Strategic Marketing Approaches for Influencing Young Adult Consumers

Introduction

The current research literature aims to explain the prevailing condition of the chosen company and the ways marketing strategies can be aligned for influencing the young adults seeking business dissertation help. In similar regards the report works on chalking out the plans related to strategies for marketing that can be implemented for attracting a large group of young adult customers. There remains no doubt that the chosen groups of customers are newly employed individuals who love technology influenced comfort. The moderate to high range of disposable income makes the sector highly profitable to be targeted. However, it becomes equally important to align the marketing strategies as per the demands of customers. As influenced by Setiawan and Setyohadi (2018), the young customers are highly active on the online social sites. Thus, the current assignment aims to understand the ways segmentation of the young customers in terms of their purchasing behaviour, capacity and the need of the customers. The MINI automobile company needs to analyse the needs of the customers and work on analysing and forming their customer attracting strategies. The promotional strategies need to be streamlined and the customers must be made aware of the importance. The work therefore proceeds to express the value of the customers

Competitor identification

Identification of competitors and their justification

MINI as a brand is composed of a wide range of competitors based on similar platforms. This company has several competitors within the automobile market. The current section will focus on the second generation of MINI Hatchback and the possible competitors in the business. BMW and Volkswagen can be termed as the biggest competitors within the business. All the cars have relevant connections with the past and all of them are based on icons on the 20th century of the automotive industry. The Fiat 500 is from Poland and made by the Italian manufacturer it is the smallest of the three cars while MINI is the middle sized car in terms of size manufactured in the UK by BMW (Soyez and Gurtner, 2016). Volkswagen Beetle is the biggest among all the three, German manufactured in Mexico. Beetle was lauded for having the most powerful engines, within the range of 1.2L to reach the 2.0L for the petrol cars and 2.5L for the diesel powered cars. MINI hatchback remains in the second position with engines varying within the range of 1.4L and 1.6L. Fiat 500 is the last one with the less powerful engines of 0.9L and 1.4L. Both Fiat and Volkswagen are equipped with automatic gearbox, or 5-speed or a 6-speed manual (Kaushal, 2018). However, in case of MINI the car is equipped with only one of the following features. The point of similarly for all the cars is that all of them are Front-Engine Front-Wheel-Drive.

In terms of handling the MINI leads the way the suspension setting makes it fun to drive the car. The right number of engines and direct steering wheel gives MINI a best position to ensure smooth handling and performance. Beetle from VW is second and the transmission within the chosen care is not set up for sports driving. Thus, the heavy car falls in second place despite the powerful engines (Yadav, 2018). Fiat 500 is lightest among all the three cars and is built of less powerful engines that make the performance and handling best suited for city driving rather than sports driving. In terms of comfort Beetle comes first due to the spacious backseat and trunk reaching upto 310lt/vda. MINI hatchback has the smallest trunk space and comes in the second position for the space related issues.

Fiat 500 is last in the list when it comes to both comfort and driving; it is one with the largest number of sales across the European Union. The much lower price is the prime reason for the high number of sales of Fiat 500. However, VW is the most comfortable car but loses the competition due to the high price range and lack of sport spirit (Gbadamosi et al. 2017). From the above comparison one can easily conclude that MINI hatchback has more premium features and may not be threatened by the competitors. However, the lack of suitable competitive strategies emerges as a potential problem that makes Fiat 500 the most sold car.

Critical success factors for the chosen company

Following are the critical success factors that can work on influencing the success for MINI and the product (Thomas, 2020):

Product diversification can be termed as one of the greatest reasons that make MINI best suited for the customers for the chosen age group from all social background and geographical locations

MINI is linked with racing heritage that makes the car more prestigious. The young generation is inclined in sports and racing. The chosen car can help in meeting their needs within a specific budget (Thomas, 2020).

Collaboration with German engineering is termed as one of the best strategic moves for the chosen automobile company. The British style with German engineering amalgamates the iconic style with superior engine quality inspired from the BMW making MINI Hatchback an ultimate driving machine

Customise your MINI as per the needs. As influenced by Yadav (2018), millennials these days are looking for the value of their money and ways to invest in areas that give them maximum returns. The customization of the cars makes MINI a personal favourite of the younger generation as they have varied needs. As influenced by Adnan (2018), customization of product is a simple way of letting the customers know that the company cares

British heritage is termed to be highly sophisticated in terms of design. The quality of the product coupled with the design can be termed as one of the major success factors for the chosen company, making it one of the most sought after cars in the UK (Swarnakar, Kumar and Kumar, 2016).

On the basis of Critical success factors identify the company strength and weaknesses

The strength of the chosen company is the ability to adopt new methods to meet the customer's demands. In similar regards it becomes important to understand the fact that the act of product customization is the biggest strength that makes the car mostly preferred among the young adults. The roots to the cultural aspect can make it important for the targeted customers to purchase the product as per their needs. As Ahn (2019) stated, the consumer behaviour is influenced by a series of factors, culture being one of them. It is important to note the fact that young customers are seen to be deeply rooted to cultures while buying products that demands a great deal of financial investment. The ethnic roots of the chosen car make it one of the most sought after products.

However, a specific cultural aspect of a product may not work while the automobile company. English legacy is named to be exceptionally advanced as far as plan. The nature of the item combined with the structure can be named as one of the significant achievement factors for the picked organization, making it one of the most looked after vehicles in the UK. However, the company is looking for a global establishment and meeting the needs of the UK customers may not be enough (Belanche, Casaló and Flavián, 2019). Thus, the company needs to work as per the demands of the customers outside the EU to overcome the mentioned weakness

On the basis of Critical success factors identify the potential changes that the company needs to make in marketing

Targeting the group of young customers demands a change within the traditional marketing approach. As influenced by Lee (2018), the young customers are readily available on the social media platforms. The approach to product diversification and changing as per the needs of the customer may be rendered useless if the targeted customers are not reached within a speculated span of time. Thus, it is of prime importance that the business works on establishing a strong social media presence that can make it suitable for the company to reach the targeted customers.

SWOT

SWOT of the company

Current situation of the company

The current situation in the company is based on a series of factors that includes purchasing power of the customers demand for the products. The automobile sector is termed as a great area of investment for people from all demographic areas. It becomes important to understand the fact that customers need to understand the perspective of the business dynamics for getting what they want. The company MINI had an awful year. The brand sold 361,531 Minis over the globe in 2018, a 2.8% drop from the earlier year. In the U.S. where the little vehicle is a specialty item, the shortfalls are significantly bigger with a 7.3% year-over-year drop in deals. In December alone, the year-over-year drop in U.S. deals was a shocking 40% (Thomas 2020).

The hatchback, which began its life as a post-World War II answer to a moderate city vehicle, has seen the two its weight and value take off from $800 and 1,400 pounds at its 1959 presentation to $21,900 and 3,000 pounds for the latest emphasis (Thomas 2020). The car company was subjected to major setback and issues related to sales. The recession across different parts of the globe is an additional drawback that makes it increasingly difficult for the business the gain expected profit margins. The chosen company in the mentioned context aims to diversify and produces a range of products that meet the needs of the customers.

Targeting

Key characteristics of target customers

The target customers of the chosen company are the people from the young generations. As influenced by Nurunnobi, Prasad and Arifuzzaman (2016), following are the set of characteristics of the young generations:

Millennial expect the technology to work simply. The young customers have grown with technology as an indispensable part of their lives. As supported by Pugnetti and Bekaert (2018), naturally the millennial align and embrace themselves with technological advancement. The modern event related to technology aims to understand the possible ways that can be adopted to engage the millennial in the chosen product. Thus, it becomes important to assess the products and upgrade them through modern technologies.

Millennial are a social generation, they socialize during the course of consumption with the services and the products they have chosen. The social behaviors of the millennial create greater implication on the automobile service sector (Adnan et al. 2018). Millennial these days are not silent users of the products or services they tweet and post reviews of the products they use, making them a prime source of marketing. The visible lack of conflicts between the previous generations and the millennial can be important for the carrier businesses for providing the needed commercial messages for the friends who can be converted into potential customers in near future (Swarnakar, Kumar and Kumar, 2016).

Millennial collaborate and cooperate with one another and even with the brands when possible. As influenced by Pugnetti and Bekaert (2018), the positive community mind-set of the millennial of “we can fix it together”. The mentioned proactive mindset of the millennial helps them to collaborate with different businesses brands. As stated by Pratono and Tjahjono (2017), the millennial fail to look at brands any differently and help the brand to co-create. Companies which understand this aspect figures out the possible ways of ensuring better business of co-creation giving the expected competitive edge in business

Millennial are often seeking ways to enjoy adventure. As stated by Thakur (2016), millennial are always seeking ways for adventure and enjoying life. While shopping the targeted generation relies on the experimental retail environment where the act of shopping is purely transactional and the pleasure of the purchased goods extends beyond the retail experience.

Millennial are passionate about values. As stated by Roese and Kompella (2017), the millennial are a generation which is highly driven by value. Millennial are often seen to integrate their beliefs into the products being purchased. Thus, it becomes important to understand the fact that the business needs to understand the importance of values of the customers for understanding the consumer behaviour of the young adults. The individuals within the chosen generation are motivated and goal oriented. The fear of being non-conformist may emerge as a potential barrier to purchasing behaviour of the customers. The cultural aspect related to buying behaviour continues to remain important for the chosen business to understand the business prospect (Rosenbaum et al. 2017).

Profile of the target customers

The customers for the chosen product are within the range of 18 to 25 years. The current populace enjoys a good range of disposable income. On one hand the disposable influx of money may be termed as a good thing for the chosen company as it opens in the prospect of sales for the increasing the profit margins. The customers within the chosen demographic sector are additionally influenced by online reviews and purchases. As stated by Ihtiyar et al. (2018), millennial are often seen to make online purchases after reading the reviews that in return can work on saving their time to a greater extent. In similar regards, Rahimi (2019), argued the fact that a lot of millennial may be interested in reading online reviews before making the purchase; however, the purchase is not made from online platforms. Millennial are more than often seen to make purchases from physical retail stores as it helps to test the product and assess the intangible assets which may not be prominent in case of online purchase (Jayaraman et al. 2018). In addition to that the young adults are seen to enjoy their lives, go for studies and even for social gatherings; an automobile that is heavy to operate adds tension and makes it difficult for them to enjoy the drive. Thus, it can be conclusively stated that young adults are always looking for ways to enjoy their lives (Kim et al. 2017). A car that is easy to operate and handle over longer period can help in gaining maximum preference among the targeted customers. Most importantly the young adult customers have a clear understanding about the value for money. The chosen age group of 18 to 25 years often comprises newly employed individuals. The car is often sought as a mode of investment. Investment in the right product can give the expected results. The expected results can thus lead to better outcomes for the purchase of the product (Rani and Chahal, 2016). Financial security is termed as one of the most important aspects while making purchase of a product, irrespective of the targeted demographic group. The chosen generation thus exhibits a key level of awareness for justifying each purchase with the money that could have been invested for a better future. The customers in the mentioned scenario prefer to remain in a situation that is free of worries. Buying a car is a huge investment and needs to be taken care of with great attention (Tamboto and Pangemanan, 2016). The people in the chosen sector need to get a better return on their investment. The customers thus need to be targeted in the right way and the company should work on getting better profit margins by keeping the customers happy.

Perpetual map

Justification for providing the values

The car MINI Hatchback is limited in terms of space and engine quality. The high engine quality can work on enhancing the level of product quality. The current quality of the product is on the higher side. However, as the business plans to expand in further sections it needs to work as per the demands of the customers (Ryu et al. 2016)

The up gradation of the engine can give the car better rates of pick up rate and a sports car's feeling. The customers at this instance do understand the fact; in terms of handling the MINI leads the way the suspension setting makes it fun to drive the car. The right number of engines and direct steering wheel gives MINI a best position to ensure smooth handling and performance (de Souza, 2019). However, the aspect of smooth handling is not the limited aspect that needs to be considered. The quality of car and the adaption to the demands of the customer needs to be done and thus the mentioned feature can be rightly justified

Recommendations

Recommendations to improve product

Size the scope and not the market: In order to create a clear understanding of the opportunity it is important for MINI to look at the entire market to look through the lens of the young customers to understand the to determine the exact potential. As stated by Monangin (2016), by accurately sizing the opportunity, the business can help in chalking out the exact business plans.

The aspect of product development needs to be considered with price for ensuring better business outcomes. As influenced by Uma and Ramanathan (2016), companies are often seen to make use of cost based pricing in order to validate an acceptable return on investment for the business case when they should be developing price of the product on the basis of the cost threshold of the customer to make sure that the cost does not act as a potential barrier for the customer who really wants to buy the product. As expressed by Baruch (2016), twenty to thirty year olds are continually looking for ways for experience and getting a charge out of life. While shopping the focus on age depends on the test retail condition where the demonstration of shopping is absolutely value-based and the joy of the bought products stretches out past the retail experience.

Twenty to thirty year olds are energetic about qualities of the product. As expressed by Mathijsen (2017), the millennial are an age which is profoundly determined by esteem. Twenty to thirty year olds are frequently observed to incorporate their convictions into the items being bought. In this way, it gets critical to comprehend the way that the business needs to comprehend the significance of estimations of the clients for understanding the buyer conduct of the youthful grown-ups. The people inside the picked age are propelled and objective situated. The dread of being non-traditionalist may rise as a potential hindrance to buying conduct of the clients. The social angle identified with purchasing conduct keeps on residual standard making it significant for the picked business to comprehend the business prospect (Monangin, 2016). Thus, getting the customers involved can help in the act of product development. Thus, it is important to create an advisory panel that can work on improving understanding the ways that can be further implemented for ensuring better rates of product development.

Recommendations to improve promotional activities

The rate of promotional activities needs to be changed and streamlined as per the current needs of the customers. The MINI needs to establish a strong social media presence. As affected by Baruch (2016), the youthful clients are promptly accessible on the web based life stages. The way to deal with item enhancement and changing according to the requirements of the client might be rendered futile if the focus on clients does not come to inside a guessed length of time. Along these lines, it is of prime significance that the business deals with building up a solid internet based life nearness that can make it appropriate for the organization to arrive at the focused on clients. In similar regards, it is important to connect with the customers that can help the customers to understand their value within the company. As stated by Verma (2017), if the customers are rightly valued that in return can help in retaining the customers.

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