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 hightechnology 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 Saturns targeting strategy?
Ans:

Role that the social responsibility plays in Saturns

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.