Mazda CorporationBrand Repositioning StrategyTeam: Young BearcatsNovember 8, 2016Hanyang ZangIbrahim ShaukatLiang ShuaiNicholas RaimondiRon Namnun

Agenda1. Background2. Problem Identification3. SWOT - Internal Factors4. SWOT - External Factors5. Brief Recommendations6. Alternatives7. Primary recommendations8. Implementation9. Expected Results

10. Conclusions11. Appendices12. Q & A

Background

● Entered US market 1970 (Mazda North American Operations)● “Driving Matters”

Vision:

● Brighten people’s lives through car ownership● Offer cars that are sustainable with the earth and society to more people● Embrace challenges and seek to master the Doh (“Way” or “Path”) of

creativity.

Framing/Problem Identification

● Increase profitability through repositioning of Mazda to “Premium” status

● Increase customer loyalty (currently 39%, industry 53%)

● Target untapped growing demographic of millennials

SWOT Analysis

Strengths• Fuel efficiency• Financial advantage

Weaknesses• Low market share• Brand positioning

Opportunities• Millennial market• Booming economic

environment

Threats• The procedure of repositioning

• Government Regulations

Brief Recommendations● Tap into millennial market

● Focus marketing on repositioning Mazda as “Premium”

● Promote newly-added features of new product line

● Avoid launching many vehicles in a short period

Alternatives

● Invite potential customers who interested in Mazda Premium vehicle to have free driving tour by Mazda

● Showcase new product line at popular auto shows to display quality and improvements

● Train staff in dealerships to reflect the philosophy of the firm

Primary recommendations

● Introduction extension to current College Graduate Program○ 8% discount off of MSRP ○ Applicable to bachelors/associate graduates within 5 years of receiving degree○ Parents can get discount if buying car for child

● Production of hybrid cars○ Add hybrid model to product line ○ Payback period is 4-5 years

5-Year Summary of Vehicle Sales With 8% Discount Starting in 2017

Hybrid Car Strategy

• Hybrids sold in the U.S. (2015): 384,000 Vehicles

• Hybrid Take-Rate: 1.82%

•Huge potential profit for Hybrid car market

Millennial Interest In “Green” Vehicles

Hybrid Car Sales• Base on the experience from Subaru, Mazda could penetrate in this market

and get 1-2% at the beginning, and 1% increase per year in market share

Sales and BE point

Breakeven point would be at the beginning of 4 years

Implementation● Test Marketing - initiate on small scale & evaluate before launching

program/mass production● Target marketing efforts to areas with dense millennial population

(Universities, Universities dense cities such as Boston)● Use slogans that communicate the values of Mazda that align with the

values of the millennials ● Exhibition/car showings - in-person display of offered product is the most

effective in communicating the improvements● Use social media/mobile advertising - millennials spend more time on their

phones/are more technology savvy than any other demographic

Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3

2017 2018 2019 2020 2021

Jan Discount Program Implement

Jan-June Expanding Battery Factory

Apr - Oct Monitor both programs

Implementation Time-Frame

Problem Identification Recommendation Implementation Financial Projections Risk Consideration

Market TestingJan

Apr - OctExpanding Battery Factory

Apr - OctExpanding Battery Factory

Hybrid Car Strategy Break-even Time

15360 Hybrid Cars sold

11500 Hybrid Cars Sold7734 Hybrid Cars Sold

7680 Hybrid Cars Sold

11621 Hybrid Cars Sold

Expected Results

● MSRP discount + low-interest financing (current College Graduate Program) for recent grads will lead to increase sales amongst younger generation

● Brand loyalty increases as more first-time car buyers choose Mazda

● Mazda will become recognized as a premium car manufacturer

Conclusion● Increase market share amongst millennials through extension of College Graduate

Program ● Reflect spirit of Mazda/reposition brand image through introduction of a hybrid

vehicle● Increase customer retention rate by increasing overall customer satisfaction

Q & A