DRIVEN

1
DRIVEN
2
Team members

• Tracy Adams
• Kathy Maiden
• Andy Raisovich
• Clarence Reese

3
The competition

• Human competitors
• Chevrolet Cavalier
• Ford Escort
• Computer competitor
• Toyota Corolla

4
The strategy

• Customer identification
• Accurate production forecasts
• Low production costs
• Advertising spending/targeting goals

5
The customers

• Commuters
• Core market
• Economizers
• Early trend toward base model

6
Production forecasts

• Keep 40 days of inventory for all models
• Lowering costs to improve returns

7
Advertising spending

• Size of Nissan as compared to competitors limited
  advertising budget
• Incrementally small increases in budget to help
  things along

8
Advertising targets

• Customer targeting
• Commuters indicated suburban/rural population
• Higher priced car indicated higher income
  brackets
• Model marketing
• Commuters targeted with XE and GLE
• Economizers targeted with base

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Advertising message

• Initially spread thin
• Financing and rebates
• Direct comparison to Corolla
• Toyota targeted Sentra as direct competitor

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What we did right

• Capacity utilization
• Y2Q1 - ranked 5th
• Y3Q2 - ranked 2nd
• Contribution
• Y2Q1 - ranked 7th
• Y3Q2 - ranked 6th

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Cumulative contribution trends
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What we did wrong

• Production sales/ratio
• Y2Q1 - ranked 1st
• Y3Q2 - ranked 4th
• Sales forecast variance
• Y2Q1 - ranked 2nd
• Y3Q2 - ranked 7th

13
Moral of the story

• You gotta spend money to make money.
• Spend it wisely!
• Paying close attention to economic forecasts is
  critical.
• Behavior in a down market.
• Proper forecasting of demand can make or break
  contribution.