GM Saturn Case Study
Ron Rubinstein
Strategic Marketing Management course
NYU SCPS ? Fall 2005
Key Issues
? How (whether) to revive a faltering brand after impressive initial success in early 90s.
? How to regain competitive advantage after loss of momentum, and failure of initial business strategies to sustain long-term sales growth.
? How to penetrate wider demographics (younger, male)
? How (whether) to penetrate foreign market
Key findings: Environmental/General
? Saturn developed by GM as a separate brand and independent subsidiary in the late ?80s, to deal with shrinking domestic market share for passenger cars:
? from 44% to 33% between '85 and '90
? 42% of buyers didn't even consider buying GM
? Main competition were compact Japanese cars, due to perceived higher quality and value.
? Factory was established in Spring Hill, TN, to isolate from Detroit mentality
? Key strategy to ensure quality: maintain good labor/management relations through
 cooperation with UAW in all aspects of business.
Key findings: Product Strategy
? Initial concept: Compact, high-quality cars:
? SC1, SC2 coupes
? SL1, SL2 sedans
? Technology innovation, e.g. plastic bodies
? Target Market:
? Demographics: baby boomers, college educated, 25-49
? Sell 80% to "Converts" (wouldn't otherwise buy GM)
? Larger vehicles were added later:
? SW1, SW2 station wagons (1993)
? L-Series mid-size sedan and station-wagon (1999)
? VUE SUV (2001)
Key findings: Promotion Strategy
? Unique, "folksy", "straight-talk", $100M+ consumer ad campaign, building a focused brand image, using themes such as:
? ...