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From automotive news...
To promote the new 9-3, Saab Cars USA Inc. will spend more than half of its 2002 marketing budget on its first comprehensive marketing campaign.
This year, the company will spend at least $70 million on marketing, including more than $35 million on the 2003 model 9-3 campaign. In 2001, Saab spent an estimated $28 million on measured media.
The sedan is the first of four new Saabs planned for the next five years in the Swedish automaker's quest to sell 70,000 units in the United States by 2005.
Previously, Saab has used media sparingly to promote its brand in the United States. But the 9-3 campaign will include the Internet, TV, print and direct mail."We're looking to grow (9-3 sales) substantially," said Colin Price, Saab's interactive marketing manager.
Last year, Saab's two models, the 9-5 and 9-3, evenly split total sales of 37,557. This year, Saab wants to boost 9-3 sales 60 percent, while expecting 9-5 sales to be about the same as last year.
Web anchors campaign
Saab will begin marketing the 9-3 on June 1. The sports sedan is scheduled to arrive in dealerships Oct. 1.
Through September, Saab will try to pique consumers' interest with direct mail and e-mail contests. TV, magazine and newspaper ads will begin in October to drive showroom traffic. To ensure a comprehensive campaign, all four of Saab's marketing agencies have been involved from the beginning, Price said. The agencies are Lowe Worldwide in New York, for traditional advertising; Digitas Worldwide in Boston, for interactive marketing; Martin Agency in Richmond, Va., for direct marketing; and Carlson Marketing Group in Troy, Mich., for promotions.
The Web will be central to the campaign to allow Saab to measure its investment return.
"Everything will drive to one Web site," said Price, who is coordinating the agencies. "We'll set up unique addresses for each (media) source so we can measure whether it came from direct, events, et cetera."
A bigger, integrated campaign is important to Saab. To introduce its re-engineered 9-5, Saab on Jan. 14 began a smaller campaign with a new brand message "fun to drive." The campaign hasn't helped the 9-5. Sales dropped 2.5 percent the first four months of this year, while 9-3 sales jumped 36.4 percent.
Saab seeks leads
The 2003 9-3 will cost no more than the 2002 model, which starts at $28,850, including destination charges.
Saab plans to produce as many as 7,000 units of the sedan this year and 20,000 units in 2003.
Because Saab wants to communicate with consumers before the vehicle arrives in showrooms, it is asking dealers to forward their sales leads to Saab now. After the automaker determines the best 9-3 prospects, it will forward information on those potential buyers back to the dealers in late September.
Price said he expects to gather 7,500 qualified sales leads and convert them to test drives.
Irma Elder, owner of Saab of Troy in Troy, Mich., isn't worried about leads as much as she is about getting the product as soon as possible. She expects to run out of the current 9-3 before its replacement arrives.
"When we first took over (a) Saab (franchise) in '93, we were selling one or two cars a month. Last year, we sold 900-plus cars, so we're doing well," she said. But Oct. 1 won't be soon enough. Elder has 17 units of the current 9-3, with 25 more available. She said the national cash incentives that Saab is offering on the current version is helping sales.
More 9-3 versions
To reach its goal of selling 70,000 units, Saab has evaluated whether to build a large sport-utility off parent General Motors' Sigma architecture, which Cadillac uses for its 2004 SRX. But Saab officials dropped the project last week after concluding it would cost too much to make the vehicle unique to the Saab brand.
Saab is not abandoning plans for a large sport-utility, spokesman Kevin Smith said. It will work with GM in hopes of sharing architecture early enough in product development to keep down costs.
For now, Saab will focus on the product plan that includes a 9-3 convertible in April, a 9-3 all-wheel-drive crossover in two years, followed by a 9-3 wagon.
The company also is considering whether to put its 9X concept vehicle into production. The concept incorporates features of a coupe, roadster, station wagon and pickup.
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