A Case Study of Saturn's Distribution Strategy

Saturn car case study. Almost an icon: the Saturn story

Opportunities to tap newer segments of consumers with revamped offerings, especially those customers that did not consider lshtm research proposal before. Empowerment, Openness, Fairness, Trust, and Respect Saturn has substantiated the partnership through the empowerment of retailers and its employees. This reversal in rankings between the Initial Quality Survey Exhibit 1 and Customer Satisfaction Survey Exhibit 2 is largely attributed to Saturn's superior performance in retail service. Time line can provide the clue for the next step in organization's journey. In one ad, a Saturn worker travels to Alaska to bring a new chair to a customer after a defect had been found in her old one. A folksy image was thus first developed for the firm during the first year through letting the employees tell their story. However, GM came up essay about dream house spm an outstanding idea that seemed to have salvaged not just GM but also the American automobile industry. First, the presence of price bargaining at most dealerships makes it difficult for consumers to compare prices across dealerships:

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Overall decreasing sales in the subcompact market. Empowerment, Openness, Fairness, Trust, and Respect Saturn has substantiated the partnership through the empowerment of retailers and its employees. If you do not allow these cookies, we will not know when you have visited our site. As a first step Hal Riney focused on positioning the company, before the product.

Case Studies : Saturn Corporation

Not to mention the economies of scale that the existing companies would enjoy over you. What is the History bread homework Enron, and what current situation does it find itself in? Customers experience less anxiety over what is after all the second largest purchase for most households. After-sale service is also enhanced when retail facilities are large, since this means that consumers do not need to wait long to have their cars serviced.

In spite of its ultimate fate, the Saturn story provides a good example of what it takes to become iconic: This system is also integrated into product engineering and materials handling at Saturn Corporation.

It is this very coherence that assures that Saturn's current success is going to be more than a fad. Slowing economy and rising interest rates result in lower sales for the auto industry as a whole. Similarly, if a customer is cross shopping different Saturn facilities, the similar appearance and policies will underline the company's commitment saturn car case study its customers no matter where they are.

If you elect to stop doing business with Marshall, what legal causes of action might he bring against your company, what damages… Starbucks Case Study Analysis Words 5 Pages Starbucks case study analysis Founding Starbucks is an international coffee company and coffeehouse chain based in Seattle, Washington.

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Thirdly, the smaller number of retailers that the manufacturer deals with has greatly facilitated communication, and coordination of effort between the manufacturer and the retailers. Paul dealership had 6 out of cars returned for cash and very effective in communicating the manufacturer's own belief in the quality of the vehicle.

A Different Kind of Car Company case study solution After refreshing your mind, read your case study solution critically.

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For example saturn car case study can recommend a low cost strategy but the company core competency is design differentiation. In addition, from the retailer's perspective, the lack of intra-brand competition prevents the customer from playing off one dealer against another on exactly the same model car.

Often readers scan through the business case literature review on hrm pdf without having a clear map in mind. Point-of-sale Service J. In selecting retailers it paid attention to the family structure and succession of the owners.

Thus retailers play an important role in Saturn's mission, which among other things, states that Saturn strives to be a world leader in terms of customer satisfaction. Loyal customer base.

Thus, the auto industry has experienced a trend towards increased focus on service to get repeat buyers, and a focus on the total ownership experience.

Purchase Solution

Since all Saturn retailers and the corporation use the same systems and standards, communication between them is maximized. People in the United States as a whole are mobile. Build a corporate level strategy - organizing your findings and recommendations in a way to answer the larger strategic objective of the firm.

Other considerations include financial performance and capability, as well as sales effectiveness.

The spirit of cooperation is also underlined in relations between retailers. A Different Kind of Car Company case study solution. However, it is precisely this mistrust that leads to inconsistency in dealer operations, as different dealers will react differently to this type of relationship. Historically, the distrust between dealers and manufacturers has lead to high costs on both sides.

Which brands did you wish had made it and why? As a result, Saturn customers can expect a similar level of service, whether in sales and after sales service, from no matter which dealer they go to. A Different Kind of Car Company Case Study Analysis Once you are comfortable with the details and objective of the business case study proceed forward to put some details into the analysis template.

A very large… Case Analysis: SWOT analysis is a strategic tool to map out the strengths, weakness, opportunities and threats that a firm is facing. In fact there are many US auto dealers who are excellent at providing customer service despite the historically adversarial relations with manufacturers.

Case Analysis - Saturn

The M. In particular customers experienced great anxiety over maybe paying too much. Upon franchising, retailers must agree to cover letter for requesting job or in rare cases adapt a building if the lay-out is similar a new building according to the architectural design chosen by Saturn.

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When GM was having troubles of its own, they were reluctant to invest more money in Saturn which is the opposite of what they should have been doing. The elimination of negotiation and rebates also reduces the emphasis on price in the sales and marketing process.

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For example, in the past, dealers often used secret recording devises to try and catch manufacturers trying to force cars onto them, so they could battle them in court afterwards. For example, in Saturn had to recall cars with defective Texaco cooling liquid. The prices on these sheets are final and non-negotiable.

Fewer salespersons are needed and they can now focus their time on servicing the client. In addition, by having to deal with fewer dealers, the corporation can more easily devote senior management resources to attend to the retailers' needs.

Almost an icon: the Saturn story

As shown in Figure 2, lack of intra-brand competition due to the market area approach i. Secondly, Saturn has excellent customer satisfaction, and have been successful with recent advertising campaigns.

Before describing how Saturn increased customer satisfaction through close manufacturer - retailer partnership, it is worthwhile repeating Saturn's mission: Saturn Mission Statement "To market vehicles developed and manufactured in the United States that are world leaders in quality, cost and customer satisfaction through the integration of people, technology, and business systems; and to transfer knowledge, technology and experience throughout General Motors".

In fact, during and dealers on average made negative profits on new car sales because of intense price competition engendered by low demand.

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Obviously, one-price selling may not appeal to everyone. Today, Saturn relies on stylish new vehicles like the Sky convertible to revitalize its presence and sales. Product Quality With increased competition, product quality is a prerequisite that manufacturers must deliver if they want to bring new customers, especially import customers into the showroom.

Channel members are more likely to be committed to making the relationship function smoothly if the consequences of a break-up have far-reaching negative profit impact.

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Each retailer has a parts system, that locates parts, manages the inventory, handles invoicing and replenishes automatically. Another threat is the perception that Saturn is a "girls car. Straight forwardness again lowers the hassle in the total ownership experience.

All Saturn facilities are unique and basically uniform in appearance. In fact, a list with this type of pricing is usually given to the customer in the buying or even prospecting process.

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This analysis will cover answers to the following questions: In Saturn's market area approach, one retailer is responsible for developing a fairly large market area e. Step 8 -Implementation Framework The goal of the business case study is not only to identify problems and recommend solutions but also to provide a framework to implement those case study solutions.

In order to achieve high customer satisfaction, Saturn has ceded substantial power to its retailers: Sales dependent on its niche customer base.

Almost an icon: the Saturn story

Four problems are readily… Case Study: Through larger territories per dealer selling more cars per facility, as well as one-price selling policy, Saturn retailers can achieve economies cover letter for requesting job personnel, advertising, and investment in facilities and systems.

Aside from the market area approach, Saturn has introduced many other innovations that substantiate and strengthen the partnership.

  • The market area approach is significant in several ways.
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Larry Schmid "You can't walk into the market and say 'our product is as good as Honda's and expect people to believe you It seems that many aspects of Saturn's distribution strategy fit together like pieces of a jigsaw puzzle to provide greater sales and service satisfaction to its owners.

OR Abstract: We will develop the tools, training and education that each member needs. All the retailers interviewed by the authors had similar policies; when a new hire comes in they generally will spend the cover letter for senior travel consultant 90 days in the dealership, learning the trade from other salespersons.

By making each retailer feel like a part of the Saturn family by giving them power and profitability so that they will act according to the philosophy, Saturn achieves consistency with the end customer.

The three were motivated to sell coffe with a high quality to the customers.

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However, Saturn retailer's so far have been able no homework europe fight off temptations to negotiate or change prices. If you do not literature review on hrm pdf these cookies, then some or all of these functionalities may not function properly.

[10 Steps] Case Study Analysis & Solution

Threat of losing high quality standards and customer service quality due to influx of multiple models. The key challenge facing the company is not only to sustain its brand image and saturn car case study, but also offer the new revamped line of products to capture market share.

Thus we note that the company has been built on mechanisms that are designed around the management principle that people will support an environment that they helped to create. Final outcomes are the goals that are set and monitored by the company.

  1. Trust in Saturn by the customer is developed through this consistency.
  2. Ultimate objective of Influencing behaviour and building brands How to make implementation decisions that determine programme outcome with respect to enhancing brand equity and affecting behaviour To illustrate, in the light of Saturn example, how marketing communication tools can be used effectively to influence the consumer behaviour by building appropriate relationships To understand how a set of implementation decisions determine programme outcome with respect to enhancing brand equity and affecting behaviour To discuss how marketing communication tools can be deployed for measuring the desired impact, taking the feedback and making the necessary modifications.

Business Unit Level Solution - The case saturn car case study may put you in a position of a marketing manager of a small brand.