Nissan Altima Final Presentation

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Nissan AltimaFinal Presentation
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Altima Team Members

• Dave Allen
• Doug Erwin
• Jeff Fertig
• Mike Ward

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Altima Strengths

• Solid Product
• Good Margins
• Neglected
• Excess Capacity /Inventory

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Altima Weaknesses

• Most Expensive
• Low Sales and Market share
• Poorly Marketed
• Two Models

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Our Strategy

• Gain Market Share
• Increase Advertising
• Heavily Discount
• Target Commuters
• Change Marketing
• Increase Net

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Decision One

• Changes
• Up Advertising 50
• Change Targets/Message
• 500 Rebate on XE and 7.8 financing
• Slow Production

• Results
• Sales up 20
• Net Contribution 2X

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Decision Two

• Changes
• Up Advertising 25
• Upgrade Cut Costs
• Big Rebates of 1250/500
• Higher Dealer Targets
• Raise Production 50

• Results
• Sales and Market Share up 25
• Sustained Net
• Inventory Falls

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Decision Three

• Results
• Sales gains of 6
• Inventory swells
• Net Contribution falls

• Changes
• Freeze Advertising
• Target Age 24-44 y o
• Keep Rebates
• 2.9 Financing
• Drop Price
• Raise Production 35

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Decision Four !

• Changes
• Up Advertising 10
• Change Media Mix
• Drop Financing to 0.9
• Slow Production 18

• Results
• Sales and Market
• Share Rise 18
• Net Contribution Triples to 24 of sales
• Labor/Inventory Costs Fall

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Decision Five

• Changes
• Switch Rebates
• Bump Up Production 35

• Results
• Sales Gains Continue
• Contribution Sags
• Inventory Problems
• Production in Overtime

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Production
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Contribution
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Steady Sales Growth
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Altima Management Performance Summary

• Production Problem
• Steady Gain in Sales
• Growth in Margins
• Maximum Capacity
• Good Net Contribution
• We Beat the Computer

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Contribution Summary
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Altima Team V. Computer Altima Team -
427m Computer - 332m
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Altima Management Lessons

• Strong Product
• Price is Important
• Production Key to Net
• Media Mystery
• Good Team Work

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Team Altima

• Doug The Ratchet Erwin
• Always wants to Ratchet up Production

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Team Altima

• Dave Cisco Kid Allen
• Our C.I.O.
• -Keeper of the AutoSim Disc-

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Team Altima

• Jeff Eagle Eye Fertig
• He picked the Altima as our car

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Team Altima

• Dr. Mike The Bone Cutter Ward
• He always wants to cut Inventory