Jahangirnagar University

An Assignment on
Case study
Course Name: International Marketing
Course Code: MKT-404

Submitted To: Md. Ariful Haque

Lecturer
Department of Marketing
Faculty of Business Studies
Jahangirnagar University

Submitted By: Rokeya Tamanna

ID: 2290
3rd Batch
Department of Marketing
Faculty of Business Studies
Jahangirnagar University

Date of Submission: 27July,2015

Question-1: Why are Japanese automakers targeting Gen Y?

Answer: 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.

Japanese automakers targeting GenerationY (Gen Y)-[1977-1994] of American as their

market because they pay attention to demographic and psychographic segmentation in global
marketing strategies, particularly in age distribution and lifestyles. In their research, the most
buyer were 39-47 years old, it denote the 'real' segmentation for automakers to sell their best
production to market.
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.

Question-2: Explain the strategy behind Asian Automakers targeting Gen Y?

Answer: 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).

Question 3: Do you agree with Toyota’s decision to limit the number of Scion vehicles
available for sale?

Answer: Yes. I agree with Toyota to limit the number of Scion for sale. Thefirst reason, if
toyota continues produce without limit, it may suffer the diseconomies of scales. this happen
when toyota pursuit the larger market demand and keep on increasing their output to fulfill
them, at some point the percentage of input increase are similar to the percentage the output
increase, causing the unit cost to rise. for example, when toyota produce more to fulfill the
market need, it may need more labor and additional plant to produce car. Secondly, limit the
sale is a marketing strategy to attract the younger buyer, especially the gen yers. limit number
of vehicles give an implication that not everyone have the same car and it's not easy to be
obtain, make scion become ultra-exclusive and this strategy work very well to attract
youngest buyer. Lastly, limit in sales of scion might build a long-term brand loyalty from the
consumer. When introducing new model in the future, it may easily attract existing and new
customer. For example, when new toyota scion model introduce to the market, it is easier to
sell to the existing scion customer.