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Assignment # 02

Case Study
Chapter 7

SATURN

MARIA SHAFFAQ
MALIK
Q1. Using full spectrum of segmentation variables, describe how GM has
segmented the automobile market?

Basis of Segmentation

Geographic:

a. Country:- USA
b. Climate:- Western & southern parts are warm & dry but northern &
Eastern parts are cold & dry & winds accompany rains
c. Market Size of passenger cars.
d. Market Density:- Urban, Semi-urban & rural

Demographic :

a. Age
b. Household income
c. Family size.
d. Gender
e. Occupation:- Mostly Salaried professionals
f. Education:- High school graduates.
g. Generation :- Baby boomers

Psychographic

a. Lifestyle:- Mostly strivers & impulsive Experiencers


b. Social class:- Middle class
c. Personality:- compulsive, spendthrift.

Behavioral

a. Usage:- Regular & everyday


b. Loyalty status:- Strong
c. Benefits:- Safety, innovative features, Fuel Economy, Balanced
Drive.

Analysis

• Saturn, in the beginning, had a differentiated products for different


market segments.
• “ You get what you ask for”
• Since the co. had invested a lot in R&D, it focused on customer
relationships
• Innovative features like ABS created higher value.
• Non-truck buyers who wished for better fuel economy.

Q2.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?

SATURN TARGETING:

Saturn is now Targeting Selective Segmentation:

1. To reach the type of import buying customers.


2. High end customers.
3. Luxury loving people.

GM’s POSITIONING SATURN :

1. CREATING BRAND IMAGE : people positioning by serving them with quality


product & services attached to it.
2. INTRODUCING NEW MODEL : sky two-seat roadster, aura sport
sedan,outlook crossover vehicle,GM lambda platform.
3. CHANGE IN PRODUCT LINE : high priced vehicle.
4. ADOPTING AN IMAGE : sporty eurpeon brand opel.
5. PROVIDES TWO SUB-LINES OF VEHICLE:
• “ RED LINE” – Performance- oriented.
• “ GREEN LINE”- Environmentally friendlier. Hybrid at low price.

DIFFERENCES MADE FROM S- SERIES :

luxury car.
lack of model.
quality below industry average.
Q3.Describe the role that the social responsibility plays in saturn’s targeting
strategy?

ROLE THAT THE SOCIAL RESPONSIBILITY PLAYS IN SATURN’S TARGETING


STRATEGY:

1. Introduction of innovative technologies.

2. Introduction of cars powered by ICE (Internal Combustion Engines).

3. Launching of hybrid cars as an environmentally sound alternative.

4. Line Green Teacher Grant program.

5. It gave equal opportunities to women, ethnic minorities and people with


disabilities.

6. It gave philanthropic support to various causes.

Q4.Do you think that GM will accomplish its goals with the “new Saturn”? Why or
why not?

Yes, I do agree that GM will accomplish its goals with the new Saturn due to following
reasons:

1. Saturn has clearly changed its image & started flooring new models like SKY,
AURA, and OUTLOOK.

2. Saturn has valuable assets like rock solid dealer network, high purchase process
satisfaction ratings & loyal customer base to build upon.

3. Higher prices & margins would represent greater growth in profits & revenues.

4. The green line introduced a full hybrid technology at a price much lower than any
other hybrid offering.

5. Its loyal customers only kept the sales curve moving upward.

But to mentain the accomplishment of its goals GM should have to overcome the
following flaws:

1. lack of models during 1990’s.


2. downturn of sales due to recession.
3. declining trend in quality that falls below market average.
4. keeping lesser margins which leads to moderate growth in profits & revenue.
5. Lack in vision for innovation, improvement, re-badge branding & infusion of styling.

Q5.What SEGMENTATION, TARGETING, & POSTIONING recommendations


would you make to GM for future saturn models?

SEGMENTATION recommendation:

Saturn should segment the market more broadly. It 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 one. By adding little style & sporty accessories its
segmentation will itselt stretch to more psychographic (social class, lifestyle &
personality) platforms.

TARGETING recommendation:

Saturn should target not only on the lower income group but it can go with the middle
class group by adding some interactive, stylish, luxurious & sporty features to it.

POSTIONING recommendation:

Saturn should reposition itself not only as a humdrum car but as a trendy n stylish one
luxurious car too. It should go for “more for less” positioning strategy by enhancing the
features & increasing the quality without increasing prices.