Monday, January 30, 2012

HOW I CAN SAVE SAAB

Bankruptcy proceedings continue for the least understood luxury automaker in the U.S. as it gets ready to take its final bow. In the 20 years that I’ve been interested in cars, I’ve known exactly 2 people who owned Saab’s. Most of the people I know of a certain income range prefer BMW’s, souped up Honda’s, or Mustangs. One twentysomething I questioned about his Saab 9-5 floored me by stating his gas mileage was over 28 mpg. If the gas mileage is so great, then why don’t I see more people driving them? I demanded to know. He quipped, with a wry smile, that “Saab’s are for people who are kind of weird, like me”. So if Saab vehicles have such great gas mileage and a niche audience, why the trouble?

WHAT IS IT? Unlike BMW or Lexus, Saab has never quite distinguished itself as a major luxury contender.  Americans identify Yuppies with German vehicles, the way peanut butter goes with jelly. When the yuppie becomes a daddy, then he opts for the ultra-safe Volkswagen. When the daddy becomes an empty nester, he finally buys his dream muscle car, usually a Mustang. Where does Saab fit into this. No one quite knows. It’s not quite a young man’s brand or a middle-aged woman’s brand or a family brand. It doesn’t have a “prius-like” Hybrid to appeal to the "Green" trend or college kids. For Saab to come back 10x stronger, it must identify a clear audience or lifestyle and actively pull them in.

SAAB VS... ? As a leading Scandinavian company, it is criminal that Saab’s U.S. market should have been allowed to fail. But by ignoring key marketing strategies and failing to employ innovative ones, Saab’s demise was an accident waiting to happen. The ultra-cool “We Are Detroit” car commercials are an excellent example of brash re-branding and marketing. For over a decade, American-made cars from Detroit were anathema, but now even I, a bonafide European car lover, give Chryslers more than a passing glance. BMW, Mercedes, and Lexus outdo themselves with ever more aggressive commercials showcasing handling, styling lifestyle, and most importantly, competitiveness. Even the lowly Hyundai has flexed its muscles in a clear bid to steal away some luxury car customers or at least make them think twice. I can’t even remember the last time I saw a Saab commercial. Saab has to show where they fit on the sliding scale of luxury autos.

CONNEXIONS. Celebrities and cars make a wonderful “comfort”combination like salmon and white wine or soda and pizza. Attaching lovable and preferably well-recognized celebrities to cars is an attention grabber and adds legitimacy, which is more important than ever for Saab. Go after 1 or 2 viable Scandinavian celebrities Saab can attach to their product. If you want the family angle, go after Elin Nordegren. If you can’t find a celebrity, create one instead, the way Geico used a gecko. Just make sure the frontman (or woman) is truly emphasizing what the brand is about and appealing to the target market.

CROSS POLLINATION. Saab missed a great opportunity to piggyback on the movie “Thor.” What other symbols and/or products go with Saab? Introducing and promoting other aspects of Scandinavian culture can and will enhance the brand. Cars are now marketed in malls, allowing buyers who are sensitive (or allergic) to car dealers a low pressure browsing experience in a pleasant atmosphere filled with food and new clothes. Think Saab Think! Can the designer Elie Saab be a part of this? Like Eddie Bauer enhanced Ford Explorer's. How about including Nordstrom's? Or Popular chefs Tina Nordstrom and Andreas Viestad? Put a Saab in an Ikea store. Cross-pollination of the car brand with other items will make some new and positive connections, leading to a revived brand and a new luxury sales market, that is in danger of being defined by only a few heavyweights.

In order to be truly successful into the 21st century, Saab’s reliance on producing efficient cars is clearly not enough. It must display a ruthless precision in its marketing and diffuse its saturation with creative marketing and innovative new products appealing to specific markets. It doesn’t have the standalone power of other luxury makers with a U.S. market and must synergize with other culturally relevant lifestyle brands. It can become the brand to buy, just as Chrysler, Hyundai, and Toyota struggled through the recession doldrums to make a major impact. But it must do a turnaround around soon and put some “BaaS” into Saab.

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