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.
Prepare a systems analysis report detailing Ace's problem and a systems solution that can be implemented using PC database management software.
Ace Auto Dealers specializes in selling new vehicles from Subaru. The company advertises in local newspapers and is also listed as an authorized dealer on the Subaru Web site and the major Web sites for auto buyers. The company benefits from good local word-of-mouth reputation and name recognition and is a leading source for Subaru vehicles in the Prince Edward Island area.
When a prospective customer enters the showroom, he or she is greeted by an Ace sales representative. The sales representative manually fills out a form with such information as the prospective customer's name, address, telephone number, date of visit, and model and make of vehicle in which he or she is interested. The representative also asks where the prospective buyer heard about Ace?whether it was from a newspaper ad, the Web, or word of mouth and this information is also noted on the form.
If the customer decides to purchase an auto, the dealer fills out a bill of sale form, listing the vehicle identification number, vehicle make and model, colour, options selected, base price, total price, and date of the sale along with the purchaser's name, address, and telephone number. This form also shows the amount of the total purchase price that was financed. Both forms are filed in manual folders?one for sales prospects and another for actual purchases.
Ace does not feel it knows enough about its customers. It cannot easily identify repeat customers at its dealership or customers who have purchased a Subaru in the past from another dealer. It cannot easily determine which prospective buyers have made auto purchases or the percentage of those who have been converted into buyers. Nor can it identify which customer touchpoints have produced the greatest number of sales leads or actual sales so it can focus its advertising and marketing more on the channels that generate the most revenue. Are purchasers coming from newspaper ads, from word of mouth, or from the Web? Additionally, the firm cannot tell whether its customers are more interested in no-frills cars or ones with luxury options. Prepare a systems analysis report detailing Ace's problem and a systems solution that can be implemented using PC database management software.
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