Marketing Suggestions for Nissan: Let's Get Serious

[cwerdna]

Forest through the trees... my post was about marketing. WHY aren't these cars selling?

I can think of numerous factors off the top of my head: marketing, lack of awareness or marketing of HOV lane benefits (where applicable), high upfront cost (and not everyone qualifies for the full Federal tax credit and not everyone has state tax incentives), people not wanting to pay so much for a car w/limited range, perception (or misconception) that the Leaf's range is insufficient, they CANNOT charge w/they live, they may move somewhere where they can't charge or the range is insufficient, they may take a job where the range will be insufficient, general EV misconceptions (e.g. fires, safety, needing to spend thousands on an EVSE, charging is too inconvenient, coal powered car, they're too slow, are golf carts), lack of awareness of the Leaf, dealers asking too much for them, gasoline is too cheap.

I agree about "whole lot of Americans aren't that into prudent car choices" (very true). http://www.mynissanleaf.com/viewtopic.php?f=10&t=8689&p=193502&hilit=mileage#p193502" onclick="window.open(this.href);return false; mentions how little people that come to Dave care about mileage and car buyers' ability to prioritize.

Many Americans don't care or are unaware of the oil related issues (US oil supply, oil geopolitics, dependency on foreign oil, trade deficit, where most of the world's oil resides, etc.) or are unconcerned about AGW or believe it is false. I can clearly see that based on the % of monstrosity class SUVs I see running around my area being driven solo or w/minimal cargo and passengers. I see some of these monstrosities in long drive thru lines, even when gas was >$4/gal here. I guess gas is still too cheap for them.

Even the ones who care or care somewhat are unwilling to make choices that reduce oil consumption or produce fewer GHG or pollutants. Years ago, one of my former coworkers who seems to be somewhat of an environmentalist ended up buying a Honda Fit despite me telling him to buy a Prius. I pointed him to http://www.fueleconomy.gov/feg/sbs.htm" onclick="window.open(this.href);return false; and showed him how much better the Prius did in GHG emissions as well as on the EPA pollution score (has nothing to do w/GHG).

Americans seem to complain about high gas prices and what the government to do something (e.g. raise FE standards, lower gas prices somehow, etc.) when they can make a choice to buy a more efficient vehicle in the first place. No need to wait for the gov't.

From http://www.autoobserver.com/2010/05/americans-strongly-favor-raising-fuel-economy-standards-to-50-mpg-poll-finds.html" onclick="window.open(this.href);return false;:

When asked what percentage of oil consumed in the U.S. is imported, the average number given was 64 percent. The actual figure is very close to this percentage.

But most Americans also believe that U.S. has a far greater percentage of the world's oil reserves than it actually does. To better understand the impact of information on attitudes, CFA asked the surveying firm to split the sample in half, giving one-half no information about oil reserves, and the other half correct information, before asking them about reducing oil dependence and increasing fuel economy.

On average, the no-information respondents said that the U.S. has almost half of all global oil reserves when the actual figure is less than 3 percent. As indicated above, their support for reducing oil dependence and increasing fuel economy was significantly lower than that of respondents who had received correct information.

If Americans actually were educated on the above and reminded of (or given a history lesson on) the oil crises of the 70s(http://blog.sfgate.com/parenting/2011/03/02/remembering-the-1973-oil-crisis-bay-area-photos/" onclick="window.open(this.href);return false; and http://priuschat.com/threads/remembering-the-1973-oil-crisis.90757/#post-1276469" onclick="window.open(this.href);return false, perhaps things might be different.

The low hybrid take rate (http://www.hybridcars.com/news/may-2012-dashboard-46746.html" onclick="window.open(this.href);return false seems to be good evidence for many of my points about American car buyers.

I'm actually in the boat of I may move somewhere where I can't charge and I may take a job where its range is insufficient. If that weren't an issue, I'd have leased a Leaf long ago.

 

[mwalsh]

The only ads I've seen for a LEAF are the promotional emails I get from Nissan. It doesn't seem like there is any sort of campaign at all.

Nissan advertises the LEAF all the time in MSNBC. Perhaps you're just not watching the right channels?

 

[kmp647]

You can bet it is an emergency at Nissan, they are bluffing on the 20k number, and any exec who misspeaks on that topic like happened a couple months ago gets blasted by Ghosn.

The changes for 2013 6.6kw , darker interior , leather option, and mproved hvac will not alone change this situation.

A massive ad campaign that makes sense is needed along with a lower price.

A change in the $7,500 to an instant rebate instead of the wait and see

Some higher gas prices would help too :evil:

They better have some styling changes too, like 17" wheels and some sort of sportier appearance

At the risk of being blasted here they need to "man" this car up a bit.

How about fake chrome dual exhaust!

 

[EdmondLeaf]

I suspect Nissan has some surprises in store for us, I would put money on it that they are keeping their cards very close to their chest for now... that or they are completely bluffing and are about to fall flat on their face.

There was no need for Nissan to rush to the market, prepare product that is really ready for every customer. 100 miles should be 100 miles of normal driving or advertise EPA numbers, same with 70 - 80% capacity left after 8 years and 100KM. Honesty and trust needed in every business and same rules apply here. Next big thing for lunching new product is interaction with owners and this seems to be very limited. Nissan is disappointed with sale numbers here, but again in order to sell new product you have to gain trust of regular customer.

 

[adric22]

I've made the comments before, but here's a new thread so I'll make them again.

• Nissan needs to move beyond the "environmental" crowd. There's only so much market there. Most of the people I've talked to think the whole point of having an EV is to "save the environment" and they just aren't that motivated.
• Show the *&@# car in motion! Show it going down a highway. Put some exciting music in the background. I'm so tired of people thinking that since it is a "city" car that it can only go 45 mph, or is super slow.
• Show some of the other benefits of driving an EV.
• Talk about payments.. forget the MSRP. We already know that 99% of people who go car shopping are interested in the payment, not the price of the car. Ask any car salesman and they will agree. So Nissan should be pushing the lease price on TV ads so that people will know it is affordable. Then show the payment and mention that you'll also save a ton on gasoline!

I could list about 10 more things, but those are the most important. And why should I know more than high paid marketing execs? Probably because I actually know the product, care about the product, and have talked to hundreds of people about the product and I know what the public is thinking and I know what they always want to ask/hear. It is likely the marketing execs are driving big caddilac escalades themselves. So what do they know?

 

[thankyouOB]

OB -
Do I think that users of the product sometimes know more than the $300/hour advertising executives that Nissan wastes their money on? Most definitely. Why would I think that? The sales numbers that I just mentioned speak for themselves. They're the only metric that matters in the advertising world, as you should know as a news guy, where circulation and ratings are king. If you're not selling the cars, and the other guy (GM) is, your ad guy should be fired.
By the way, I am also a journalist with years of experience, and I disagree completely that electric car consumer stories are less interesting to journalists... it's a pitch failure, that's all. And the fact that editors want to see this as an "up or down" business story of either success or failure. Come on, OB, stop defending these PR execs and let's send them some new ideas (I do believe that someone out there in Nissan might actually bother reading this forum).
JG

we will just have to disagree about whether you and a few smarties on this chat room know more about marketing and advertising than Nissan.

Your other point about pitch failure doesnt hold water. If practically all of our political media covers the presidential election as an up-or-down story, why would you expect subtlety and texture in coverage of cars?
The product is fine, but the price is high. It just costs too much for the average person to see it as a deal.
It has too many inconveniences and requires too many new habits for most folks, who are driven by habit and convenience.
No one ever went broke underestimating the intelligence of the American people.
-- H. L. Mencken
that prolly explains an awful lot about why EVs dont sell better and the SUVs are still driving all around me and going 75 on the freeway. It isnt because those people have so much money that they dont care about spending $100 a week on gas.

 

[scottf200]

I think a big part of that is that Volts don't look unusual. Leafs jump right out at you because of their unusual look. You have to think about it and be on the lookout for Volts and then you start seeing them. Heck one popped up in my garage!

Dude, I'm a car guy. I can spot a Volt in a herd of Malibus. It don't need to be any more unusual for me to know they just ain't out there in OC/south LA.

Here is where 1200 Volts are. Zoomable on this page: http://www.voltstats.net/Stats/OwnerMap" onclick="window.open(this.href);return false;

I wonder if the general selling areas is the same for the LEAF? Does this vary based on population density? Does it vary based on how large the city and surrounding suburbs area? ie. I live in a suburb of Chicago. If I worked downtown, I'm not sure I would trust a LEAFs range during the winter. Or during the summer after several years and the battery capacity drops.

 

[edatoakrun]

Emergency?

Nissan has now manufactured and sold, the majority of the Worlds BEVs.

I expect increased marketing efforts, once BEV manufacturing capacity greatly increases, in a few months.

But I will use this thread to post Toyota's excellent accidental BEV commercial...

http://www.youtube.com/watch?feature=player_embedded&v=-V5OuJA4PTU" onclick="window.open(this.href);return false;

 

[mwalsh]

But I will use this thread to post Toyota's excellent accidental BEV commercial...

http://www.youtube.com/watch?feature=player_embedded&v=-V5OuJA4PTU" onclick="window.open(this.href);return false;

Very cool commercial!

 

[evnow]

Nissan needs to move beyond the "environmental" crowd. There's only so much market there. Most of the people I've talked to think the whole point of having an EV is to "save the environment" and they just aren't that motivated.

The problem is - Nissan isn't even selling to the environmental "crowd". That crowd is quite large (2 million Sierra club members, for eg.).

Ofcourse, it is possible the "environmental" crowd isn't all that committed when it comes to personal mobility.

 

[Train]

I am surprised that there aren't more Leaf owners out there who agree that this is a marketing problem.

Because it simply isn't the case. Some are blinded by reality. They can't possibly accept that people don't want to spend $37,000 for a car that has a 70 mile range. It must be marketing, it must be the poor dealer sales staff, it must be, um... supply! Yeah, supply.

It can't possibly be people just don't want to buy it because it doesn't make sense for most people. Being enthusiasts of any product can keep one from being objective. Because so many are tied emotionally to the car and what they perceive it stands for, they find it perplexing that others don't see what they see.

The ads are all over the place. On the TV, in magazines, everywhere. It ain't the marketing. Not that there couldn't be a different approach. I'd certainly lose the NPR type ads. Indeed, they are dull as dishwater. But the looks of the car don't help. It's a frumpy hatchback. There's only so much you can do with a frumpy hatchback. Especially one that sits next to another petrol hatch back at the same dealer lot for half the price.

The fact is, a battery extended range vehicle is a far better choice. You get electrical propulsion for most or all of the commute and you don't have to worry about plugging in when you pack on the miles. It's got the best of both worlds. No compromise, no limits. Petrol cars are 99%+ clean today. The earth is 4.5 billion years old and has had climate fluctuations far before SUV's were manufactured. The environmental argument is a losing argument. You're not going to kill the earth with a car.

Look, you have a hatchback priced at nearly $38,000 that gets 70 miles before taking 8 hours to charge. It's the price. It's the very limited range. It's ALWAYS been that.

I said this would happen. Once the enthusiasts get their EV's, it will be a tough sell. This is basically a toy for affluent grownups.

 

[Train]

The problem is - Nissan isn't even selling to the environmental "crowd". That crowd is quite large (2 million Sierra club members, for eg.).

Ofcourse, it is possible the "environmental" crowd isn't all that committed when it comes to personal mobility.

But that's who's buying them. Perhaps the rest of the Sierra Club members just don't have the extra cash or income to buy an EV. Maybe their cars are paid off.

That said, if the environmental crowd was so committed to the environment, they wouldn't be buying cars in the first place.

Then again, "environmentalist" has lost a great deal of meaning these days, eh? I mean really, some here have at least two cars, some more than that and pull up to their tract homes of 2500-3000 square feet. Turn on their 55" plasma screen and get comfy on their couch choosing from 500 channels. Or maybe they take a dip in their 5000 gallon pool. I thought there was a water shortage?

Committed to he environment...LOL

 

[thankyouOB]

there is a bad smell around her.
did someone just soil himself.
(ur back on the ignore list.)

 

[palmermd]

But I will use this thread to post Toyota's excellent accidental BEV commercial...

http://www.youtube.com/watch?feature=player_embedded&v=-V5OuJA4PTU" onclick="window.open(this.href);return false;

Very cool commercial!

+1 Toyota has a very good marketing department.

 

[klapauzius]

You're not going to kill the earth with a car.

How about 1 billion cars?

 

[DanCar]

What if perhaps, just perhaps it is the product and not the marketing?

+1
:lol:

 

[RegGuheert]

I suspect Nissan has some surprises in store for us, I would put money on it that they are keeping their cards very close to their chest for now... that or they are completely bluffing and are about to fall flat on their face.

I agree those are the two possibilities. I also suspect they have something in store for us. The heat pump for 2013 is nice, but it's not enough to cause a big jump in sales. I still think now is the time for an important improvement to the battery system, either more range or heat-resistant chemistry or both. Barring that I don't think a big media blitz will move the ball much.

 

[DaveinOlyWA]

why EV sales are sluggish;

1) the VERY transparent EV government subsidies where every single penny is scrutinized and debated over verses the $$ of subsidies, tax credits, etc. enjoyed by Big Oil

the former can be laid out fairly easily. up to $7500 back on your federal tax bill and various state incentives like in WA which is sales of EV are tax free.

the later is represented by "$$" and that is about as good as it gets. we dont have figures on that support because its well known that if the general public knew the country would have anarchy. so the value of oil subsidies are kept secret "in out best interests"

there are other tiny mitigating things that have a small effect on sales, but if you really want to know the "real" reason, now you do

 

[SanDust]

Because it simply isn't the case. Some are blinded by reality. They can't possibly accept that people don't want to spend $37,000 for a car that has a 70 mile range. It must be marketing, it must be the poor dealer sales staff, it must be, um... supply! Yeah, supply.

It can't possibly be people just don't want to buy it because it doesn't make sense for most people.

I agree with first part. At more like $38K with some options it just looks like a lot to pay for a limited range vehicle.

However I think the Leaf would in fact make a great second or commuter car for a great many people. Not everyone of course but a large chunk of people, definitely more than 500 people a month. Unfortunately most people still think they need a car that can do everything. It's difficult to sell a limited range BEV to these folks so long as they have this viewpoint, and ads that have people hugging polar bears don't help at all.

Nissan't response to this hasn't been helpful either. First they take sales from 2012 and count them as sales for 2011 so they can hit the 10K unit target. OK. Then Ghosn says they'll sell 20K in the US this year. Then they clarify this and say he meant "fiscal 2012". Then they clarify and say that no, he meant calender 2012. And then they continue selling 500 units a month while insisting that they will definitely sell 20K units. Whatever.

 

[cwerdna]

But I will use this thread to post Toyota's excellent accidental BEV commercial...

http://www.youtube.com/watch?feature=player_embedded&v=-V5OuJA4PTU" onclick="window.open(this.href);return false;

Very cool commercial!

+1 Toyota has a very good marketing department.

That was great commercial. I'm a Prius fan and have never seen it before. I'm surprised as Toyota has put out a few awful Prius family ads that many/most of Priuschatters don't like.
http://www.youtube.com/watch?v=fGcmy2ckOao" onclick="window.open(this.href);return false;
http://www.youtube.com/watch?v=1YHY0gGkXkQ" onclick="window.open(this.href);return false;

You're not going to kill the earth with a car.

How about 1 billion cars?

Yep. For those who don't look at GHG emissions stats, take a look at http://www.fueleconomy.gov/feg/Find.do?action=sbs&id=31767&id=31505&id=31928&id=31952&#tab2" onclick="window.open(this.href);return false; under Energy and Environment. Be sure to select U.S. tons per year and tailpipe CO2. For their driving profile (15K miles are year, achieving EPS combined mileage numbers), even a single Prius '12 Prius would emit 2.9 tons/year of GHG. If you choose a '12 Durango 5.7L V8, Linvoln Navigator 4WD, that becomes 9.8 tons. For a '12 Surburban 2500 4WD: 12.2 tons.