CARMAKERS TARGET GEN Y

Carmakers Target Gen Y



Carmakers Target Gen Y

Cars have always remained a sign of luxury for all and sundry. Young people, who belong to the Gen Y, are especially influenced by the attractive features of a new car. The trends in the automobile sector are constantly changing and the firms have now taken a u-turn in their approach to market their products. They have now started to target the potential youth market in America and Japan so as to cater to their needs. This means that new cars will only be produced to attract the youth and not the older citizens. This paper presents answers to the questions regarding the marketing of cars for youths (Cummings, 2008).

Q1: Why are Japanese automakers targeting Gen Y?

When a company plans to market a product, it should take into account different dimensions and make decisions that are strategically correct. The ever-changing and challenging field of marketing keeps the firm continuously engaged in launching new ideas and strategies, aimed at attracting new customers (Cummings, 2008).

Teens today have a significant purchasing power. According to the survey conducted by the American Institute of Social Studies proved that the youths are getting more money as compared to their peers. Thus, the youths are spending more money on buying branded products, including cars.

For many of them, a good brand is often synonymous with quality. And to satisfy this particular desire for quality, they do not hesitate to save and invest in a brand that conveys this criterion.

Q2: Explain the strategy behind Asian Automakers targeting Gen Y?

Generation Y refers to the group of people, who are born between the period of 1977 to 1994. One factor that has enticed the global auto industry to focus on Gen Y is aging. Both in the United States and Japan, the percentage of aged people is tremendously increasing. In Japan, it was recorded that by the year 2007, the old people outnumbered the youth. It is estimated that in the United States, a time will come when there will be less number of youth as compared to the elder people. The average age for a Toyota buyer is 47 years; and for Honda it is 44 (Morley, 2006).

This scenario presents an alarming situation for the automakers in Japan. This is why the Japanese automakers are now targeting the Generation Y. With regards to this, leading Japanese automakers, Toyota and Honda have launched Scion xB mini-wagon and Element, a boxy car respectively, meant to attract the youth (Morley, 2006).

Q3: Analyze the strategy behind Honda and Toyota creating new vehicles such as the Element and the Scion?

The manufacturer noted that the majority of consumers are aged between 16 and 34. The management of the Toyota firm believes that the Scion xB will resonate well with the under-35 group. The objective of the Scion xB is to bring young customers to the "family" earlier than any vehicle in its current range ...