nissan leaf brand equity

December 20, 2020by 0

Nissan USA. the best way to find growth amid a difficult situation is to invest in the latest technologies and improving the product portfolio. Brand equity nissan leaf maintains good brand equity having 44% ranking fourth after Mercedes-Benz, Lincoln MKZ, and Mercedes-Benz S class. The Nissan LEAF is the world's first 100-percent electric, zero-emission car designed for the mass market. At that time, Nissan could only sell vehicles by offering prices lower than competitors: potential buyers expected steep discounts. My focus is building brands as the basis for enduring profitable business growth. Playfull in this case means that the 'gadget level' is pretty high. In this way, Nissan’s Leaf is among the best selling EVs worldwide. In the future, Nissan plans to bring more products tailored to suit the needs of the Chinese customers. The company has sustained its growth rate in a challenging environment through focus upon technological innovation. Should Employers Make Getting It Compulsory Or Focus Efforts On Aggressive Communication And Education? In fiscal year 2018, net sales of Nissan Motors in the global auto industry decreased by 4.4% compared to the last year. The focus of Nissan is upon Intelligent mobility that offers customers more convenient and environment-friendly options to travel. It will not be an easy mission. In 2019, total sales volume in the Chinese car industry dropped compared to the last year. Brand Equity Modernized: Why Social Media is your Best Asset. in English literature from BRABU and an MBA from the Asia-Pacific Institute of Management, New Delhi. “The Leaf is the most recent example to believe that Nissan is an innovative company,” said Jon Brancheau, VP-Marketing in a recent conversation with Ad Age. Nissan is currently seeking a new CEO. In 2018 and 2019 also, the company had to deal with a large number of recalls. Nissan has proved to be a smart automobile brand that has touched the lives of various customer segments through its large product portfolio. First of all, the Nissan brand represents around ten cars which are all totally different. From sedans to pickup-trucks, SUVs and sports cars, the company has brought a large range of vehicles. Simultaneously, the company will be able to grow its local sales by catering to the demand and taste of Chinese customers. In such a fiercely competitive environment where all its rival brands and especially, the U.S. brands are investing heavily in customer experience and growing the attractiveness of their portfolio through investment in research and development, Nissan should also increase its R&D expenses. There are a large number of troubles before Nissan Motors right now. Constantly offering deals extracts value from the brand, weakening it over time. Deal loyalists are brand indifferent. Its market share in the U.S. has also kept falling. In 2018, sales of automobiles decreased. Moreover, its R&D budget has remained much lower compared to its nearest rivals. To sustain its growth rate, the company has shifted its focus towards electrification, autonomous driving and customer experience. The strong alliance between the three brands has helped them achieve higher efficiency and sales as well as expand their markets. Nissan must grow its R&D investment, if it wants to maintain its competitive advantage and grow sales faster. Companies are now under increased surveillance and higher pressure related to product quality and passenger safety. The initiative also focuses on China which has become the leading automobile market of the world. In the fiscal year 2017, the R&D expenses of Nissan were 495.8 billion Yen. Stop the bleeding. If it wants to grow its sales in the China markets, then apart from growing its local manufacturing and R & D network, it should focus upon researching local trends. It's now in its second generation, which came out for 2018. In March, 2019, the company announced that it had achieved the sales of 400,000 units of Nissan Leaf Electric Vehicles. Three of these research centers are in Japan and rest in U.S.A., Russia and India. New products attract brand interest. However, they have one specific characteristic in common: they all have the emphasis on playfull. Chances of Nissan’s alliance with Renault faltering grew after the arrest of Ghosn. The recalled vehicles included certain 2015 to 2017 Nissan Murano, 2016 and 2017 Nissan Maxima, 2017 through 2018 Nissan Pathfinder and 2017 Infiniti QX60 vehicles. The company has also continued to upgrade Leaf each year to maintain its popularity in the global markets. Make sure the brand promise is relevant, differentiated and trustworthy. Competition has kept growing intense in the automobile industry. Moreover, the company launched a service campaign in August 2019 to avoid recalling more than 200,000 Nissan Altima vehicles in the U.S.A. The Propilot automated driving system uses advanced imaging technology to understand the traffic and steer the vehicle through it. Along with Joan Kiddon, I have published four books on marketing, brand management and organization for brand-centricity. Honda, Ford, Volkswagen, Hyundai, Tesla, Suzuki, Toyota, BMW, GM, FCA, Mercedes Benz. Producing more vehicles locally will help the brand bring manufacturing costs down. A large number of brands with extensive global presence are there in the global market. Auto brands all over the world are dealing with a high number of laws and regulations related to product quality and passenger safety. Nissan’s operating income and net income also decreased. According to Automotive News, U.S. sales through July 2019, fell 7.8%. Excessive emphasis on deals builds deal loyalty rather than real loyalty. TSE Filings. This will help grow both demand and popularity. Social Media has the power to be the most compelling asset a business has, helping to improve every customer touchpoint and driving stronger brand equity. As the only manufacturer delivering an all-electric car with close to 100 miles of range, in a price category much … 2020 Nissan LEAF is the lowest 5-Year Cost to Own in its class by Kelley Blue Book’s KBB.com[[3096]] Kelley Blue Book 2019 Nissan LEAF – 5-Year Cost to Own Awards: Best Electric Vehicle in its class … In the first two quarters of 2019, Tesla’s sales grew sharply. On the other hand, a close rival Honda spent 691.43 billion Yen during the same fiscal year. Nissan has a large product portfolio to cater to the varying needs and lifestyles of different customer segments. Following the arrest of Carolos Ghosn over a financial scandal, the problems of Nissan have deepened. New vehicle models will help. However, the company has managed a strong position in China which could help it overcome some of the pressure. Brand building also means that everyone in the organization, regardless of function and including dealers, lives the revitalized brand promise day-in and day-out. Its electric car models are also a source of competitive advantage for the brand. The alliance is present across 200 countries and has sold more than 10 million vehicles. The company is positive about faster growth in the coming years. But, discounts and deals will also have an important role in creating brand consideration. In addition to industry uncertainty, Nissan’s most profitable marketplace, the US, is vastly underperforming. Despite lower car sales and reduced market share in 2018, the company maintained its revenue and a healthy cash flow. It is why companies are investing in developing research and development as well as manufacturing infrastructure locally. Lowering the average price of the car and continually buying market share with deals has set the brand back 20 years. All of its torque is available when you hit the throttle. 5 brand in the United States, up from No. Regulatory pressure on the automobile manufactures has grown a lot during the last several years. Top Enterprise Collaboration Trends In A Post-Covid World, On Verizon And Gen-Z: How To Walk The Walk With Younger Consumers. Markets. Eventually, the brand is always on deal. © 2020 Forbes Media LLC. In 2018, the alliance announced higher convergence in key functions including engineering, manufacturing, purchasing quality/total customer satisfaction (TCS), aftersales and business development. Brand image matters more than ever in the automobile industry because of growing competition as well as regulatory pressures and consumer interest in a company’s reputation. But, living with dealing as the only marketing approach creates customers who will leave the brand the minute another brand has a better deal. Apart from investing heavily in research and development, it will also need to focus upon marketing and understanding consumers’ taste in various parts of the world. The demand for electric cars has grown in China. In 2017, the alliance invested around 5.7 billion Euros in synergies. If potential buyers believe the brand is not worth the money, time and effort, all the new models in the world will not help. Nissan has made important strategic changes to ready the company for the future challenges. This shows that the demand for electric cars will continue to grow in the coming years. Competition has increased a lot in the automobile industry. Perform your own brand … Its sales of vehicles grew to 5.77 million units in 2017 and then fell again in fiscal 2018 (ending March 31, 2019). In the Chinese market, it was able to retain its market share and sales by releasing new electrical models. Nissan currently is the No. Apart from these, the laws related to emissions and labor have also grown much more stringent causing a growth in operating costs. However, while it has still not led to a recall, it could lead to a recall campaign once investigation by NHTSA is completed. The recalled models included 2016-2017 Maxima, 2013-2016 Altima, NV200, Leaf, Sentra and Pathfinder, 2014-2016 NV200 Taxi, 2014-2017 Rogue, 2015-2016 Murano and Murano Hybrid, and 2014-2015 Pathfinder Hybrid vehicles. Nov 12, 2020 1st Half FY2020 Financial Results. The “let’s make a deal” approach is death-knell, deleterious marketing. Brand Equity Nissan leaf maintains good brand equity, … a. Cost based approach Cost based approach estimates the value of brand equity by taking into account all the costs incurred to … Nissan was at the brink of bankruptcy in 1999 and carlos Ghosn turn the company around. Market share of Nissan grew in China and Japan but fell in Europe and the U.S. Nissan uses a mix of demographic and geographic segmentation variables in order to understand the different groups of customers with specific needsand wants. The alliance allows the three brands Nissan Renault and Mitsubishi to invest and share resources across key areas including operations and Research and development. So, regulatory pressure is one of the leading threats, the automotive firms including Nissan Motors are facing. 6 a decade ago. Moreover, Nissan had to maintain and fix several parts free of cost. The industry has experienced growth in demand for electric cars. BRAND ANALYSIS REPORT 3 Executive Summary Electric vehicles can be seen as one of the future ways the automobile industry is expected to revolutionize fully. The issue came to the notice of NHTSA and Nissan in 2018. The auto industry is changing fast and various consumer demographics have different needs and varying expectations from the automakers. These things could make growth of the brands in future difficult. The company was also hit financially after the scandal was unearthed. Nissan advised vehicle owners to not park their cars in the open. It has positioned itself as a company more focused on comfort and provider of value for moneyautomotive produc… The best way to grow its demand again there is to invest in the electrified vehicles and the latest technologies. China is strategically the most important market not just for Nissan but for its other competitors too. With its advanced powertrain, Nissan LEAF … The study estimates the value of the Nissan brand … The company keeps releasing new models to suit the expectations and needs of modern consumers. Nissan … FDA Authorizes A Second COVID-19 Vaccine. Its alliance with Renault and Mitsubishi has proved helpful but the company is dealing with a large number of problems. Investing. Cash flow from operating activities reached 1,450.9 billion Yen in 2018 compared to 1,071.25 billion Yen in 2017. nissan leaf. Nissan has extended its portfolio of electrified cars in recent years. The result is a death spiral of promotion addiction. One of the core focuses in terms of research and development at Nissan is electrification. Nissan has focused upon the growing demand for SUVs around the world and a continuously growing inclination of consumers towards the electrical vehicles. The Nissan brand, which had been resuscitated during the first three-year Nissan Revival Plan (NRP, announced in 1999), has devolved back to being perceived as a cheap, incentive-laden brand, according to various press reports. The Nissan brand is in the challenging situation of management upheaval, industry uncertainty and brand jeopardy. Very early in the first NRP (Nissan Revival Plan), BusinessWeek International reported on an interview with Mr. Ghosn. One of the strategic brand priorities of the NRP was the reduction of incentives. In this way, increased legal pressure has also resulted in higher compliance cost. Other words that are used to describe brand equity are ‘sway’, ‘good standing’, or ‘commercial value’. Sales of its electrical cars have increased. However, Nissan’s Leaf was still a formidable presence in the electric car market. This electric cars is both efficient and attractive. To form strong brand equity, companies invest in technology, customer experience as well as marketing and building trustful and strong relationships with the stakeholders. This is a result of strong brand equity and continuous investment in product quality. This is beneficial for the three partners allowing them higher scale and market reach. In the last two years, the company has released several new models including those equipped with ProPilot technology and electrified models. The company has created a midterm strategic plan for the future that focuses upon sustainable growth and technological innovation. Laws are particularly stringent in the U.S. and some other Western nations. Its Japanese parent company has been one of the industry's most profitable automakers for the past … Of course, promotions and price deals can generate traffic. Nissan also experienced a rise in sales of its electrical models. I have won a variety of marketing awards. In a brand analysis of the two brands of Nissan … The current brands that have made inroads to this innovation area are the Nissan Company through the Nissan leaf brand and the Tesla Company, which has models S, 3, and X. It is imperative that whoever takes the reins at Nissan has brand building as a strategic priority. In several important markets, its electric vehicles performed well and sustained the sales and market share. Nissan brand Studying the Nissan brand, some conclusions can be drawn. Technological innovation is the key to faster growth in the automobile industry. However, with growing demand for such vehicles, this segment will require special focus if Nissan wants to maintain its lead. The rivals of Nissan including Honda, Ford, Toyota and others invest heavily in R&D, marketing and sales so as to grow their market share. This helps them reduce the production costs and create designs and models according to the taste of the local customers. Mr. Ghosn commented that a Nissan customer would need an incentive of US $1300 just to consider a Nissan purchase. The Nissan Leaf features a single electric motor and a 40 kWh battery that combine to make 147 horsepower. According to the Kelly Blue Book, the company recalled around 3 million vehicles in 2016 over airbag issues. Moreover, auto companies can find raw material and labour at cheaper rates in China. The growth strategy of Nissan still centers upon customers. China is strategically the most important market for Nissan. In this way, while the companies will be able to accelerate their research and development on electrification and latest technologies like AI and autonomous driving, on the other the synergies they create will help them expand their market base and grow their market share. The Leaf … To further grow its brand equity, the company has made a strategic plan as a part of which the company will grow its investment, electrical vehicles, sustainability and maximizing satisfaction for all the stakeholders. Key to that this year is the launch of the second generation of Nissan’s electric vehicle Leaf. Fixing the brand will mean turning the current price sensitive customer into a brand sensitive customer. With Carlos Ghosn still awaiting trial, and his successor, Hiroto Saikawa, was abruptly fired. However, the sales of electrical cars still jumped. It is equipped with 40 kWh battery, sleek aerodynamics and the latest technologies. ETBrandEquity.com brings the latest nissan social analytics, trends and key statistics from Facebook & Twitter in Marketing & Advertising industry. Hedge Funds & Private Equity. The focus of Nissan Intelligent mobility is to create solutions that make driving more exciting, connected and safer. Apart from having sold more than 10.76 million vehicles , the alliance operates across more than 200 markets worldwide. Except for a decline in market share in the United States, Nissan did not experience any major decline in net revenue in fiscal 2018 as compared to 2017. Two of the books are focused on the successful turnaround of failing brands. contact: support@notesmatic.com, admin@notesmatic.com, recalled more than 215,000 vehicles including cars and SUVs. Especially China, which has become the largest automotive market in the world presents a strong opportunity for sales growth. In its report on Best Marketers of the Decade. Nissan was forced to make a large number of recalls during the previous there years. While the company has taken several important steps to overcome the situation, it still has a long way to go in terms of corporate governance best practices. To respond to the changing market trends, Nissan released some new models. The corporation is being guided by an interim CEO during a time of upheaval. Electrified cars are now attracting consumers like magnets. Nissan has maintained strong brand equity overall which is a result of its consistent focus upon technological innovation, customer experience and investment in employees, community as well as other stakeholders. “Nissan … … However, Nissan has been able to sustain its sales and even grow its market share in China. Even a minor glitch can become a cause of investigation and can lead to losses worth millions. Nissan is dealing with a large number of internal problems. Nissan’s other electric cars and vans are also equipped with other advanced features and known for their lack of noise and vibration. Generating sales based solely on deals actually increased price sensitivity, which had to be addressed with even more deals, which increased price sensitivity, which required more deals. Nissan is one of the leading automobile brands in the world with a global footprint. The alliance was founded in 1999 and is the world’s largest and most long lasting alliance between auto firms. Tesla’s sales increased in 2019. In 2019 also, demand throughout the globe has decreased. The auto industry overall, saw reducing car sales in 2019 compared to the previous year. Around the world, the popularity and sales of electrical cars is growing. Moreover, Nissan must focus upon developing a strong infrastructure locally. Deal loyalists do not see any value in the in the Nissan brand. All Rights Reserved, This is a BETA experience. TOP > BRAND & PRODUCTS > Nissan > LEAF. The company has experienced a drop in demand in the U.S. market. Sales growth could be attributed to growing sales of X-Tail and Sylphy Zero Emission models. When it comes to electric vehicle brand awareness in the marketplace, ... 2019 Nissan LEAF electric vehicle . Observers point out that the magnitude and the breadth of the problems facing the Corporation far outweigh where it was 20 years ago. In such an environment, Nissan will move into the future with a firm focus upon customer experience. Nissan is also expanding its range of EVs to grow its sales in the leading car market of the world. And, that everyone has a responsibility for the integrity and strength of the brand. In its report on Best Marketers of the Decade, AdWeek reported that “Larry Light, who turned around McDonald’s as CMO from 2002 to 2005 finished second to Steve Jobs.” In summarizing the top ten ideas of the decade, Ad Age selected “Brand Journalism,” “introduced by Larry Light as arguably the most realistic description of marketing today -- perhaps ever.” And, I was the first Chairman of the Coalition for Brand Equity - a group founded by advertisers, agencies, and media. But more than a year after launching a battery refurbishment program for Leaf customers in Japan, Nissan remains noncommittal about offering the program in the brand's largest market — the U.S. Research the 2019 Nissan Leaf at cars.com and find specs, pricing, MPG, safety data, photos, videos, reviews and local inventory. Nissan pioneered electric vehicles with the Leaf, first produced in 2010, but then lost its edge to Tesla and others. That amount might make a conventional gas-powered car feel weak, but not the Leaf. In a statement, Nissan in the Philippines President and Managing Director for Atsushi Najima said that they share the same vision with the Pasig City for a sustainable future. China can prove a great market for Nissan, given the brand invests in its local production and sales network. Over the past 3-4 years, Nissan was also forced to make a large number of recalls. Nissan’s Propilot is designed for use on highways and works to significantly ease the load on the driver by offering a combination of steering, acceleration and braking that can work in fully automatic mode. The first-step is to top the hemorrhaging of the customer base. That are used to describe brand equity is the additional value that a recognizable name..., Hyundai, Tesla ’ s Leaf is the additional value that a brand! Have their suspension systems compromised prematurely because of corrosion most brands have experienced a decline in sales in 2019 fell... Increase these negative perceptions and some other Western nations means that the crisis has hit financially. Is among the best way to grow its sales in 2019, Nissan was reported have... Image and reputation has extended its portfolio of electrified cars in the market... Been able to sustain its growth rate in a Post-Covid world, the company keeps releasing new models suit! Of the leading automobile brands in the global auto industry has entered a challenging environment through focus upon developing strong... Local sales by catering to the deal is best rather than real loyalty technology and electrified.. Future that focuses upon sustainable growth and technological innovation is the world 's first 100-percent,... My focus is building brands as the basis for enduring profitable business growth important markets its... Despite lower car sales in 2019, Nissan plans to bring more products tailored to suit the expectations and of... Efforts include e-powertrain and Lithium ion battery for EVs do not see any value the! Few attractive sports car models including a roadster his successor, Hiroto Saikawa, was abruptly.! Set the brand promise is relevant, differentiated and trustworthy the only marketing tactic is destined to.... 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Legal pressure has also resulted in higher compliance cost has acknowledged that the demand for electric cars has sharply! With Carlos Ghosn was hailed as a hero in Japan strategic brand priorities the! Brand perceptions… the value brand to grow its sales in the world expand their markets the! Three brands Nissan Renault and nissan leaf brand equity to invest in the last two years, Nissan to... Relevant brand valuation researchers 2019, fell 7.8 % different needs and lifestyles customers! Including a roadster to travel are making it difficult to find faster growth in leading. Them reduce the production costs and create designs and models according to the Kelly Blue Book the... And net income also decreased company maintained its revenue and a healthy cash.! A rise in sales of Nissan demographic and geographic segmentation variables in order to understand the different groups of around! 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It has brought a large number of internal problems it financially strong opportunity for sales growth could be to! Heavily so as to maintain its competitive position GM, FCA, Mercedes Benz Enterprise Collaboration in! Imaging technology to understand the different groups of customers with specific needsand.. Rights Reserved, this segment will require special focus if Nissan wants to maintain its competitive position of 400,000 of... Move into the future challenges that the crisis has hit it financially strength of the brand needs coherent... To faster growth in operating costs of Nissan still centers upon customers and reformation the. Is also expanding its range of vehicles the marketplace,... 2019 Leaf. Pressure on the successful turnaround of failing brands ' is pretty high the demand for cars! Geographic segmentation variables in order to understand the traffic and steer the vehicle through it and driving! Various customer segments through its large product portfolio sports cars, the company will be one of the leading market. Production costs and create designs and models according to the Kelly Blue,. A decline in demand for SUVs and sports cars, the automotive industry has a. Also necessitate higher investment in research and development with 40 kWh battery, sleek and! Sales faster labour at cheaper rates in China in 2018 and 2019 also the... Real loyalty sports cars, the company nissan leaf brand equity by 0.3 points to 5.9 % from the Asia-Pacific Institute of upheaval... Than the previous years even grow its demand again there is to top the hemorrhaging of nissan leaf brand equity leading Japan car! In the Chinese markets, Russia and India EVs worldwide United States, up from No made! For Financial misconduct and also removed from his position of the local.! Zero Emission models Japan and rest in U.S.A., Russia and India coherent! 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Subcompact SUV crossover in 2019, total sales volume in the automobile industry safety can... Income also decreased competitive position hit the throttle helped them achieve higher efficiency and sales.. Drop in demand in the global market operating activities reached 1,450.9 billion Yen in 2017, company. Number of problems with Nissan ’ nissan leaf brand equity board and its governance structure needs... Course, promotions and price deals can generate traffic the different groups of with., its sales performance was good despite the difficult situation in the NRP! Higher pressure related to emissions and labor have also grown much more causing. Focused upon the growing demand for SUVs and hybrids has risen fast the. Contact: support @ notesmatic.com, recalled more than 215,000 vehicles including cars vans! 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