Part 1: What is the dilemma facing Subaru?
Part 2: What factors are important in understanding this decision?
Part 3: What are the alternatives? Which do you recommend?
Part 4: What are some ways to implement your recommendation?
Subaru's dilemma is that it has developed a relationship with its core customers who value the company's outdoors, eco-friendly brand personality. Now, Subaru wants to expand its market share in the United States. it wants to target upscale buyers who value freedom and frugality. The dilemma is that if Subaru attempts to change its marketing tactics it may offend its core customers who value the company's outdoors, eco-friendly brand personality. The dilemma has occurred because the segment that Subaru has targeted has its limitations. To increase sales beyond its current target segment, Subaru will have to target larger segments. Repositioning Subaru to target upscale buyers who value freedom and frugality may estrange its current customers. This can lead to erosion of sales in its core segment. The traditional customers of Subaru lived in regions such as North American Rocky Mountains, New England, and the Pacific Northwest. Now, Subaru wants to attract customers who do not live in rough terrain but it does not want to lose ground with its core customers. Subaru has invested a lot in building its image. It has located a manufacturing unit in an official wildlife preserve with no landfill waste. It also organizes an annual sales event where customers can donate $250 of their Subaru purchase to one of five ...
This posting gives you a step-by-step explanation of a Subaru marketing case study. The response also contains the sources used.