Welcome to the North American Subaru Impreza Owners Club Friday March 29, 2024
Home Forums Images WikiNASIOC Products Store Modifications Upgrade Garage
NASIOC
Go Back   NASIOC > NASIOC General > News & Rumors

Welcome to NASIOC - The world's largest online community for Subaru enthusiasts!
Welcome to the NASIOC.com Subaru forum.

You are currently viewing our forum as a guest, which gives you limited access to view most discussions and access our other features. By joining our community, free of charge, you will have access to post topics, communicate privately with other members (PM), respond to polls, upload content and access many other special features. Registration is free, fast and simple, so please join our community today!

If you have any problems with the registration process or your account login, please contact us.







* As an Amazon Associate I earn from qualifying purchases. 
* Registered users of the site do not see these ads. 
Reply
 
Thread Tools Display Modes
Old 06-24-2004, 08:40 AM   #1
Jon [in CT]
*** Banned ***
 
Member#: 2992
Join Date: Nov 2000
Chapter/Region: NESIC
Location: Connecticut, USA
Vehicle:
02 WRX Sedan
Silver

Default Gay Buyers, Gardeners Won't Be Enough for Subaru

This is an opinion piece that Bloomberg newswire carried today at http://quote.bloomberg.com/apps/news...d=aJb3k4J5S3gE.
Quote:

Doron Levin is a columnist for Bloomberg News.
His opinions are his own.

Gay Buyers, Gardeners Won't Be Enough for Subaru: Doron Levin

June 24 (Bloomberg) -- Among the Asian automakers gobbling up more and more U.S. automotive market share, one that has struggled to increase its following is Fuji Heavy Industries Ltd.'s Subaru franchise.

In light of the troubles engulfing Japan's Mitsubishi Motors Corp., steady, solid sales -- without increasing share -- looks like an enviable position for Subaru's business. But being frozen at only 1 percent of the market in an environment of stagnant U.S. vehicle prices, rising costs and tougher competition eventually could topple Subaru, and its management knows it.

Fuji Heavy, therefore, is trying to elevate Subaru to premium brand status, in addition to its longtime strategy of appealing to gays and other market niches.

It wants to sell better equipped vehicles, and to command higher prices and more revenue in a U.S. market already teeming with brands like Volvo, Saab, BMW and Acura that intend to maintain top-level status, too.

Fuji, 20 percent owned by General Motors Corp., said in May that it intends to increase the number of dealers with Subaru-only facilities in the U.S. to 385 by year's end from 359 at the end of 2003. Subaru operates about 585 dealers in the U.S. A brand that can't justify its own showroom isn't likely to impress customers as premium.

The `Starbucks' Feeling

John Nash, president of Moon City Productions, an advertising agency that handles Subaru in New York, said ``the dealerships will be spruced up, the cars will be restyled and the dealerships will have a consistent look and feel, like what you get when you walk into Starbucks.''

On May 17 Fuji Heavy shares fell by 4.7 percent, the biggest one-day drop in six months, after the company warned that annual profit may drop as much as 17 percent in the current fiscal year, set to end at the end of March 2005.

The reason for the prediction: The stronger yen is deflating the value of overseas earnings -- such as those from Subaru -- while material costs keep rising.

Subaru has distinguished itself as a maker of four-wheel- drive models, which naturally tend to sell better in places with inclement weather, such as New England, the Northwest and Colorado.

Seeking Gay Buyers

And it has also distinguished itself as a favorite among gays. Fuji discovered this by accident in 1994 during focus groups it was conducting among owners in Northampton, Massachusetts.

The automaker then decided to advertise in publications for that audience. Ads included references attuned to gay readers such as the tagline ``Get Out and Stay Out.'' Tennis star Martina Navratilova, who's been an advocate for gay and lesbian causes, was hired as a spokeswoman.

Other automakers, such as Ford Motor Co. and DaimlerChrysler AG, noticed that Subaru was courting the gay and lesbian community and soon followed suit.

Fuji also expanded its marketing efforts to reach customers through professional and other affiliate groups, more recently with gardening clubs, whose members might gravitate toward four- wheel-drive technology. In the last decade the company estimates it has sold about 40,000 vehicles using that method.

To broaden Subaru's appeal and, therefore, increase sales and its share of the U.S. market, the automaker last year signed bicycling champion Lance Armstrong to a three-year, multi-million contract.

Armstrong will appear -- though not on his bike or dressed in spandex -- in a series of commercials touting the 2005 Legacy sedan, which starts at about $21,000, and the Outback station wagon, which starts at about $19,000.

Competition Undermines Strategy

Subaru has a reputable name and a hard-earned reputation for ruggedness. Niche branding once was effective, but the increased segmentation of the U.S. vehicle market -- with new nameplates and models appearing constantly --undermines such a strategy.

Toyota Motor Corp. now has Scion and General Motors has Hummer, examples of two new brands that didn't exist when Subaru first appeared in 1969.

One of Fuji Heavy's most valuable assets could prove to be its alliance with General Motors. The Subaru Impreza - of which the WRX version is a favorite among hotrodders -- has been modified as the basis for GM's new Saab 9-2X, a model now being introduced and known facetiously as the ``Saabaru.''

If GM ever decides to get serious about increasing its presence in Japan, it could try by expanding through Subaru dealerships in that country. And if Subaru gets in trouble in the U.S., GM can assist, just as it has with other foreign brands it owns.

Pitching cars to gays and gardeners was clever, an idea that took imaginative thinking. Meanwhile, the automotive fray has grown much tougher.


To contact the writer of this column:
Doron Levin in Southfield, Michigan at [email protected].

To contact the editor responsible for this column:
Bill Ahearn in New York at [email protected].

Last Updated: June 24, 2004 00:09 EDT
* Registered users of the site do not see these ads.
Jon [in CT] is offline   Reply With Quote
Sponsored Links
* Registered users of the site do not see these ads.
Old 06-24-2004, 09:01 AM   #2
subyfanatic
Scooby Specialist
 
Member#: 18276
Join Date: May 2002
Chapter/Region: South East
Location: Treasure Coast, FL
Vehicle:
07 1990 Breadbox
FEEL THE LOVE

Default

Scariest line in that article-
Quote:
And if Subaru gets in trouble in the U.S., GM can assist, just as it has with other foreign brands it owns.
subyfanatic is offline   Reply With Quote
Old 06-24-2004, 09:21 AM   #3
MooreWRX
Scooby Newbie
 
Member#: 6661
Join Date: May 2001
Location: Arvada, CO
Vehicle:
2004 STI
White/Silver

Default

Quote:
Originally posted by subyfanatic
Scariest line in that article-
I would be afraid of getting billions of GM dollars too
MooreWRX is offline   Reply With Quote
Old 06-24-2004, 09:44 AM   #4
subyfanatic
Scooby Specialist
 
Member#: 18276
Join Date: May 2002
Chapter/Region: South East
Location: Treasure Coast, FL
Vehicle:
07 1990 Breadbox
FEEL THE LOVE

Default

If things at Subaru start getting like Saab, yes, be very afraid.

Might I add: Getting any money is good but, there's more to it than just that. When a niche company loses it's brand image and becomes a copy of corporate cookie cutter cars then things get really ugly. You no longer have unique enthusiast vehicles, you end up with rebadged garbage instead.
subyfanatic is offline   Reply With Quote
Old 06-24-2004, 09:49 AM   #5
Mike Wevrick
RIP 1/19/64 - 7/23/11
Scooby Guru
 
Member#: 24654
Join Date: Sep 2002
Chapter/Region: NESIC
Location: saraseager.com
Vehicle:
1957 Taggart Comet
atlasshruggedpart1.com

Default

The scary part would be a full takeover by GM of Subaru, leading to Subaru's destruction. Subaru is not anywhere near where Saab was, but it could be eventually. More and more companies are putting awd on cars and bringing out crossover wagons, so Subaru's core niche is threatened.
Mike Wevrick is offline   Reply With Quote
Old 06-24-2004, 09:56 AM   #6
KC
Scooby Guru
 
Member#: 442
Join Date: Oct 1999
Chapter/Region: NESIC
Location: RI/SE Mass
Vehicle:
17 Imp Spurt
00 S2k

Default

Quote:
And it has also distinguished itself as a favorite among gays. Fuji discovered this by accident in 1994 during focus groups it was conducting among owners in Northampton, Massachusetts.
Well then... that explains A LOT!!!!

Only place with more of the gay/lesbian community would have been conducting the focus groups in Provincetown on the cape.

--kC
KC is offline   Reply With Quote
Old 06-24-2004, 01:44 PM   #7
flat4fantasy
Scooby Newbie
 
Member#: 8450
Join Date: Jul 2001
Default

Quote:
Originally posted by subyfanatic
If things at Subaru start getting like Saab, yes, be very afraid.

Might I add: Getting any money is good but, there's more to it than just that. When a niche company loses it's brand image and becomes a copy of corporate cookie cutter cars then things get really ugly. You no longer have unique enthusiast vehicles, you end up with rebadged garbage instead.


True, but to you and the previous poster it seems to me that Saab's have actually become MORE reliable and have lost very little of their "prestige" or rather the 'quirky cool euro car'.

Anyone know if this is true or not...again, I have no hard data, just heresay about the quality being better.

I don't Subie has a problem with reliability but I also would have a concern on the "watering down" effect GM could have on Subie.

Peace,
Dave
flat4fantasy is offline   Reply With Quote
Old 06-24-2004, 03:14 PM   #8
gurpman
Scooby Newbie
 
Member#: 39015
Join Date: Jun 2003
Default

Lance Armstrong is a gay gardener?
gurpman is offline   Reply With Quote
Old 06-24-2004, 03:32 PM   #9
STI Orenji
Scooby Newbie
 
Member#: 63466
Join Date: Jun 2004
Location: Austin, TX
Vehicle:
2005 wrx sti
Black

Default

I just interned with GM and i would HATE to see their business model take over Subaru...they build vehicles to a price point and they like to play everything safe, conservative and stupid. GM is very product driven as opposed to being market driven...Subaru is product driven as well but it is also way less conservative...Saab no longer has a place in the world other than a niche...GM makes all of it's other affiliates second to the home brands and prevents them from growing. Ford does a better job with managing it's global brands than GM does...it gives them a lot more autonomy...I hope that the only thing GM gives subaru is money...i don't want any GM parts on a subaru...i just hope GM doesn't keep subaru from developing future technologies because GM sees the future in a different way...
STI Orenji is offline   Reply With Quote
Old 06-24-2004, 04:04 PM   #10
only1agam
Scooby Specialist
 
Member#: 56183
Join Date: Feb 2004
Chapter/Region: South East
Default

Quote:
And if Subaru gets in trouble in the U.S., GM can assist, just as it has with other foreign brands it owns.
AHHHHHHHHHHHHHHHHHHHHHHHHHH!
God please dont let Subaru become another peace of GM!!!!

I was curious to know.. how the hell can subaru get back their 20% from GM? HOW!!??? they gotta get it back some how even if they have to stop makin the Baja
only1agam is offline   Reply With Quote
Old 06-24-2004, 04:19 PM   #11
babyvoxfan
Scooby Newbie
 
Member#: 42592
Join Date: Aug 2003
Default

Actually Subaru is benefitting from the GM agreement- they are now able to escape Nissan's keiretsu structure and buy parts from GM suppliers at GM prices, and also, they are able to expand their dealer and service network.

I would not mind if GM would encourage the Saab, Saturn and Cadillac franchises in the U.S and Canada to add Subaru to their lineup. More service points and more competition never hurt anybody

Subaru has to go after anyone they can, and I would suggest that they market their cars more to the mainstream community, and to people who buy cars like the Accord and Camry.

They should use clever advertisements that point out the benefits of the cars and with the Legacy, put more emphasis on it being 2003-2004 Japanese Car of the Year as well as its safety, quality and AWD.

The Halifax and a pickup that doesn't stink would round out the lineup nicely. I think a new twin-turbo H6 Alcyone SVX wouldn't hurt either
babyvoxfan is offline   Reply With Quote
Old 06-24-2004, 08:18 PM   #12
Diabolical1 CC
*** Banned ***
 
Member#: 59897
Join Date: Apr 2004
Default

I still think that bringing out a Subaru truck is a bad move. If they want to succed they should focus on the new platform line, over here, and bring out a more refined and less expensive line of cars and wagons. h.. maybe I was wrong when I said they should get rid of the H4 engine. It is unique and one of the most powerful 4 cylinder engines in North America.
Diabolical1 CC is offline   Reply With Quote
Old 06-24-2004, 11:52 PM   #13
Ghostrider600
Scooby Specialist
 
Member#: 37992
Join Date: Jun 2003
Chapter/Region: RMIC
Location: here?
Vehicle:
0609
06STI 09STI 09LegSE 99RS

Default

Quote:
It wants to sell better equipped vehicles, and to command higher prices and more revenue in a U.S. market already teeming with brands like Volvo, Saab, BMW and Acura that intend to maintain top-level status, too.
Hmm, Subaru WRXs are going to Saab, so Saab's pricing will be given back to Subaru in the exchange...great.
Ghostrider600 is offline   Reply With Quote
Old 06-25-2004, 12:24 AM   #14
STI Orenji
Scooby Newbie
 
Member#: 63466
Join Date: Jun 2004
Location: Austin, TX
Vehicle:
2005 wrx sti
Black

Default

Quote:
Originally posted by Diabolical1 CC
I still think that bringing out a Subaru truck is a bad move. If they want to succed they should focus on the new platform line, over here, and bring out a more refined and less expensive line of cars and wagons. h.. maybe I was wrong when I said they should get rid of the H4 engine. It is unique and one of the most powerful 4 cylinder engines in North America.
I think they could do it if done right...just like Nissan with it's full sized truck and Porsche with the cayenne...you can criticize them but they sell because they were made and marketed correctly...they should not go cheaper...unless they want to make another brand for upscale vehicles...but that's a LONG way off if possible. they have plenty of history with awd and ruggedness to do a truck...especially since honda, mitsubishi(if it lives) and kia will have trucks...not to mention toyota tundra's redesign into something formidable
STI Orenji is offline   Reply With Quote
Old 06-25-2004, 02:40 AM   #15
greg donovan
Scooby Specialist
 
Member#: 60743
Join Date: Apr 2004
Chapter/Region: MWSOC
Location: Fargo, ND
Vehicle:
'95 Impreza L
dirty and on jack stands

Default

Quote:
Originally posted by gurpman
Lance Armstrong is a gay gardener?


the two asian ladies thought you were very funny.
greg donovan is offline   Reply With Quote
Old 06-25-2004, 03:22 AM   #16
SubaruRules
Scooby Specialist
 
Member#: 20267
Join Date: Jun 2002
Location: IL
Vehicle:
|'02 GGA WRB|
|'03 BH6 PSM |

Default

^^^***
SubaruRules is offline   Reply With Quote
Old 06-25-2004, 10:53 AM   #17
coolbluelb
Scooby Newbie
 
Member#: 47014
Join Date: Nov 2003
Location: VB
Vehicle:
2005 Legacy GT
Garnet Red

Default

Quote:
Originally posted by STI Orenji
I think they could do it if done right...just like Nissan with it's full sized truck and Porsche with the cayenne...you can criticize them but they sell because they were made and marketed correctly...they should not go cheaper...unless they want to make another brand for upscale vehicles...but that's a LONG way off if possible. they have plenty of history with awd and ruggedness to do a truck...especially since honda, mitsubishi(if it lives) and kia will have trucks...not to mention toyota tundra's redesign into something formidable
I have to agree w/ Diabolical1 that the idea of Subaru bringing a truck to the US market any time soon would be a huge mistake. Look at Nissan's sales numbers for the new Titan (HERE) and you will see that they are off their projections by 40%. Toyota is similarly a small player in the domestic truck market. It would take much more time and money than Subaru has to crack this nut.
coolbluelb is offline   Reply With Quote
Old 06-25-2004, 11:08 AM   #18
subyfanatic
Scooby Specialist
 
Member#: 18276
Join Date: May 2002
Chapter/Region: South East
Location: Treasure Coast, FL
Vehicle:
07 1990 Breadbox
FEEL THE LOVE

Default

Hey, here's an idea. Let's stick a Subaru grille on a Hummer H2 and sell it as the new 7-pax!

subyfanatic is offline   Reply With Quote
Old 06-25-2004, 12:26 PM   #19
STI Orenji
Scooby Newbie
 
Member#: 63466
Join Date: Jun 2004
Location: Austin, TX
Vehicle:
2005 wrx sti
Black

Default

Quote:
Originally posted by coolbluelb
I have to agree w/ Diabolical1 that the idea of Subaru bringing a truck to the US market any time soon would be a huge mistake. Look at Nissan's sales numbers for the new Titan (HERE) and you will see that they are off their projections by 40%. Toyota is similarly a small player in the domestic truck market. It would take much more time and money than Subaru has to crack this nut.
...
Quote:
"Titan has been well received in the marketplace," says Jed Connelly, a senior vice president at Nissan North America.
So it's not a matter of rejection. it's too early to gauge the new trucks...the pacifica was a failure last year but now it's #2 in its market behind the Lexus 330...I think subaru would have sold more full sized trucks than Bajas

Quote:
Hey, here's an idea. Let's stick a Subaru grille on a Hummer H2 and sell it as the new 7-pax!
i like the cadillac version...


Last edited by STI Orenji; 06-25-2004 at 12:33 PM.
STI Orenji is offline   Reply With Quote
Old 06-25-2004, 04:55 PM   #20
DanRx
Scooby Newbie
 
Member#: 61871
Join Date: May 2004
Location: Dallas area Texas
Vehicle:
2004 nonbaru
grey

Default

The elusive first look at the Cadillac "Gascalade"...it's the #1 selling s.u.v. in the U.A.E..
DanRx is offline   Reply With Quote
Old 06-25-2004, 08:34 PM   #21
DrBiggly
Scooby Guru
 
Member#: 11482
Join Date: Oct 2001
Chapter/Region: South East
Location: Winston-Salem, NC
Vehicle:
02 WRX
Acute Stickeritis

Default

Quote:
Originally posted by gurpman
Lance Armstrong is a gay gardener?


I don't know that it's a good idea for Subaru to try to forge its way into the truck marketplace. Although if they get rid of the Baja in favor of a truck I'd hold less against them.
DrBiggly is offline   Reply With Quote
Old 06-25-2004, 09:46 PM   #22
Mike Wevrick
RIP 1/19/64 - 7/23/11
Scooby Guru
 
Member#: 24654
Join Date: Sep 2002
Chapter/Region: NESIC
Location: saraseager.com
Vehicle:
1957 Taggart Comet
atlasshruggedpart1.com

Default

Subaru is not producing a truck; it's a wagon/SUV/minivan crossover which is a whole different market.
Mike Wevrick is offline   Reply With Quote
Old 06-25-2004, 11:45 PM   #23
DrBiggly
Scooby Guru
 
Member#: 11482
Join Date: Oct 2001
Chapter/Region: South East
Location: Winston-Salem, NC
Vehicle:
02 WRX
Acute Stickeritis

Default

Quote:
Originally posted by Mike Wevrick
Subaru is not producing a truck; it's a wagon/SUV/minivan crossover which is a whole different market.
Ah. Well time will tell then I suppose. Can't be any more weird than the Baja!
DrBiggly is offline   Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Forum Jump

Similar Threads
Thread Thread Starter Forum Replies Last Post
Will either of these amps be enough for my setup? wrxty Car Audio, Video & Security 1 08-21-2007 12:13 AM
will a Punch 501X 65W x 4 be enough for 2 speakers and a 10" ? Roostar Car Audio, Video & Security 9 08-10-2006 12:49 PM
will a 1/4 HP motor be enough for this project? imprezive one Car Audio, Video & Security 21 10-24-2004 02:24 PM
Need some advice: car won't be driven for a while. fobert Mid Atlantic Impreza Club -- MAIC 6 10-09-2004 07:19 PM
Yeah, I think this burger would be enough for me chris619 Off-Topic 26 07-28-2004 05:35 PM

All times are GMT -4. The time now is 11:46 AM.


Powered by vBulletin® Version 3.7.0
Copyright ©2000 - 2024, Jelsoft Enterprises Ltd.
Powered by Searchlight © 2024 Axivo Inc.
Copyright ©1999 - 2019, North American Subaru Impreza Owners Club, Inc.

As an Amazon Associate I earn from qualifying purchases.

When you click on links to various merchants on this site and make a purchase, this can result in this site earning a commission
Affiliate programs and affiliations include, but are not limited to, the eBay Partner Network.