History And Overview: Mazda introduced the 323 GLC in 1977. The GLC was the predecessor to the Protege and was nicknamed the "Great Little Car" in some 120 countries around the world including the U.S. It won critical praise from the press and public alike. Ten years ago Mazda dropped the GLC name in the U.S. in favor of Protege, giving it a more upmarket tone.

Protege is a competitor in the very large -- approximately 2 million units sold a year -- Compact Sedan segment of the car market. This segment is an extremely competitive one and includes popular household-name cars like the Toyota Corolla and the Honda Civic. Effectively selling product in this segment is critical for Mazda for a number of reasons. Protege accounts for 25% of Mazda's sales volume in the U.S. thus strong sales performance is critical to Mazda's survival and growth. Additionally, consumers buy compact sedans because they have to, not because they want to so. Compact sedan buyers are generally driven by the affordability of these products. Yet quality, reliability and dependability are very important to them.

First-time new-car buyers are most likely to purchase compact cars. Therefore, it is important that the buyer's experience with the product be good. It is with this first new-car purchase that consumers form their opinion about manufacturers and their products. In short, the compact segment can make or break an automaker's reputation. If a buyer has a good experience with a product, the automaker can win long-term loyalty. If that first experience is negative, those buyers will likely never buy another car from that automaker.

Mazda sees the new Protege as an opportunity to win over the Gen-X buyer. These are young adults who are now fully employed and can afford their first new car. This is different than previous Protege targets who used to be 40 years of age using the car as a second vehicle for runs to the market and short local trips. Now, the buyer is on average a 24 year old or younger, using the vehicle as their primary transportation source. Sixty percent of these buyers are young, professional women who have been out of college for just a couple of years who often have a lot of college loans to pay off. Their household incomes average between $30,000 and $50,000 a year, depending on whether they are single or newly married. The new Protege buyers are people on their way up, aspiring to live life on their own terms.

Mazda feels that if they can win over these younger buyers with the Protege giving them a positive experience, they may keep them in Mazda cars for many years as their needs and finances evolve. From what we have seen, the new Mazda Protege may be able to do just that.