Subaru barrels through recession

[LegGTLT]

It's inevitable? Really? I'd like to see this thought backed up.

 

And yes............ I bet the FT86 gets folding mirrors!!!!

[nemo]

I gotta say, Sydtron is on point.

 

Subaru has shifted their demographics to become a mainstream alternative to Toyota/Honda. They've sold out.

 

"Niche" may be defined as under 5% market share, but Subaru's plan isn't to stay that way.

[DukeTrout]

Still way wrong from a marketing strategy perspective. Niche companies also grow, both in terms of volume and market share. They do so by recruiting new customers into the niche. That is the strategy Subaru appears to be using. They have a split base of niche customers - we'll call them the "boy racer" and "tree hugger" segments. While they've moved both the Legacy/Outback platform (by making it bigger and blander) and Impreza/Forester (by softening up the suspension on the STi) platform more mainstream, they've done so in an effort to recruit more customers into their "tribe." They've also shifted their options, limiting engine and drivetrains in some ways while expanding them in areas targeted to bring new customers into the fold. Examples: bringing the H6 into the Legacy line; adding tiers in the Impreza line while simultaneously "adding" horsepower to the WRX (while at the same time keeping the hardware with the Impreza GT).

 

You can see it in the advertising, you can see it in the website, you can see it in the tactical programs (like the lifestyle identifier badges they're giving away). Instead of throwing away the very powerful brand loyalty they have developed with those segments, as they would if they were "going mainstream," they are working to make those segments bigger and draw in new customers to become passionate about the brand.

 

They aren't moving away from symmetrical AWD or the Boxer engine. Doing so would be counter to their core segments. However, they can make logical deviations without moving away from the niche approach. Niche is about the customer, not the company. The FT86 would grow their strength in the boy racer segment, even without AWD. If they can make it light enough, it would be a seriously great little segment-expander. Heck, I'd want one if it was Lotus-light, and I could afford one a lot easier than an Exige.

 

All this actually kills the argument that they don't care about the extremists in their core segments. They care A LOT about what NASIOC collectively thinks. You can practically see them move when a clear direction comes from that group. Subaru's moved faster in response to NASIOC than almost any company moves in response to customers. Look at the 2011 STi sedan. Maybe that was planned, but much more likely is that it's a simple response to the most vocal and passionate members of one of their core segments. To do niche marketing right, you listen most to the leaders of the "tribe." It's all about getting people to care about your products, your brand, and make noise about it to other people who listen to them.

 

Now, whether that means they care about what we say here on LegacyGT.com, that's another story. I think we're a fringe group to the two core segments. We don't quite fit into the boy racer segment, and we don't quite fit into the tree hugger segment. They have a very clear and defined Legacy customer segment in Japan. They nurture that segment carefully. They could do it here, but something seems to be holding them back. My guess: their market research shows that to win in our segment, they'd have to put more money into the cars, but we're not willing to pay the price. We want BMW performance without the BMW price tag. And, in the end, you get what you pay for.

[IwannaSportSedan]

To win our segment they would have had to not completely dilute and de-content the Legacy.

 

If they had just updated the BL, slightly lengthened it, maybe very slightly widened it, and kept the dignified sleek styling, and the option content that it had, and not uglified the interior, either.

 

The performance wasn't a bad thing, on the previous car, nor the current Legacy GT. They seem to have figured out the damping, which was something that should have been done in the first place, to be honest.

 

They could have kept the Spec.B's 6MT and instead, spent the money making the 5EAT more robust... I'm just sayin'...

 

They also could have offered the 2.5 GT and 3.6R with the choice between the 6MT and 5EAT gearboxes, both with VTD AWD. Again, just sayin'...

 

They could have built on the previous Legacy's strengths with a bit more here and a tweak there.

 

They didn't need to pretty much scrap the BL design altogether, and make a CUV with the back cut off and turned into a sedan trunk, with a bland aft end.

 

If they had updated the Legacy by building it up, rather than completely changing course, I might still be interested, as well as other folks who liked the premise of the 2005-2009 model.

 

Plus all the people who wanted the rear seat leg room would have still had that improvement.

 

Audi did a FAR better job of improving the A4 from 2008 to 2009, a full upgrade, without losing the appeal or the premise.

[jagcars26]

Still way wrong from a marketing strategy perspective. Niche companies also grow, both in terms of volume and market share. They do so by recruiting new customers into the niche. That is the strategy Subaru appears to be using. They have a split base of niche customers - we'll call them the "boy racer" and "tree hugger" segments. While they've moved both the Legacy/Outback platform (by making it bigger and blander) and Impreza/Forester (by softening up the suspension on the STi) platform more mainstream, they've done so in an effort to recruit more customers into their "tribe." They've also shifted their options, limiting engine and drivetrains in some ways while expanding them in areas targeted to bring new customers into the fold. Examples: bringing the H6 into the Legacy line; adding tiers in the Impreza line while simultaneously "adding" horsepower to the WRX (while at the same time keeping the hardware with the Impreza GT).

 

You can see it in the advertising, you can see it in the website, you can see it in the tactical programs (like the lifestyle identifier badges they're giving away). Instead of throwing away the very powerful brand loyalty they have developed with those segments, as they would if they were "going mainstream," they are working to make those segments bigger and draw in new customers to become passionate about the brand.

 

They aren't moving away from symmetrical AWD or the Boxer engine. Doing so would be counter to their core segments. However, they can make logical deviations without moving away from the niche approach. Niche is about the customer, not the company. The FT86 would grow their strength in the boy racer segment, even without AWD. If they can make it light enough, it would be a seriously great little segment-expander. Heck, I'd want one if it was Lotus-light, and I could afford one a lot easier than an Exige.

 

All this actually kills the argument that they don't care about the extremists in their core segments. They care A LOT about what NASIOC collectively thinks. You can practically see them move when a clear direction comes from that group. Subaru's moved faster in response to NASIOC than almost any company moves in response to customers. Look at the 2011 STi sedan. Maybe that was planned, but much more likely is that it's a simple response to the most vocal and passionate members of one of their core segments. To do niche marketing right, you listen most to the leaders of the "tribe." It's all about getting people to care about your products, your brand, and make noise about it to other people who listen to them.

 

Now, whether that means they care about what we say here on LegacyGT.com, that's another story. I think we're a fringe group to the two core segments. We don't quite fit into the boy racer segment, and we don't quite fit into the tree hugger segment. They have a very clear and defined Legacy customer segment in Japan. They nurture that segment carefully. They could do it here, but something seems to be holding them back. My guess: their market research shows that to win in our segment, they'd have to put more money into the cars, but we're not willing to pay the price. We want BMW performance without the BMW price tag. And, in the end, you get what you pay for.

 

This/\ well said Duke, you covered alot of excellent points there.

[The B4]

To win our segment they would have had to not completely dilute and de-content the Legacy.

 

If they had just updated the BL, slightly lengthened it, maybe very slightly widened it, and kept the dignified sleek styling, and the option content that it had, and not uglified the interior, either.

 

The performance wasn't a bad thing, on the previous car, nor the current Legacy GT. They seem to have figured out the damping, which was something that should have been done in the first place, to be honest.

 

They could have kept the Spec.B's 6MT and instead, spent the money making the 5EAT more robust... I'm just sayin'...

 

They also could have offered the 2.5 GT and 3.6R with the choice between the 6MT and 5EAT gearboxes, both with VTD AWD. Again, just sayin'...

 

They could have built on the previous Legacy's strengths with a bit more here and a tweak there.

 

They didn't need to pretty much scrap the BL design altogether, and make a CUV with the back cut off and turned into a sedan trunk, with a bland aft end.

 

If they had updated the Legacy by building it up, rather than completely changing course, I might still be interested, as well as other folks who liked the premise of the 2005-2009 model.

 

Plus all the people who wanted the rear seat leg room would have still had that improvement.

 

Audi did a FAR better job of improving the A4 from 2008 to 2009, a full upgrade, without losing the appeal or the premise.

 

 

The numbers speak for themselves. Your pontification doesn't.

[IwannaSportSedan]

You can't extrapolate that.

 

Maybe if they had done what I said, for 2010, instead of what they actually did... Maybe it would be selling even MORE. Un-implemented ideas cannot be quantified, compared to an alternative that was implemented. One has to use reason, and I am left to hypotheticals, since Subaru didn't build it that way.

 

If the big thing was rear seat leg room and a bit more interior room over-all... and the engine upgrade and damping fix were implemented; but the car had not been decontented, and the UGLY bodywork wasn't ugly and overly bulky, but rather something that people could enjoy, rather than have to over-look...

 

...sounds like all upside, and not a lot of downside to me.

 

Or do you honestly think that questionable aesthetics, and fewer standard and optionally available features, actually sells more cars than something that is more widely seen as attractive, with a better value for the dollar?

 

Do you usually go out of your way to buy ugly, or at the minimum, "controversially styled" products?

 

Most people would prefer that the appearance be in the plus column of their buying criteria, even if it isn't the only criteria on the list of considerations. It makes the sale, and the experience of ownership easier, and more enjoyable.

[MJ in PA]

To win our segment they would have had to not completely dilute and de-content the Legacy.

 

If they had just updated the BL, slightly lengthened it, maybe very slightly widened it, and kept the dignified sleek styling, and the option content that it had, and not uglified the interior, either.

 

Exactly!

[nemo]

guys, enough already. the horse has been beaten to soup and is now flowing into the sewers while you keep pounding on the ground.

 

Subaru change the demographics of the Legacy. They tried to keep some customers while majorly expanding the customer base into a more mainstream alternative. Hence, the competition with Toyota and Honda now.

 

They obviously knew they were going to lose some customers (us) because of that, but they simply don't care because the mainstream group is more than making up for our loss in sales.

 

Just ACCEPT IT and move on.

 

I was super excited for Subaru to unveil the 2010 Concept. I was ready to trade in my newly purchased 2008 for the 2010 GT (if you go back far enough, I know I posted it plenty of times!). But when it was unveiled my heart sank and I knew I would never purchase the 5th Gen. Subaru doesn't want me as a customer any more and I've accepted that. I'll get another car next time. It's not that serious.