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Mazda Brand Strategy & Sales Plan

Mazda's "Zoom Zoom" branding strategy has not been as effective for all of its models. While sporty cars like the Miata benefit, more family-oriented vehicles like the Mazda6 have struggled. Mazda has a small market share in the important $20,000-$25,000 segment in the US. The document proposes that Mazda 1) run separate advertisements for different vehicle types, 2) offer promotions to new buyers, 3) use driving schools and events to promote vehicles, 4) improve its dealership network, and 5) invest in hybrid models for long-term growth.

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Ayushman Roy Choudhury
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180 views2 pages

Mazda Brand Strategy & Sales Plan

Mazda's "Zoom Zoom" branding strategy has not been as effective for all of its models. While sporty cars like the Miata benefit, more family-oriented vehicles like the Mazda6 have struggled. Mazda has a small market share in the important $20,000-$25,000 segment in the US. The document proposes that Mazda 1) run separate advertisements for different vehicle types, 2) offer promotions to new buyers, 3) use driving schools and events to promote vehicles, 4) improve its dealership network, and 5) invest in hybrid models for long-term growth.

Uploaded by

Ayushman Roy Choudhury
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd

According to our group the problem with Mazda is that its strategy of umbrella positioning

has outshined the individuality of each of its brands. While all the sporty cars such as Miata
and Tribute can be covered under this type of branding and advertising but the models
competing against the likes of Toyota Camry, like Mazda6 can certainly not be covered under
the same strategy. Adding to the complexity of the case is the fact that segment of Mazda 6
where most cars sell for $ 20,000 to $ 25000, is the most crucial segment for car makers in
US1. As a solution to this problem we suggest Mazda to differentiate the advertising for its
Models like Mazda 6 and Mazdaspeed. However they can continue with the Zoom zoom
campaign as a positioning platform for other sporty looking vehicles. With only about 2% of
the market share, and costly advertising market such as US, the separate advertisement
expenditure may be too costly to adopt for Mazda2.

Steps to be taken

1. Allow for separate advertisements for models targeted at mature buyers in higher
segments, for this some advertisement expense in Zoom Zoom campaign may be
curtailed. New campaign will not feature Zoom Zoom and rather focus on functional
benefits of the product.
2. Just the way they had offered Roots, duffel bags to Mazda 5 buyers, they could start
some offer for the first 1000 buyers of Mazdaspeed and Mazda 6 offering them
something like a membership of clubs or subscription of coveted magazines or
conferences like TED.
3. Use of driving schools and touring events for promotion specifically targeted to push
sales upwards.
4. Strengthen its dealership in the US. Moreover sell different models from different
dealers, in order to avoid confusion for consumers.
5. Investment in Hybrid models as a long term strategy.

 First step is just a a reallocation of advertisement budget hence will not require
additional financing.
 For second step the additional funds USD 1,000,000 @995 per membership of
TED conferences. This expense will be funded internally from reserves for first
two years to assess the impact on the sales.
 Dealership will be given on deposit basis to generate cash inflows, moreover
dealers’ evaluation will be attached to the sales, so that growth in sales in ensured.

Present dealers – 750 target to add 250 more across United States, the estimated sales
growth from this increase is 80,000 units. This will

The tie ups with driving schools are expected to cost the company USD

The following table shows the forecast of next year’s sales at current conditions.
1
From Case, page 4 Para 2nd
2
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e5f76d509fbd@sessionmgr14&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#db=voh&AN=10582032

[Type text]
FORECAST 2009 Sales Additional Sales Per Unit Additional revenue
(Units) (Units) (Units) Price (USD) USD
96,4
Mazda3 103697 66 7,231 23945 17,31,36,717
18,4
Mazda5 15219 88 -3,269 18745 -6,12,73,656
34,8
Mazda6 56475 66 21,609 19200 41,48,85,120
MX-5 7,91
Miata 12133 7 4,216 21774 9,18,07,894
2,21
RX-8 7074 7 4,857 27245 13,23,18,067
20,5
CX-7 22274 83 1,691 22300 3,77,18,220
21,1
CX-9 14559 32 -6,573 29385 -19,31,53,482
5,52
Tribute 18711 5 13,186 20840 27,48,00,408

Total 2,50,142 2,07,194 42,948 87,02,39,288

[Type text]

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