Ammar Ahmed Daniel Gilbert Elli Kyprianou Stephanie Milicia Spiros Papakonstadinou

1. Ammar Ahmed Daniel Gilbert Elli Kyprianou Stephanie Milicia Spiros Papakonstadinou

2. 2 Contents • About the Brand……...p. 3 • Company History.……p. 4 • Our Plan……………...p. 7 • SWOT………………..p. 8 • Market Trends………..p. 9 • Competitors…………p. 12 • Company Trends…...p. 17 • Current Position…….p. 20 • Present Customers...p. 21 • Target Audience…...p. 27 • Psychographics…….p. 32 • Focus Segment.........p. 33 • POP data…………..p. 34 • Advertising……...…p. 35 • Classical Cond…….p. 41 • Social Respons…….p. 42 • Collaboration……..p. 43 • References…………p. 45

3. 3 Company Information • “luxury” brand • Current mean price is 35,000$ • Falling sales • Popularity peaked in 1984 • Falls somewhere in between Chevy and Cadillac • (no real target market) • Gained 60% sales in 2010, the fastest of any brand but brand recognition was down • In past couple of years won many JD Power awards for performance/reliability DG

4. 4 Company history Buick is the oldest American automobile manufacturer still in existence. It originated as the Buick Auto-Vim and Power in 1899. It was later incorporated as the Buick Motor Company in 1903. In 1908 General Motors was founded as a holding company for Buick with the merger of a horse and carriage company. By this time there were only about 8,000 motor vehicles in the United states, a majority of witch were Buicks. Within the next couple of years GM acquired Oldsmobile, Cadillac, Elmore, Oakland, Reliance, Pontiac and GMC. In 1910 William Durant, President or GM lost control of the company to banks because of the tremendous debt he had incurred. DG

5. 5 Company history The year after that Durant started Chevy. Through this he secretly purchased a controlling interest in GM. This was the start of one of the most dramatic hostile take overs in corporate America’s history. During WWI and WWII GM made everything from tanks to supplies because of its massive assembly line presence. After these two events GM was on top and making a lot of money. This lasted until it’s peak in the 1980’s when it employed 349,000 people and had over 150 plants. The popularization of Japanese cars led to a decline. GM led global sales for 77 consecutive years from 1931 through 2007, longer than any other automaker. In 2008 and 2009, GM has ranked as the second largest global automaker by sales. DG

6. 6 Marketing • Official car of AARP (American Association of Retired Persons) – needs to penetrate younger market more • Only reason Buick was not axed like Pontiac and Saturn was because of “strong sales in China” this says a lot about the US market • Mostly advertised in magazines and publications geared towards the older demographic, not on TV • Roger McCormick, appointed to head of ads for Buick thinks that younger people don’t see Buick as an “old persons” car, yet he and his team went around the country throwing “Buick Bashes” trying to raise brand awareness in that demographic. DG

7. 7 Our Plan Buick is not sold where another of GM’s brands, Opel are I feel the Buick brand doesn't need to exist anymore, it is not differentiated in the US market Some Buick and Opel models are the same car just branded differently I think we should brand Buick to Opel in the united states, It wouldn't’t cost the company that much just a rebrand… I feel it would be easer to release a brand with no recognition in the US market s opposed to try to bring something up from a negative light DG

8. 8 S.W.O.T Weaknesses Strength • Subsidiary of one of the largest car manufacturer in the United States, GM. • Ability to focus on targeting a more specific direct market. • Historically significant- One of the great American cars • Universally recognized branding • Lacks “green” vehicles • Unable to follow current trends • Although well recognized, brand is poorly viewed • Overly dependent on US market Threats Opportunities • Ability to expand into new markets • Transitioning into the alternative energy movement • Develop new vehicle styles and models • Specifically defend its position in the market • Rising fuel prices • Advances in competing car manufacturers • Rising supply costs • Lack of economic stability by the parent company AA & SP

9. 9 Total AutomobileMarket Size • GM might be first in the market however Buick holds a negative performance within the parent company while the rest of the subsidiaries keep it afloat. AA

10. 10 Trends in Sales • This chart depicts the top 20 total car model sales in US. Note the strong position that many subsidiaries of GM have as well as the lack of Buick models. AA

11. 11 Buick, a luxury vehicle? • Yes, Buick is considered a luxury vehicle. Consists of greater equipment, higher performance and comfort. The features of a luxury car depict brand image, status or prestige. • Its main competitors with similar capabilities: Lexus, Acura, Volkswagen and Mazda. Sometimes Cadillac and BMW • Buick LaCrosse: 0-60 mph in 7.5 seconds VS. Lexus ES : 0-60 mph in 6.9 seconds • Buick LaCrosse: $27,085 VS. Acura TL: $35,105 • Buick Regal CXL Turbo TO1: $29,495 with 220 horsepower VS. • Volkswagen CC sport: $28,560 with 200 horsepower • Buick Enclave: $38,730 VS. Mazda CX-9: $33,145 • More specific: 2011 Buick Regal competes with the Acura TSX, Volvo S60, Mazda 6 and Volkswagen Passat. EK

12. 12 Buick vs. Lexus • Since Buick is considered a “luxury” car, its theoretically slotted to compete with car brands like Lexus. • Some of the Lexus models that compete with Buick are: • Buick LaCrosse vs. Lexus ES • Buick Regal GS vs. Lexus IS • Buick Enclave vs. Lexus RX EK

13. 13 Buick vs. Competitor Sales • In July of 2010 Toyota Camry (indirect) beat the Buick LaCrosse by over 25,000 sales. EK

14. 14 The Non-Luxury Buick • Buick should reach out to new customers • Change their line of competitors by becoming a less luxury car and competing with car brands such as, Toyota or Honda • Stop confusing customers with the “luxury” title and lower quality car : downsize nameplate EK

15. 15 The Non-Luxury Buick • Stop being a niche player in the automobile “game” • Choose a “market identity” • Needs a consistent product lineup for decades • Choose a compelling focus: luxury or affordable? EK

16. 16 Declining Sales of Buick From 1995 to 2009 Buick’s sales declined by over 300,000, reaching nearly less than 100,000 sales. EK

17. 17 Trends within Buick • Highest sales of Buick within US are located in the Midwest area (Index: <120 per model)* • Particular interest in Terraza & Enclave by parents. (Index: <140)* • Individuals with income higher than $ 50,000 annually declared a luck of interest in Buick (Index: 58)* • No interest from the 20-34 age group and with income less that $ 50,000 annually, however... (Index: commonly >80)* SP

18. 18 Going “Green” • This chart shows that the top choice of alternative fuel by the audience is Flexible (gasoline/ethanol). Buick can take advantage of these preference and make its line more appealing. SP

19. 19 “Green” Future Profits • This chart depicts the plausible vehicle market shares with advanced technology by 2020 and 2035. These estimation can be used in order not only become Eco Friendly but also be benefited by this move SP

20. 20 Current Position • Currently, Buick has reported 15,807 total sales, a 73-percent increase compared to February 2010. This includes a 90-percent surge in year-over-year retail sales, led by Regal (3,541units), Enclave and LaCrosse, which had retail sales 45 and 28 percent higher than last year, respectively. This marks the 17th consecutive month of year-over-year sales gains for the brand and positions the company forth within GM. AA

21. 21 Who Buys Buicks? • Currently, the average Buick customer is about 65 years old. • Buick has previously aimed their marketing at golfers, bringing in retirees and a mature older crowd, via their spokesperson, Tiger Woods. SM

22. 22 Our Target Market • We are aiming for a younger crowd. People who are looking for a fairly priced luxury vehicle, comparable to Acura and Audi. • People in their 30’s to 50’s. • Settled in with their jobs and home life • Have a steady income • They are looking for safety and reliability in a car, but still want something stylish and “cool” • Willing and able to make multiple purchases in their lifetime SM

23. 23 Our Target Market • - Suburban and urban area people. • Well-off enough to afford the price of Buicks • Great mileage is perfect for suburban life and commuting to work • This demographic will likely use their vehicle on a daily basis • commuting to and from work • running errands • personal use SM

24. 24 Challenges • Dropping the stigmas attached to the Buick name • Buick is an old person’s car • They’re old fashioned • Not up to date • Reaching a younger demographic using internet and social networking advertisements SM

25. 25 Not Your Grandpa’s Buick. • Stylish • Feautures up-to-date technology • Bluetooth capable • XM Radio • On-Star • iPhone & Android capable app SM

26. 26 Not Your Grandpa’s Buick. • Fuel efficient • 2011 Enclave – est. 24 mpg hwy • 2011 Lucrene – est. 27 mpg hwy • 2011 Lacrosse – est. 30 mpg hwy • 2011 Regal– est. 30 mpg hwy SM

27. 27 TARGET AUDIENCE SM

28. 28 CURRENT TARGET AUDIENCE • Average current Buick owner: 65 years old • Thought of as “grandpa cars” • Tiger Woods as spokesperson: targets retirees/golfers, very mature audience • Advertised during news/weather – early morning SM

29. 29 Our New Target Audience Danny & Vickie is a teen dominated family. The general profile of this group is: middle aged, middle income families whose children keep the busy with mainly outdoor activities. Quote: “Friday used to be our night out. But now we order pizza and watch a video while we wait for the kids to get home.” SP

30. 30 WHY DANNY AND VICKIE? • Stable lifestyle • Hold a steady job • Income – expendable income • Settling down • Young, but mature • Want style, flashy car • Tech savy • Need safety, reliability • Get what they pay for • Family • Need spacious car • Gas mileage/safety very important • Not a minivan SM

31. 31 Target Audience Financially Our new target audience is both female and male individuals between the ages of 30 to 50 and with +50k income. This corresponds to individuals, and families as well. SP

32. 32 SP

33. 33 Focus Segment • Because the majority of Buick in the current market is mainly concentrated within individuals between the ages of 60-75 located in the South West area, we want to make sure that we do not neglect the majority of our market. • Ad plan needs to be leaded towards new families and show the safety of the Buick automobiles along with the stylish looks, the presence of the latest technology and the fact that Buick cares about the environment AA

34. 34 Regional Advertising The Advertisement Campaign is going to take place regionally to avoid reasonless costs SP

35. 35 ADVERTISING - MEDIA • Our Budget: $40million • 50% - Television • 30% - Magazines • 20% - Internet *from GM’s Earnings Release • 5 Month Plan • July – December • Get word out there for: • End of Season clearance • car buying season: Spring/Summer SM & DG

36. 36 Television Advertisement National Geographic Kids The specific program features different people, animals, and places each month with facts, games, activities, and related links. 52% of the program’s audience meets the criteria that we have set for our target audience. AA

37. 37 Host Show Top Gear The show's presenters are professional racing driver Tanner Foust , actor and comedian Adam Ferrara, and automotive and racing analyst Rutledge Wood. The show presents automobile models, tests them and offer an opinion, backed by the presenters, to the audience. Our plan is to promote the new Buick line through out this show since it is currently the most popular among its kind. AA

38. 38 MAGAZINE ADVERTISEMENT *MRI Media Reports • We are targeting a mature, but younger audience • Ads for this “cool” mature audience will focus on Buick’s tech specs and sleek design SM

39. 39 MAGAZINE ADVERTISEMENT • Many parents and families in our age group • Use different style ads for these magazines, focusing on safety features and spaciousness. SM

40. 40 Internet Advertisement • Facebook.com is a great website to advertise on • High index rating for our new target audience • Since Facebook.com is a popular website to begin with, we will advertise to our target audience but may be able to target different customers too because they will familiarize themselves with our ads Category: # of adults in Household 25-34 Base: Male and Female Category: # of adults in Household 35-49 Base: Male and Female EK

41. 41 Classical Conditioning • Use Bradley Cooper as a spokes person for Buick • American Actor • Has played in movies such as The Hangover and Yes Man • “Well kept,” classic look kind of guy • Can serve as a model for our target audience • People see him driving a Buick, they want to be like a famous actor and drive a Buick too EK

42. 42 “Dirty weekends should be more than watching the kids play football” This advertisement corresponds directly to the characteristics of Danny & Vickie SP & DG

43. 43 Our Spokes Person Bradley Cooper will advertise Buick through out his new movies SP & DG

44. 44 • There are more than 5.5 million car accidents in the US in 2009. -31,000 were fatal and over 2 million people injured • 26% of all drivers cause a car accident in 5 years which could be preventable • Motor vehicle accidents are the leading cause of death for children and teenagers • Over 32% of fatal car crashes are caused by drunk drivers • Approximately one million people are involved in alcohol related crashes annually. • About 30% of 21-24 year olds who were involved in a fatal car accident were intoxicated. Social Responsibility EK

45. 45 Collaborations • MADD: Mother’s against drunk driving • Founded by a mother who lost her daughter in a crash. Largest nonprofit organization to protect families from underage drinking and drunk driving. Supports drunk driving victims and survivors. • For almost 30 years MADD has partnered up with top corporations across the US with the intention to stop drunk driving, provide services to victims and support the education intended to prevent underage drinking. “Serving one person every 10 minutes – at no charge.” EK

46. 46 Collaborations cont’d • 10% of Buick’s annual revenue will go to MADD • Desire to help teach responsible decision making • Build a relationship with MADD to help end drunk driving and support victims/survivors • Positively create change using strategies to make the lives of American families safer EK

47. 47 References • Simons choice 3 • MRI • Wikipedia • U.S. Census 2010 • CBS • Lexux Reports • Driving Sports • WordPress • TrueDelta • The New York Times • NAE • Polk