only answer question no.4

END-OF-CHAPTER CASE BRINGING A NEW PRODUCT TO MARKET: THE STORY OF THE NISSAN LEAF In August 2009, the Nissan Motor Company unveiled the Nissan LEAF, the world's first affordable, zero-emission car powered by a lithium-ion battery. Three years later the LEAF became the best-selling electric vehicle of all time. How did this revolutionary new car become so successful so quickly? The secret lies in the years of careful planning that went into bringing the LEAF to market. The name itself makes a significant statement about the car. Just as leaves purify the air in nature, so the Nissan LEAF purifies mobility by taking emissions out of the driving experience. This medium-sized hatchback has ample cargo space and seating for five adults. Its battery, which generates 107 horsepower and 207 lb-ft of torque, can be fully charged in seven hours with a 240-volt home charging dock-although with a quick charger, it can achieve 80 percent capacity in only 26 minutes. And when fully charged, the LEAF has a range of 160 kilometres. Let's start with the story of how this new product was built. PRODUCTION BEGINS Production of the Nissan LEAF began in October 2010 at a vehicle assembly plant in Oppama, Japan. The LEAF's lith- ium-ion battery modules are manufactured at the Automo- tive Energy Supply Corporation (AESC) operation in Zama, Japan- a joint venture of Nissan Motor Co., Ltd. and NEC Corporation. The battery modules, which contain four bat- tery cells, are assembled at Zama and then shipped to the Oppama facility, where 48 of them are assembled into the electric car's battery pack. The LEAF's batteries are also pro- duced in Portugal, France, the U.K., and the U.S. Nissan began construction of a manufacturing facility in Smyrna, Tennessee, in early 2010. It is now one of the largest vehicle battery manufacturing plants in North America, capable of producing 200 000 advanced-technology batteries annually. The battery plant is located adjacent to Nissan's exist- ing vehicle assembly plant in Tennessee, which was retooled to accommodate production of the LEAF Part of the assembly line had to be modified mount battery modules at the stage of production where fuel tanks are traditionally installed; motors and inverters, meanwhile, are mounted at the point where engines are installed in gasoline-powered vehicles. The Tennessee vehicle assem- bly plant builds LEAFS for North America, and has the ability to produce 150 000 electric cars each year. The electric motor that powers the Nissan LEAF has more than one mile of copper wiring inside. It takes more time to assemble an electric motor than it does a gas engine, and Nissan says it takes about 25 people per shift to ensure that an electric motor is made properly. At first the motors were assembled only in Japan, but today they're also produced in Decherd, Tennessee, about 100 kilome- tres from Smyrna. Adam Reed, Nissan's globally certified trainer for eMotor production, spent two three-month stints at Nissan's global headquarters in Japan learning how to sculpt these motors. He now supports the team in Decherd that began building the motors for the 2013 Nis- san LEAF, which was assembled in Smyrna. Another key requirement of bringing the Nissan LEAF to market was to develop charging systems--and to continually improve on them. A year after production on the LEAF began, Nissan and 4R Energy Corporation (itself a joint venture established by Nissan and Sumitomo Corporation) began testing a new charging system that combines a solar power generation system with high- capacity lithium-ion batteries. With the new charging sys- tem, electricity is generated through solar cells installed at Nissan's global headquarters, and is stored in lithium-ion batteries. With seven charging stations (three quick charge, four normal charge) located on headquarter grounds, the total electricity that can be generated and stored is equivalent to fully charging about 1800 Nissan LEAFs annually. This new system will enable electric vehicles, which don't emit any CO, when driven, to be charged through a completely renewable energy source, resulting in a cycle whose total CO2 emissions is zero. A quick charger is also available for sale at Nissan parts companies throughout Japan. The quick-charging unit retains the high performance of the current quick charger manufactured by Nissan, but its smaller size takes up less space and enables easier installation. The quick charger costs less than 1 million yen (about $11 000), which is actually less than the "regular" charging unit. The charg- ing units are marketed both to individual customers and to buildings and other public facilities, such as rental car operations. Because there's no traditional engine, the LEAF is ultra-quiet (for safety reasons, a sound had to be added so that pedestrians could hear the car coming). The car is also ultra-high tech. The instrument panel provides the 314 CHAPTER 8 Developing and Managing Products and Services 315 has nore driver with regular updates on range and driving effi- ciency, and using a system called CARWINGS, the driver can communicate with the car via smartphone and the LEAF app. With the app, drivers can check the state of the battery charge, begin charging, and check when the bat- tery charge is complete. They can also see the estimated driving range and turn the climate control system on or off. The car includes an IT system complete with an on- board remote-controlled timer that can be programmed to recharge batteries. Nissan views the IT system as a partner for the driver and an enhancement for the passengers. It's also an important aspect of the new product's positioning. technicians, are required to service the car. Still, with no engine, no oil, and very few moving parts, the Nissan LEAF requires much less maintenance and service than a vehicle with an internal combustion engine. Eventually, all Nissan dealers across Canada will be EV-certified. One of the most important marketing programs for the LEAF in Canada is the online reservation system. Electric cars aren't for everyone-they're just for most people-but until charging systems are as common as gas stations, con- sumers who want a Nissan LEAF must live in the vicinity of a certified dealer, and in a municipality whose government and utilities are making preparations for electric vehicles. Interested prospective customers must register online at nis- san.ca/leaf and answer a few basic questions to make sure they're eligible to own a LEAF Once qualified, these cus- tomers are given a "reservation" to purchase the car. Nissan prepared to release around 600 Nissan LEAFs on the Cana- dian market through several waves of such reservations. shift first y're me fied inth 10W in Nis- san to on on no nat h- 'S- at on k er id MARKET POSITIONING The LEAF is positioned in the Canadian market as the first mass market, affordable, fully electric car that offers environmentally conscious drivers a zero-emission option for real environmental impact. It provides 90 percent of Canadians with the range needed for their daily com- mutes, and at the same time it offers plenty of room, com- fort, and style, and an uncompromising driving experience. The environmentally friendly theme is communicated through the car's name, the "Aqua Globe" body colour of the introductory model, and the interior blue dashboard highlights and instrument illumination. While the product developers in Japan worked on producing the LEAF, the marketing team at Nissan Canada focused on preparing the Canadian market for its first fully electric car. The first step was to establish relationships with energy producers such as Hydro-Qubec and gov- ernments such as the City of Toronto and the Government of Manitoba, so that all could work together to plan for the necessary charging infrastructure and otherwise pave the way for the arrival of electric vehicles on Canada's streets. Nissan Canada lobbied governments to put incentives in place to promote the adoption of electric cars. A year before the first LEAF was sold in Canada, Kathleen Wynne, at the time Ontario's transportation minister, announced provincial incentives between $5000 and $8500 (depend- ing on battery size) to promote electric vehicles in Ontario, In all, Nissan formed partnerships with approximately 100 governments, cities, and other organizations to advance the deployment of electric vehicles worldwide. Then there was the task of getting Nissan dealers ready to sell and service the LEAF. The project began with the certification of 27 selected retailers located in regions where Nissan had established partnerships with local gov- ernments. In order to be certified, these dealers had to pass a rigorous training process and complete modifica- tions to their sales and service departments. Special lifts and pallets to handle the battery, along with EV-skilled n THE LEAF DEBUTS In October 2009 the LEAF made its North American debut in Los Angeles. Nissan announced a 22-city promo- tional tour that included a stop in Vancouver, and so that December, the first Nissan LEAF rolled into Canada for a brief visit. Nissan Canada executives and representatives from the Province of British Columbia, the City of Van- couver, and BC Hydro were all present to commemorate the occasion--and to establish a partnership agreement that would see British Columbia as the initial launch point for the Nissan LEAF in Canada when it was rolled out to the market two years later. The finished, market-ready LEAF was first viewed at the Montreal Auto Show in January 2011. Shortly after- ward, details about Canadian pricing, models, and trim availability were announced. In Canada, the 2011 LEAF started at $38 395 and was available in two trim levels: the SV base model with a cold-weather package, 16-inch alloy wheels, LED headlights, Bluetooth, XM Satellite radio, and USB ports; and the upgraded SL model, priced about $2000 higher, with a rear spoiler, solar panel char- ger, and fog lights. That April, at the Green Living Show in Toronto, Canadians were allowed to test-drive the car for the first time. Throughout the fall of 2011 Nissan Canada orchestrated a cross-Canada tour, allowing Cana- dians to test-drive and learn more about the LEAF at cer- tified dealer locations. The Drive Electric Tour began in Montreal and ended in Vancouver in late October, stop- ping at all 27 LEAF certified dealers across the country for one or two days each. The first Canadian sales happened in the summer of 2011, when Power Stream, an electricity distribution CHAPTER 8 Developing and Managing Products and Services 317 and was also awarded a Top Safety Pick rating from the Insurance Institute for Highway Safety. All of this allows marketers to add a new element to the car's positioning: The LEAF isn't just the most innovative car on the planet; it's also one of the safest. Source: All information provided by Nissan Canada. car is available in. How do you think automobile marketers decide which colours to offer? 2. Describe the core, actual, and augmented product. 3. Which stage of the product life cycle is the Nissan LEAF in right now? Explain. 4. Make a list of all the countries where the Nissan LEAF is available. How have marketers adapted the product to suit these markets? 5. When the LEAF first came to market it was promot- ed as the world's first affordable zero-emission car. Is this still the product's point of differentiation today? QUESTIONS FOR DISCUSSION 1. Research the latest news about the Nissan LEAF in the Canadian market. Have any new features been added since the car was launched as a new product? Has the style changed? Find out what colours the FAEZKER