Based on this, Nissan Company needs to implement effective market communication to neutralize this negative reputation especially in its new market in Britain. Nissan Company is also faced by the problem of increased globalization; Nissan Company is located in a region with high rates of automotive production and this negatively impacts on the firm’s market influence (Levitt 1983, 432). The overall effect has led to the production of low cost vehicles amid stiff global market competition. Another challenge faced by Nissan is product differentiation and low brand reputation; competition for consumers.
Vehicle buyers have more choices from wide range of similar functional and performance cars. For instance, Nissan Company will face stiff competition against other car manufacturing firms in Europe that have similar car models such as the Infiniti model QX30. In order to increase the market share, maximize price and maintain competitiveness in the market, Nissan Company must offer differentiated products and use effective market communication tactics to enhance improved brand reputation (Doole 2004, 123). Nissan has a strong brand reputation across the globe. However, in the recent past Nissan suffered bad reputation due to defective airbags on the company’s previous car brand.
This negative reputation is detrimental to the firm as it seeks to venture new market in Europe with Infiniti brand QX30.Evidence indicates that Nissan’s Infiniti brand has low brand reputation against global brands such as Audi A3, BMW 1-series and Mercedes Benz. Good marketing communication mix helps increase brand awareness. Brand awareness means consumers translate information into perceptions about the product’s attributes and positions it in the larger market (Kotler 2000, 314). Increasing market share and enhancing brand awareness is not easy especially in a competitive automobile industry found in Europe.
Nissan Company is aware of the low brand awareness and market competition in Europe and has embarked in aggressive global marketing strategy in order to improve its brand awareness and highlight its product superiority. According to Belch & Belch (2004, 232), there is no remedy of improving brand awareness than having an effective marketing communication in force. Any business seeking to cut a niche in a new market rivaled with competitors requires a
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