“Carmakers Target Gen Y” Case Study
“Carmakers Target Gen Y” Case Study
Explain the strategy behind Asian automakers targeting Gen Y
The Asian automakers employed three criteria of target market strategy for capturing the generation Y market. The three criteria are Standardized Global Marketing, Concentrated Global Marketing, and Differentiated Global Marketing. The first, standardized global marketing focuses on mass marketing in a single country. Their decision to target the generation Y in the American market is their implementation of Standardized Global marketing. The Asian automakers also saw that due to the Japanese restrictions on the number of children a family can have, the number of Generation Y consumers in the Asian market would be low. In response to this analogy, their best efforts are to focus on a target marketing strategy for the generation Y consumers of the American market. In addition to their market analysis, studies show that the generation of “Baby Boomers” and generation X were graying and dwindling in the American market (Keegan & Green, 2011), which also influenced their marketing decisions. Their next approach in their strategy was the Concentrated Global Marketing approach. This targeting strategy involves devising a marketing mix to reach a niche that is a single segment of the global market (Keegan & Green, 2011). The generation Y consumers account for approximately 71 million people in this segment of the market. Therefore, the focus of their studies is to target only this group by bringing to market a product directed to Gen Y and to build their brand loyalty among the nation’s youth (Keegan & Green, 2011). The Asian automakers conducted a study of the consumer market for the age group of 17-37 and found that Gen Y does not want to follow the trends of their parents, but want differentiation. This is where the third criteria come into play. The third criterion for target marketing options is differentiated global marketing. Generation Y
Explain the strategy behind Asian automakers targeting Gen Y
The Asian automakers employed three criteria of target market strategy for capturing the generation Y market. The three criteria are Standardized Global Marketing, Concentrated Global Marketing, and Differentiated Global Marketing. The first, standardized global marketing focuses on mass marketing in a single country. Their decision to target the generation Y in the American market is their implementation of Standardized Global marketing. The Asian automakers also saw that due to the Japanese restrictions on the number of children a family can have, the number of Generation Y consumers in the Asian market would be low. In response to this analogy, their best efforts are to focus on a target marketing strategy for the generation Y consumers of the American market. In addition to their market analysis, studies show that the generation of “Baby Boomers” and generation X were graying and dwindling in the American market (Keegan & Green, 2011), which also influenced their marketing decisions. Their next approach in their strategy was the Concentrated Global Marketing approach. This targeting strategy involves devising a marketing mix to reach a niche that is a single segment of the global market (Keegan & Green, 2011). The generation Y consumers account for approximately 71 million people in this segment of the market. Therefore, the focus of their studies is to target only this group by bringing to market a product directed to Gen Y and to build their brand loyalty among the nation’s youth (Keegan & Green, 2011). The Asian automakers conducted a study of the consumer market for the age group of 17-37 and found that Gen Y does not want to follow the trends of their parents, but want differentiation. This is where the third criteria come into play. The third criterion for target marketing options is differentiated global marketing. Generation Y
References: (Academic Writing Tips Organization, 2011)http://academicwritingtips.org/component/k2/item/4134-automobile-industry.html?tmpl=component&print=1 (Porretto, 2003) http://repository.cmu.edu/epp/134/ http://www.automotive.com/new-cars/01/scion/#ixzz1uahnXv66 Another driving force used in their strategy was to take into consideration that on the international markets many consumers followed the trend of “Americanization”. Ultimately, this is what the Asian automakers wanted to do.