Due date:1-12-2010
Case study 2
(Saturn: An Image Makeover)
(Marketing Management)
(M.Com)
Submitted to:
Ahmad Hassib Hassan
Submitted by:
Ahmad Fawwad Khan
Id:100645025
Saqlain Munir
Id:100645026
Aamir Saleem
Id:100645007
Hafiz Imtiaz
Id:100645015
Adnan Sajid
Id:100645011
Institute of Audit & Accountancy
Submission date:1-12-2010
Question 1:
Using full spectrum of segmentation variables, describe how GM has
segmented the automobile market?
Ans:
Basis of spectrum of segmentation variables:
On the basis of Behavioral GM has segmented the automobile
market:
Market segmented on different features, Safety, Fuel Economy,
balanced Drive benefits, segmentation on Regular & everyday usage,
and on Loyalty status.
On the basis of demographic GM has segmented the automobile
market:
GM has segmented the automobile market on Salaried professionals, on
Age basis, on like High school graduates, Income of household, family size
and GM has segmented the automobile market on Gender basis.
On the basis of geographic GM has segmented the automobile
market :
GM has segmented Rural, Urban & Semi-urban,
The Country USA, Northern & Eastern parts are cold & dry & winds with
rains and the area of Western & southern parts are warm & dry.
On the basis of Psychographic GM has segmented the automobile
market:
GM has segmented the market on Social class basis like middle class,
Personality basis, and Lifestyle basis like impulsive Experiences & mostly
strivers.
Question 2:
What segment(s) is Saturn now targeting? How is GM now positioning
Saturn? How do these strategies differ from those employed with the original
Saturn S-series?
Ans:
As Saturn's customer base grew, it became apparent that the Saturn brand
was attracting customers who would not have otherwise purchased a GM
vehicle. The Saturn buyer did not appear to be all that
different from a Chevrolet buyer means luxury loving people and
To reach the type of import buying customers, high end customers.
GM is now Positioning Saturn:
Brand Image & New Model:
GM plans to do just that as it addresses product quality and model selection
problems. GM is currently investing heavily in a Saturn turnaround. Showering
$3 billion on Saturn; it hopes to perform a makeover between 2006 and 2008
that is similar to the one achieved with Cadillac earlier this decade. People
positioning by serving them with quality product & services attached to it. Sky
two-seat roadster, aura sport sedan, outlook crossover vehicle, GM lambda
platform. High priced vehicle that is change in product line.
Two sub lines of Vehicle & creating an Image:
Saturn will replace the Ion with a mildly changed Opel Astra, already a
European hit in its fifth generation. The new lineup will also include the Green
Line, which will add hybrid technology to multiple models, starting with the
2007 . The Green Line promises to make full-hybrid technology available at a
price much lower than any other hybrid offering. Sub lines Performance-
oriented and environmentally friendlier at low price.
Difference from S-series:
Customers were interested in the things that Saturn had hoped they would be.
They loved the innovations, such as the high-technology paint job designed to
resist oxidization and chipping longer than any in the industry,( quality below
industry average.) and safety features such as traction control, antilock brakes,
and unparalleled body reinforcements.
They were overwhelmed by the fresh sales approach that included
no-haggle pricing, a 30-day return policy, and no hassle from the sales
associates. The noncommissioned associates spent as much time with
each customer as they wished, even going on extended test drives.
Question 3:
Describe the role that the social responsibility plays in Saturn’s targeting
strategy?
Ans:
Role that the social responsibility plays in Saturn’s targeting
Introduction of innovative technologies:
From the beginning, Saturn set out to break through GM bureaucracy and
become" A different kind of car. ”A different kind of company." As the
single-most defining characteristic of the new company.
Saturn proclaimed that sole focus would be people: customers, employees,
communities.
Introduce of hybrid cars as an environmentally sound alternative:
Saturn put significant resources into Customer research and product
development. The first Saturn cars were made "from scratch," without any
allegiance the GM parts bin or suppliers. The goal was to produce n only
a high-quality vehicle, but one known for safety al innovative features
that would like the customers.
It gave equal opportunities to women, ethnic minorities and people with
disabilities, In addition to customer and employee relation Saturn
focused on social responsibility. Human resource policies gave equal
opportunities to women and people with disabilities.
It gave support to various causes.
Question 4:
Do you think that GM will accomplish its goals with the “new Saturn”?
Why or why not?
Ans:
Yes, GM will accomplish its goals with the new Saturn due to following
reasons:
The green line introduced a full hybrid technology at a price
much lower.
Saturn attracts enough new customers to account for the
incremental increase in projected unit sales.
Saturn has clearly changed its image.
Saturn started dumping new models like SKY, AURA, and OUTLOOK.
Saturn has valuable assets like strong dealer network.
Saturn has high purchase process.
Higher prices would represent greater growth in profits & revenues.
Its loyal customers give good sale revenue.
Question 5:
What SEGMENTATION, TARGETING, & POSTIONING recommendations
would you make to GM for future Saturn models?
Ans:
Segmentation recommendation:
By adding little style & sporty accessories its segmentation will itself
stretch to more psychographic (social class, lifestyle & personality).
Saturn can also segment it on the base of personality & loyality, by using
its strong customer loyality base, it can change its brand image to more
luxurious & stylish. Saturn should segment the market more broadly by
using these recommendations.
Targeting recommendation:
Saturn should target not only on the lower income group but it can
target with the middle class group by adding some stylish, luxurious &
sporty features.
Positioning recommendation:
positioning strategy by enhancing the features & increasing the quality
without increasing prices.
