Transcript ALTIMA

Nissan Altima
Final Presentation
Altima Team Members
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Dave Allen
Doug Erwin
Jeff Fertig
Mike Ward
Altima Strengths
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Solid Product
Good Margins
Neglected
Excess Capacity /Inventory
Altima Weaknesses
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Most Expensive
Low Sales and Market share
Poorly Marketed
Two Models
Our Strategy
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Gain Market Share
Increase Advertising
Heavily Discount
Target Commuters
Change Marketing
Increase Net
Decision One
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Changes
Up Advertising 50%
Change Targets/Message
$500 Rebate on XE and
7.8% financing
Slow Production
Results
• Sales up 20%
• Net Contribution 2X
Decision Two
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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
Decision Three
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Changes
Freeze Advertising
Target Age 24-44 y o
Keep Rebates
2.9% Financing
Drop Price
Raise Production 35%
Results
• Sales gains of 6%
• Inventory swells
• Net Contribution falls
Decision Four !
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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
Decision Five
Changes
• Switch Rebates
• Bump Up Production
35%
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Results
Sales Gains Continue
Contribution Sags
Inventory Problems
Production in
Overtime
Production
Contribution
Steady Sales Growth
Altima Management Performance
Summary
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Production Problem
Steady Gain in Sales
Growth in Margins
Maximum Capacity
Good Net
Contribution
• We Beat the Computer
Contribution Summary
Net contribution
150
50
5th Qtr
4th Qtr
3rd Qtr
Computer
2nd Qtr
0
Altima Team
1st Qtr
$ Millions
100
Altima Team V. Computer
Altima Team - $427m
Computer - $ 332m
Altima Management
Lessons
• Strong Product
• Price is Important
• Production Key to
Net
• Media Mystery
• Good Team Work
Team Altima
Doug “The Ratchet” Erwin
Always wants to Ratchet up
Production
Team Altima
Dave “Cisco Kid” Allen
Our C.I.O.
-Keeper of the AutoSim Disc-
Team Altima
Jeff “Eagle Eye” Fertig
He picked the Altima as our car
Team Altima
Dr. Mike “The Bone Cutter” Ward
He always wants to cut Inventory