• by Karl Greenberg , November 4, 2008

Nissan, which has just launched a rock bottom-priced version of its Versa sub-compact in the U.S. market, is putting heavy advertising behind it as part of its "Nissan Delivers" campaign this month.

Erich Marx, director of Nissan Marketing Communications & Media, says Nissan is going all out this month to advertise its "Nissan Delivers" campaign offering 0% financing, low APR and the lowest entry price MSRP in the industry ($9,900) for the 1.6 liter-engine version of Versa.

He says ads are running on networks, cable, print, radio and newspapers. "It's running on ESPN; we are aiming to get a thousand [gross ratings points]." That could put the price as high as $30 million, assuming that an average prime-time show garners 6 ratings points. "It will be pervasive in every sense of the word in November," he says.

The TV spot, with the message, "At a time when others don't, Nissan delivers," shows all of the vehicles and deals under the "Delivers" campaign: 0% on Sentra, Murano, Rogue, Altima and (non-1.6 liter) Versa; new lease options on a range of vehicles, including $199 per month for Altima and Rogue; and the new Versa.

Tom Henry, senior marketing manager for Sentra and Versa, says the low-entry price for the 1.6-liter model will be one of the primary communication points in "Nissan Delivers." He says Nissan will not offer incentives on that model of Versa. "By virtue of the fact that we are just introducing the entry Versa, we will not have incentives on those models; at this point of time we are stocking dealers up with it."

Henry says Nissan had two purposes in launching a version of the car at the lowest price in the industry. "First, there is need right now for that in marketplace. And we see new competitors--[Chinese automakers] Chery and FAW, and [India-based company] Tata--entering the U.S. market with very low-priced vehicles, so this is in part an opportunity, and strategically to prepare us for new competitors."

Marx says Nissan is anticipating sales of around 10,000 per year for the $9,900 Versa. "It will be a broad demographic: anyone looking for value," he says.

Despite the economy, Versa and vehicles like it--Toyota's Yaris, Honda's Fit, and Chevy's Aveo, for example--have been selling strongly as buyers seek fuel efficiency and lower prices. Although Nissan sales were off over 30% last month versus the month last year, the company reported that sales of Versa rose 2.7% in October to 6,889 from 6,705 in October 2007. While total Nissan and Infiniti sales are down 6.2% year-to-date through October, Versa sales were up 11.6%.

Marx says Nissan will continue to promote Versa. "Versa is a core model for us, and because of that, we are putting resources behind it--it is a growth segment." He adds that even with gasoline prices moderating, he doesn't see consumers losing interest. "We believe consumer insights have changed, so we have a big opportunity with Versa. We think people will think twice for some time before they jump back into a full-size vehicle."