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The purpose of this report is to compare target audience of two brands- Nissan and Toyota. Nissan Motors is a Japanese multinational automobile manufacturer headquartered in Yokohama, Japan. They current has 131,461 employees and has total asset of around $147.3 billion as reported in 2021 (Statista, 2021). On the other hand, Toyota is also a Japanese multinational company. They have 366,283 employees and a total asset of $585.311 billion as reported in 2021 (Macrotrends, 2023). Based on a framework- 4Ps (Product, Price, Place and Promotion), both the organization shall be compared to explore the product of the company.
Both the companies are prominent player in the automotive industry and they target various consumer group with specific demographics and preferences as follows-
|
Factors |
Nissan |
Toyota |
|
Age |
They usually target younger group with age 25 years to 45 years (Bhasin, 2017). Models like Nissan Altima, Nissan Sentra are designed with advance technology and contemporary styling which is appealing to the young group. |
They target broader age group however has larger market share among older consumers between 35 years to 65 years due to fuel efficiency and reliability of the models (Nkomo, 2019). |
|
Gender |
They promote gender neutral marketing. |
They usually lean towards male for some models like SUVs, trucks and others. |
|
Personal Disposable Income |
They target audience with medium to high disposable income and offers affordable to premium range vehicle (Hartoyo et al., 2023). |
They are known for affordability. They target middle income group customers. |
|
Social Class |
They have diverse vehicles for wider social class including luxury vehicles such as Infinity and others. |
They concentrate on middle class with their models like Camry, Corolla and others. |
|
Level of Education |
They target educated customers due to their emphasis on innovation and technology. |
Caters to customers with diverse educational level. |
|
Family Life Cycle |
They offer vehicle that suits various family stages such as singles, couples with children and others. |
They also offer vehicles for every life cycle stage and offers family-oriented vehicles like Toyota Highlander, Toyota Sienna and others (Nkomo, 2019). |
|
Life Style and Hobbies |
They target customers who are tech-savvy, adventurous and trend aware. Models like Nissan Rogue and others align with active lifestyle (Hartoyo et al., 2023). |
They target audience who prefers reliability, practicality and conservative lifestyle. |
|
TV Programs |
The target customers watch adventurous shows |
The target customers watch conventional shows |
Table 1: Comparing the target customers of Nissan and Toyota
Source: (Developed by the learner)
This framework shall help to compare the product, pricing strategy, promotional strategy and distributional channels of both the brands- Nissan and Toyota. Likewise, marketing mix of both the brands can be explored and compared. Furthermore, recommendations can be given for further improvements.
The Levitt’s model reflects stratification levels of a product. The model reflects that the inner level of a product reflects its core benefit. It refers to the need that customers want to satisfy. Next is basic product level. This feature of the product satisfies the core benefit. The next level is expected product level which includes basic attribute and features that customers expect. Fourth level is augmented product level. It includes the features that exceeds customer’s expectations. Fifth and last level is potential product level that includes features which distinguishes the product.
Figure 1: Showing the Levitt’s Model
Source: (ResearchGate, 2016)
|
Level of Product |
Nissan |
Toyota |
|
Core Benefit |
Transport |
Transport |
|
Basic Product |
Frames, engine, wheels. |
Chassis, engine, wheels. |
|
Expected Product |
Safety features, basic infotainment, systems, Nissan has a reputation for more modern shape. Their vehicles often feature sleek, has aerodynamic shapes that convey a sense of innovation and sophistication. Nissan tends to use bold and modern color schemes, often incorporating vibrant shades that convey energy and excitement (Kubo, 2021). |
Toyota prioritizes practicality and durability, with more conservative and traditional vehicle shapes that emphasize reliability and functionality. Toyota's color schemes are typically more muted and conservative, reflecting their focus on reliability and trustworthiness (Dillion, 2021). |
|
Augmented Product |
Advanced safety technology, innovative styling, performance options. Nissan's packaging emphasizes high-tech and futuristic elements. Their interiors feature advanced infotainment systems and driver-assist technologies. |
Advanced safety technology, hybrid technology, spacious interiors. Toyota's packaging is more utilitarian, focusing on user-friendliness, easy maintenance, and straightforward design (Dai et al., 2021). |
|
Potential Product |
Autonomous driving features, electric and hybrid options, cutting-edge design and environmental sustainability (Rauf et al., 2023). |
Sustainable materials, cutting-edge, autonomous driving technology, unique design and aesthetics, exclusive luxury and performance models |
Table 2: Comparing the products based on Levitt’s model
Source: (Developed by the learner)
|
Nissan |
Toyota |
|
Models like Nissan GT-R. Toyota create a sense of adventure and thrill. Thus, products are designed to appeal to emotions and satisfy customer’s desires for innovation, excitement, and style (Noor and Hashim, 2020). |
They emphasize more on functionality of the product like durability, safety and practicality (Morgan and Liker, 2020). Their appeal is reliability and rational driven. |
Table 3: Comparing the brands based on functional and emotional level of the products
Source: (Developed by the learner)
Brand Value
|
Nissan |
Toyota |
|
They want to portray innovation, dynamic lifestyle and excitement. They want to be seen as brand that embrace progress and change. |
Their brand value is based on dependability sense of responsibility and quality. They want to be seen as brand that is concern regarding customer well-being and sustainability (Morgan and Liker, 2020). |
Table 4: comparing the brands based on brand value
Source: (Developed by the learner)
This framework gives five components including Sincerity, Excitement, Competence, Sophistication and Ruggedness as mentioned in the picture below. Likewise, it shall be discussed that Nissan has the component of Sincerity and excitement. On the other hand, Toyota includes the component of competence and Ruggedness.
Figure 2: Showing the Aaker’s Brand Personality Framework
Source: (LinkedIn, 2023)
|
Nissan |
Toyota |
|
Nissan has personality traits like "Excitement" and "Sincerity" as they are adventurous, modern, still maintain a sense of authenticity and trustworthiness (e Cunha et al., 2021). |
Toyota has traits like "Competence" and "Ruggedness." as they are known for their reliability, durability, and practicality (Dhanny et al., 2021). |
Table 5: Comparing the brands based on Aaker’s framework
Source: (Developed by the learner)
Comparison of the price and pricing strategy of Nissan and Toyota
|
Nissan |
Price (approx.) and Pricing Strategy |
Toyota |
Price and Pricing Strategy |
|
Nissan Altima |
$24,350- value based price (Nissan-global.com, 2023). |
Toyota Camry |
$25,045- value based pricing (Toyota.com, 2020). |
|
Nissan Rogue |
$27,860- competitive pricing (Nissan-global.com, 2023). |
Toyota RAV4 |
$27,425- Competitive Pricing (Toyota.com, 2020). |
|
Nissan Sentra |
$19,610- Value-Based Pricing (Nissan-global.com, 2023). |
Toyota Corolla |
$20,025- Value-Based Pricing (Toyota.com, 2020). |
|
Nissan Titan |
$36,550- Competitive Pricing (Nissan-global.com, 2023). |
Toyota Tacoma |
$27,625- Competitive Pricing (Toyota.com, 2020). |
Table 6: Comparing price and pricing strategy of Nissan and Toyota
Source: (Developed by the learner)
Nissan- Nissan use value-based pricing strategy for models like the Altima and Sentra due to features and affordability that reflects value for the price. They also include competitive pricing for models like Rogue and Titan, competing directly with other brands by setting prices within the range of their competitors (Nissan of Turnersville, 2020).
Toyota- Toyota is mainly known for its value-based pricing approach as they offer reliability and quality at reasonable prices. Models like the Camry and Corolla reflect this strategy (Kincsen, 2022). Toyota, also uses competitive pricing for models like the RAV4 and Tacoma to remain competitive where price sensitivity is high.
Both Nissan and Toyota are prominent automotive manufacturer and include different channel management strategy to distribute their product that reflects their market focus and brand positioning.
|
Nissan |
Toyota |
|
Nissan targets broad segment and offers a range of vehicles that satisfy different consumer needs. Therefore, products of the company can be found in many retail outlets such as in mass-market dealerships, online platforms and independent dealers. They also have the aim to maximize distribution outlets so that they can reach a wider consumer base. Nissan vehicles are positioned to offer a good balance between affordability and features, and their distribution strategy aligns with such approach. By maximizing distribution outlets, (Mass Market approach) Nissan positions themselves as a brand that focuses on accessibility and affordability (Candelo, 2019). It suggests that their brand value is rooted in providing quality vehicles to a broad customer base. This approach aligns with their reputation for offering good value for money and appealing to a wide range of consumers. |
On the other hand, Toyota, combines features of both mass-market and luxury branding in its channel management strategy. While Toyota vehicles are widely available in mass-market dealerships, they also have a luxury division such as Lexus, that include more exclusive as well as limited distribution approach. This diverged strategy allows Toyota to target a wider range of customers, from those seeking value and reliability to those seeking more upscale and premium options. Toyota's approach reflects a more nuanced brand value (Combination of mass market and luxury) (Madoh et al., 2019). Their mass-market products highlight reliability and value, while their luxury division, Lexus, emphasizes exclusivity and premium quality. This two-tier strategy communicates that Toyota’s brand value aims to cater to both practical, cost-conscious consumers and those seeking a more luxurious experience. |
Table 7: Comparing channel distribution strategy of Nissan and Toyota
Source: (Developed by the learner)
|
Source: (Nissan-global.com, 2020) |
Source: Toyota.com, 2023) |
Figure 3: Comparing Nissan models (left) with Toyota models (Right)
Communication Method of Nissan
Communication Method of Toyota
Brand Positioning
|
Positioning of Nissan |
Positioning of Toyota |
|
They position themselves as innovative and exciting brand in the mind of people They also communicate about their cutting-edge technology. They run campaigns in social media that promote the “advance driving assistant” feature, hybrid and electric technology along with futuristic design. They are also socially conscious. They communicate about their sustainable commitments. Their line of Electric Vehicle such as Nissan Leaf reflects eco-friendly features and add value to environmentally conscious customers. |
They communicate about reliability as well as affordability. They highlight features like low maintenance cost, durability, value for money and others. They promote about long term reliability that makes them suitable choice for the budget friendly customers. They also reflect social consciousness through their models like Toyota Prius and others. |
Table 8: Comparing brand position
Source: (Developed by the learner)
Thus, to conclude it shall be discussed that Both the companies- Nissan and Toyota have applied the 4Ps framework in unique ways to reflect their specific brand values and target audiences. Application of 4Ps by Nissan reflects their interest on innovation as well as cutting edge technology and enhancing customer’s excitement. They tailored their models to achieve emotional connection with customers by reflecting wide range of innovative models that suites dynamic lifestyle. The distribution and pricing strategy also accommodate diverse social class. On the other hand, application of Toyota’s 4Ps centers on practicality, reliability and affordability. The products have been designed to attract “budget friendly customers”. Their pricing strategy commits to offer quality product at reasonable price. Dual channel management approach of Toyota offers nuanced brand value. However, it shall be mentioned that Toyota has been the most successful in its application of the 4Ps. Their broad market reach, from budget-conscious consumers to those seeking upscale options, demonstrates their adaptability. Toyota effectively combines value-based pricing with competitive pricing to cater to diverse consumer needs. Their two-tier distribution approach through mass-market and luxury branding showcases a nuanced brand value.
Both brands have effectively applied the 4Ps, but Toyota's adaptability and nuanced approach make it the more successful of the two. However, there is always room for improvement in different aspects of their marketing mix to further enhance their market positioning and brand value. however, Nishan can further refine their pricing strategy to improve the application of 4Ps so that they can both remain cost-effective as well as competitive. It shall help them to target broader customer range as well as to maintain them as an accessible brand. On the other hand, Toyota can enhance their promotional strategy balancing traditional vehicle-based ads and narrative driven campaigns. It shall help to reach wider audience range. Toyota can also focus on marketing campaigns that focuses on sustainability to align with emerging market trends.
