• Conversations with People and Topics of Focus

  Datsun: Opening the Path to Emerging Countries’ Markets －Designing UX, the Sales Tablet Tool － Nissan Motor Co., Ltd.

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  The automotive sector is one of Japan’s key industries, and one of its new globalization trends is to trail-blaze emerging countries’ markets. Emerging countries are extremely compelling and represent numerous massive markets with populations of one hundred million or more inhabitants (1.2 billion in India, 200 million in Indonesia and Brazil, etc.), and the emergence of a new upper class. In such a setting, Nissan Motor Co., Ltd. has created Datsun, a strategic brand directed towards emerging countries. Datsun is a brand that formerly took over the world, but its new utterance takes a different position. This time, Arc Communications collaborated on the design of a new sales tool, UX (User Experience), a tablet used by Datsun for on-site sales.
  It is an evolved version of the paper catalogues that were used up to now on showroom floors. Replacing them with a tablet gives the customer a deeper and clearer feel for our vehicles’ appeal. Furthermore, this tool was devised to easily connect with the customer’s buying behavior, and it allows to effortlessly realize tasks such as customizing the vehicle, drawing up a quotation, etc.
  In this issue, we will be presenting the Datsun brand, Nissan Motor Co., Ltd.’s new venture, its sales strategies, and talking about their sales tool.

  

  【Profile】

  Shinkichi Izumi
  Deputy General Manager, Marketing Product Planning Group, Datsun Business Unit, Nissan Motor Co., Ltd.
  
  

  Kaori Nakagawa
  Manager, Digital Strategy Department, Global Marketing Strategy Division, Nissan Motor Co., Ltd.
  
  

  Chihiro Morisawa
  Digital Strategy Department, Global Marketing Strategy Division, Nissan Motor Co., Ltd.
  
  

  Shotaro Oteki
  Digital Strategy Department, Global Marketing Strategy Division, Nissan Motor Co., Ltd.
  
  

  Mariko Ohsato
  Arc Communications CEO & President
  
  

  Yoshihiro Sato
  Web Executive Manager, Arc Communications

  
  

  Shinichiro Shibata

  Web Chief Director, Arc Communications

  
  
  

  "Datsun"

  Ohsato： First of all, I think many people remember Datsun as Nissan’s classic brand and feel a sense of nostalgia. Could you tell us more about the circumstances of its revival?
  

  Izumi： This time, the Datsun brand will be released in four emerging countries: India, Indonesia, Russia and South Africa. Except for South Africa, the former Datsun brand had almost never reached their markets – or even if it has, that was a very long time ago. So their reaction is very different from that of developed countries, including Japan, who perceive it as a revival of an old brand.

  Ohsato： The name Datsun reminds me of the large pick-up trucks you could see in old American movies. Will the brand go in a different direction?

  Izumi： Indeed, our new brand positioning is dramatically different from the old one. It is said that the automotive industry will undergo major transformations in three areas: first, “emerging countries”; second, “environmental engineering”; and third, “downsizing.” Datsun’s position is to concentrate on two of these trends, “emerging countries” and “downsizing.”

  Ohsato： I see, this is very different from what I had imagined.

  Izumi： Around 2000, 60% of vehicles were distributed to advanced countries, and 40% to emerging nations. It is estimated that this trend will reverse, with 60% of the cars being distributed to emerging countries in the future. So far, Nissan Motor has developed its products according primarily to the markets and needs of advanced countries. Going forward, we believe it will be vital to develop and launch products reflective of demands in the emerging countries’ markets. And Datsun is the brand dedicated to taking on this endeavor.

  Manufacturing Vehicles for Emerging Countries

  Ohsato： Can you share with us Nissan’s plan for developing Datsun car models for markets of emerging countries?

  Izumi： Nissan Motor has brands called Nissan and Infiniti, but these aren’t sufficient to address entire markets. Therefore, we will focus on the so-called “entry” segment with the Datsun brand for people who purchase a new car for the very first time.

  Sato： Entering a new market and tackling new segments must be particularly difficult, strategically speaking.

  Izumi： We have no other choice than to go through a trial and error process. The car dealers have to provide suitable explanations, processes and services to customers who want to buy their first car, and it is a big challenge because we also have to start up new dealerships. The sales tool you helped us devise will help visualize the overall process and we hope it will help us secure an important position in the market.

  Sato： In emerging countries, the car selling process probably isn’t properly established as it is in Japan. Furthermore, even with an “entry” segment price tag, cars are still expensive and they aren't the kind of products that are bought on a whim, so I imagine it must be rather complicated.

  Izumi： An affordable vehicle with a reasonable price, so to speak, which entices the buyer to purchase. That is what we are aiming for, but in these countries, a new car has the same value as buying a decent house. Rather than being a consumer good, it’s an investment. In Indonesia, for example, a governmental initiative has established standards and tax-break privileges for new cars. For that reason, the automotive market has been considerably invigorated. Datsun too is releasing cars in conformity to these standards, so we have high hopes for them. Until now, the price range of entry segment cars started at 1,300,000 yen, but with the release of the Datsun “GO” model, we have established a ground-breaking 600,000 yen starting price. This aspect has also caught the attention of the market.

  • 2. Practical Use of the Tablet: "Visible" and "Peace of Mind"

  Practical Use of the Tablet: "Visible" and "Peace of Mind"

  Sato： About the tablet tool, what kind of expectations did you have in mind in its planning phase?

  Izumi： We emphasize the following keywords: “visible,” “easy to understand,” and “peace of mind” to provide a sense of security through the experience of services worthy of your trust. It will be the first car for many prospective buyers in emerging countries. So, before they go out on a test drive, it is important to deepen their understanding of our cars, build up their interest in them, and materialize the “visible” and “peace of mind” aspects. During negotiations, the tablets contain much more information than the catalogues we used until now, and it is important to convey an advanced sensation of what the car feels like. This is why we planned this tool.

  Nakagawa： New salespersons have been employed for the occasion, and many of them are working in the automotive industry for the first time. Therefore, we wanted a tool they can utilize fully to best convey the Datsun brand and our cars’ attractiveness, and finally leading to sales.

  Morisawa： The idea of using tablets as sales tools had been floating around for some time. Still, it is difficult to suddenly shift to using a tablet, since the sales process using paper tools is so well established. With Datsun, we are approaching new markets with a new brand and new people, so it felt like the most appropriate occasion to take up new challenges and decided to try implementing this new process.

  Ohsato： When assisting our clients in their globalization through Web services, we noticed that emerging countries definitely have some special characteristics, from their Web environment to user literacy. They often differ a lot from Western and advanced countries, and the introduction of a new tool could bring out more challenges. Did you experience any trouble on that particular front?

  Oteki： Conveying an impressive image of the car is crucial, so we needed large amounts of visual data. However, as you mentioned earlier on, the telecommunications environment is very different from that of Japan, sometimes very slow or unstable, so a network functioning on an online basis represented too much of a risk. Therefore, we decided that having all the data available locally on the tablet was a prerequisite. Also, we couldn’t implement usage of the UX if the operation of the tablet became choppy because of data processing problems, or because we had to reduce image quality so as to avoid that particular threat. So we all racked our brains and went on, through earnest trial and error. (LOL)

  Shibata： By the way, have such mobile tools penetrated the Indian and Indonesian markets?

  Izumi： The level of market penetration depends on the country. Indonesia is the world’s largest BlackBerry market, while in India smartphones have only spread to one class of its population. However, although it isn’t anywhere near the present condition in Japan, many domestic mobile terminal manufacturers have started to appear and it seems they are boosting their popularity, so I don’t think it calls for alarm. In our industry, Nissan appears to be the first to use tablets for sales activities in India and Indonesia, and taking the lead in introducing new devices could become a hot topic which, we hope, will help build the Datsun branding image.

  The Implementation of UX

  Sato： Next, I would like to talk about our work together.

  Oteki： In the process of deciding on the final design, we made a major change in the direction we were working towards. That was a fairly tough decision to make, but thinking back, it was quite fun too. (LOL)

  Nakagawa： After seeing the initial design, we improved it further from the perspective of whether we could sell cars with this tool. We went to stores, redid our research on dealerships, wrote a detailed “user story”, and reviewed the functions from the viewpoints of those who would be using it. And by doing this, we managed to create a significantly better tool.

  Shibata： We were in charge of planning the transition, designing the screen interface, effects, etc. Laying out an intricate hierarchy like on a website would be confusing and wouldn’t allow to easily grasp the current position, so we suggested a more simple structure. In order to avoid the confusion caused by “Next”/“Previous” buttons, we suggested to opt for being able to exit the current page, and keeping data completed even after resetting the current process. Regarding the design of the screen interface, we thought of a layout that can convey the car’s size and its vibrant design as much as possible, developed a function allowing a 360° view of the interior, and offered a method to bring all this together to function so that the car’s movements and the page transitions operated smoothly. We strived to make it both practical and visually compelling to give the best feel for the car.

  Nakagawa： This time, we didn’t only need a design, it was also important to materialize the UX. Then, someone we worked with suggested collaborating with Arc. So, with high expectations, we contacted you. And Arc undoubtedly met these expectations.

  Morisawa： During the design phase, I saw the proposed concept and thought, “That makes perfect sense!” We were very thankful that during the trial and error phase (LOL), your response – down to our smallest requests – was so speedy and you were able to deliver on time despite the tight schedule.

  Oteki： The design you produced was very much to our satisfaction. I am especially pleased with its simple layout, free from any superfluous information.

  Sato： Thank you very much. For us too, this really was a project worth doing. Our work stopped in the design phase, but could you tell us more about the development and current situation?
  

  Morisawa： We have already launched it in India and Indonesia. However, we have been working on adding extra functions, so it should take a little more time before we actually reach full deployment. Development for South Africa and Russia is about to start and since the tools themselves are ready, we will mainly be replacing languages and data.

  Nakagawa： The demand for developing this tablet tool is on the rise for the NISSAN brand too, so this initiative has caught people's attention in various ways. We only just started using it, so first we would like to see it become well established within the Datsun brand before starting to work on further expansion.

  Ohsato： I don't think a time when paper will be completely replaced by digital devices will ever come, but I do believe that being able to provide various virtual experiences to customers with the UX is full of promises. Especially in the automotive industry, I feel providing digital user experiences to customers will greatly contribute to future sales. If there are any news about the UX, please let us know. Thank you very much for your time today.

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• Conversations with People and Topics of Focus

  Back Numbers

  • Datsun: Opening the Path to Emerging Countries’ Markets －Designing UX, the Sales Tablet Tool － Nissan Motor Co., Ltd.
  • Creating an Entirely New Brand for an Entirely New Company: Nissan-Mitsubishi Motors Joint-Venture, NMKV (Winter Greeting 2013)
  • Striving to Become the No.1 Business School in Asia: Graduate School of Management, GLOBIS University (Summer Greeting 2013)
  • Conversation with a Professional Translator of Business Bookss (Winter Greeting 2012)
  • Abitus thinks ahead, Globalized Human Resources (Summer Greeting 2012)
  • The Publishing Platform Business Rolled Out by Six Apart, Ltd. (Winter Greeting 2011)
  • The Internal Communication Strategies of Multinational Japanese Companies (Summer Greeting 2011)
  • Foreign-language Website Production/Website Translation (Spring Greeting 2011)
  • Global/Multilingual Website Solutions (Winter Greeting 2010)
  • Market Development through Global Websites (Summer Greeting 2010)

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