The Green Machine: Saab, Vauxhall and Integrated Marketing Communications - Download MS Word File

James A. Fitchett & Simon Richardson, School of Business & Economics, University of Exeter

In Search of a Greener Marketplace

Many organisations are coming under increasing pressure to take the ecological consequences and impacts of their products and services seriously. Automobile manufacturers such as Saab and Vauxhall have to manage a particularly complex set of green debates about their products and consider a number of different interest groups. Automobile production involves several ecological dimensions. Environmental pressure groups and, increasingly national government, have begun to target automobile ownership and use as a major environmental problem. Despite the phasing out of leaded petrol and some environmental initiatives by manufacturers, such as research into alternative fuel sources, manufacturers are set to face increasing environmental pressures. Increasing taxation on fuel, regulations concerning resource use at all stages of the production process and the promotion of alternative ‘green’ transport initiatives are all likely to have a considerable impact on the industry. It is therefore becoming important for manufacturers to communicate their green credentials to pre-empt any criticism that might damage branding efforts. Many manufacturers such as Vauxhall have begun to invest in new ‘greener’ technologies although it may be some time before new products achieve actual market potential. When the technology for ‘green’ automobiles has finally been developed the market opportunities will no doubt be enormous but manufacturers must retain their existing market positions in order to be able to move into these markets at some future date.

One of the major problems facing automobile manufacturers is that whilst pressure from powerful groups, such as government, environmental organisations and some aspects of the media demand greener practices, consumers do not prioritise green issues when making purchase decisions. A 1997 survey by the Chrysler Corporation examined the key factors involved with automobile purchase and found that green issues ranked a mere 19th place (behind quality of air conditioning). Greener automobiles, such as those with smaller engine capacities, fewer additional features, greater reliance on recycled materials and production processes designed to minimise ecological impact, conflict with the consumers desire for high performance, luxury automobiles at the lowest cost. Many of the automobiles in the GM family, especially Saab, continue to provide a powerful source of status symbols and are used by consumers to communicate a range of cultural values and meanings quite separate to those demanded by the green movement. The current market for automobiles is highly competitive and suffers from a global production surplus. Automobile manufacturers like Saab and Vauxhall are thus faced with the difficult situation of having to manage their marketing communications effort so that all of these different perspectives are taken into consideration and catered for. In response to these tough market conditions the automobile industry has seen a number of mergers, take-overs and partnership arrangements between the main market leaders. Vauxhall and Saab are both subsidiaries of General Motors, one of the world’s largest global automobile groups consisting of brands including Chevrolet, Pontiac, Oldsmobile, Buick, Cadillac, Opel and Holden.

Vauxhall and Saab - Opportunities for IMC?

The concept of Integrated Marketing Communications (IMC) has emerged to replace the historical marketing emphasis on promotion and advertising, and may provide a useful managerial model for automobile manufacturers. Marketing communications literature has traditionally tended to advocate the use of different methods or ‘tools’ to achieve different marketing objectives. Sales promotion has been seen as useful for increasing sales in the short term, to generate awareness, or to increase market share in mature markets. Advertising has tended to be seen as a useful tool for generating awareness and to build brands. IMC moves beyond this highly fragmented and functional approach to marketing communications and instead calls for a more ‘seamless’ or ‘whole egg’ approach. It is clear that GM needs to carefully manage and co-ordinate its marketing communications output including personal selling efforts, public relations and advertising for all of its products in order to meet the often conflicting demands of its various ‘publics’ or interest groups. For various historical as well as marketing reasons GM has traditionally marketed its various brands, such as Vauxhall and Saab independently rather than under a corporate GM brand.

Communicating complex messages to the media, green pressure groups and governments demands sophisticated public relations although PR alone is unlikely to maintain sales and market share. The structure of distribution channels in the automobile market relies heavily on semi-independent dealership and franchise arrangements, which means that internal marketing must also be considered so that communication channels as well as the quality of information are effectively managed.

A Comparative Study of Marketing Communications for Saab and Vauxhall

Brochures

A content analysis of current automobile brochures shows the number of references made to various aspects of automobile design (see Table 1). The Vauxhall brochures share a standard layout and contents page. Most models have the same key sections such as Features, Models, Specification and Customer Care. The ‘Tigra’ brochure has a less structured and more flamboyant design, perhaps to emphasise originality of the car, and presumably its driver. Accessories and Security feature prominently as well as Style and Safety. Saab devoted most brochure space to ‘Accessories’ options that allow customers to individualise their car. Style is also frequently mentioned. Unlike brochures for the Vauxhall models, the Saab literature places considerable emphasis on Performance related aspects of the vehicles.

Neither the Saab or the Vauxhall sales brochures had exclusive sections or pages dedicated to green issues. The only references to ecologically related issues in the Saab sales literature were located in the section titled ‘mechanical data’, where catalytic convertors and exhaust recyclers were briefly mentioned. Vauxhall had more references to green issues in its brochures. The ‘Corsa’ brochure mentioned low emissions in the context of performance together with some consideration to recycling:

"As befitting a car designed for the modern world, Corsa’s green credentials are impeccable. Vauxhall has been stamping recycling codes on components since 1979 and all synthetic materials can be recycled using environmentally acceptable techniques."

Brochures for the ‘Tigra’, ‘Frontera’ and ‘Zafira’ models contained no information relating to ecological issues. Brochures for the ‘Astra’, ‘Vectra’ and ‘Omega’ models made references to low emissions as well as the new ‘duel fuel’ system although this was primarily promoted in terms of energy and fuel efficiency, i.e. as an economic rather than an environmental benefit. The brochure for the ‘Vectra’ claimed that the model had the "environmental high ground".

Showroom Layout and Design

Vauxhall and Saab showrooms are designed to present a modern, minimalist setting. The plain white backdrop focuses attention on the bright display models. Indoor plants and minimalist furniture complement the environment. Examples of body panels, model interiors and seat colours, as well as a choice of optional extras such as alloys wheels are displayed around the showroom.

Interviews with sales staff

A series of formal research interviews revealed that sales staff found that consumers rarely purchased cars because of green issues. It was agreed that there has been a trend away from performance towards safety. Sales staff reported that they tended not to include environmental issues in their sales discussions with potential customers although could draw upon information regarding emissions and recyclability if required. Dealerships were unaware of their respective corporate positions regarding green issues without first consulting head office sources. At the time of the study the UK media were highlighting the price differentials between the UK and Continental Europe (the ‘Rip off Britain’ Campaign) and consequently sales staff mentioned that value for money was a major priority for many customers. One Saab representative felt able to categorise customers into distinct segments and used this as the starting point for any subsequent discussion. For young professionals the traditional factors of "performance" and "image" were prioritised and interest concentrated on the convertibles and the faster turbo models. Retired purchasers valued "comfort" and "conservative" looks whilst the family market wanted "safety" and then looked for "gadgets and features". A Vauxhall sales representative stated that customers have "hardly ever expressed an interest in environmental issues when deciding which car to purchase".

Mystery Shopping

To further assess evidence of ecological awareness among sales staff a series of mystery shopping exercises were undertaken. Both Saab and Vauxhall sales representatives tended to be surprised by the persistent enquiries about green issues and often responded by steering the discussion onto other aspects such as safety. The Vauxhall representative was able to use a software package to assess the buyer’s needs and select an appropriate recommendation although the computer programme did not allow a direct interest in green issues to be inputted or expressed. A Vauxhall representative indicated that the Astra model was 80% recyclable compared to 50% for the Vectra model, although during the formal interviews a salesman had stated that Vauxhall were an all round green company and that no one car in the range was any greener than any another. The salesman also mentioned the Dualfuel option but was unaware specific emission figures or the corporate environmental policy other than that all current British and European environmental legislation concerning the environment had been met.

PR literature

Efforts to collect additional material about Saab and green issues proved unfruitful despite several letters of enquiry, although following a formal interview a Saab sales representative offered to get extra information concerning green issues entitled ‘Saab Environment’. The brochure is comprehensive in its coverage of environmental issues. Emissions, materials, production and recycling each have chapters. In addition to these areas Saab highlight the fact that their staff are trained in environmental issues. The booklet mentions that technological breakthroughs give Saab engines greater efficiency. It identifies three areas that make up the ‘Environmental Policy for Saab AB’; Continuous improvement and management by objectives, Complying with environmental legislation and meeting customers’ expectations, Considering environmental effects in business planning, decisions and choice of suppliers. A flow diagram is used to show a Saab’s journey through production and green considerations are highlighted at every stage. There is a section on training which states all "employees receive broad-based know-how about fundamental environmental issues".

Vauxhall produce a considerable amount of information that is widely available by mail or through a dedicated Internet site (www.vauxhall.co.uk). This includes detailed fact files on ‘Conservation & Recycling’, ‘Environmental Management’. ‘Alternative Fuels’ and Electric Vehicles’. Vauxhall’s yearly environmental reports ‘Vauxhall and People’ give a detailed account of how the organisation is meeting targets in all areas and showing year on year improvements and is backed up by three reviews from independent bodies. Vauxhall also supplied details of European Directives on green issues and how they have set about meeting them. A CD ROM package was also supplied which gave details of all areas of Vauxhall’s operations including a section segment devoted to green issues covering production, usage and disposal. Green partners such as suppliers and its sponsorship of the ‘Young Environmentalist of the Year’ competition are also discussed. Subscription to the Vauxhall’s magazine, ‘VM’, gives views on all aspects of the Vauxhall Company and has regular features on green issues. A recent edition (supported by a national advertising campaign) actively promotes the Dualfuel option as the only one of its kind available on all models in the UK.

Discussion Questions

Identify as many Saab and Vauxhall ‘publics’ as possible and outline the main interests and objectives for each. What type of Marketing Communications would seem appropriate for each ‘public’?

What are the main problems facing organisations such as Saab and Vauxhall regarding green marketing and how might a programme of IMC be developed to overcome these challenges?

Compare the effectiveness of Saab and Vauxhall’s marketing communications. How might IMC be used by the two organisations to improve their marketing communications efforts in relation to green issues?