Automakers Target Generation Y

Abstract

In this study we try to explore the strategies of the automakers to address generation Y. The main focus of the research is on Asian Automakers and its relation with generation Y. The research also analyzes the difference in strategies of Asian automakers to European automakers and gauges their different techniques to address generation Y. Finally the research describes various factors which are responsible for reformation in the strategies and tries to describe the overall effect in the success of the automakers with respect to generation Y.

AUTOMAKERS TARGET GENERATION Y

Introduction

In the global changing context and the competitive market, it is crucial for businesses to not only retain its customers; they are striving to acquire more to maintain their market stability and existence. According to the research, generation Y (people who born between 1980 and 1984) is the second largest generation after the baby boomers (McClellan & Zachary, 2009). Hence, for the automobile industry in particular, it is necessary to ensure their product compliance according to the changing demands of the generation Y because they are there prospective target market. This research paper will identify the marketing strategy of different automakers which they have a frame to cater the particular market segment.

Discussion

Strategy Behind Asian Automakers Targeting Gen Y

The strategy behind the industries especially Asian automakers to target generation Y, also known as Millennial, is because generation Y have become relevant consumers in the market place. According to the census of 2010, generation Y comprises of 56 million people. Automakers are well aware of the fact that while there current target market and the existing customers are close to hit the retirement, Generation Y are about to hit the buying stride. Although Gen Y has a household income below $50,000, the post- war prosperity has implanted them with a tremendous buying power. Hence, making them the new target customers for many companies, especially automakers (McClellan & Zachary, 2009).

According to the national survey, more than 20% of the generation Y has plans to buy a car within a year. In comparisons to the 44% of the males, 64% of the female potential customers have already bought one (Mun, 2010). By 2018, it is expected that millennial will be able to overtake baby boomers in terms of spending and purchasing.

Furthermore, another idea of targeting generation Y is to fulfill their desire and provide them with new designs and updated products which satisfy their needs and give them what they want to comply their specifications. According to research, the current purchasing power of generation Y is $170 billion, and this purchasing power is likely to grow as they progress in their careers.

According to the research, generation Y have high expectations from the life and about spending. Unlike preceding generation, the millennial have a strong influence over the purchasing power of their parents, and they have control over the significant amount of spending power on their own. According to the research conducted by the Toyota, every year 400,000 generation ...