Manufacturer Name
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In order to better understand consumers’ buying process and the reasoning behind their preference for Toyota over Nissan, statistical data from the online surveys is be analyzed below. CAR DEALERSHIP EXPERIENCE In regards to the car dealership experience, the most important factor found for both Hispanic Americans and African-Americans is customer service. Figure 5.2 shows that 62.29% of Hispanic respondents and 62.5% of African-American respondents selected “customer service” as an extremely important factor. On the other hand, the highest percentage of Asian American respondents was found in the “selection of car models.” Approximately 64.18% of Asian American respondents selected this as a very important factor in comparison to a percentage in the mid 30’s by Hispanic and African-American respondents. These results may indicate that potential customers in the Hispanic and African-American segments focus more on a personal car-buying experience. Thus, more emphasis should be placed on creating a message they can relate to on a personal level and perhaps even people they could speak to about Nissan products. The results also indicate that Asian Americans Americans are more focused on the actual features of the product. Because they focus more on the selection of models, they might spend more time obtaining information on product features and comparing them to those of other products. Thus, when marketing toward Asian Americans, Nissan should focus on providing product information including features and how they compare to other products they might be taking into consideration.
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Customer service
Dealership reputation
Dealership location
Selection of car models
Easy financing
Cleanliness
Amenities
Figure 5.2: Dealership Experience Very Important
Extremely Important
Very Important
Extremely Important
Very Important
Extremely Important
Very Important
Extremely Important
Very Important
Extremely Important
Very Important
Extremely Important
Very Important
Extremely Important 0 Asian American
20
African‐American
40
60
Hispanic
Caucasian
80
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BRAND PREFERENCE After analyzing the survey data it is apparent in Figure 5.3: Brand Preference that the sample population prefers Honda as their most liked brand, followed by a tie between Toyota and Nissan. Honda received about 27% percent of responses while Nissan had approximately 24%. For the choice of least liked brand, Hyundai received approximately 43% of the responses and Ford followed with 23%. Figure 5.3: Brand Preference 300
Responses
250 200 150 100 50 0 Ford
Honda 1
Hyundai 2
3
4
Nissan
Toyota
5
(1= Like Most to 5=Like Least)
Based on the responses from the survey noted in Figure 5.4: “Plan to Spend on Next Car”, we have found that for the next car purchase 32% of respondents said that they were willing to pay between $10-20k. Surprisingly, 28% said they were willing to spend between $20-30k. This was odd as the sample taken to estimate the target segment is generally either still in college or in the early stages of their careers. This may come due to the fact that the country is recovering from an economic recession, and that people are now becoming more confident and willing to spend this much money on automobiles.
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Responses
Figure 5.4: Plan to Spend on Next Car 35% 30% 25% 20% 15% 10% 5% 0% Under Between Between Between More than $10,000 $10,000 and $20,000 and $30,000 and $40,000 $20,000 $30,000 $40,000
MEDIA USAGE Data shown in Figure 5.5: “Media Usage” highlights that among the sample, approximately 85% use the Internet very often. It is to be expected due to the rise of social media and mobile devices that have been launched over the last decade. We found that about 86% of the respondents own a smart phone. Due to the high percent of Internet use it would be very valuable for Nissan to work on their online presence by increasing social media usage, viral marketing and search engine optimization. Nearly 35% of the respondents watch cable television and about 30% watch network television very often. As for radio, magazines, and newspapers the majority of answers fell within a range of 28-34% of respondents only use each sometimes.
Figure 5.5: Media Usage
Responses
Very often
Sometimes
Rarely
Never
500 400 300 200 100 0 Network television (ABC, CBS, NBC, FOX)
Quite Often
Cable television
Magazines Newspapers
Radio
Internet
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Among the different sites and platforms listed in Figure 5.6: “Web/Application Usage”, Facebook received 61% of votes for being used “several times per day.” Next 38% also responded that they used mobile applications on their phones several times per day. YouTube has its highest ratings for used “several times per week” with 28%. The media with the highest ratings for “never” use include: Myspace (91%), Hulu (51%), Netflix (46%), and Game Consoles (46%). Figure 5.6: Web/Application Usuage
Responses
Never Weekly Several times a day
Monthly Several times a week
Several times a month Daily
600 400 200 0
BRAND POSITIONING As analyzing the general responses in Figures 5.7-5.9 (Nissan, Honda and Toyota’s ratings) in eleven different categories there are many interesting finds that can be inferred about each brand’s positioning in the consumer mind. In the categories “Reputation” and “Quality”, Toyota and Honda each score over 30% as excellent while Nissan scored only 16%. However, Nissan did score 54% as good, which may show that consumers have a positive opinion about the company but that they still favor its competitors. In the “Style/Design” category Nissan is the only brand that broke 20% of the ratings as excellent and had 45% as good. This illustrates that consumers rate Nissan more positively than its competition in this category. In the category of
44
“Innovation”, in the excellent ratings Nissan falls just short with only 13% compared to its competition that ranges between 17-19%. In the good ratings, all three companies fall between 36-39% with Nissan has the highest rated which may signify consumers positive feelings for the company but that there is room for improvement. In the categories of “Affordability”, “Safety”, and “Reliability” Honda and Toyota in the excellent ratings broke 30% for each category while Nissan ranges between 15-21%. However in the good ratings, Nissan consistently clears 40% of the ratings in each category while Toyota and Honda dip in each. This shows that consumers have a positive image of Nissan in each category but its competition is positioned higher as the leader of those categories in consumer’s minds. As for the categories “Youthfulness” and “Luxury” there is no significant difference between the three brands. For the category “Environmentally friendly” Honda and Toyota scored between 1722% respectively on excellent ratings, yet Nissan only received 11%. Taking a look at the good ratings Toyota is perceived to be the most environmentally friendly with 38% percent while both Honda and Nissan range between 27-31%. This shows that consumers do not believe that Nissan is positioned high on environmentally friendliness compared to Toyota, which is well known for their hybrid models like the Prius. Figure 5.7: Nissan Ratings Excellent
Good
Neutral
Fair
Poor
60% 50% 40% 30% 20% 10% 0%
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Figure 5.8: Honda Ratings Excellent
Good
Neutral
Fair
Poor
50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0%
Figure 5.9: Toyota Ratings Excellent
Good
Neutral
Fair
Poor
50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0%
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FUTURE RECOMMENDATIONS
47
While there were a few limitations to the research gathered, there were many observations in both the quantitative and qualitative that offered insights that can help Nissan appeal more to the multicultural targets. QUALITATIVE INSIGHTS The in-depth interviews showed that they subjects spent a long time in the Knowledge stage of the Buyer Readiness model as each indicated how important research was before buying a car. They did plenty of online research on the company site, Kelley Blue Book, and Auto trader so it may be valuable for Nissan to take some time and put themselves in the consumer’s shoes. The first way to do so is to explore these sites themselves and read the various reviews for their cars from past consumers to see what comments are being said about the brand. Also, the respondents mentioned how much time they went through identifying each specific feature mentioned on the sites and comparing them to competitors. It may prove beneficial to run an experiment to see how consumers are affected by the online comparisons. QUANTITATIVE INSIGHTS The first observation came from examining that data on Dealership Experience where for Hispanic and African-Americans focused on the importance of customer service, while Asian Americans indicated that they focused more on selection of car models. We recommend that Nissan should spend some time observing various dealerships near their target markets to make sure that they present their vehicles as perfect for the needs of 18-29 year olds in this in the multicultural group. The next observation came from the data about media usage where we found that 85% used the Internet several times per day and 86% owned a smart phone. We believe Nissan should work on their online presence by increasing social media usage, search engine optimization and
Â
48
viral marketing. In particular, it would be effective to create a campaign that reaches their targets via Facebook and YouTube. In conjunction with the findings about dealerships, it would have to be a campaign that attracts the target directly to the point of sale. Finally, we found that consumers perceive Nissan very high in the Style/Design category and low in the environmental category. It is consistently rated as good in these categories: Reputation, Quality, Affordability, Safety, and Reliability. From these ratings we can offer two recommendations: 1) focus more of their efforts on positioning cars like the Altima and Maxima which are more renowned as stylish and affordable 2) use their reputation for reliability and affordable work to reposition their new models like the Leaf and Rogue as economic while maintaining style.
Â
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APPENDIX A: IN-DEPTH INTERVIEW TRANSCRIPTS
50
TRANSCRIPT DESCRIPTIONS Subject 1:
Max, 20 years old, African-American male, biomedical engineering student.
Subject 2:
Marsha, 25 years old, African-American female, business student.
Key Questions: -What car do you currently own? -When you hear about auto manufacturing, what three brands first come to your mind? -What source would you normally get your information from when planning to buy a car? -Which brand would you say is currently the most innovative?
Â
51
TRANSCRIPT 1 [Alexandria]:
Hi Max, how’s your day going so far?
[Max]:
Hey Alex, it’s good. Ready for winter break, though.
[A]:
I agree. We just have finals and then break! I know you’re busy, so I want to thank you for participating in this research study. I’m sure you’ll enjoy this topic, since it involves cars.
[M]:
[Laughs] You know how much I love cars.
[A]:
Yes, I know you have a huge obsession. Are you ready to help a good friend out?
[M]:
Definitely. Let’s get started.
[A]:
Okay. Can you recall or describe any car advertisements that have captured your attention recently?
[M]:
Let me think. [Pause]. I don’t watch that much TV, but I can vaguely recall the Ford commercial. I believe it involved Revolutionary War with Americans in pick-up trucks.
[A]:
Okay, good. So when you hear about auto manufacturing, what three brands first come to your mind?
[M]:
The first three that come to mind would have to be Cadillac, BMW, and Honda for sure.
[A]:
Very nice. What words would you associate those three brands with? You can be as descriptive as you want.
[M]:
[Pause]. Hmm. I’d have to say luxury. Also, they seem very clean and efficient.
[A]:
Perfect. Okay, what source would you normally get your information from when planning to buy a car?
[M]:
Auto Trader and Google… Google is my man.
[A]:
[Laughs]. Alright, now I’m going to give you a list of potential factors you can look for when buying a car. I want you to rank them in order of importance. One being of the highest importance, and seven being the lowest. Then, could you read it out to me?
52
[M]:
Okay. [Examines list and numbers each factor]. Everything on here seems pretty important, but I put safety first. For two, I put design. Three: Comfort. Four: reliability. Five: Performance. Six: Warranty. And seven: brand.
[A]:
I know that was a long list. We’re almost done though. Now, going along with that, how would you describe your ideal car?
[M]:
I like this question. My dream car would be a four-door SUV. It would be black on black, have leather interior with wood grain. I’d want it to have automatic headlights and get great gas mileage. Of course it would have to include an AUX input; I need my music.
[A]:
Good descriptions. So which brand most likely would fit those descriptions of your ideal car?
[M]:
Probably a Range Rover or BMW; aside from the gas mileage part.
[A]:
What car do you currently own?
[M]:
A 2011 Honda Civic.
[A]:
Do you enjoy driving your Civic?
[M]:
Yes. I love it.
[A]:
Are you proud to drive it?
[M]:
Yea, it’s one of my prized possessions.
[A]:
Okay, there’s one more list I want you to look at. [Hand sheet of paper]. After you read all of them, which one would you say is currently the most innovative?
[M]:
Honda.
[A]:
Coincidence? [Laughs]. Just three more questions! So before you bought your Honda Civic, what car did you own before that?
[M]:
I used to have a 2004 Cadillac CTS. It was champagne colored.
[A]:
Nice. Are you more likely to lease a car or buy it?
[M]:
Lease one.
[A]:
Final question: Do you feel your ethnic group is represented in automobile advertisements?
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[M]:
No, not really.
[A]:
Alright, those were all of the questions I had for you. Thank you again for taking time to do this. I really appreciate it.
[M]:
Anytime. Good luck with your study.
Â
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TRANSCRIPT 2 [Aaron]:
Can you please state your name and your age?
[Marsha]:
Hi I am Marsha, and I’m 25.
[A]:
Can you also state your ethnicity?
[M]:
African-American.
[A]:
Okay, so like I mentioned earlier, this is going to be an interview about automobile preferences.
[M]:
Okay.
[A]:
Are you okay with it being recorded?
[M]:
Yes.
[A]:
Okay, so first question: What car do you currently drive?
[M]:
Nissan Murano.
[A]:
What’s the make and model?
[M]:
2004 Nissan Murano.
[A]:
Is this your first car?
[M]:
No.
[A]:
What are some other cars you’ve driven in the past?
[M]:
Honda Accord, Ford Escape, Nissan Pathfinder, Mercedes Benz, Mazda 2005
[A]:
Okay. Let’s get to the next question. Can you recall or describe any car advertisements that have caught your attention lately?
[M]:
Ah yes, the Ford Fusion. The new shape interested me. I found interest in the new shape of the Ford and all of the technical features that come with the car, like the mp3 player. You can, you know, hook your Ipod to it.
[A]:
Is that a feature you like to have in cars? An mp3 Option?
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[M]:
No. I’d like to have an option with navigation, so I don’t get lost when I’m driving the distances. And a car that can tell me where the nearest, best deal is for retail stores.
[A]:
Okay, when you think about auto manufacturing, what three brands first come to mind?
[M]:
Cars?
[A]:
Yes.
[M]:
Nissan, Toyota, and Mazda.
[A]:
What are some words you might associate with these brands?
[M]:
Mazda, the words they always use are, “Zoom, zoom, zoom.” Uh, Toyota, don’t remember what those words are. Nissan… [Pause] I don’t remember what the words are for Nissan that they use.
[A]:
That’s fine. What are some words to characterize the brands?
[M]:
Words to characterize the brands? Well.., [Pause] With Mazda, some key words are…
[A]:
Well it doesn’t have to be key words. Just the words you think of when you think of the brands.
[M]:
Oh okay. Well, Nissan I always think that it’s a sleek look. Nice shape, nice body. For Toyota, uh, what’s the word? Characters?
[A]:
Any way that you may feel about the brand.
[M]:
For Nissan and Toyota and Mazda, I feel like those are the best foreign cars out there. They give you good mileage for gas, and they are very convenient. Great sport utility vehicles in the Nissan brand. In Toyota, they offer a nice family car. I think of family always riding in that vehicle. Mazda, I always think of college kids running around. Probably coming from the movies or joy riding in it.
[A]: why?
Out of all of the cars you’ve owned, which one is your favorite and
[M]:
My favorite vehicle, I must say, is my Nissan Murano and my Nissan Pathfinder. Great sport-utility vehicles. Since I have a family, it’s a great vehicle to put everything in there. Everything in the house can fit in that car. Nice leather seats, great sound system. The look is just beautiful.
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[A]:
Okay when you plan on buying a car, where do you usually look for your information?
[M]:
I look online, on the dealership’s website, I look at Kelley Blue Book. What else. [Pause] I usually go online to the dealerships themselves and look at the inventory.
[A]:
When you look at the dealerships’ websites, do you think those cars are current? Like you’ll find those cars on the lot?
[M]:
Yes.
[A]:
Alright, I’m going to name a couple of features, and I just want to ask you to rank them in the order of importance when you’re looking for a car.
[M]:
Okay.
[A]:
So the features are: brand, design, price, warranty, comfort, reliability, safety, and performance. If you could just rank the top four that you look for in a car.
[M]:
Reliability, performance, design, and the brand.
[A]:
Okay. How would you describe your ideal car?
[M]:
Oh wow. My ideal car would have to be comfortable and reliable. It has to look good. It has all of the features that I’m looking for in a vehicle. Great on gas. That’s it.
[A]:
Okay. So among the following brands Toyota, Nissan, Hyundai, Ford, and Chevy, do you think any of those you’d be more likely to find your ideal car from your experience?
[M]:
Oh yea. Definitely. Out of those choices, it would be Nissan first, then Toyota. Not too crazy about the American cars. Hyundai, ehh, not too knowledgeable about Hyundai’s brand. But I’m definitely knowledgeable about Nissan. They’ve been around for years. I’ve had no complaints with these cars.
[A]:
Do you enjoy driving your current car?
[M]:
Oh yes. I love it. Every time I go into my vehicle, it feels like the very first day when I picked her up.
[A]:
Okay, would you also say that you’re proud to drive your car?
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[M]:
Oh definitely, I’m so proud of being in my car. We’re best friends. Me and my car are best friends actually.
[A]:
Do you have a name for your car? Like a pet name for it?
[M]:
My name for it is Mea. Because it’s just me and my friend. Me, Myself and her.
[A]: Okay. Of all these brands, which do you believe is more innovative? [M]:
Nissan, most innovative. I believe in that brand and its quality, and it’s innovation.
[A]: two?
Okay, and are you looking to buy a new car in say maybe a year or
[M]:
Oh yes. Definitely.
[A]:
Are you more likely to lease it or just buy it?
[M]:
I would look to leasing it.
[A]:
Okay, how do you currently use your car?
[M]:
Oh I use it for everything, whether it’s going to Orlando with the family, going out to dinner, driving to work, driving to school. My car, like I said earlier, is like my best friend and she’s everywhere I am.
[A]: Do you feel your ethnic group is represented in automobile advertisement? [M]:
Yes I do. And in the future, I hope that my ethnic group will be involved more, and involved more in their advertising, because I believe we are the ones that are the majority in ownership of these vehicles. I would like to see more in advertisement, whether its print ads, radio, or commercials.
[A]:
Okay, speaking of ads, when you buy new products in general, how would you describe your process? For instance, does a TV ad affect your opinion?
[M]:
Yes a television ad definitely affects my opinion from beginning to end. When I see a commercial of a new vehicle and how it’s being represented, how its features are shown, you know that TV commercials shows all of the aspects of the vehicle, it shows the reliability, it shows the comfort in the vehicle. [Pause]. The TV ad definitely gets my attention first, before the print ad or the radio ad. So just being able to see or envision the entire the ad on TV gets my attention.
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[A]:
Okay say when you visit dealerships, do you like to test drive cars or visit multiple dealerships to compare? How would you feel about that process?
[M]:
Well I do my research first. First, I look at the TV advertisement, then I look online so that when I do walk into a dealership or two, I know pretty much what to ask questions on so that I’m not given the run around by these dealers who just want to make money off of you. I educate myself first by doing the research and conducting research. Then, I walk into the dealership or two, not too many three at most. Once I feel comfortable with that dealer and that he is offering me a good deal on that vehicle, that’s what helps me make my decision on a purchase.
[A]:
One more question. Can you describe what’s your most trusted source on these vehicles?
[M]:
My most trusted source is the research I conduct online. The consumer reports on the vehicle, the history of the vehicle. So my most trusted resource is online and the different reviews from the experts about the vehicles.
[A]:
Okay, thank you for your time.
[M]:
Oh you’re welcome. Thank you.
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APPENDIX B: ONLINE SURVEY QUESTIONNAIRE
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ONLINE SURVEY 1. Do you currently own or lease a car? Yes No
2. What best describes the type of car you currently own? Coupe Sedan Convertible Small SUV Mid-size SUV Large SUV Crossover Sports car Truck Minivan Other (Please specify)
3. What brand is your current car?
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Acura Audi BMW Chevrolet Fiat Ford Honda Hyundai Infiniti Jeep Kia Lexus Mazda Mercedes Mini Cooper Mitsubishi Nissan Scion Subaru Toyota
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Volkswagen Volvo Other (Please specify)
4. Is your car a hybrid model? Yes No
5. How long have you been driving your current car? Less than a year 1-3 years 4-5 years 6-8 years More than 8 years
6. When do you plan to purchase your next car? This year In next 1-3 years More than 3 years from now
7. Do you plan to purchase or lease a new car or a used car?
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New car Used car I’m not sure yet
8. How much do you plan to spend on your next car? Under $10,000 Between $10,000 and $20,000 Between $20,000 and $30,000 Between $30,000 and $40,000 More than $40,000
9. If you were to purchase a car right now, what are the top 5 car brands you would consider? Brand 1 Brand 2 Brand 3 Brand 4 Brand 5
10. Please rank the following car brands in order of your preference (drag and drop, 1=like most, 5 = like least) Ford
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Honda Hyundai Nissan Toyota
11. How important are the following in terms of your car preference? Extremely Important
Neither Important Very Important
nor Important
Very
Not at all
Unimportant Important
Brand quality Brand reputation Customer services Energy efficiency Innovative car Features/technology Gas mileage Comfort/size Power/speed Price Durability Safety Exterior design Â
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Storage capacity
12. How important are the following in terms of your experience at the car dealership? Extremely Important
Neither Important Very Important
nor Important
Very
Not at all
Unimportant Important
Customer services Dealership reputation Selection of Car models Easy financing
Cleanliness Dealership amenities e.g., Free Wi-Fi, etc.)
13. How important are the following sources when you're researching a car purchase? Extremely Important
Neither Important Very Important
nor Important
Very
Not at all
Unimportant Important
Car companies’ Website Individual car dealers’ Website
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Car comparison Website (e.g., Edmunds.com) Consumer Reports Auto magazines Car advertising Dealership visits Your parents Your friends Other (Please specify)
13. Please rate Nissan on the following: Excellent
Good
Neutral
Fair
Poor
Reputation Quality Style/Design Performance Innovation Affordability Safety Reliability Youthfulness Â
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Luxury Environmental Friendliness
13. Please rate Honda on the following: Excellent
Good
Neutral
Fair
Poor
Reputation Quality Style/Design Performance Innovation Affordability Safety Reliability Youthfulness Luxury Environmental Friendliness
13. Please rate Toyota on the following:
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Excellent
Good
Neutral
Fair
Poor
Reputation Quality Style/Design Performance Innovation Affordability Safety Reliability Youthfulness Luxury Environmental Friendliness
14. Please describe each of those brands in one word Nissan Honda Toyota
15. How much do you think Nissan targets your age group? Very much
Â
Not at all
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16. How much do you think Nissan targets your Ethnicity Very much
Not at all
17. How often do you use the following media? Very often
Quite often
Sometimes
Rarely
Never
Network television ABC,CBS,NBC,FOX Cable television Magazines Newspapers Radio Internet
18. Do you have a Smartphone? Yes No
19. How often do you use the following? Several times Never
Monthly
a month
Several Weekly times a week
Several Daily
times a day
Facebook Â
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Twitter MySpace You Tube Hulu Pandora Netflix Mobile applications On my phone Game consoles (Xbox, Wii Playstation)
20. What is your gender? Male Female
21. What is your age? Younger than 18 18-24 12-29
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30-34 35-44 45+
22. What region of the Untied States are you from? Northeast Mid-Atlantic Southeast Southwest West Pacific Northwest Midwest I’m not from the United States.
23. What country are you from?
24. What is your ethnicity? Caucasian Hispanic African-American Asian or Asian American
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Pacific Islander Other (Please specify)
25. If you’re Hispanic, what is your particular nationality? South American Central American (non-Mexican) Mexican Puerto Rican Spanish Other (Please specify)
26. If you’re Asian or Asian American, what is your particular nationality? Chinese Filipino Japanese Taiwanese Vietnamese Korean Other (Please specify)
27. In which languages are you fluent (check all that apply)?
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English Spanish Portuguese French Mandarin Cantonese Creole Other (Please specify)
28. In what language do you most prefer to receive printed news, advertisements, etc.? English Spanish Portuguese French Mandarin Cantonese Creole Other (Please specify)
29. In what language do you most prefer to watch entertainment media (e.g., TV, movies)? English Â
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Spanish Portuguese French Mandarin Cantonese Creole
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References Census Bureau Home Page. Web. 18 Sept. 2011. <http://www.census.gov/>. â&#x20AC;&#x153;Auto Alliance." Auto Alliance: Home. The Alliance of Automobile Manufacturers. Web. 19 Nov. 2011. <http://www.autoalliance.org/index.cfm?objectid=7C1E2CF0-889211E0-A62C000C296BA163>. "Average Prices of Selected Fuels and Electricity." The 2012 Statistical Abstract. U.S. Census Bureau. U.S. Census Bureau. Web. 19 Nov. 2011. <http://www.census.gov/compendia/statab/cats/prices/fuel_prices.html>. Blair, Kelsey. "Social Media Influences Automotive Industry According to New Study - SocialTimes.com." SocialTimes.com - Your Social Media Source. Social Times, 11 Oct. 2011. Web. 19 Nov. 2011. <http://socialtimes.com/social-media-influencesautomotive-industry-according-to-new-study_b80811>. Doggett, Scott, and Danny King. "March U.S. Hybrid Sales Rise 15 Percent But Lag Overall Vehicle Growth - AutoObserver." Automotive Industry News, Automotive News, AutoObserver, Detroit, Edmunds - AutoObserver. Edmunds, 2 Apr. 2010. Web. 19 Nov. 2011. <http://www.autoobserver.com/2010/04/march-us-hybrid-sales-rise-15percent-but-lag-overall-vehicle-growth.html>. "Japan." Office of the United States Trade Representative. Executive Office of the President. Web. 19 Nov. 2011. <http://www.ustr.gov/countries-regions/japan-koreaapec/japan>. Paradis, Tim. "The Statistics Of The Great Recession." Breaking News and Opinion on The Huffington Post. Huffington Post, 10 Oct. 2009. Web. 19 Nov. 2011. <http://www.huffingtonpost.com/2009/10/10/the-statistics-of-the-gre_n_316548.html>. Â
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"World's 10 Largest Auto Markets." CNBC.com. CNBC. Web. 19 Nov. 2011. <http://www.cnbc.com/id/44481705/World_s_10_Largest_Auto_Markets?slide=9>. Hyundai annual financial summary. (2011). Retrieved from <http://worldwide.hyundai.com/company-overview/investor-relations/financial-informationannual.html> Nissan motor co ads. (n.d.). Retrieved from <http://iiiprxy.library.miami.edu:3118/NASApp/NetAdvantage/simpleSearchRun.do?ControlNa me=CompaniesSimpleSearch> Honda ads. (n.d.). <http://iiiprxy.library.miami.edu:3118/NASApp/NetAdvantage/simpleSearchRun.do?ControlNa me=CompaniesSimpleSearch> Toyota ads. (n.d.). Retrieved from <http://iiiprxy.library.miami.edu:3118/NASApp/NetAdvantage/simpleSearchRun.do?ControlNa me=CompaniesSimpleSearch> Ford motor. (n.d.). Retrieved from <http://iiiprxy.library.miami.edu:3118/NASApp/NetAdvantage/simpleSearchRun.do?ControlNa me=CompaniesSimpleSearch> GM annual income. (n.d.). Retrieved from <http://iiiprxy.library.miami.edu:3118/NASApp/NetAdvantage/showExcelAnalytics.do> National Student Advertising Competition. (2011) Nissan Case Study. Retrieved 25 September 2011 <htp://www.aaf.org/images/public/aaf_content/images/nsac12/NSAC_CaseStudy_Nissan.pdf>
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