Licensed to Sadia Anwar, LUMS (21110094@lums.edu.pk). Do not copy or distribute.

CASE STUDY

Positioning the Infiniti G20

GARY L. LILIEN AND ARVIND RANGASWAMY

Copyright © 2016 by DecisionPro Inc.

This document is primarily intended to be used in conjunction with the Enginius

software suite. To order copies or request permission to reproduce materials, go to
http://www.enginius.biz. No part of this publication may be reproduced, stored in a
retrieval system, used in a spreadsheet, or transmitted in any form or by any means
–electronic, mechanical, photocopying, recording or otherwise– without the
permission of DecisionPro, Inc. V160321

1
 Licensed to Sadia Anwar, LUMS (21110094@lums.edu.pk). Do not copy or distribute.

Introducing the G20

In April 1990, Nissan’s Infiniti division planned to introduce the G20 in the United States, adding a third model to the
existing Infiniti line. The G20 was already available in Europe and Japan under the name Primera. The car, equipped
with a four-cylinder engine developing 140 horsepower, would be Infiniti’s entry-level luxury car. Initial market
response to the G20 in the United States was disappointing, and management wondered how it might retarget or
reposition the car to improve its market performance.

Background
In 1989, three years after Honda first introduced its Acura line, Toyota and Nissan attacked the U.S. luxury car market,
a segment previously dominated by American and German manufacturers.

In November 1989, Nissan launched its new luxury Infiniti division with the $40,000 Q45 as its lead car and the $20,000
M30. However, Nissan was somewhat late: in August 1989, three months before Nissan shipped its first Infiniti, Toyota
had introduced Lexus, its luxury brand, with a two-car line comprising the $40,000 LS400 and the entry-level LS250.

As the figures for January to September 1990 showed, Lexus outsold Infiniti by 50,000 to 15,000. The reasons for
Infiniti’s slow start were threefold:

 First, the Infiniti Q45 came to the market after the Lexus LS400 had established a good market position.
 Second, Lexus had two very good cars, whereas Infiniti’s M30 coupe received poor evaluations from the
automobile press and from customers.

 Finally, the eccentric Infiniti advertising campaign that showed scenes of nature, but not the car itself, shared
some of the blame. (“Infiniti may not be doing so well, but, hey, at least sales of rocks and trees are
skyrocketing,” commented comedian Jay Leno.)

Research Data
Exhibits 1–4 summarize some of the data that Infiniti had in early 1990. Data in Exhibits 1 and 2 are based on a survey
of customers from its target segments, described as people between 25 and 35 with annual household incomes
between $50,000 and $100,000 (when the survey was administered, the Lexus LS250 was not yet well known to the
respondents to be included in the study). The three subsegments in Exhibit 1 (denoted S1, S2 and S3) are based on
information provided by Infiniti managers. Exhibit 3 is derived from sales brochures describing the characteristics of
each car. Exhibit 4 summarizes demographic and psychographic information about the three subsegments and was
compiled from databases supplied by Claritas, Inc.

2
 Licensed to Sadia Anwar, LUMS (21110094@lums.edu.pk). Do not copy or distribute.

Exercises

Question 1
 Using the data in Exhibit 1 and the associated perceptual mapping
software, describe the two (or, if applicable, three) dimensions
underlying the perceptual maps that you generated. Based on
these maps, how do people in this market perceive the Infiniti G20
compared with its competitors?

Question 2
Infiniti promoted the G20 as a Japanese car (basic version
$17,500) with a German feel, basically a car that was like the BMW
318i ($20,000), but lower priced. Is this a credible claim, given the
perceptions and preferences of the respondents?

Question 3
Which attributes are most important in influencing preference for
these cars in the three segments (S1, S2 and S3) shown on these
maps? To which segment(s) would you market the Infiniti G20?
How would you reposition the Infiniti G20 to best suit the chosen
segment(s)? Briefly describe the marketing program you would
use to target the chosen segment(s).

Question 4
What ongoing research program would you recommend to Infiniti
to improve its evaluation of its segmentation of the market and
positioning of its G20?

Question 5
Summarize the advantages and limitations of the software
provided for this application.

3
 Licensed to Sadia Anwar, LUMS (21110094@lums.edu.pk). Do not copy or distribute.

Exhibits
G20 Ford Audi Toyota Eagle Honda Saab Pontiac BMW Capri
Tbird 90 Supra Talon Prelude 900 Firebird 318i

Attractive 5.6 4.0 4.6 5.6 4.0 5.2 5.3 3.9 5.7 3.9

Quiet 6.3 3.6 5.2 4.2 3.5 5.4 4.8 2.8 5.0 3.3

Unreliable 2.9 4.2 3.7 2.0 4.3 3.2 3.7 3.9 2.3 4.0

Poorly Built 1.6 4.2 2.6 2.1 4.3 2.8 2.8 4.4 1.8 4.3

Interesting 3.6 5.0 4.0 4.3 3.9 3.4 3.4 5.4 3.3 3.9

Sporty 4.1 4.9 3.8 6.2 4.9 5.1 4.3 5.7 4.1 5.2

Uncomfortable 3.2 4.0 2.4 3.7 4.0 3.3 2.8 4.3 3.5 4.4

Roomy 4.2 3.9 5.3 3.5 3.6 3.9 5.1 3.3 4.3 3.6

Easy to Service 4.6 4.9 3.5 4.9 4.6 5.0 3.8 4.7 4.1 4.6

High Prestige 5.4 3.5 5.6 5.3 2.8 4.7 5.7 3.8 6.4 3.3

Common 3.5 3.6 3.4 2.9 4.3 3.9 1.9 4.3 2.8 3.9

Economical 3.6 3.7 3.6 3.2 4.9 5.0 4.3 3.1 4.3 4.6

Successful 5.3 4.2 5.0 5.5 3.7 5.6 5.3 4.4 5.9 3.9

Avant-garde 4.3 3.6 3.6 4.9 4.4 3.9 4.7 4.1 3.7 4.5

Poor Value 3.4 4.3 4.3 3.5 3.6 2.6 2.9 4.3 3.3 3.8

Overall 6.3 3.9 6.0 5.5 4.0 6.5 6.8 3.0 6.7 4.0

Segment I (S1) 4.3 2.1 6.0 6.1 3.3 6.0 7.5 1.2 8.3 1.7

Segment II (S2) 5.9 6.0 7.7 3.5 3.1 5.5 5.4 2.5 5.4 5.8

Segment III (S3) 8.4 2.1 3.4 8.1 5.8 8.3 8.4 5.3 7.3 3.4

EXHIBIT 1: Survey results with average perception and average preference ratings on
a scale from 1 to 9.

4
 Licensed to Sadia Anwar, LUMS (21110094@lums.edu.pk). Do not copy or distribute.

G20 Ford Audi Toyota Eagle Honda Saab Pontiac BMW Mercury
Tbird 90 Supra Talon Prelude 900 Firebird 318i Capri
1 4.0 7.0 8.0 3.0 4.0 5.0 5.0 1.0 4.0 5.0
2 4.0 8.0 6.0 5.0 8.0 7.0 3.0 1.0 5.0 2.0
3 8.0 5.0 9.0 4.0 1.0 7.0 7.0 2.0 4.0 4.0
4 7.0 1.0 8.0 1.0 4.0 6.0 5.0 5.0 7.0 3.0
5 8.0 8.0 8.0 3.0 5.0 4.0 3.0 2.0 8.0 6.0
6 5.0 6.0 5.0 5.0 2.0 4.0 8.0 4.0 4.0 7.0
7 3.0 9.0 7.0 4.0 4.0 3.0 6.0 4.0 3.0 6.0
8 4.0 7.0 9.0 3.0 1.0 7.0 9.0 3.0 6.0 6.0
9 8.0 6.0 6.0 4.0 5.0 5.0 1.0 2.0 8.0 7.0
10 6.0 4.0 6.0 3.0 2.0 8.0 7.0 3.0 1.0 8.0
11 8.0 6.0 8.0 4.0 6.0 8.0 7.0 1.0 2.0 7.0
12 8.0 5.0 6.0 6.0 2.0 3.0 8.0 1.0 6.0 6.0
13 4.0 2.0 9.0 4.0 1.0 5.0 5.0 4.0 8.0 5.0
14 5.0 5.0 8.0 5.0 6.0 4.0 6.0 1.0 3.0 7.0
15 6.0 5.0 9.0 1.0 3.0 6.0 8.0 3.0 6.0 3.0
16 6.0 3.0 9.0 2.0 7.0 8.0 6.0 3.0 7.0 3.0
17 8.0 5.0 8.0 1.0 1.0 8.0 9.0 2.0 5.0 4.0
18 5.0 9.0 7.0 5.0 2.0 4.0 7.0 5.0 6.0 1.0
19 6.0 7.0 9.0 6.0 2.0 6.0 3.0 5.0 4.0 5.0
20 6.0 9.0 8.0 2.0 3.0 8.0 6.0 1.0 7.0 5.0
21 7.0 7.0 9.0 4.0 1.0 3.0 4.0 1.0 4.0 3.0
22 6.0 9.0 6.0 2.0 3.0 4.0 6.0 1.0 6.0 3.0
23 5.0 4.0 8.0 4.0 1.0 4.0 1.0 1.0 8.0 5.0
24 7.0 4.0 8.0 3.0 2.0 3.0 4.0 6.0 9.0 5.0
25 4.0 9.0 7.0 3.0 1.0 7.0 2.0 1.0 5.0 7.0
26 8.0 2.0 1.0 9.0 4.0 8.0 8.0 5.0 8.0 4.0
27 8.0 6.0 5.0 8.0 4.0 8.0 7.0 7.0 5.0 1.0
28 9.0 1.0 2.0 4.0 9.0 9.0 9.0 4.0 8.0 3.0
29 9.0 2.0 4.0 8.0 7.0 8.0 9.0 8.0 5.0 6.0
30 8.0 3.0 4.0 8.0 7.0 6.0 6.0 4.0 5.0 1.0
31 8.0 3.0 2.0 9.0 5.0 8.0 9.0 5.0 7.0 5.0
32 5.0 1.0 2.0 7.0 5.0 9.0 9.0 7.0 8.0 6.0
33 9.0 1.0 4.0 9.0 6.0 9.0 9.0 5.0 9.0 2.0
34 8.0 2.0 6.0 8.0 7.0 9.0 8.0 5.0 9.0 5.0
35 9.0 1.0 7.0 9.0 5.0 7.0 6.0 6.0 4.0 1.0
36 8.0 1.0 4.0 9.0 6.0 8.0 8.0 3.0 7.0 4.0
37 9.0 2.0 3.0 9.0 5.0 8.0 9.0 7.0 9.0 6.0
38 8.0 2.0 3.0 6.0 5.0 9.0 9.0 3.0 9.0 6.0
39 9.0 2.0 4.0 9.0 7.0 8.0 7.0 7.0 9.0 1.0
40 8.0 3.0 2.0 7.0 5.0 8.0 9.0 5.0 6.0 1.0
41 9.0 3.0 4.0 8.0 8.0 9.0 6.0 2.0 9.0 6.0
42 8.0 3.0 2.0 8.0 6.0 8.0 9.0 4.0 7.0 2.0
43 9.0 2.0 1.0 8.0 6.0 7.0 9.0 5.0 9.0 5.0
44 9.0 2.0 3.0 9.0 7.0 8.0 9.0 7.0 5.0 4.0
45 9.0 2.0 3.0 7.0 6.0 9.0 9.0 7.0 5.0 2.0
46 8.0 1.0 2.0 9.0 5.0 8.0 9.0 4.0 9.0 4.0
47 9.0 2.0 3.0 9.0 6.0 9.0 9.0 6.0 8.0 1.0
48 9.0 3.0 6.0 8.0 2.0 8.0 9.0 4.0 8.0 4.0
49 9.0 1.0 2.0 9.0 6.0 8.0 9.0 4.0 7.0 1.0
50 9.0 3.0 6.0 9.0 6.0 9.0 8.0 8.0 7.0 5.0
51 8.0 3.0 5.0 7.0 2.0 8.0 8.0 6.0 8.0 1.0
52 9.0 5.0 4.0 7.0 1.0 2.0 5.0 1.0 9.0 3.0
53 7.0 4.0 4.0 3.0 4.0 9.0 8.0 2.0 5.0 4.0
54 7.0 2.0 6.0 5.0 3.0 7.0 6.0 4.0 8.0 6.0
55 5.0 2.0 3.0 5.0 5.0 8.0 9.0 1.0 9.0 1.0
G20 Ford Audi Toyota Eagle Honda Saab Pontiac BMW Mercury

5
 Licensed to Sadia Anwar, LUMS (21110094@lums.edu.pk). Do not copy or distribute.

Tbird 90 Supra Talon Prelude 900 Firebird 318i Capri

56 4.0 5.0 6.0 5.0 4.0 9.0 8.0 4.0 6.0 4.0
57 7.0 1.0 7.0 8.0 7.0 7.0 7.0 2.0 6.0 5.0
58 5.0 3.0 3.0 7.0 2.0 8.0 7.0 2.0 9.0 6.0
59 4.0 4.0 5.0 8.0 2.0 6.0 6.0 6.0 6.0 1.0
60 8.0 4.0 9.0 4.0 5.0 5.0 5.0 2.0 7.0 4.0
61 8.0 4.0 5.0 4.0 3.0 6.0 8.0 3.0 7.0 4.0
62 7.0 5.0 7.0 7.0 6.0 6.0 6.0 5.0 7.0 3.0
63 8.0 2.0 2.0 4.0 5.0 8.0 8.0 1.0 9.0 2.0
64 5.0 6.0 4.0 7.0 4.0 4.0 5.0 1.0 8.0 1.0
65 7.0 4.0 4.0 6.0 5.0 3.0 6.0 1.0 6.0 4.0
66 8.0 2.0 9.0 3.0 5.0 7.0 8.0 4.0 6.0 2.0
67 3.0 5.0 8.0 7.0 6.0 3.0 8.0 2.0 9.0 6.0
68 6.0 1.0 3.0 5.0 2.0 9.0 7.0 2.0 6.0 5.0
69 6.0 3.0 8.0 8.0 5.0 8.0 6.0 3.0 3.0 1.0
70 7.0 2.0 8.0 8.0 3.0 9.0 7.0 4.0 4.0 5.0
71 7.0 1.0 7.0 7.0 8.0 8.0 9.0 1.0 9.0 1.0
72 6.0 5.0 5.0 5.0 4.0 6.0 9.0 4.0 8.0 2.0
73 7.0 5.0 4.0 4.0 2.0 6.0 8.0 5.0 9.0 5.0
74 8.0 5.0 6.0 6.0 6.0 7.0 7.0 4.0 8.0 4.0
75 7.0 3.0 6.0 8.0 4.0 7.0 7.0 5.0 5.0 3.0

EXHIBIT 2: Individual-level preference data, measured on a scale from 1 to 9, with

higher numbers representing increased preference.

G20 Ford Audi Toyota Eagle Honda Saab Pontiac BMW Mercury
T-bird 90 Supra Talon Prelude 900 Firebird 318i Capri

Base Price ($) 17,500 15,783 20,200 23,280 16,437 14,945 18,295 12,690 19,900 13,500

Length
175 198.7 176 181.9 170.5 175.6 184.5 192.0 170.3 166.1
(Inches)

Width
66.7 72.7 67.6 68.7 66.7 67.3 66.5 72.4 64.8 64.6
(Inches)

Height
54.9 52.7 54.3 51.2 51.4 29.2 56.1 49.8 53.5 50.2
(Inches)

Curb Weight
2,535 3,600 3,170 3,535 3,100 2,740 2,825 3,485 2,600 2,487
(lbs.)

Fuel Economy
(mpg)
City 24 17 18 17 20 23 20 16 22 23
Highway 32 24 24 22 25 27 26 24 27 28

Horspower, 140@ 210@ 164@ 232@ 195@ 135@ 140@ 240@ 134@
132@
SAE.net 6,400 4,000 6,000 5,600 6,000 6,200 6,000 4,400 6,000
6,000 rpm
(bhp) rpm rpm rpm rpm rpm rpm rpm rpm rpm

Warranty, 4/ 1/ 3/ 3/ 1/ 3/ 3/
3/ 36,000 3/ 50,000 1/ 12,000
Years/Miles 60,000 12,000 50,000 46,000 12,000 36,000 36,000

EXHIBIT 3: Some physical characteristics of the cars.

6
 Licensed to Sadia Anwar, LUMS (21110094@lums.edu.pk). Do not copy or distribute.

Segment 1 (Western, Segment 2 (Upwardly Segment 3 (American

Segment Characteristics
Yuppie, Singles) Mobile Families) Dreamers)

Segment Size (25%) (45%) (30%)

College Grads or Some College Grads Some

Education College Grads
College College

Predominant Employment Professionals White-Collar White-Collar

Age Group 25–35 25–35 25–35

Predominant Ethnic Background White White Mix (Asian, White)

Average Household Income $81,000 $68,000 $59,000

Persons per Household 1.42 3.8 2.4

Percent Married 32% 75% 55%

Watch Late Night TV 27% 9% 17%

Watch Daytime TV 3% 45% 5%

Read Computer Magazines 39% 6% 10%

Read Business Magazines 58% 23% 27%

Read Entertainment Magazines 3% 14% 30%

Read Infant and Parenting

1% 17% 2%
Magazines

Rent Movies 43% 85% 38%

Possess an American Express Card 48% 45% 75%

Own Investment Funds 24% 18% 47%

Go Fishing 2% 30% 3%

Sail, Scuba Dive or Ski 49% 2% 20%

EXHIBIT 4: Data about the segments.

Powered by TCPDF (www.tcpdf.org)