Subaru

In: Business and Management

Submitted By yebbee
Words 422
Pages 2
Both Subaru and Toyota have had an impressive success history in automobile industry and have become the world’s leading car brands.
This case study memos attempts to define the market segments the Subaru Forester and ToyotaYaris are targeting. It also examines the pricing strategies and the overall generic strategies regarding product quality and attributes for these cars.
The Toyota Yaris targets ‘small but practical’ segment. Young urban audience, who wants a small, reliable and economical car with convenient interior, to commute to work and travel across the country. Its hatchback works well as the urban automobile for singles, young professionals or childless couples. The company’s ‘Bigsmall’ campaign has been a winning formula for this ‘cleverpractical’ market segment which is a crucial element in the current vehicle market.
Similarly, the Subaru Forester targets ‘functionality’ group segment which can be categorized based on their needs than ‘style’. The Forester would satisfy people with children who are looking for a medium-sized, better-priced and fuel-efficient station wagon. The Forester also targets ‘brand loyalty’ behaviouralistic segmentation as consumers move on from a first-car-buyer to a mature driver with family. This four-wheel-drive recreational vehicle allows the loyal Subaru buyers with active lifestyles to remain in the Subaru community by compromising their needs and preferences.
Pricing is a pivotal strategy as it is related to product positioning and affects other marketing mix elements such as product features, distribution channel and promotion. To both Forester and Yaris buyers, price seemingly is a major part of attraction. Automobile markets have become intensely competitive and increasingly prices are affecting consumers’ purchasing decision.
These two brand’s value-based pricing has created a competitive advantage in the…...

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