MG-Roewe: Capturing A Mass Market With Niche Marketing

Props to the guys handling the marketing for MG-Roewe, for they know what we’ve been preaching for some time: the 80’s generation are not a homogenous mass market. A quick overview of the changing marketing content and tactics show how the MG 3SW was introduced as a mass product for an aspirational white collar worker from the 80’s generation, but overtime (and as MG-Roewe expanded it’s range of models) we see how the model has shifted target to a more niche “passion”/”fashion” trend leader market.

Let’s see what they did:

The first advert (linked here) shows us that while the MG 3SW is aimed at young white collar workers it’s a car fit for scientists, scuba divers, adventurous photographers, volunteer teachers and radio DJs. Not quite a clear target profile. Yet what the TV commercials lacked in focus, it made up for in ubiquity. China Car blog comments:

“ MG have started an agressive media campaign for the MG3 SW, if you’re in China right now we can bet at least 100USD per person that you’ve seen this advert at least 50 times before you brushed your teeth this morning.”

The second TV spot (below), whilst less localised, shows a shift to a more edgy branding of the car. The ad is more stylised, harping on the cars city to off-road crossover potential whilst emphasising adventure and fashion. However a real shift in marketing comes with a viral push online.

Further viral content, like the video below, cements this online push. Like any good viral video the title is a major driver in attracting people to watch it. Jason Jia explains the clever title:
“It is titled Post-80s’ Outdoor Intercourse (80后野战). The title is very eye-catching, most of people might guess it is a blue video clip about young people having outdoor sexual intercourse. Actually the video shows a young couple having crazy intercourse/communication (more like quarrelling) outside around a MG 3SW.”

Beyond a viral presence, MG also hosts a site aimed at giving the 3SW a deeper cultural relevance by associating it with Chinese youth culture icons such as artist Popil, musician Wang Hao, and parcoure runner City Monkey. No longer is the 3SW the car for the mundane white collared nine-to-fiver, it’s for those Chinese youth and it’s for those who follow their dreams and passions at any cost.

In a bid to bridge both smaller scale internet marketing techniques and mass coverage MG-Roewe was also one of the key sponsors for popular Chinese drama “一起来看流星雨.” The show featured a showcase of MG-Roewe models including the 3SW. Different MG models were paired with different character profiles and the 3SW was utilized most effectively in a Fast & Furious-esque segment of competitive driving by the young hero of the show.

The sponsorship helped showcase the ideal target consumer for all models featured. The 3SW for the younger rebellious characters, a sport car model for the rich boy-racer, and it’s luxury Roewe town car models for mature successful business types.

These redefining of target consumer and marketing tact has obviously paid off for MG-Roewe who boasted a 160% increase in sales over last year, which earned their parent company, SAIC, the honour of being the best selling Chinese auto company of 2009 and this year is off to a good start with the introduction of the new MG 6 model.

The MG 6, which is “full of English elegance” according to a Youku advert description, is aimed at the mid-range market. As the MG 3SW now has a more clearly defined consumer target seperate from the MG 6’s, SAIC are in a good position to avoid any possible market cannibalization. Additionally, SAIC will look to grow market share for the MG 6 by reopening MG production plants in the UK, and returning to the original brand moniker of “Morris Garages”.

Increasing brand value is of key importance for Chinese auto manufacturers who are struggling with low profit margins, so any perception of added brand value can make a big difference. MG-Roewe will continue to see success if they continue to keep a close eye on the ever-segmenting 80s generation, which will be key when they release their electric powered car, and if they are to tap into the ever flourishing markets in second and third tier Chinese cities.