Section B: Case Study You are required to answer all questions in this section. This section is worth 25 Marks. Creating a new image for Buick BUICK The first thing that usually comes to mind when someone mentions a Buick is "old car"-old- fashioned, owned by older people, a car you would expect your grandfather to drive. Certainly not something you would think about buying just after you graduated college. Buick, a division of the American car manufacturer General Motors, is a 118-year-old car company, considered as one of the oldest car brands in the US and in the world. The image Buick projected was clearly not attractive to the younger crowd. The Former GM vice chairman Bob Lutz famously called Buick a "damaged brand." Like the General Motors brand, Oldsmobile, Buick is concerned about extinction. Oldsmobile also had an older demographic buyer and went out of business in 2004 after 107-year history. Outdated models The brand's image has become too old for a company that wants to be thought of as a thoroughly modern "attainable luxury" vehicle in a class with Acura, Infiniti, Lincoln and Lexus. In 2014, approximately 53 percent of Buick buyers were over the age of 55. Buick cars lacked the styling, value, and quality of cars that appeal to young generations. Its premium model, which was expected to beef up Buick's SUV lineup, had serious problems. Shifting gears on its six-speed automatic were bumpy and its fuel economy system cheapened the ride by killing the engine at every intersection. Even with its ability to keep the cabin quiet and comfortable, it failed at providing a smooth driving experience. The $50,000-price tag caused young generations to CENTURY BUICK turn away from this car. The company used traditional media advertisements to reach out to its target audience, and message appeals which lacked excitement. Part of the company's promotional campaign was web.com SSS Pira lille luxury in vbu Century 5 8001 BUICK Page 3 of 5 2021-MKT2CBE semester 2 exam sponsoring the Buick Open, a golf tournament which ran from 1958 to 2009, which may not appeal much to young customers. New strategies Buick management realised that it is now time for the company to shed its old-fogey reputation and its image. It decided to reposition its brand in order to appeal to a younger audience to its cars. This required significant overhaul in brand personality. There was a need to introduce new car models and effective advertising campaigns which can shake off Buick's uninteresting image in order to save the brand from extinction. The change started with the introduction of new car models. The redesigned new models included Enclave sport-utility vehicle (SUV), a smaller crossover Encore, and the Cascanda-the first Buick convertible introduced in the last 25 years. - All were designed to appeal to a young audience. Showrooms were redesigned to reflect this change and attract younger customers; customer service was improved; and a new mantra emphasising "happiness" became pervasive which poked fun at the automobile's image. IMC program centered around the That's a Buick?" advertising campaign. In these ads, people are surprised by Buick's new sleek, modern look which suits young drivers, rather than being a car for grandparents. The commercials featured old and young people seeing a new Buick for the first time, and not believing that the car is really a Buick. In one spot a grandmother doesn't believe her grandson's new car is a Buick. Some of the commercial ads showcased: a valet who couldn't find a Buick even though it was right in front of him. When he got in, he was clearly impressed. In another, a young woman stands on the street craning her neck for the Buick that's supposed to pick her up, looking right past the shiny Encore parked right in front of her. Another advertisement featured the famous actress/model Emily Ratajkowski and football player Odell Beckham Jr. The campaign was a brilliant effort to attack the vexing brand relevance issue. Buick executives believe the campaign helped extend the brand's remarkable sales success directly after the campaign started airing. Buick was able to revamp its relevance by revamping its product and overhauling advertising. Case Study Questions: Four (4) questions are given. Answer ALL questions. 25 marks in total. 1. Message appeals / content (Total 5 marks) a. Suggest two (2) types of message appeals would most likely be suitable for Buick's younger audience? (2 mark) b. Justify your answer in part a explaining how can Buick use the Balance Theory to persuade young consumers to buy its new car (3 marks) 2. Using the Attitude-Toward-the-Object Approach, discuss two (2) ways Buick have used (or could have used) to help its young audience change their attitude towards the brand and purchase its cars (6 marks) 3. The concept of microculture can be applied to the Buick case (Total 8 marks). a. Discuss two (2) microculture(s) involved in the Buick case study and what are some of their main characteristics? (4 marks) b. How can the characteristics of the microculture discussed in part a. affect Buick's product and advertising strategies? (4 marks) 4. Reference groups and social media (Total 6 marks) a. What role can 'group influence' play in consumers' decision to buy the new Buick car? (3 marks) b. What role can social media play in influencing consumers' decision to buy the new Buick car? (3 marks) ================ ==============END OF EXAM==============================