Case
Positioning the Infiniti G20
By Gary L. Lilien & Arvind Rangaswamy
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.
POSITIONING THE INFINITI G20 CASE 2/7
EXERCISES
1. 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?
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?
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).
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?
5. Summarize the advantages and limitations of the software provided for
this application.
POSITIONING THE INFINITI G20 CASE 3/7
Exhibits
G20 Ford
Tbird
Audi
90
Toyota
Supra
Eagle
Talon
Honda
Prelude
Saab
900
Pontiac
Firebird
BMW
318i
Capri
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.
POSITIONING THE INFINITI G20 CASE 4/7
G20 Ford
Tbird
Audi
90
Toyota
Supra
Eagle
Talon
Honda
Prelude
Saab
900
Pontiac
Firebird
BMW
318i
Mercury
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
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
POSITIONING THE INFINITI G20 CASE 5/7
G20 Ford
Tbird
Audi
90
Toyota
Supra
Eagle
Talon
Honda
Prelude
Saab
900
Pontiac
Firebird
BMW
318i
Mercury
Capri
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
T-bird
Audi
90
Toyota
Supra
Eagle
Talon
Honda
Prelude
Saab
900
Pontiac
Firebird
BMW
318i
Mercury
Capri
Base Price
($) 17,500 15,783 20,200 23,280 16,437 14,945 18,295 12,690 19,900 13,500
Length
(Inches) 175 198.7 176 181.9 170.5 175.6 184.5 192.0 170.3 166.1
Width
(Inches) 66.7 72.7 67.6 68.7 66.7 67.3 66.5 72.4 64.8 64.6
Height
(Inches) 54.9 52.7 54.3 51.2 51.4 29.2 56.1 49.8 53.5 50.2
Curb
Weight
(lbs.)
2,535 3,600 3,170 3,535 3,100 2,740 2,825 3,485 2,600 2,487
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,
SAE.net
(bhp)
140@
6,400
rpm
210@
4,000
rpm
164@
6,000
rpm
232@
5,600
rpm
195@
6,000
rpm
135@
6,200
rpm
140@
6,000
rpm
240@
4,400
rpm
134@
6,000
rpm
132@
6,000
rpm
Warranty,
Years/Miles
4/
60,000
1/
12,000
3/
50,000
3/
46,000
1/
12,000
3/
36,000
3/
36,000
3/
50,000
3/
36,000
1/
12,000
EXHIBIT 3: Some physical characteristics of the cars.
POSITIONING THE INFINITI G20 CASE 6/7
Segment Characteristics
Segment 1
(Western, Yuppie,
Singles)
Segment 2
(Upwardly Mobile
Families)
Segment 3
(American
Dreamers)
Segment Size (25%) (45%) (30%)
Education College Grads College Grads or
Some College
College Grads Some
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
Magazines 1% 17% 2%
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.
POSITIONING THE INFINITI G20 CASE 7/7