2010 was not a great year for many car manufacturers. The phrase underperforming analysist expectations has been bandied about quite a bit. Projections for the auto industry’s growth invariably include the words slow and steady.
Except, of course, for Subaru. Sales of Subaru’s offerings, which includes the Legacy, Outback, and Forester, are up over 22% in 2010. Look back two years, and it’s a staggering 50% increase in sales.
While this has been happening, the US economy has been in rough shape. People who don’t have jobs or who no longer have easy access to credit aren’t shopping for cars right now. Consumer confidence may be returning – but it’s taking its sweet time getting here.
And Subaru has their best year ever.
Not only are they having their best year ever, they’re having their best year ever while running the Share the Love campaign. In this wildly popular incentive (now on its third year) Subaru gives away $250 to one of five pre-selected charities when someone buys a new car.
Subaru’s doing extremely well with a campaign that urges people to give away money during one of the toughest recessions this nation has ever seen. In a world that seems overrun with anxiety and financial stress, Subaru is making significant strides finding people who have a need to share what wealth they have.
Most companies will tell you they’re after companies who want to save money. Subaru chose to focus on the ones who want to give it away. And look – it seems like they’re winning!
How Did They Know To Do That?
Subaru is doing what successful, dominant companies do. They’ve learned who their customer is – and not just on that easy, surface level. Demographic data provides valuable insights, to be sure – but there’s no ready way to enumerate the ranks of people who would be moved to purchase one model of car over another when the differentiating factor between the two is the chance to donate $250 to help homeless cats find new families. To get that, you have to go deeper. You have to understand on a profound and fundamental level what makes your customers tick.
Brand Modeling begins with the premise that we have to know who our customers think they are. How do they see themselves in the world? What type of person are they – and what type of person are they when they like themselves the best?
Subaru hit it out of the park when they hit upon the concept of almost effortless altruism. Even a cursory examination of their target market – or a quick conversation with one of the growing legions of Subaru loyalists, who are happy to ‘share the love’ with you – reveals a strong tendency toward social and environmental activism. These are people who like to give, who like to contribute to the world around them and leave the place better than they found it. These are traits they value highly – and when they see a car manufacturer espousing those same values?
They’ve been given a reason to buy that no other car manufacturer has given them.
That’s why Subaru has had the best sales year ever, pure and simple. They’re giving their customers what their customers value most – and a pretty good car, besides.