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Mazda Premium Strategy to Surprise Competitors

Mazda Premium is the objective for the Mazda brand in the future.  Mazda realizes it is a mainstream brand but wants to become premium.  In the minds of the car buyer, Mazda competes with Toyota, Honda and Nissan.  Mazda has limited resources and needs to husband them.  To achieve Mazda Premium positioning, its products must be executed to meet or beat premium brand competitors.  This requires targeted benchmarking against more expensive vehicles in the same product category.

CX-5 Latest Mazda Premium Vehicle  At the press launch of the 2017 Mazda CX-5 mid-size crossover SUV (XSUV) in San Diego, Mazda detailed its competitive strategy.  The Mazda product development team did not closely benchmark the usual suspects.  The CX-5 will be sold against Honda CR-V, Toyota RAV4, Hyundai Tucson and Kia Sportage.  To go against premium brands, the CX-5 team benchmarked luxury brand XSUVs like Audi Q3, BMW X1, Lexus NX, Mercedes GLA.  To show how deep they have benchmarked premium XSUVs, the Jaguar F-Pace was even included on one comparison chart.

The new Mazda CX-5 is a 5-passenger XSUV slotted below the 7-passenger CX-9 introduced last year.  The CX-5 completes Mazda’s evolution to its Kudo design theme that stresses the “soul of motion”.  The styling is striking and clearly differentiated from its German and Japanese competitors.  Mazda states that “every element has been designed to be in a class above”.

To demonstrate the superiority of the premium-designed CX-5 over its luxury competition, Mazda provided these premium vehicles as comparisons to drive through downtown San Diego.  While we cannot yet discuss the driving experience, we can reveal that the CX-5 arguably looks and drives better than premium brand XSUVs costing about $10,000 more.

In reality, it will take years for Mazda to achieve premium brand status.  Executed consistently and effectively, Mazda Premium will ultimately achieve a stronger image with Mazda dealers and customers.  Mazda Premium will allow Mazda to achieve higher per-unit profitability.  Ultimately, Mazda Premium will allow Mazda to be positioned at a premium brand like Acura or Buick if all goes as planned.  Competing against Audi, BMW, Lexus, Jaguar and Mercedes is still a ways off.

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