Infiniti: Marketing for maturing consumers

Updated: 2011-09-26 07:53

By Han Tianyang (China Daily)

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 Infiniti: Marketing for maturing consumers

The Inspired Performance Journey began in May last year at The Place, a stylish shopping complex in Beijing. Photos Provided to China Daily

 Infiniti: Marketing for maturing consumers

An M-series sports car used in the 'DriveFeel' national test drive.

China's luxury auto market could soon surpass the United States to be the world's biggest, yet there is still a big difference in consumer psychology and behavior between the two.

Unlike the US, where buyers know a great deal about cars, ordinary families in China have been able to buy cars for just over a decade and many can barely tell the differences in driving experiences.

So educating Chinese consumers through marketing is crucial to brands, and efforts by Infiniti provide a useful lesson.

Nissan Motor Corp's luxury unit is expected to double its sales in China to more than 20,000 units this year.

Though just 2 to 3 percent of the market, the number is an impressive outcome for a latecomer that arrived in the country just five years ago.

Even without the long heritage often found in premium brands - it was created in 1989 - Infiniti is now accepted by more customers in China.

One of the reasons is its local marketing team, which has conveyed the right message to the right customers, say market observers.

China's luxury car market is currently dominated by German manufacturers Audi, BMW and Mercedes-Benz, which together have about 80 percent of the segment.

How to be differentiated from established brands is a challenge for Infiniti, but also an opportunity.

In the minds of most Chinese consumers, German brands lead in advanced technologies, manufacturing techniques and product quality.

Although Infiniti also has strong performance, to follow German brands and focus on technology at marketing events might not be the best idea. A challenger in the market, Infiniti has to be different and to break with tradition.

'Inspired performance'

The key words Infiniti has chosen in its brand campaign are "inspired performance", not "technology" or "dynamic".

The emotion-oriented strategy has proven effective as it is now even billed as the "premium brand with the most artistic temperament" in China.

Beginning in May last year, Infiniti held a seven-month "Inspired Performance Journey" in major Chinese cities where it has dealerships. The event included car owners and the press in well-organized trips through the aspects of modern urban life that the brand wants to be associated with.

At the Beijing stop, guests drove Infinitis to several fashionable landmarks - the 798 art district and the Opposite House, a classy hotel in the prosperous Sanlitun area.

Other destinations included stylish restaurants like the Mediterranean taverna 1949 the Hidden City and Beijing Light, the highest restaurant in the capital city located in the 66th floor of the Park Hyatt Hotel.

Through such carefully planned events, the company expects to help participants better understand the avant-garde lifestyle the brand represents and attract potential customers who share the same kind of independent and unconventional personality.

Marketing activities

Infiniti's marketing team also showed the luxurious, emotional side of its cars.

In July, the brand offered a test drive with its M-series high-performance cars themed "DriveFeel", enabling guests to learn about its products through driving and advanced interactive devices in showrooms.

Test drivers enjoyed luxury services offered by Infiniti at the rest stops along the route. Organizers even invited fashion photographers to shoot pictures of drivers and cars that could almost make the cover of a magazine.

Thoughtful service is typical of a Japanese brand. But unlike the tradition in most Japanese brands - more attention to local auto shows and test drives at dealerships to drive sales at minimal costs - Infiniti has focused more on simply building the brand.

Its team works hard to get the first few pages of leading magazines for advertisements or doing an eight-page spread to ensure visual impact.

The team expects the discerning customers will recognize Infiniti as a genuine luxury brand, even if they may not buy one at the moment.

The company also chooses other luxury brands as partners to convey its premium image and attract the emerging upper class in China.

Often there will be a display of exquisite watches at brand promotion events by Infiniti.

In July it sponsored a Bvlgari jewelry show, linking with a brand that embodies the same pursuit of art and inspiration, the company said.

Its parent Nissan released a mid-term plan in the middle of this year that envisions Infiniti will increase its lineup to more than 10 models and boost global sales to 500,000 by 2016 - about 10 percent of the world's luxury car sales.

China is undoubtedly a pivotal part of the plan. But the market is certain to remain highly competitive as almost all premium brands worldwide have served notice that the nation tops their list of attractive, growing markets.

Infiniti is wise to invest heavily to first build a strong brand reputation, a solid foundation that will benefit its growth in the long term, analysts said.

May Che, marketing director of Infiniti Business Unit in China, is the commander and biggest contributor behind the successful marketing communications after joining the brand two years ago from Volkswagen.

Industry insiders say that Infiniti Global Business Unit made a correct decision in choosing excellent local talents that understand the market.

(China Daily 09/26/2011 page19)