Assignment 3: Case 7-2 “Carmakers Target Gen Y”
Assignment 3: Case 7-2 “Carmakers Target Gen Y”
International Marketing 505
August 12, 2012
1. Explain the strategy behind Asian automakers targeting Gen Y.
Asian automakers have sought out to target the Generation Y consumer for many reasons. They have found that high priced gas-guzzlers are not so popular anymore. Gas has not been at an affordable standstill for years. What does this mean to Asian automakers? They have the opportunity to target young US consumers that are looking for small reliable and fuel-efficient vehicles. Asian automakers understand that America is in a crunch so people are looking for more but for less. Their aim is to introduce lines of vehicles that are not only fuel friendly but are pocket friendly as well. As stated by consumer affairs “There are 64 million Gen Y buyers coming into the marketplace," stated by Jim Lentz, Toyota's group vice president and general manager. "We know when they come to market to buy a vehicle, new or used, they will spend on average about $15,000." So Asia figured why not offer a brand new affordable vehicle with added perks for the same price as a used car? I myself feel that this thinking is genius in itself! (Benton,2006)
2. Analyze the strategy behind Honda and Toyota creating new vehicles such as the Element and the Scion.
In any strategy you always think of the end result. I will start with the strategic planning of the Toyota Scion. I believe that we can all agree the main target was the younger generations. To offer a two door flashy coupe with a base price of $16,000 is a steal. The Scion was intended for the youth to draw them closer to the Toyota brand by an appealing young and hip vehicle. With the Scion Toyota intents were to produce a vehicle that could be individualized and customizable and did not kill the pockets of either the youth or their family. They figured if they can introduce consumer to the Toyota family at a young age, they will lock them in to be a customer for life.
International Marketing 505
August 12, 2012
1. Explain the strategy behind Asian automakers targeting Gen Y.
Asian automakers have sought out to target the Generation Y consumer for many reasons. They have found that high priced gas-guzzlers are not so popular anymore. Gas has not been at an affordable standstill for years. What does this mean to Asian automakers? They have the opportunity to target young US consumers that are looking for small reliable and fuel-efficient vehicles. Asian automakers understand that America is in a crunch so people are looking for more but for less. Their aim is to introduce lines of vehicles that are not only fuel friendly but are pocket friendly as well. As stated by consumer affairs “There are 64 million Gen Y buyers coming into the marketplace," stated by Jim Lentz, Toyota's group vice president and general manager. "We know when they come to market to buy a vehicle, new or used, they will spend on average about $15,000." So Asia figured why not offer a brand new affordable vehicle with added perks for the same price as a used car? I myself feel that this thinking is genius in itself! (Benton,2006)
2. Analyze the strategy behind Honda and Toyota creating new vehicles such as the Element and the Scion.
In any strategy you always think of the end result. I will start with the strategic planning of the Toyota Scion. I believe that we can all agree the main target was the younger generations. To offer a two door flashy coupe with a base price of $16,000 is a steal. The Scion was intended for the youth to draw them closer to the Toyota brand by an appealing young and hip vehicle. With the Scion Toyota intents were to produce a vehicle that could be individualized and customizable and did not kill the pockets of either the youth or their family. They figured if they can introduce consumer to the Toyota family at a young age, they will lock them in to be a customer for life.
References: Kenneth W. Gornbach.(2010. January 9).Ford’s Success is Generation Y http://kgcdirect.squarespace.com/journal/2010/1/9/generation-y-likeford-the- mustang-is-why.html. Paul West.(2012. January 21) Gen Y auto buyer lean to hybrids http://www.latimes.com/business/money/la-fi-mo-gen-y-auto-sales-20120118,0,2659409.story. Generation Y.(2008. January 1). Generation Y http://www.generationy.com Joe Benton.(2006. February 22). Japan 's Big Three Take Aim at Gens X and Y Keegan, W.J., & Green, M.C. (2011). Global Marketing. Prentice Hall. P.136-168. Alex Taylor III. (2010. December 10).Say good-bye to the Honda Element Nick Aziz.(2006. November 13). Toyota to limit Scion production to maintain image http://www.leftlanenews.com/toyota-to-limit-scion-production-to-maintain-image.html.