Nissan Canada’s leader talks about key factors in the brand’s considerable success over the last year and some of the strategies moving forward
Christian Meunier
Last year was a significant one for Nissan Canada and its dealer network. The introduction of the 2015 Nissan Micra in April was big news, and tremendous, double digit sales growth resulted in Nissan becoming the nation’s fastest growing automaker during 2014. Reflecting on the last 12 months and what lies ahead for 2015, Canadian auto dealer sat down with Christian Meunier, President and CEO, Nissan Canada Inc., and asked him to share his thoughts.
HE: Nissan has seen tremendous growth in Canada over the last 12-18 months. To what do you attribute some of that success?
CM: This is an exciting time for the Nissan Group in Canada because as you say, we’re seeing unprecedented sales growth. Over the past 12-18 months, our strategy at Nissan has focused on five strategic pillars, and relied on the foundation of a strong, unified organization to support these strategies which are (in no particular order):
- Further strengthening partnerships with our dealers — driving performance through collaboration, new programs in place that foster performance, and a changing mindset to operate under the approach of “one team spirit.” Also, within Nissan Canada we’ve had a change in mindset to allow us to focus on performance, cross-functional actions and implementation.
- Building a loyal customer base — focusing on customer experience and programs to improve customer loyalty.
- Ensuring the right vehicles are in the right markets at the right time — Canada is a large, diverse country with many shopping patterns, and vehicle specifications for models sold in different regions vary. We need to ensure adequate management of that distribution to get the right car in the right place at the right time.
- Launching high-quality products with unbeatable value — our focus is on core models and ensuring strong value is recognized. Also, we ensure the products are developed for Canada with the right specifications. Micra is a good example of this.
- Strengthening the Nissan brand amongst Canadians — adapting it to resonate across the diverse regions of Canada. Contributing to this is a strong marketing and PR approach focusing 100 per cent on the Canadian market and its diversity.
This strategic plan governs our actions and those of our dealership partners towards one shared goal — delivering more value to Canadians. Based on Nissan Canada’s sales figures in 2014, and a remarkable growth rate of 27 per cent (over 2013), we believe this strategy is the right one. In November 2014, we made history as the Nissan Group surpassed the 100,000 sales milestone, rendering us the fastest-growing automotive company in Canada.
HE: At the retail level, what do you think has enabled dealers to see significant gain in market share in a very competitive environment?
CM: At the retail level, the impact of our five pillar strategy is really resonating with customers. Of those five pillars, the most apparent one is product. Nissan is now enjoying the aftermath of an exceptional strong product offensive. We launched several new products during this time of growth, and they are making waves in their respective segments. A good example is the Nissan Micra subcompact car which has been tailored specifically for Canada. The Micra has allowed Nissan to expand its presence in the extremely competitive entry-level segment by 76 per cent (versus 2013), and also brought a wealth of new customers to the Nissan brand. All the while, the Versa Note continues to grow year-over-year. In addition to Micra, products such as the new Rogue (sales up 76 per cent vs 2013) and the fully-electric Nissan LEAF (up 122 per cent vs 2013) have proven Nissan’s ability to launch innovative products that excite Canadian drivers, across the entire spectrum of our portfolio.
We talk about the Micra and how it has been re-designed specifically for Canada. We also need to mention how we’ve taken this truly Canadian mindset and applied it to other areas of the business, too. For instance, over the past 12-18 months, our marketing department has adopted a Canadian strategy for major product launches. Products such as the Rogue and Micra had homegrown television spots, and we feel it has resonated well with consumers — the sales numbers are proof of this. In addition to this uniquely Canadian content we’ve worked on and will continue to for future products, we’ve also developed extremely unique spots for the Quebec market. I took part in some advertising initiatives for Quebec, and was delighted to have a role in reaching this market, which is often overlooked, or sent re-packaged material. This is not the case at Nissan.
Naturally, the other four pillars described in the previous response have each had an impact on the retail level. Dealers feel a renewed, and stronger partnership with the Nissan Group, and the Nissan and Infiniti brands are reaffirmed with buyers from coast-to-coast.
HE: With respect to product, what have Canadians resonated strongly with when it comes to the Nissan brand and why do you think that is?
CM: Two big product success stories come to mind, that of the Nissan Rogue and Nissan Micra — each of which demonstrates a key philosophy within Nissan Canada. We are dedicated to providing the right vehicle to Canadians and this means a product which appeals to the unique tastes of this diverse nation.
Within Canada one of the hottest segments is that for compact sport utility vehicles. The new Nissan Rogue hits the mark here with high utility, an ample interior, and the right level of equipment. Yet it is easy to navigate in the city, is fuel efficient, and is affordable. The availability of all-wheel drive, and it is clear why the car is so popular for Canadians and is the top-seller in the Nissan portfolio.
Then we have to look at the all-new Nissan Micra, the latest addition to our lineup. Micra proves that having an affordable vehicle can also mean having one that is refined, nimble, and exceptionally fun-to-drive. As someone who has grown up and worked in Europe, I can tell you the Canadian market is in many ways more similar to Europe than it is to the U.S. Canadians may appreciate a smaller, more affordable car, but they also want something which is good value. In this regard, the Micra precisely fits the Canadian customer’s expectations. The Micra is a unique Canadian offer for Canada, and is not available in the U.S.
HE: Since the Micra was reintroduced to the Canadian market — how has it been received by both consumers and dealers?
CM: Since its launch in April of 2014, Micra has quickly become a staple in the Nissan lineup, accounting for 10 per cent of our volume already. Consumers are not only drawn to its attractive starting price of $9,998, but also the incredible value throughout the lineup. Micra offers the lowest cost-of-entry for many features such as RearView monitor, Bluetooth, air conditioning, and automatic transmission.
In addition to the price point, consumers are surprised by the Micra’s quality, agility and undeniable fun-to-drive factor. I have been working in this industry for many years and driven countless sports cars and luxury cars. But I will tell you, it was behind the wheel of the Nissan Micra that caused me to grin from ear-to-ear the entire time!
Dealers are not only seeing the benefits of added sales volume, but also an increase in showroom traffic as a direct result of Micra. We knew that Micra would change perceptions of the Nissan brand and would bring new customers to our dealer’s showrooms. While customers may come in initially for Micra, they often find that we offer a tremendous amount of value throughout our entire lineup and will opt to purchase a Versa Note, Sentra or Rogue.
It is interesting to note that despite the Micra sharing the same segment as Versa Note, the latter sales have not suffered. In fact, through the month of October, Versa Note / Hatchback sales are up 28 per cent year-over-year.
HE: Nissan has been at the forefront in providing factory approved accessories to customers through its dealers. How has that sector of the market performed and do you think accessories are likely to become a larger part of the business for dealers?
CM: It seems now more than ever that customers want to distinguish themselves and add a personal touch to the products they buy. If you look at smartphones, apparel, or even appliances, they’re all offered in a wide variety of colours and accents. This is apparent on the automotive side too. We’ve noticed customers are increasingly selecting Genuine Nissan Accessories to help personalize and customize their Nissan vehicles, and we’re keeping up in this regard with some new programs. This year we launched personalized accessories for the all-new Nissan Micra to satisfy the consumer appetite for colour accents. This program, officially known as the “Colour Studio” was expanded for the refreshed 2015 Nissan JUKE, offering affordable and fun ways to the customer to make his or her own personal mark.
