New Money

Subaru's Secret: Clever Marketing

By Katy Marquardt

Posted: January 5, 2009

Subaru's sales rose by just 0.3 percent in 2008, but that's a pretty big accomplishment given that it looks to be the only major automaker to report sales increases for all of 2008. Meanwhile, many major industry players are reporting dramatic declines today, and according to the AP.

The picture looks pretty rosy at Subaru, whose top sellers are the Forester and Impreza models (So far this year, Forester sales are up 34 percent, thanks to the recent launch of the 2009 model.)

So how did Subaru come out on top? As Marketing Daily points out, it's a "mid-market brand with a limited vehicle portfolio and marketing clout. Considering its budget, which is less than some automakers spend on a single vehicle launch, it's surprising that Subaru was able to stay afloat at all--and do it without offering huge discounts."

Turns out, marketing might have a lot to do with it. Says the publication:

The Cherry Hill, N.J. company has always been something of an anomaly in the U.S. car business: standard features like all-wheel-drive and an airplane-style boxer engine make for great rally racers, but tend to focus sales in the snow states. But the brand, perhaps better known as the wagon of choice for the progressive set, is also in the unusual position of being a non-luxury brand that appeals to those who can afford a Mercedes or BMW.

 

Seems that's what Subaru is going for. In the story, the company's marketing director describes Subaru's owners as "the types who collect experiences rather than things; they tend to be very environmentally aware and socially involved."

 

Great car

I just leased an 09 Subaru Legacy 2.5 special edition. This is my first Subaru. My parents have an 03 Forester which has been a pretty good vehicle. The 09 is better in every way but the 03 is still a solid vehicle. I purchased a Subaru because of safety, reliability, awd, quality, decent performance, feature content etc. I am extremely satisfied with it. Sure there are things I would improve but that goes with most cars. Subaru is as good as Honda and Toyota if not better. People are just not aware of how good they are because they are such a smaller company compared to Honda and Toyota. If you want a vehicle that performs well in all conditons, get a Subaru.

Walt of OH @ Jan 08, 2009 22:46:54 PM

Our second Subaru

My husband and I traded in our newer model, low mileage Volvo wagon that was having mechanical problems much to major for its age, on a new Subaru Outback last May. No regrets. I love my Outback.

We had prior Subaru experience, a Brat that we bought new and that had over 200,000 miles on it when we sold it. Husband is a mechanic, so he maintained it himself. Other than standard maintenance, at 100,000, he figured he'd better change all the belts. Most of them did not need changing! We only sold it because we had moved much further south and it didn't have air condicioning. We had even had a bimini top custom-made for it!

We really didn't even consider any other vehicle brands. We knew we wanted a Subaru and I wanted another wagon. I test drove an 09 Forester (they were on the lot in May 08!) and an 08 Outback. The Outback won my heart. No marketing was required here!

of SC @ Jan 06, 2009 17:20:33 PM

Excellent vehicles

I believe that what Subaru offers is excellent vehicles that are fun to drive and reliable. The type of people that Subaru attracts are also the type of people that will not be persuaded to purchase a car solely on the marketing schemes. In fact, some of the best cars in their lineup are rarely advertised, but have a devoted following. Keep making great cars Subaru and we will keep buying.

of MA @ Jan 05, 2009 21:06:21 PM

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New Money

Katy Marquardt, a senior editor at U.S.News & World Report, takes a contemporary look at happenings in the financial world and aims to help young investors get going with their portfolios--or just sound cool at cocktail parties. Have a question? E-mail Katy at newmoney@usnews.com

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