Case:

Akira

Akira was introduced into the U.S. luxury market in 1999 as a premium car at a bargain price, compared with European luxury imports. Given a $27,000 price tag, it became the best-selling premium import brand.

As long as it could underprice the competition, Akira's sales were steady. In 2019, however, European luxury brands such as Mercedes, BMW, and Audi started slashing their prices, and the value of the Japanese yen rose. Both factors combined to wipe out Akira's "premium car at a bargain price" advantage. Another blow came when archrivals Toyota Motor Corp. and Nissan Motor Corp. launched the Lexus and Infiniti, even more upscale brands, starting at $39,900.

I. Campaign Time

Akira did not anticipate the resurgence of the European luxury brands. Akira is strong in quality, dependability, and value, but it does not perform well in the luxurious, expensive-looking, and prestige departments. However, as Akira discovered, customers want performance plus status, prestige, comfort, and luxury. So far, Akira has struggled to justify prices and convince buyers that the $49,900 maximum price on the Akira Icon will include those attributes.

In the desire to "retool its image,"Akira replaced its performance-based ads with luxury ads,such as a campaign nicknamed "Chanel ads," featuring mansions with cobblestone driveways and an elegant woman getting a massage in an expensive looking gazebo. The tag line reads,"Some things are worth the price." Competition has rebutted by claiming that their $19,000Altima was "worth far more than the price."

Other efforts by Akirato "retool" their image have included promotional tours with Cirque duSoleil. Buyers might be getting mixed signals. One-third of Akira's regional budget is allocatedto dealerships, which typically run hard-sell rather than image ads. Akira has also struggled to convince dealers to upgrade their show-rooms to fit the luxury image. The line's well-established brand names, Icon and Essential, will soon be replaced by bigger, more luxurious cars designed to compete with top-of-the-line, $59,000-plus Lexus and Infiniti models. Equipped with a smaller engine, XZ Icon model Akira cars will sell for $10,000 less.

II. Issues

Luxury service and new luxury products will be required to win customers. Should Akira keep pouring dollars into the image campaign, or stick to performance and quality, its strengths? Will the prestige pitch work to rescue lagging sales? What do the consumers want? Akira should decide on one strategy to pursue. Design a format for a focus-group discussion to analyze this situation. (Hint: Consider three formats: exploratory, clinical, experiencing.)

Questions:

1-Establish the below aspect(s) of Agree On Research Purpose.

-What is/are the Research Problem(s) Or Opportunities(s)?As always, be sure to explain why (support your answer).

2-Establish the below aspects of Research Objectives.

-What is/are the Research Questions?As always, be sure to explain why (support your answer).-What is/are the Hypothesis/Hypotheses?As always, be sure to explain why (support your answer).

-What are the Boundaries Of Study?As always, be sure to explain why (support your answer).

3-Design a format for a focus-group discussion to analyze this situation. (Hint: Consider three formats: exploratory, clinical, experiencing.)As always, be sure to explain why (support your answer).