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