The Saturn StoryDAVID AACKER CHAPTER 2
SATURNCompanies Mission: 1. Market Compact Vehicles 2. World Leader in quality, cost and customer satisfaction.
Saturn A Strong BrandBottom Line Measure of its success!! Sales y 1991-74,000 y 1992-196,000 y 1993-229,000 y 1994-286,000
Saturn- A Strong BrandAnother Bottom line measure 1. Sticker Price Comparable to Competition 2. Eliminated price haggling, dealing,rebates and discounts Another Measure It was the most valued franchise or next only to lexus.
Saturn on the Four Principle dimensions of Brand EquityBrand Loyalty 2. Brand Awareness 3. Brand Associations 4. Percieved Quality1.
Perceived QualityResale Market-5 Percent above original list price. 2. The J.D Power Sales Satisfaction Index 3. Customers perceived sticker price would be $ 4. 3000-5000 higher1.
LoyaltyLoyalty y Polaroid Pictures Program y J.D Power CSI and SSI y Saturn Groupies Interest Group y 87% of Saturn Buyers said they would recommend the brand to other people
AwarenessTime Launch Afew months after launch A year Later 4rthYear Recognition 1% 40% 79% 100%
Time 1992 1994
Recall 14 % 17%
AssociationsIn 1993 Saturn Exceeded all Japanese Brand on the Friendly Dimension By 1995, the percentage of people who cared about its customers and was friendly exceeded 60% and was twice that of the average of six customers in it class.
An interesting factSaturn was not profitable during its first two years!!
How Saturn Built the BrandSeven Areas of Strategy: 1. The Mission: A World Class Product 2. The Team Approach: A Different Kind of Company 3. Creating Perceptions by Selling the Company and not the Car 4. Creating a relationship between Saturn and the Company 5. The Retailer Strategy 6. A Different Kind of Company, A Different Kind of Car 7. Integrated Communication
1. World Class Cary Quality Imperative y Product drives the image y Reviews in Car Magazines y JD power indices y Money Back Guarantee y Recalls
Team Approach: A Different Kind of Companyy Spring Hill Plant-distanced themsleves from GM y 99 Club-Team/Partnering Approach y The extensive training effort y 20 % of compensation was tied to productivity and quality of
Creating Perceptions by selling the Company and not the Car.y Customer Perceptions are what counts and perceptions do not y y y y y
automatically follow reality. The solution was to sell the company-its values and culture, its employees and its customers rather than the car Broke through clutter Visual Imagery of the Spring Hill Plant Distanced Itself from GM The focus was to be on Saturn
Creating a Relationship between Saturn and the Customery Brand Identity: Treat Customers like friends and with respect y Creates enduring brand loyalty y The retail experience: no haggling and negotiations y Saturn is young at heart, genuine,honest, friendly, down to
earth and someone who cares about individuals and competent and reliable y Speak to you with respect and not with condescending. y Wont let you down and wont outshine you. y Patriotism: Spring Hill Plant
The Retailer Strategyy Retailers engage customers in activities
-BBQ -Singles Social -A 100,000 miles club -Active in local charities -Saturn Kid Kingdoms -Saturn day at the zoo -Saturn Safari -No Sales Commissioned Person -Market Area Retail Network
A Different Kind of Company and a Different kind of Car1. 2. 3. 4. 5.
Slogan helps to crystallize the values and culture of the firm Important part of its brand equity This position captures the unique way in which Saturn interacts with its customers It allows a host of specific features and programs to be introduced without confusion. Centre of gravity for the program
Integrated CommunicationConsistency Across Media 2. Spring in Spring Hill Infomercial 3. Did a lot of work to ensure that retail effort was on strategy1.
Creating Brand Equityy Eighteen Different Decisions and Programs are mentioned as
drivers y Synergy and fit of the various pieces combined to create brand equity. Four Elements of the Strategy Stand Out 1) The ability to design and build a quality car 2) The relationship based brand equity 3) The decision to focus advertising on the company and its employees and customer. 4) Retail Experience