Nissan 2012 Annual Report Download - page 10

Nissan is operating its business based on the mid-term plan,
Nissan Power 88 for the fiscal years 2011 to 2016. “Power”
derives its significance from the strengths and efforts we will
apply to our brands and sales. Our commitment is to renew our
focus on the overall customer experience, elevating Nissan’s
brand power and ensuringquality excellence for every person
who buys a Nissan car. “88” denotes the measurable rewards
from achieving our plan. We aim to achieve a global market share
of 8% from 5.8% in 2010, and we will increase our corporate
operating profit to a sustainable 8% from 6.1% in 2010.
Nissan is implementing 6 tactics under Nissan Power 88:
1. Brand power
To strengthen Nissan’s brand power, we will expand our strength in engineering and production to the sales,
marketing and ownership experience. We will raise the level of interaction with our customers to create a world-class
standard of service that will build lasting relationships with every Nissan car owner. We recognize that having a
stronger brand will help close the gap with our top competitors in every measurable area – from revenue generation
to overall opinion and purchase intention.
2. Sales power
Sales power in the mid-term plan refers to fully grasping the needs of customers in each market and drastically
raising sales volume and market share. In emerging markets, we will focus on building a robust dealer network with
market positioning and staffing optimized to meet the needs of local Nissan customers. In mature markets, where our
dealer network is already established, we will take a strategic approach to improve customer loyalty and improve
sales efficiency by increasing sales volume per outlet.
3. Enhancing quality
Nissan aims to make steady progress in improving product quality. During Nissan Power 88, our aim is to raise Nissan into
the top group of global automakers in product quality and elevate Infiniti to leadership status among peer luxury products.
4. Zero-emission leadership
Nissan has taken the lead as the all-time volume leader in dedicated electric vehicle sales. Nissan’s EV lineup will
include a light commercial vehicle and an all-electric premium car, to be launched by Infiniti in the near future.
Together with our alliance partner Renault, we intend to put 1.5 million EVs on roads worldwide by 2016. In addition,
Nissan continues to take a leadership role in every aspect from the development of batteries, chargers and vehicle
lineup to electric grid studies, battery recycling and the use of batteries for energy storage, so that we will contribute
to the establishment of sustainable mobility.
5. Business expansion
Regarding the 8% market share objective under Nissan Power 88, we estimate that 35% of the growth in volume will
come from mature markets and 65% will come from emerging markets. We will achieve this through a steady tempo
of new product launches averaging every six weeks, a continued focus on growth markets and the expansion of our
Infiniti and light commercial vehicle businesses. Investments in manufacturing capacity expansion, particularly in
China, North America, Brazil, Russia and India, will enable us to increase sales volume.
6. Cost leadership
We have been successful in reducing costs by 5% annually, due mainly to our cross-functional monozukuri activities
involving our supplier base. As our production footprint is increasingly globally, we will maintain this pace by
enhancing and deepening these activities in every Nissan production base across the regions. Moreover, evaluating
not only purchasing costs but also logistics and in-house costs, we have set an objective to reduce total costs by 5%
each year.
Together with a stronger brand, investments in products, technologies and global capacity, we aim to
achieve Nissan Power 88 and grow further beyond.
Innovation & Power of brand
Year 2 Power 88
Performance Corporate Data Corporate Governance
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NISSAN Annual Report 2012Message from CEO
About Mid-term Plan