Marketing in Action – Subaru Case Study Questions And Answers

Subaru Marketing in Action Case Study – Case Summary

The case reviews measures that Subaru is employing to enhance its sales through marketing. Subaru brand is developed with a love theme. The company has tried to show love to people, wildlife, environment, and learners. With this theme the company has not only shown the world its ability to help or care for others, but it has as well developed an intimate connection between its customers and the new cars brand through their marketing campaign and the vehicle interiors and exteriors design. The company is currently targeting young, vibrant generation that loves adventure. The company has designed a new brand for active, upscale, and loyal buyers, mostly millennials that still have interest in adventure. With its sport gear and roomier interiors, the company has managed to attract more buyers from this generation which it believe that it is more appreciative of the company’s effort to nature the environment and care for all. The company has also for the first time in history reduced the price as one of its marketing strategies. The company has adopted a new styling which increases its ability to increase Subaru brand awareness in the market and to expand buyers. To capture its targeted customers, the company is employing digital media to expound its appeal. This has made the company to be more competitive in the American market and thus increasing its market shares, particularly in southern California and Sun Belt. The company wishes to expand its market share to other parts of the country, however, it is not sure on whether the tactics employed in the current market will bear fruits in other regions. It is also not certain of the effect that change of the marketing strategy may create on its current buyers (Case Study, n.d.). This paper focuses on analyzing the situation to give a recommendation on the best way to handle the situation.

Decision Facing the Company

Subaru wants to expand its market share in other parts of the United States. Its main aim is to increase sales in other regions of the country, just as it has managed to in its current targeted market. It still wants to reach out to young, vibrant customers who love adventures and prestige. The company has to come up with a successful marketing plan for this mission. The decision facing the company in this case is whether to employ same marketing strategies it is currently employing to the current market, or change the approach.

Important Factors in Understanding the Decision Situation

To understand the decision situation, it is important to understand that the company has come a long way to manage its current position in the market and it is not willing to ruin its current relation with its customers. Thus, the decision made should not in any way affect its image in its current market which has played a great role in its success. It is also important to consider that the company main aim is to increase its market share by venturing into other regions. The company is not planning to change on its targeted customers (Oemsolutions.agameautotrader.com, 2013). Based on the company’s analysis, there are about 6 million cause-minded consumers that fit the company’s target customers. Thus, it is still focusing on young vibrant buyers, but in other regions, other than its current region of operation. It is also important to know that the company’s theme of love must be sustained irrespective of the market the company is going to explore in the world. Another factor to consider is that the company only wishes to expand its market shares and not to reduce them in any way.

Possible Alternatives Recommended Decision

We are currently living in a global world where people of the same age group share almost similar characteristics due to media influence. It is therefore very probable that what is trending in a certain age group in one region will also trend for the same age group in another region. This mostly applies to the new vibrant generation which is among the intensive users of modern communication technologies. The main advantage in this case is that there is no great variation in culture, since the company new target market is still within the United States (Euromonitor International, 2015). In this regard, the company should first try the strategy it is currently using in its current area of operation. Although it may end up being a waste of time in case the company’s approach fails, the company will not experience great losses since it will not have invested in design change either in marketing or the product. Based on the fact that the company still target the same generation as its current, it is highly likely to succeed using this approach (Kirkpatrick, 2016). The most important thing from this approach is that it will not in any way impact its image in the current market. Another alternative is conducting a market survey in the new regions it is planning to venture into, to acquire a general view of its targeted customers. The survey should focus on the difference between the new targeted market and its current market. This will assist the company in defining things that it may need to change to win its targeted customers in the new region. The survey should guide the company on the direction or approach to take to meet its goals. This should be carefully done to ensure that it does not negatively affect the company’s image in its current market.

Ways to Implement the Recommendations

The first recommendation can be implemented by globalizing or nationalizing its current marketing techniques, hoping to attract customers from any corner of the country or the world. The company should then conduct survey to see the customers’ response of its new move and base its next move on the customers’ feedback especially from new targeted regions. In this case, the company will ensure all its video ads, discounting policies, and love them is employed to all. Online marketing employing techniques employed in its current market should be made available. The company should then open a social media platform where it can get feedback from new customers or potential customers. This will give an insight on the preferences of the targeted customers in other parts of the world and also show the company its success potential using the current strategy in other parts of the country (Euromonitor International, 2015). The second recommendation is having a market survey of each newly targeted region at a time. The process should focus on the new model targeting the youths. Information should be gathered on the targeted customers’ views on design, prices, and advertisement strategies. This information should then be used to design something suitable for the targeted customers at regional level. A similar approach should be employed when a new market case is involved. This way, the company will be sure that the approach employed is workable in identified region.

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