SAAB and its sales woes.
With the onset of recession in the beginning of 2009, many industries have been affected with lack of funds. Even behemoth General Motors and Chrysler which went bankrupt for the second time could not be saved. Not getting into the details, General Motors paid a heavy price for bad management decisions taken over the years. Such is the sad case of a small car maker from Sweden that goes by the name SAAB.
Saab was basicaly a Swedish Aeroplane manufacturer which later made aerodynamic, quirky and fun to drive cars. Their first car was brought to life at the Swedish Royal Institute of Technology after the end of the second world war for want of diversification in the company. What followed was a legacy of cars which stood out in the crowd for their designs such as the Sonnet and the famous 900. But just like Volvo which was bought by Ford, Saab went under GM ownership in 1990's. To add to the woes, while Ford shared technology alongwith Mazda and Volvo to make better cars,Saab languished at GM. GM stated recently that Saab only posted profit once in 11 years under GM ownership. Saab 9-5 has been in production for 11 years
When Saab was put on sale last year, various small boutique manufacturers from Europe tried to cash in on the company's strength. Victor Muller who owns Spyker cars N.V. ultimately brought the brand back to Europe. Not surprisingly even after the introduction of their latest and much hyped car the Saab 9-5, Sales have been dismal. The company sold 277 9-5 and 13 9-3 cars last month in the U.S.
With only 2 car platforms at hand selling 40,000+ cars is a tremendously tough task. Add to that lack of various body styles and engines, Saab is yet to have enough to offer to the customer. Yes, their units are still way off Jaguar's mark which has recently been brought into place by Tata motors. Saab can learn a trick or two from them.
Saab's management is hopefully aware that people have forgotten SAAB when it comes to buying a car. Those who talk about it on the internet and in magazines are not exactly the target customer having money enough to buy a luxurious European car. So for someone considering a Volvo S60 or an Audi A4, BMW 3-series or Mercedes-Benz C-class for purchase, saab 9-3 is not in consideration just as 9-5 is not under the radar for those looking for a S80, E-class, 5-series or A6. I do understand that the 9-5 needs a push but isnt the 9-3 Saab's bread and butter model? It would do them a world of good if they promote 9-3 to the car buying public in comparison to the competition. Most of the Facebook page is in Swedish which half the world doesnt understand. The few forums that stood loyal during the company's bad times have no company marketing support. Here is an example from by BMW against Audi providing a lesson in competitive but healthy marketing pracetices.
Furthermore, Saab's marketing department has looked over their biggest marketing strength. The Saab performance team. The Saab performance team is one of the best examples of how a company can build its image. I am yet to see a similar feat from either BMW, Audi, Volvo or Mercedes-Benz. An official video on Youtube will do the talking for the company. For those who dont know what I am talking about, here's the famous Performance team video feat the Saab 900.
Another serious drawback is the fledling dealer network and the markets they pulled out from affecting sales. Saab pulled back from various countries including the US and Canada when the new owners took over. It takes time to build but it better not take too much time. Money is an issue but reach is not. Where are the road test reviews from prominent reviewers like Topgear and Insideline for the 9-3 and 9-5? I am sure Victor Muller and Jan Ake Jonsson are aware how a huge chunk of the population relies on such road tests.
I have liked the latest 9-3 ever since it was launched. The headlights and the taillights are some of the most beautifully designed parts on a car I have seen. But when I see a Subaru Impreza I see a Blue car, I see a Mitsubishi Lancer in red, I see a BMW in Dark blue, An Audi in White, A Mercedes-benz in Silver. All the cars which are fun to drive have a cult following thanks to a particular image built by the company. Whenever I fantasize about a Lamborghini I think about that Burnt orange shade shining in the daylight. Cult following doesnt come by investing heavy money in marketing or racing. More than working on the design Saab should focus on providing their cars with more after market parts and building a particular image. Making the 9-3 and 9-5 unique is what will help sell their cars. Mercedes-Benz is about luxury, BMW is about Sportiness, Audi fit itself somewhere in between while Volvo is that Safe and sturdy family car. Where does Saab fit? What image does their advertisement convey? A green car isnt necessarily something a customer looks at though it looks good on the company's resume.
How about bringing back the 9-3 turbo X in Carbonfiber Black (visible weave patterns) and promoting it in ads, youtube racing videos, Wallpapers and video games such as Need for Speed? A Björn Borg edition 9-3 with tastefully done interiors? Wont that help sell more cars and improve brand image? Knowing its history and the way their cars perform I would look at SAAB as the Ironman (comic hero) of cars which can walk the ramp when needed but also beat competition on the tarmac.
What the current ads dont do for Saab is bring customers to the showrooms making up the fledgling dealer network. How can cars sell if the customer is not there in the first place? Roadshows are cheaper and work better than tv spots. More roadshows will only help potential customer feel the new Saab and how it is the right car for them. Here is a Saab and Audi ad to decide which will fare better.
The Saab commercial
The Audi commercial
Here's a look at the table to show where Saab cars stand compared to the competition.
When Saab was put on sale last year, various small boutique manufacturers from Europe tried to cash in on the company's strength. Victor Muller who owns Spyker cars N.V. ultimately brought the brand back to Europe. Not surprisingly even after the introduction of their latest and much hyped car the Saab 9-5, Sales have been dismal. The company sold 277 9-5 and 13 9-3 cars last month in the U.S.
With only 2 car platforms at hand selling 40,000+ cars is a tremendously tough task. Add to that lack of various body styles and engines, Saab is yet to have enough to offer to the customer. Yes, their units are still way off Jaguar's mark which has recently been brought into place by Tata motors. Saab can learn a trick or two from them.
Saab's management is hopefully aware that people have forgotten SAAB when it comes to buying a car. Those who talk about it on the internet and in magazines are not exactly the target customer having money enough to buy a luxurious European car. So for someone considering a Volvo S60 or an Audi A4, BMW 3-series or Mercedes-Benz C-class for purchase, saab 9-3 is not in consideration just as 9-5 is not under the radar for those looking for a S80, E-class, 5-series or A6. I do understand that the 9-5 needs a push but isnt the 9-3 Saab's bread and butter model? It would do them a world of good if they promote 9-3 to the car buying public in comparison to the competition. Most of the Facebook page is in Swedish which half the world doesnt understand. The few forums that stood loyal during the company's bad times have no company marketing support. Here is an example from by BMW against Audi providing a lesson in competitive but healthy marketing pracetices.
Furthermore, Saab's marketing department has looked over their biggest marketing strength. The Saab performance team. The Saab performance team is one of the best examples of how a company can build its image. I am yet to see a similar feat from either BMW, Audi, Volvo or Mercedes-Benz. An official video on Youtube will do the talking for the company. For those who dont know what I am talking about, here's the famous Performance team video feat the Saab 900.
Another serious drawback is the fledling dealer network and the markets they pulled out from affecting sales. Saab pulled back from various countries including the US and Canada when the new owners took over. It takes time to build but it better not take too much time. Money is an issue but reach is not. Where are the road test reviews from prominent reviewers like Topgear and Insideline for the 9-3 and 9-5? I am sure Victor Muller and Jan Ake Jonsson are aware how a huge chunk of the population relies on such road tests.
I have liked the latest 9-3 ever since it was launched. The headlights and the taillights are some of the most beautifully designed parts on a car I have seen. But when I see a Subaru Impreza I see a Blue car, I see a Mitsubishi Lancer in red, I see a BMW in Dark blue, An Audi in White, A Mercedes-benz in Silver. All the cars which are fun to drive have a cult following thanks to a particular image built by the company. Whenever I fantasize about a Lamborghini I think about that Burnt orange shade shining in the daylight. Cult following doesnt come by investing heavy money in marketing or racing. More than working on the design Saab should focus on providing their cars with more after market parts and building a particular image. Making the 9-3 and 9-5 unique is what will help sell their cars. Mercedes-Benz is about luxury, BMW is about Sportiness, Audi fit itself somewhere in between while Volvo is that Safe and sturdy family car. Where does Saab fit? What image does their advertisement convey? A green car isnt necessarily something a customer looks at though it looks good on the company's resume.
How about bringing back the 9-3 turbo X in Carbonfiber Black (visible weave patterns) and promoting it in ads, youtube racing videos, Wallpapers and video games such as Need for Speed? A Björn Borg edition 9-3 with tastefully done interiors? Wont that help sell more cars and improve brand image? Knowing its history and the way their cars perform I would look at SAAB as the Ironman (comic hero) of cars which can walk the ramp when needed but also beat competition on the tarmac.
What the current ads dont do for Saab is bring customers to the showrooms making up the fledgling dealer network. How can cars sell if the customer is not there in the first place? Roadshows are cheaper and work better than tv spots. More roadshows will only help potential customer feel the new Saab and how it is the right car for them. Here is a Saab and Audi ad to decide which will fare better.
The Saab commercial
The Audi commercial
Here's a look at the table to show where Saab cars stand compared to the competition.
Car | Dimensions | Technologies | Engines options | Body styles |
Saab 9-3 (2002) $28,900 US | 183 x 69 x 56 wheelbase-2675mm | Saab Car computer GM Epsilon platform | 2.0L I4 petrol 2.8L V6 petrol 1.9L I4 diesel 2.2L I4 diesel | Convertible Station Wagon |
Volvo S60 (2010) $32,000US | 182 x 73 x 58 Wheelbase- 2776mm | IDIS Volvo Y20 platform | 1.6L I4 petrol 2.0L I4 petrol 3.0L I6 petrol 1.6L I4 diesel 2.0L I5 diesel 2.4L I5 diesel | Cross-over (SC60) Station Wagon (V60) |
BMW 3 (2005) $33,150US | 178 x 71 x 56 Wheelbase- 2761mm | idrive E90 platform | 1.8L I4 petrol 2.0L I4 petrol 2.5L I6 petrol 3.0L I6 petrol 4.0L V8 petrol 1.6L I4 diesel 2.0L I4 diesel 3.0L I6 diesel | Coupe/Convertible Touring |
Audi A4 (2008) $31,950 US | 185x 72 x 56 Wheelbase-2805mm | Audi MMI VW B8 platform | 1.8L I4 petrol 2.0L I4 petrol 3.0L V6 petrol 3.2L V6 petrol 2.0L I4 diesel 2.7L V6 diesel 3.0L V6 diesel | Station wagon |
Mercedes -Benz C (2008) $33,900 US | 180 x 69 x 57 Wheelbase- 2760mm | Command APS W204 platform | 1.6L I4 petrol 1.8L I4 petrol 2.5L V6 petrol 3.5L V6 petrol 6.2L V8 petrol 2.1L I4 diesel 3.0L V6 diesel | Station Wagon |
Car | Dimensions | Technologies | Engines | Body styles |
Saab 9-5 (2010) $47,565 US | 197 x 73 x 57 Wheelbase- 2837mm | Saab Car computer Gm Epsilon II platform | 1.6L I4 petrol 2.0L I4 petrol 2.8L I4 petrol 2.0L I4 Diesel | |
Volvo S80 (2006) $36950 US | 191 x 73 x 58 Wheelbase- 2835mm | IDIS Volvo Y20 platform | 4.4L V8 petrol 3.2L I6 petrol 3.0L I6 petrol 2.5L I5 petrol 2.0L I4 petrol 2.4L I5 diesel 2.0L I4 diesel 1.6L I4 diesel | Station Wagon (V70) |
BMW 5 (2010) $44,550 US | 193 x 73 x 57 Wheelbase- 2968mm | Idrive F10 platform | 3.0L I6 petrol 4.4L v8 petrol 2.0L I4 diesel 3.0L I6 diesel | Station Wagon Touring |
Audi A6 (2004) $45,200 US | 194 x 73 x 57 Wheelbase- 2843mm | Audi MMI Volkswagen C6 platform | 2.0L I4 petrol 2.4L V6 petrol 2.8L V6 petrol 3.0L V6 petrol 3.2L V6 petrol 4.2L V8 petrol 2.0L I4 diesel 2.7L V6 diesel 3.0L V6 diesel | Station Wagon |
Mercedes-Benz E (2009) $48,850 US | 191 x 73 x 59 Wheelbase- 2873mm | Command APS W212 platform | 1.8L I4 petrol 3.0L V6 petrol 3.5L V6 petrol 5.5L V8 petrol 6.2L V8 petrol 2.2L I4 diesel 3.0L V6 diesel | Station Wagon Convertible/Coupe |
Very well researched!
ReplyDeletePerhaps for the next few years Saab will benefit from fresh new product, but beyond that its position in the market is a precarious one at best.
ReplyDeletesaab service
The Saab 96 was the last model really worth buying. Somebody ought to get ahold of the tooling for the 96, contract with Ford for the original V-4, and bring the 96 back from oblivion.
ReplyDeleteSaving the company is getting harder by the day. Spyker bosses didn't turn out to be honest at best. sadly..
ReplyDelete