Carlos Goshen wants market share and he wants it bad. Despite a just announced net revenue of over 4.1 Billion in its past Fiscal year, the mastermind of the Nissan-Renault partnership is not satisfied. Goshn, despite a 4% growth in the US last year, declared the US to be Nissan’s biggest disappointment for the year.
A recent round of, lineup-wide, price cuts could be an attempt to gain the market share Goshn so desperately wants. The eventual goal is to have a 10% share of the US market. So, with a goal in place, Goshn has given the US branch of Nissan an order, double your sales by 2017.
To reach this lofty goal, Nissan has a 3-part plan. First, Nissan plans to increase its sales per dealership, an area where it lags greatly behind competitors Honda and Toyota. Honda and Toyota stores average 1,220 and 1,491 sales per franchise respectfully while Nissan manages just 959. Second, the plan is to increase its number of franchises (dealerships) in the country. Finally, Nissan plans to maintain and increase its marketing efforts.
One reason for Goshn’s focus on the US could be that, because Renault does not sell cars in the US, Nissan is his only chance to capitalize on this lucrative market. Even with a cutting edge new lineup, which includes well-reviewed cars like the new Altima, it will be a tall order for Nissan USA to double their sales in 4 years in a competitive industry. It can be done, but it will come at a cost. Market share is not “cheap.” Unless you have a product that is far superior to your competitors or costs that are substantially lower, the only way to grow is to shrink your margins to make your cars cheaper in comparison to your competition. But, with 4.1 billion in revenue last year, Nissan may have the capital necessary to push for more market share.