Gm Saturn Case Study

815 WordsNov 22, 20054 Pages
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…show more content…
As a result, key adaptive measures were delayed.  GM also seems to have implicitly viewed Saturn as a short-term strategy, creating GM buyers that would mature from Saturn into more luxurious brands. This didn't materialize, but definitely tied Saturn's hands.  Innovation should only be taken so far – too much of it doesn't drive sales in majority markets.  SWOT seems to indicate keeping the brand. Baby-boomer Saturn followers are a lucrative market worth maintaining. Recommendations:  Keep brand basics (folksy marketing, made in USA, high-quality)  Revive the brand with more luxurious, well designed models that appeal to the aging but rich Baby-Boomers, and don't weigh down product strategy with other GM brands. Advantages: • Increase appeal to males. • Increase margins and profitability.  Keep no-haggle, no-stress dealership policy that is Saturn's hallmark. Today's buyers have an

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