Saturn Coulda Been a Contender
All the planned cuts announced by General Motors recently are sad for a number of reasons, but from a marketing perspective the saddest is the planned death of the Saturn brand.
Saturn was a brand that GM could have done right, and could have used to change its image back in the 1990s when there was still time to do so.
Saturn started life as a brand that attracted people who didn’t like haggling over their car purchases (who does). It was the friendly car company that hosted annual picnics at its factory for its buyers.
The first generation of Saturn buyers loved Saturn; by 1993, only two years after its first model, it was making a profit.
But rather than build on that early success, GM let the brand become a victim of corporate politics and in-fighting. As the automaker’s resources shrank, other brands fought for money and new models and Saturn, the new kid on the troubled GM block, lost out. It’s dealers became desperate for a wider lineup of cars and SUVs so they could get loyal Saturn buyers to buy Saturn again as they traded up, but they had nothing to offer.
When auto industry legend Bob Lutz joined GM in 2001, he finally got the Saturn line extended but by then it was too late, the brand had lost what cache it had.
How different would GM’s fate have been if it had backed Saturn more than a decade ago and killed Oldsmobile and Buick (why is it still keeping Buick, by the way) then?
The marketing lesson is clear, if you have a new product that connects with consumers, move heaven and earth to get the resources to keep it growing. That could mean fighting entrenched interests at other product or brands within your company. Do it. In the long run, a smart company will thank you. A dumb one will end up in the pickle GM faces today.
Comments
GM did blow it with Saturn because two other forces, the unions and the traditional GM dealer network felt threatened. GM didn't fight hard enough to keep the integrity of the vision it had for Saturn. The Saturn brand should have been the shining example that transformed the American car industry. Sadly, it will be relegated to a discussion topic in business school.
Posted by: Dave Daniels | February 19, 2009 11:35 AM