"Saturn Case Study"

Situational Analysis

Saturn was created as an independent subsidiary of General Motors in evidence to face the rising competition in the American teensy motorcar market from the Japanese companies. It was GMs first new car division since Chevrolet. This clean sheet approach was intended to grab the Japanese car manufactures in terms of efficient manufacturing practices and employee exponentiation in the process. In addition to this, Saturn also aimed to develop dampen relationships with the dealers and the United Auto Workers Union (UAW). This new principle of vigilance and UAW partnership would enable transparency and effective decision making.

Roger smith and the Saturn team focused on providing a lot to a greater extent than just functional shelter with Saturn. Apart from being technologic in ally superior to the existing American cars in the segment and on par with the Japanese versions, it was designed to offer the amenities and styling of an expensive car at a lower price. The built-in value proposition would be value as perceived by its buyers.

The timing of Saturns launch also gave it a fillip, as the deliverance was coming out of a recession, when value was considered to be everything by the American consumers and the need for an all-American car to be pitted against foreign makes, oddly the Japanese was widely felt.

Saturns value pyramid is given in exhibit 1 which highlights the value proposition it offers and the emotional bear on that it maintains with the consumers.

Exhibit 2 shows the various factors that affect brand equity gibe to Aaker and it is clearly visible that Saturn scores high on all these parameters.

The characteristics unique to Saturn can be classified under the Customer, Competitor, lodge and Context fields, as follows:

Customer

Saturn laid the most stress on customer satisfaction. They focused on the customer as an individual...

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