by Cree McCree
WHAT’S HAPPENING
- Think small. That’s the Millennial mantra when it come to cars. Half of today’s young adults are buying compacts or subcompacts, while only one in five are choosing a midsize model (New York Times 11.19.09).
- With Millennials poised to become the largest car-buying cohort, Ford is betting its future on small cars; it’s actively courting the demo with viral marketing campaigns like the Ford Fiesta Movement.
- Millennials may be driving the trend, but they’re not the only ones thinking small. Market share for subcompacts like the Fiesta grew from 21% in 2003 to 31% in 2008.
WHAT THIS MEANS TO BUSINESS
- Detroit automakers have to reinvent themselves or die. Tapping into the Millennial mindset with high-tech features and soc net campaigns gives Ford a competitive edge.
- In or out of a recession, saving money at the pumps and reducing planetary impact are now powerful motivators for consumers forced to tighten their seatbelts.
- Eco-savvy young adults don’t need to be convinced that small is beautiful. With a little nudging from the grandkids, older drivers are likely to follow suit.
RESOURCES
