4. Company: Zuna Motors: “Target Practice” Topics to consider: Segmentation, Mar

Question

4. Company: Zuna Motors: “Target Practice” Topics to consider: Segmentation, Market Research Case: The North American branch of our international car company researched and developed a specific car model targeted at the U.S. youth market. We haven't had any perceived value or sales with this demographic and after significant research efforts, including various rounds of prototyping and focus grouping, we designed a car for this segment and poured all of our marketing dollars into it. One year after the launch, almost none of the sales have been within the generation Y we targeted, but has been relatively popular with the baby boomer generation. Strategy Issues: • What is the best strategic direction to take? • Re-orient the marketing plan to attract more consumers within the demographic that the product is proven to be successful? • Re-orient the marketing plan to better reach the original target market? • Develop a new product that will better reach the original target market?

Explanation / Answer

Zuna Motors should focus on baby boomers for the designed car. The case seems wrong segmentation and targetting. The best strategic direction to take at this moment would be focusing on baby boomers not on generation Y. Changes in the market plan like advertisements oriented towards the specific group would prove the product successful. A lot of research has to be done regarding the tastes and preferences of target group. Highlighting the unique features, advantages, style, iconic brand value would attract more customers. The original target market can be reoriented if the company focuses on the desired flavours of generation Y. New product development and extensive research on the cars should workout. Before developing the new product, potential target group should be studied and then cars should be in market. The new product should be stylish, with ultra luxury interior design, advanced level driving, touch screen efficient, auto pilot, cutting edge technology, comfort, price, self-steering, driver assistance systems, ambient lighting and audio systems. Again the most important thing is safety measures provided in the car and finding a car parking are the latest requirements of the young generations.

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