Nissan Case Analysis
CASE ANALYSIS: RENEWING THE NISSAN BRAND
The case analyzes the renewal of Nissan as a brand. It poses two important questions at the end:
Could the process that Nissan followed for its renewal that had yielded positive results submit to some cost cutting?
This case analysis tries to answer these questions while simultaneously analyzing the renewal of Nissan as a brand.
In 1999, when Ghosn took over as COO, the company, the previous year’s sales were around 550000 which was one of the lowest figures in 15 years. The company was in its worst phase in terms of profitability (based on Exhibit 3). He devised a revival plan based on an all round improvement in relation to the brand (renewing Nissan’s brand identity) and on delivering consistently at every customer touch-point (Purchase, Pre-purchase, Post-purchase). Nissan at that point of time was positioned as the third-choice Japanese brand behind Toyota and Honda. The successful launches of Nissan Maxima, Altima, and Xterra proved that their overall strategy at that point of time was working as planned, if not better.
Nissan’s Brand Pyramid played a key role in this renewal. The Brand Pyramid is a visual representation of Nissan’s ‘DNA’ and this was communicated effectively both internally and externally. This pyramid identified the functions and principles of the brand at the base. At the top of the pyramid is the Brand Personality (Bold, Thoughtful). The middle of the pyramid is customer-centric, identifying Core Customer Values (set’s own standards, maximizes life) and Emotional Rewards to the customer (imaginatively designed with ‘me’ in mind, evokes a passionate total car experience). This pyramid effectively communicated what factors Nissan would be concentrating on as a brand. In order to answer the question about cost-cutting in the process, one must understand Nissan’s revival and the key elements this revival was based on.
The revival of the brand and the company was based on the main point that Nissan
The case analyzes the renewal of Nissan as a brand. It poses two important questions at the end:
Could the process that Nissan followed for its renewal that had yielded positive results submit to some cost cutting?
This case analysis tries to answer these questions while simultaneously analyzing the renewal of Nissan as a brand.
In 1999, when Ghosn took over as COO, the company, the previous year’s sales were around 550000 which was one of the lowest figures in 15 years. The company was in its worst phase in terms of profitability (based on Exhibit 3). He devised a revival plan based on an all round improvement in relation to the brand (renewing Nissan’s brand identity) and on delivering consistently at every customer touch-point (Purchase, Pre-purchase, Post-purchase). Nissan at that point of time was positioned as the third-choice Japanese brand behind Toyota and Honda. The successful launches of Nissan Maxima, Altima, and Xterra proved that their overall strategy at that point of time was working as planned, if not better.
Nissan’s Brand Pyramid played a key role in this renewal. The Brand Pyramid is a visual representation of Nissan’s ‘DNA’ and this was communicated effectively both internally and externally. This pyramid identified the functions and principles of the brand at the base. At the top of the pyramid is the Brand Personality (Bold, Thoughtful). The middle of the pyramid is customer-centric, identifying Core Customer Values (set’s own standards, maximizes life) and Emotional Rewards to the customer (imaginatively designed with ‘me’ in mind, evokes a passionate total car experience). This pyramid effectively communicated what factors Nissan would be concentrating on as a brand. In order to answer the question about cost-cutting in the process, one must understand Nissan’s revival and the key elements this revival was based on.
The revival of the brand and the company was based on the main point that Nissan