The Saturn StoryDAVID AACKER CHAPTER 2
Saturn
Saturn
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
plant
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
