Millennials comprise one of the consumer bases that car manufacturers are yet to understand and exploit. In spite of many millennials getting well-paying jobs, they are reluctant to securing driving licenses, leave alone purchasing cars. In the past, most people, particularly Baby Boomers viewed owning a car as a significant rite of passage to adulthood. However, millennials regard possession of assets as a burden. It underlines the reason many are not concerned about owning property like houses. Instead, they choose to live with friends or parents. Studies conducted by automobile manufacturers portray a more nuanced image of millennials’ car buying behaviors.
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They reveal that this group of customers has diverse and complicated opinions regarding cars. The majority of millennials do not see the urgency of owning a car while they can rely on public transport or carpools. Contrary to the belief that young people are extravagant, millennials avoid entering into debts just to own cars. Instead, they opt to clear existing obligations such as college loans before they can think of buying cars. Moreover, the obsession with technology has resulted in millennials developing unique preferences. Most millennials would prefer a vehicle that meets their technological needs. For instance, they would want an automobile that integrates flawlessly with smartphones and accommodates other technologies. They would like a car that enables them to connect with friends even when driving.
Most millennials use “herd mentality” to make buying decisions. They avoid purchasing products that are not popular amid their colleagues. For instance, a millennial is likely to buy a MacBook if his/her colleagues use the same. Therefore, product reviews from customers are essential in influencing millennials’ buying behaviors. Honda Company may increase the desirability of Honda Fit amid millennials by establishing an online community that enables customers to share their experiences regarding the vehicle. It would encourage millennials to contribute to the discussions, thus influencing the buying behaviors of their friends.
Millennials comprise the biggest market share that many companies compete to win its trust. However, it calls for businesses to use appealing promotional strategies to attract this market segment. One should appreciate that millennials are knowledgeable and can tell when someone is lying to them. They prefer to deal with companies that do not lie about their products. Hence, it is imperative for an organization to give truthful information about its products and services. Sharing premium images or videos of a company’s customers, employees, and products via social media can go a long way towards enabling millennials to connect and associate with a corporation. A study conducted by Honda revealed that millennials prefer appealing promotional methods. They do not only like advertising methods that share quality images of a company’s products but also ones that give them a chance to initiate discourse with friends. Millennials are known to like visual and cohesive promotion strategies. The growth of technology has led to most millennials using visible sites like YouTube and Instagram. A company that wishes to draw the attention of the millennials requires using visual platforms. Honda Company can encourage millennials to connect and get attached to Honda Fit by sharing visual messages regarding the features, engineering, and functionalities of the car.
The use of peer brand evangelists helps to attract the attention of millennials. Mostly, they get information regarding products from bloggers, YouTube personalities, and podcasters. It is imperative to appreciate that millennials value the opinions of celebrities that they follow on social media. Leveraging such individuals can offer a company an entry into the millennials’ world, thus winning their loyalty.
Selling complementary products puts a company at the risk of cannibalism. Even though a new product may allow an organization to enhance its footprint in an industry, it also can affect the market share of a company’s legacy goods. The primary challenge attributed to selling complementary products is the creation of confusion amid customers. Honda Fit is an enhancement of Honda Civic. The former is more fuel efficient and smaller than the latter. Millennials are less concerned with the classification of cars. They prefer a vehicle that is spacious and efficient with fuel and speed. Introduction of Honda Fit into the market posed a significant threat to the sales of Honda Civic, which was a considerable source of income for the company. Thus, the need to position the two cars differently based on their capabilities and engineering to distinguish them.
- Honda Company should encourage genuine discussions amid clients and promote public rating of its cars. Moreover, the company should ensure that millennials have an opportunity to share experiences regarding its vehicles.
- Honda should make sure that it runs transparent promotions that allow millennials to get adequate information about the features of various cars. Moreover, the company must promote Honda Fit through online influencers like bloggers who are popular among the millennials.
- Product positioning will enable Honda Company to prevent cannibalization of Honda Civic. The company should present the two brands of cars as different based on their features.