Ajay Raghuvanshi, Vice President, Business Management, Nissan Motor India Pvt. Ltd., talks about re-introducing the Datsun GO, and trying to ensure minimal disruption and a seamless transition after the end of the company’s agreement with Hover Automotive India
By Simran Sabherwal
Q] The Datsun GO has just been launched. What is the rationale behind re-introducing a car after 30 years? What’s the car’s USP?
The original Datsun brand contributed to mass mobility in Japan and other countries, and fulfilled people’s dreams of becoming car owners. ‘DAT’ in Datsun stands for Dream, Access and Trust, and we aspire to help Indian customers fulfil their dreams. Our product planners and engineers worked hard to make Datsun GO a complete car for Indian families. Our aim at Datsun India is to offer products and services to customers whose mobility requirements and aspirations might differ from Nissan customers.
Datsun GO comes with: the latest technologies; a powerful 1,200 cc petrol engine; top class fuel economy; one-class-above body size; a 265L boot; spacious cabin; urban drivability and refreshing styling, all within an affordable price range. Datsun is the first brand in the segment to provide unlimited mileage coverage under extended warranty. Buyers can enjoy a manufacturer warranty of two years / unlimited kilometres, and purchase extended warranty on unlimited kilometres for an additional two years. Both warranties come with complementary Roadside Assistance.
Q] The price point for an entry level Datsun Go is approximately Rs 3.12 lakh, what is your strategy to differentiate yourself in the very competitive, low cost segment, with established players like Maruti and Hyundai?
Datsun GO is not ‘adapted’ to the Indian market, but has been fully developed in India – Datsun GO is a local, not a localized product. We have leveraged the shared capabilities of the Renault-Nissan alliance such as engineering, manufacturing and supply-chain to develop the Datsun GO. This has given us leverage on the final price of the car in this price-conscious market. Our research on customer needs indicated that there is space to add more value in the hatchback segment. The Datsun GO was developed around these requirements and met that value quotient. Datsun is an affordable brand and is capable of competing in the most competitive and voluminous segment of passenger cars in India.
Q] Nissan ended its agreement with Hover Automotive India. What learnings are you looking to take forward from this association?
We cannot comment on this issue beyond what has been stated. We are focusing on our Indian operations to ensure minimal disruption and to provide our customers with a seamless transition.
Q] With Nissan taking on the marketing, how different will it be from the earlier efforts and are there any significant changes on this front?
Post-launch, Nissan Terrano’s favourable opinion increased compared to competition. Our flagship brands – Nissan Sunny and Nissan Micra – have a stable purchase funnel. Our primary focus is to provide peace of mind to customers and we have put together an innovative sales process, which will make the Datsun buying experience transparent and hassle-free. Our after-sales and warranty strategy will further give customers a pleasant experience. Accessibility is also key and Datsun will be sold in a fully-branded environment within Nissan’s 130-strong dealership network across the country. With no waiting period for the Datsun GO, customers are driving home their cars immediately after completing purchase formalities at showrooms. We have already sold over 2,000 Datsun GO units within 10 days of launch.
Q] How do you design your marketing mix? Which is the lead medium?
India works on word-of-mouth, although Print, Television and Radio take up a large chunk of advertising; and Social Media is a dynamic medium to reach out to customers directly. Print and Television ensures reach in Tier II and Tier III markets and have worked well. Datsun is a mass brand and the dual objective while planning for India is to target Tier I to build brand equity, and the rest of India to build brand equity and attract customers to buy our product. For BTL, our 100+ city road-show worked in maximizing reach to Tier II, Tier III and Tier IV sections of the market. Nissan products have largely been relevant in Tier I so far, but we are moving to Tier II and Tier III as we see demand increasing.
Q] For the launch of the premium compact SUV Terrano, digital played a vital role. Are you looking to up spends here and how are you leveraging this platform?
Social media played a major role, especially for the Terrano. We got positive word-of-mouth by engaging with the social media community around the Terrano, and our SUV gained on overall consumer opinion and the purchase consideration has gone up. As of March 31, 2014, we recorded sale of almost 15,000 units of the Terrano since its launch, which is encouraging – given the state the economy is in.
Q] Can you elaborate on your BTL activities?
Currently, our focus is on Datsun and the market has to warm up to it. Prior to launching Datsun GO, we rolled out a product roadshow in over 100 cities across India to familiarize potential customers to the new brand – in person. Datsun GO strategically sits between small and large hatchbacks at the price of the former – and this caught the attention of customers wanting to buy a stylish yet affordable hatchback. Over 40,000 inquiries have come in over the course of the 100+ city roadshow.
Q] The company had earlier targeted a 10% market-share by 2017. Is this target still achievable?
At the moment, our priority is to sell the products we manufacture and ensure that our market visibility increases. Simultaneously, we are also concentrating on expanding our dealer network and offering innovative service solutions to our existing customer base.
Q] How has the recent economic downturn impacted Nissan in India?
Despite the volatile market trend, India continues to be a huge market. Currently, India has around 15 vehicles for every 1,000 people, while mature markets have 600 vehicles / 1,000 people – so the growth potential is huge.
Reduced excise duty by the government was a welcome move, and we passed this on to our dealers and customers. We hope such industry-friendly policies will balance out the effect of market undulations in the near future.
Q] Looking ahead, what future launches can we expect from the Nissan stable?
We will launch the new Nissan Sunny and the Datsun GO+ MPV this year, which were showcased at the 2014 Auto Expo. We will also roll out the upgraded version of our MPV Evalia this year.
Q] What is your current distribution strength and future plans in this space?
We have 130 dealerships and 116 service touch-points at the moment. We would like to collaborate with our existing dealer partners at the time of launch, and then expand our network as the volumes continue to grow.
Q] What initiatives are being taken to increase the recall of brand Nissan and Datsun?
As a primary initiative in February this year, we launched Nissan PlayStation GT Academy – an award-winning global motorsports property. This platform allows aspiring racers and gaming enthusiasts to register, compete and potentially win a place in the coveted driver discovery and development programme. We are currently driving this initiative in high-footfall shopping malls to engage with consumers in a familiar environment and offer them a chance to win a seat in Nissan’s motor racing team. Our objective is to drive participation and bring in spectators; and focus is not just our customers, but also unfocused consumer groups to watch what Nissan is doing. Cars, for Indian consumers, are the next big investment after houses and we would like to communicate to our customers that Nissan offers products and technologies that they aspire for.
CMO FILE
Ajay Raghuvanshi, Vice President – Business Management, Nissan Motor India Pvt. Ltd., has been with Nissan since March 2013, and is responsible for supporting pricing, marketing, sales and operations. He has over 24 years of experience and understanding of the Indian automotive, consumer durable and publishing industry, specializing in the field of sales, marketing and distribution. Prior to Nissan, Raghuvanshi was national head for dealer development and rural sales operations for Hyundai and business head for the entire Western Zone. He has also worked with auto majors such as Honda, Tata Motors and Yamaha.
MARKETING TIP
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ABOUT THE BRAND
Nissan Motor India Pvt. Ltd., (NMIPL) is a 100% subsidiary of Nissan Motor Co. Ltd., Japan. The company was incorporated in 2005 and offers innovative and exciting products across hatchback, MUV, SUV and sedan segments in India. Nissan, together with its global alliance partner Renault, set up a manufacturing plant and a Research & Development Centre near Chennai. Nissan in India has a portfolio of two brands, Nissan and Datsun. NMIPL registered sales of 36,975 units in FY 2012.
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