Carmakers Target Gen Y Mkt 505

Carmakers Target Gen Y

Dr. Harris

MKT 505-Assignment and Rubrics

May 18, 2013

1. Explain the strategy behind Asian automakers targeting Gen Y.

Generation Y, are young adults who are just starting to earn enough money to buy new cars .They want vehicles full of gadgets. They want cars with personality, great style and cheap prices. They also want to easily change the color of their cars in a year or two (Carty, 2009).

Gen Y are pre-teens that are 27 years old that are the driving force in the auto industry. According to Deloitte Consulting, by the year of 2010 this generation should account for one in four vehicle sales. Deloitte brought to the business from several colleges the U.S. to discuss what they think auto makers should consider t attract business from their peers. There were presentations developed based off their own work along with the survey of Deloitte. According to Jason Jones a MBA student from Gonza University in Spokane Washington, either GenY can be a great opportunity for the auto makers or a threat to their survival. Auto makers need to start building brand loyalty in the market now for Gen Y generation.

Despite claims that Gen Y group would rather use other sorts of transportation rather than buying a car. Bob Filbin, a student from University of Columbia stated there are myths circulating in the media about Gen Y are purchasing fewer cars than older generations (Pope, 2001). Data from Deloitte survey states that, Gen Y spend about the same amount on gasoline as their older counterparts. To dispute the income discrepancy in purchases, the average income of Gen X aged 34-45 is a lot higher than Gen Y. Gen Y has an average income of $50,000 annually, while Gen X earns $70,000 to $80,000 annually. The income discrepancy is causing more member of Gen Y to purchase used vehicles rather than new one. A total of $40 billion was spent by Gen Y on vehicles in 2009; $30 billion went towards use cars. According to Filbin, student...