Saturn General Manager

[HarleyEarl]

FOR RELEASE: 2006-01-18

Saturn Revitalization: Product and Marketing

Jill Lajdziak

Saturn General Manager

Hyatt Regency Hotel

Thank you.

And thank all of you (to audience) - for inviting me to share a little bit about what marketing means at Saturn.

Before I discuss some of our specific tactics, I want to spend just a couple of minutes to share with you where our brand is headed - so you'll clearly understand the approaches we're taking.

First, it's important to understand that Saturn is positioned as a conquest brand within the General Motors portfolio of brands.

This past year, Saturn Retailers delivered more than 200,000 cars and SUVs to some of the most satisfied owners in the industry

The lion's share of these buyers would not have considered a General Motors product if not for Saturn.

In fact, our research shows that 70 percent of our customers would not have consider another GM product if they had not bought or leased one of our Saturn vehicles.

So. . . the "promise" of Saturn is alive and well.

We are delivering on our mission to deliver "plus business" to General Motors. Over the past 15 years, we've accomplished this with a somewhat limited portfolio.

However -- in order to build our brand over the next decade -- it's imperative that we grow our range of product offerings - so that we can better address the very diverse needs of our target market.

And grow we will.

This year alone, we'll double the number of segments in which we compete.

The SKY will be launched first - and will foreshadow the new design language for our brand.

It's a beautifully designed two-seat roadster that will become available this spring.

Later in the year, we'll bring to market our new midsize - the AURA.

As you can see, this new Saturn looks great on the outside -- but I have to tell you - it also has one of the most refined interiors you'll find on any vehicle - in any segment in the industry.

We'll also bring the VUE Green Line model to market in the summer timeframe.

I encourage all of you to stop by our display at the North American International Auto Show to get a close look at this environmentally friendly SUV.

The response we received to this vehicle during press week was outstanding - and we can't wait to bring it to market!

Toward the end of the year, we'll roll out the new OUTLOOK - the first Saturn capable of carrying eight passengers.

I can't share a photo of this vehicle quite yet - because we haven't unveiled it to the public.

I can tell you, however, that it is every bit as contemporary and imaginative as the SKY and AURA.

There are not many brands that will double their portfolio in a single year...It is quite an undertaking.

As I've traveled the country, meeting with journalists to discuss our plans for the Saturn brand, I received some solid advice from an editor of one of the major auto enthusiast magazines. He told me, "You're getting a beautiful portfolio, but remember, you've already got an industry leading brand. Don't lose it as you grow."

That's the magic we need to make happen...showcase the product without losing the brand equity.

Now, let me show you how we're seeding the idea of our growth on television...

We think that spot does a great job of highlighting our imaginative persona - and effectively communicates the revitalization of our product portfolio.

But our brand is about much more than just product.

It is also about the exceptional personal relationships that we build - no matter where people touch our brand.

Saturn is a brand that's honest.

Saturn is a brand you trust - before, during and after the sale.

It is a brand that's been built on the power of strong, lasting relationships.

Our culture encourages every team member - regardless of job title or responsibility -- to go the extra mile to ensure that customer expectations are both met and exceeded.

That's why we incorporate a high degree of targeted, one-to-one interaction into our marketing mix.

I'll give you a few examples . . .

In terms of promotions, we work very closely with our retail partners, and we look to extend the Saturn brand promise outside the retail environment.

These are shots of what we call our "mobile event teams."

These teams are built around event marketers who are full-time extended members of our marketing team.

They live, eat and breathe our brand on a year-round basis -- so that they're able to extend our brand character to everyone they come into contact with. At 300 - 400 events a year, People not only see the new product, they experience Saturn on a very interpersonal basis.

Some of our mobile events leverage a very unique and inviting property - the Saturn Sky Dome.

The dome encourages event attendees to interact with our vehicles in a very engaging manner.

This unique technology presents a Saturn vehicle as a blank canvas on which we can project imagery to both educate and entertain.

And of course, our brand-savvy mobile event team members are there to add the Saturn human touch as well.

We've incorporated this technology into our display down at the auto show - so again, I encourage you to stop by and take a look if you get an opportunity to get down to Cobo this week.

That's what we're doing in terms of event marketing. But we're also well aware that most car shoppers now utilize the web to help identify which brands and vehicles they're most interested in shopping.

That's why we're taking a high-touch approach on in the internet as well.

If you visit Saturn.com, you may very well be approached by a live chat agent who will offer to help you find what you're looking for.

Just as is the case with our event marketing specialists, our web chat agents live Saturn on a full-time basis.

Therefore, they are well-equipped to convey the warmth and honesty of our brand through our web site in a highly interpersonal manner.

We've received incredible feedback in the time we've been running this pilot - through many thank-you letters and emails.

In fact, very recently one new Saturn owner even took the time to document their new car purchase in a scrapbook and sent a copy back to our interactive agent to thank them for their assistance during their shopping experience.

I love getting feedback like this because it continually reminds me what we're all about - exceeding expectations.

These are just a few examples of the approaches that we're using to help foster customer enthusiasm, positive word-of-mouth advertising and the most satisfied owners in the industry.

At Saturn, "one size fits all" marketing is out the window.

Our mission is to attract customers to our brand who wouldn't otherwise consider a General Motors product.

That's been our objective since the beginning - and will continue to be well into the future.

At Saturn we're all about innovation - imagination and creativity.

But not just in our products . . . but also in the way that we touch each and every person who comes into contact with our brand.

People expect outstanding experiences from Saturn.

It's our legacy.

It's our promise.

And we simply can't let that promise be unfulfilled.

Thank you very much.

I'm looking forward to taking to you further during the roundtable.

[corvette_dude729]

I think we have a new record...World's longest post!

[sciguy_0504]

There are not many brands that will double their portfolio in a single year...It is quite an undertaking.

Come on now, an undertaking?

[Ravenfreak13]

and yet...no mention of a new small car...guess im gettin an ion this summer

[vt_hokie]

Blah blah blah...bring back the dent resistant plastic body panels, and maybe I'll be interested in Saturn again.

[CaddyXLR-V]

Blah blah blah...bring back the dent resistant plastic body panels, and maybe I'll be interested in Saturn again.

Oh dont worry, there will be thousands lining up to take your place. The other 15.8 million cars sold in the US dont have dent resistant plastic body panels. People dont seem to care. I'm waiting for a Sky redline, and could care less about plastic panels.

[HarleyEarl]

Saturn is doing just fine and will be fine without plastic panels....hardly something that that division hinges on.

[vt_hokie]

Saturn is doing just fine and will be fine without plastic panels....hardly something that that division hinges on.

That may well be true, but I wish that at least one other automaker would pick up where Saturn left off and give people the choice of getting a car with dent resistant body panels. I don't understand why more people don't care, especially when the middle class struggles more with an increasing cost of living every year. The average price of a new car is up to $30,000, which is a hell of a lot of money for most people. But, I guess people are just used to living in debt, trading in a car every couple of years rather than keeping it for the long term and always making car payments. And maybe some people don't care about dings and dents, but I personally don't want to spend 30 grand on a vehicle that's going to look like crap after a few years' worth of real world use.

In any case, it would be nice if all of the different automakers offered some diversity to consumers, instead of selling 40 different versions of essentially the same product.

Edited January 24, 2006 by vt_hokie

[ehaase]

  The average price of a new car is up to $30,000, which is a hell of a lot of money for most people.  But, I guess people are just used to living in debt, trading in a car every couple of years rather than keeping it for the long term and always making car payments.

Most people avoid spending $30,000 on a vehicle by buying used.

[vt_hokie]

Most people avoid spending $30,000 on a vehicle by buying used.

Which is what I just did (replaced my 1997 SL2 after 220,000 miles with a used 2000 SL2). And while I'd really like to get a new car, I guess I'll continue to buy used until someone offers a new car that I like with a body at least as rugged as my Saturn's.