The following paper is on the case study Saturn: An Image Makeover. The case study is an overview of how Saturn, a GM company, created an image makeover to appeal to a different car buying crowd to maximize profits. This dramatic shift in the original philosophy of the company created a dynamic shift and allowed the company to achieve efficiencies of scale.
Using the full spectrum of segmentation variables, describe how GM has segmented the automobile market?
GM used the full spectrum of segmentation variables which included geographic, demographic, psychographic and behavioral. Geographic segmentation deals with geographic criteria which includes regions and location issues. GM used geographic segmentation such as the United States of America and the market size that was looking at passenger cars. Demographic segmentation such as age, income, family size and the type of generation that was buying cars were used by GM. Third segmentation variable that GM used was psychographic, that deals with lifestyle, class and personality. GM catered to the middle class and buyers who didn’t want to spend a lot for a car. Finally GM used behavioral which dealt with usage, loyalty and benefits. These included regular usage of a car, loyalty to a brand and benefits such as fuel economy and safety. In the beginning Saturn used different products to differentiate the market segments. Since GM invested a lot of money in the brand the company focused on their customer relationships and offered employees’ salaries to not force sales and service. Cars appealed to buyers who wanted better fuel economy and a lot safety options for a cheaper price.
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 is now targeting people who want to buy import cars, customers with more money and people who like expensive cars. GM is now...