Monday, June 2, 2008

Entry #13_ St.ID: 20500297

Nissan,
Toyota Focus on Graying Drivers

Faced with slumping sales at home, Japan's carmakers are testing
new technologies to help the elderly stay safely on the roads.

Design for the elderly)
As technology develops, population of older people is increasing. In Japan, since about 20% of the population is over 65 years old, targeting older people with specific model is becoming a popular business and it's not an exception for business about car driving. It's not just because the Japanese elderly population is gradually growing, but because of a lack of interest in car buying among younger drivers, 20s to 30s. Let's look at what Nissan did to do a business with older customers.

Summary of this article)
* Designer Suits
Nissan believed that those engineers making car for older customers need to 'feel' that what aging is like. Therefore, now it has engineers donning special suits that simulate the physical effects of aging. 'The suits give engineers the feeling of poor balance through a raised front-tor design; they include goggles that imitate failing eyesight and color blindness; and special casts mimic arthritic pain by making it difficult to raise arms and legs.' (quoted) With the same feeling of the elderly, car makers would fully understand what older customers really want and need.

* Special developments for older customer
Like these unique designer suits, Japan has been doing a lot of research about aging. Toyota approached Ryuta Kawashima, a professor at Tohoko University to develop a car of the future. The idea of Toyota is that this car is able to recognize how the driver 'normally' drives and if the speed of driving changes significantly, the car could automatically slow itself. Another thing is from Kawashima, known for being featured in Nintendo's Brain Age video game. He said that 'he would develop a system that monitors driver's brain patterns and, if problems are detected, notifies the driver or slows the car.' (quoted)

Personal Opinions)
Nissan's trial of feeling how older people feel for doing a business with older customers is pretty impressive. Without knowing what customers really want and need, such a business can never be successful. Targeting older customers was also a good choice because they are probably the ones who would be more impressed than any other kinds of customers when they feel that they are thought of and cared for. The important thing Nissan still needs to work on is how to attract these older customers to buy their cars. They might use AIDA model to set their strategy.

Attention: Since older people watch TV less than younger customers, TV commercials would not be effective. And actually older people drive less and even if they drive, they do not go far. To get their attention, Nissan has to find certain places that older people usually gather together. Opening a special even in those places can make older customers pay attention.
Interest: Once they pay attention, it is important to make them interested in cars. Either providing some products that older people need in their daily lives or introducing benefits of driving cars might be working in this step.
Desire: In order to make them want to buy that car, Nissan may think of the benefits that older customers not only need but desperately want. Most of the older people want convenient, safe, and affordable type of cars. As Nissan develps a special designer suit, they may need work on designing special cars providing new functions especially designed for the older people having difficulty with driving.
Action: In this step, Nissan needs to make older customers feel safe and easy in driving. With purchasing their cars, Nissan may provide driving education course.

No matter how old they are, every single human being wants to have their own portion in a certain place. Older customers are a good target in that kind of psychological sense. Acknowledging the fact that older customers have potential power would be Nissan's competitive advantage some day.

Annotation*: Ian Rowley, Nissan, Toyota Focus on Graying Drivers, Journal. May 6, 2008_ http://www.businessweek.com/globalbiz/content/may2008/gb2008056_154197.htm?chan=innovation_auto+design_design+strategy
13th Entry by 20500297 :)

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