Written Summer 2012

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Strategic Brand Management Independent Study, Summer 2012
Janessa Shaikun
Final Report: “Brand Audit – Reinventing the Buick Name”
Executive Summary
The significance of branding is undoubtedly of utmost importance in fiercely competitive
markets such as the auto-industry. The Toyota recall and General Motors bailout show us how
quickly a brand perception can be altered, and how quickly strong companies can bounce back.
As cars have evolved in the past century, branding methods must do the same. With
standardized parts, platform sharing, and oodles of technological “bells and whistles” becoming
universal, Auto companies are forced to find new means of differentiating. The General Motors’
rollercoaster ride in the last five years and their diverse brand segments make GM an ideal
choice when conducting marketing studies. Buick is specifically of interest because they are
desperately making efforts to change the negative public perception of the brand and its products
being for the elderly. They are heavily changing advertising campaigns to alter their image and
appeal to younger markets while also reinventing themselves as a true luxury brand. Though
2011 brought in strong numbers, GM has found the sales of the revamped Buick are slowing,
while the other GM models are hitting record highs. Whether this is an indication of a long term
decline again is unknown. This paper comprises an effort to analyze Buick’s branding through
measuring brand awareness and brand image as well as offer recommendations to facilitate brand
equity improvement and ensure Buick has a niche within the overall GM branding.

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Brand Background
General Motors
In 1908 GM was founded by William Durant and Charles Stewart Mott as a holding company for Buick.
They grew over the decades,becoming an iconic household name. Historically, General Motors (GM)
has seen success throughout the years by targeting very distinctive market segments, and each
car had specific characteristics that kept it unique among competing vehicles (General Motors -
Corporate structure and issues, n.d.). GM’s marketing aimed to get customers at entry level car
buying, establish strong brand loyalty, and keep the customers as they entered different life
stages. Due to this, the different brands were not competing since the profit ended up in the
same end place. From the high utility low price Chevy to the luxuriously branded Cadillac, the
marketing plan offered a car to every segment. GM used celebrities to enhance an image of big,
powerful cars and had market advantage from being the original American car manufacture
(Stein). As competition increased, GM began to stray from some of their core branding strategies
and hurt the brand equity in different ways. For example, many of their bold marketing plans did
not pan out. They wrongfully predicted a rise of family sedans in 80’s and 90’s, and then passed
on hybrids. Another failure, the “not your father’s car” branding campaign put a final end to the
Oldsmobile (Welch and Buicke, 2005). Their brand associations became gas guzzling low
quality cars. Other issues that developed with GM’s marketing were a lack of focus on customer
retention, weak value proposition with showroom and sales only focus, and inattention to
consumer research. This all contributed to their decline in reputation prior to bankruptcy which
naturally in itself diluted the brand. Post bail-out, as part of General Motors Corporation's
reorganization as General Motors Company, the content and the structure of its brand portfolio
was also reorganized. The brand nameplates like Pontiac, Saturn, Hummer, and Saab were
eliminated. The practice of putting the "GM Mark of Excellence" on every car, no matter what
the brand, was discontinued in August, 2009. The company has moved from a corporate-
endorsed hybrid brand architecture structure, where GM underpinned every brand to a multiple
brand corporate invisible brand architecture structure. The company's familiar square blue
"badge" was removed from the Web site and advertising, in favor of a new, subtle all-text logo
treatment (Parker). With Saturn, Saab, Pontiac, and Hummer eliminated, GM needed to show
diversity in their current brands and distinctive styles. The GM marketing plan after bankruptcy
has been to focus on “customers, cars, culture,” which is needed to compete with other major
industry players that were already putting this as a priority. They are promoted reliability, high
technology, and being cost effective as product benefits. This is exactly what GM is attempting
to do with Buick and hopefully reverse the change Buick has had from GM leader to GM
straggler.
Buick

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Perhaps the Buick name has been tarnished as a car for the elderly in part because of its huge
success early on. The official incorporation date was in 1903, but the Buick Brand dates back to
the 1890’s. The name came from David Buick, a Scottish successful plumbing field inventor
turned auto engine producer. David’s Scottish heritage is also responsible for Buick Motor
Division's well-known "tri-shield" emblem, though the Buick logo has been transformed
throughout the years multiple times as seen below:
Though forced to sell just a few years later to William Durante and move the plant to Flint,
David Buick remained in a management position and the name was kept, thus forming one of the
first huge auto car brand names. By 1908, Buick was the largest car manufacturer in the country
and continued to thrive with the help of David Buick’s team, which included Louis Chevrolet
and Wild Bob Burman. Buick won a plethora of trophies, creating a name that was successful
enough to create a large holding company – General Motors (GM). Within the next two years,
GM owner Durant acquired a large stake in other car manufacturers and suppliers, including
Cadillac, Pontiac, and Olds. Durant teamed with race car driver Louis Chevrolet, with whom he
created the Chevy, and the rest of the GM brands were born (Buick Brand History).
Buick roared in the 20’s as a luxury brand, becoming the car choice for leaders around the world.
Since the Buick was considered to be a luxury item, it got hit very badly with the great
depression. But Buick managed to withstand the depression and other obstacles with unique
styling and strong engineering and continued to be an industry leader for decades (Buick Brand
History). However, in the mid-end of 80’s, Buick made a few bad-engined mistakes during a
time they needed to excel. They began losing their customers to upscale import competitors, a
feat most GM brands would face. Though they tried to differentiate by introducing a luxury
coup and convertible in the 90’s, the core product continued to be luxury sedans aimed at an

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older audience, rooting brand image problems today. Being under the GM umbrella, also meant
they faced the negative image the GM brand was developing of low quality and terrible gas
mileage.
Throughout the years, Buick used a number of marketing techniques to establish brand
recognition. A few notable efforts include: “Buick Magazine” celebrating their international
expansion by featuring a hill-climb victory in Africa and trek through New Zealand; sponsoring
the Buick Open at Worldwick Hills in the 50’s which started what became a long term dedication
to golf; placing a 1988 Buick Roadmaster in the Academy Award Winning movie, “Rain Man,”
(CARTYPE - a museum of automobile typography);partnering with Martha Stuart in 1996 to
introduce the 2006 Lucern. The last exemplified who their audience was becoming.
Current Market Position and Techniques
The complex historical components, especially in the last few years have led to a constantly
changing image for General Motors. Toyota surpassed General Motors in worldwide vehicle
sales during the first three months of the year 2008, marking the end of one of the longest runs of
dominance in all of global industry and another milestone in America's long decline from
unchallenged industrial dominance. GM regained its title in 2011, but the first two quarters of
2012 have gone back to Toyota.
Though the number of name plates has been cut, GM is still situated in a manner as to compete
in every market segment. But, each brand must perform. Its Chevrolet models cover the high-
volume middle-of-the-road market while the Cadillac banner is positioned to accommodate the
high-end premium-priced car segment. Buick positioning itself in between could be a true test of
GM’s ability to thrive in the long run. Presently, the customer base is changing industry wide as
the major driving demographic shifts from baby boomers towards their children, Generation X.
This new demographic target group demands increased tech-savvy futures that allow for more
seamless integration of their devices to which they have grown accustomed. Also at work are
strong socio-cultural forces as vehicles in today’s society are a major image statement with
strong ties to social class. Interestingly, the millennials seem to be less interested and less brand
loyal when it comes to vehicles than previous generations. In a survey conducted of 3000
millennials, respondents were asked which brand they preferred. Not one car brand was included
in the top 10. High gas prices, environmental concern, and the ability to communicate through
technology without having to drive all contribute to this (Chozick). Though this hurts GM
overall, the fact that this group is not very brand loyal could improve Buicks chances or reaching
this crowd if they are able to change their perception.
As one can see, Buick’s brand position certainly has its issues. Most recently they were ranked
number 18 out of 20 in Consumer Reports “Best Brand Perception” reports, a number they need
to improve on badly. In fact, the only reports they score well in is customer service, but they
need to get more people enjoying and talking about their positive experiences to really utilize

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that strength (Ranking per brands). Another positional concern is that GM is trying to have
Buick compete with import models such as Acura and Infiniti, but according to Edmunds.com,
consumers that were test driving Buicks were lumped with those considering Fords and Toyotas
(Healey).
The brand’s weaknesses are without doubt challenging, but Buick does have notable strengths
and opportunities. Buick is the number one seller in China; they were one of the first foreign
brands to enter the country so dealers and consumers alike have emotional connections. There is
also potential to grow in other emerging markets that do not have strong brand awareness, thus
lack the elderly association. In the U.S., Buick has been trying to rebrand since shortly after the
Government bailout and deciding not to let the brand go, and they are making progress. The
average age started to drop, they started appearing at food and wine tastings, loading cars with
DVD players and Navigation systems. In fact, Buick is the only brand that has actually reduced
the average buying age. The 2011 “Luxury as it Should Be” campaign helped boost sales for
the year. They have added new vehicles such as the 2012 Verano, which will have a turbo
engine added in 2013, and the sleek Encore, a smaller version of the Enclave, that will also debut
in 2013. The Buick Verano was a finalist in Motor Trend's recent Car of the Year competition
(Krantz). They are going back to one of GM’s successful strategies with celebrity advertising,
featuring bikini model Marisa Miller, actor Ving Rhames, and football all-star Peyton Manning.
Their 2012 campaign, “Experience Buick” allows buyers to try their vehicles starting at very
reasonable monthly rates by only setting a two year obligation. They also include On-Star,
Sirius XM, and all vehicle maintenance services. Every 2012 Buick model is rated a Top Safety
Pick by the Insurance Institute for Highway Safety. Although thus far sales have decreased in
2012, there is plenty of time to make that up. For example, August 2010 to August 2011 only
saw a 4% increase, yet they finished 2011 with over a 14% total increase for 2011 (Krantz). See
appendix 1. Buick is also taking steps that they hope will avoid brand dilution as a non-luxury
brand (though eroding current sales) such as removing rental car sales and lowering incentives
outside of their lease campaign. That choice is questionable given having as a high end rental
option would get people to “experience buick.” Ultimately, what many analysts are saying
makes sense - "Buick is a brand in major transition, and it isn't going to be immediate. It will
take time," says Ed Kim, vice president of industry analysis at consultant AutoPacific (Healey).
ResearchOverview
Understanding consumer-brand relationships is of critical importance when predicting consumer
behavior, and also has implications to relevant areas this report explored such as brand loyalty
and brand equity. Qualitative and quantitative techniques were employed through surveys and
depth interviews to measure General Motors and Buicks brand awareness and brand image.
Questions and methods incorporated included brand recall, brand recognition, association
techniques, picture response techniques, brand evaluation and purchase behavior. Given the goal
of lowering the age of Buick’s market, participants were 28-40 and of mixed gender. The closes
PRIZM classifications would span Young Digerati, Young Influentials, and the best match

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would be Up-and-Comers. Unsurprisingly based on secondary research, the consumers for the
most part did not have the reactions to the brand that Buick and General Motors are striving for.
It did however show that some segments of this demographic may be swayed in certain
scenarios.
ResearchFindings
One of the most integral aspects that can affect brand image for Buick is advertising through
their “Experience Buick” campaign. The majority of the online survey respondents stated that
they had seen a Buick ad of some sort in the previous year, and of this group 89% cited TV
commercials. These answers suggest TV is a functional method in establishing brand awareness.
However, advertisements did not necessarily have a positive change in brand image. In depth
interviews, we discussed the Buick TV commercials in more detail, and the interviewees were
shown a picture taken from the commercials featuring Peyton Manning. The commercial was
recognized due to Manning, but the name Verano was not. The consensus was along the lines
that it didn’t seem that believable, and even if it was, Manning lacks the “cool factor” for males.
If males are the Buick Verano target for these ads then they have missed, but it is doubtful
Manning would be the most attractive athlete to appeal to females either. Interviewees were also
shown a photo from the advertisement featuring super model Marissa Miller for the Enclave,
then asked to tell a story. One interview said he envisioned this as his wife, that she was high
class, made more money than he did, and they were having a romantic encounter. Something
along those lines is likely what Buick was hoping for from men. The female perspective was a
bit more transparent:
“We have a gorgeous lady, who is probably high maintenance, sexily posing against a shiny, new
SUV. Because we assume she has amazing taste, we can also assume this vehicle is “good”
enough for her to be seen in, therefore making it acceptable for us to buy – because who doesn't
want a beautiful woman leaning up against our car?”
Although some positive feedback was found in depth-interviews, the Buick brand image has not
yet significantly changed, especially among survey respondents. Innovative, high-tech, and
stylish all scored between 0-4% in attributes associated with Buick (see Appendix 2), which is
problematic given these are aspects Buick have included in new cars that are not being
recognized by possible buyers. Image ranked the number one quality that would convince a
customer to purchase a Buick followed by price and style, which with the Verano they have
accomplished the last two. Bear in mind, these rankings were nearly opposite of those findings
of consumer reports, clearly a more thorough source, but this is understandable given the survey
for this project was a much specified segment. See Appendix 3.
When using brand recall to measure brand awareness, I asked survey respondents to name off
hand up to ten car brands, and only 6% listed Buick. When specifically asked about the brand
name and ads, everyone did know the Buick name and most had seen ads this year so there is

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some brand recognition. When asked to name Buick models, the Enclave and Verano came up
one time. These are the newer cars that are helping to drive the advertising campaign and alter
the brand image, suggesting more emphasis should be placed on the individual models that are
less known. Even when directly asked if they had heard of the Verano, the vast majority had not.
On the positive side, when shown photos of both of these models, they appeared to be more
appealing than other models they were familiar with, and changed the opinion of the brand for
more than half of the respondents. Phrases such as “sportier than expected,” “no longer
Grandma’s car,” and “now seems sleeker and more modern” were all used.
Building Brand Equity Suggestions
One area Buick needs to improve is their social media presence. The icons are tiny on the Buick
web page. The “share the experience – experience Buick” campaign should be more prevalent in
their marketing; people will need to see that other younger people are buying to change their
current demographical image. Not only do they need to get more involved, they need to
strategize and find ways to stick out. It may only take one great executional idea to really make
a difference. For example, let’s examine the Buick Facebook page. The first four widgets that
come up on a brand page are huge focal points which in this case are “Photos,” “e-assist games,”
“Human Highlight Reel,” and “Experience Buick.” The “Human Highlight Reel” has no
comments or engagement – this should not be on the homepage. The e-assist games are a
brilliant way to engage a younger audience and show competitive differentiation, as their
competitors do not have this. The games test players driving skills in an interactive fun fashion,
while advertising the brand and the vehicles various “e-Assist Technology” features that are
inside the car. Research has shown that high-tech is an area not associated with Buick and
marketing the game would be an excellent way to show Buick’s technological capabilities both
inside the car and as a company. Furthermore, they also have an iphone and droid application,
and games such as Words with Friends and Angry Birds have shown how quickly a phone game
can go viral. Another Facebook feature Buick has done very smartly is the “owner stories,” but
they don’t pop, you have to search for that section. Knowing the importance of word of mouth
and emotions in branding, the personal stories portion should be an area of priority. In addition,
both the game and personal story sections should be promoted in other various marketing outlets
in addition to Facebook, from the company website to the follow-up letter sent after a purchase.
The follow-up right now is huge; the company really needs to go above and beyond to make sure
the newer buyers are being brand ambassadors. They currently have less than half the number of
Facebook “likes” compared to competitors (Facebook Buick).
Buick also needs to find more diversity in their incentives without cheapening the brand name,
from web engagement to simply getting people in the door of the dealerships. To instigate more
test drives, options could include a free car wash for coming in for a test drive and corporate
giveaways at the dealerships. To increase web interaction and site visits, they could have
contests for who tells the best Buick story or have a huge sweepstakes where they ultimately put
someone in a new vehicle, which would generate PR. Though this notion of promotion via

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incentives for brands that would like to be considered luxury is debatable, a focus group study
conducted by the Federal-Mogul Corporation showed that participants strongly prefer premium
brands and products that are offered in conjunction with special offers (Ross).
Another area to work on regarding image is within the dealerships themselves, based on the
dealership visits conducted during the research process. Though the staff was very friendly and
accommodating, their demographic somewhat matched the image still associated with the Buick
name. The salesman I specifically spoke to admitted he didn’t have a smart phone yet, and
didn’t really understand the technology aspects the new Buicks are trying to promote. When
visiting the nearby Lexus dealership, the salesman I spoke to was younger, well dressed and
could relate to people my age. The Acura dealership was in between. Naturally, you cannot
simply replace your current team, but they can try to bring in a few people that will be there
specifically to sell to younger people, and make sure the older sales members are trained to be
tech savvy. A company cannot fully engage a customer in this kind of industry if the customers
are unable to have the right kind of conversations with the dealerships. “Fully engaged” retail
customers spend more and return more frequently than those who are disengaged. Retailers that
have taken action to enhance their customer engagement by capitalizing on the engagement-
building skills of their own customer-facing employees have seen double-digit increases in both
sales and profit per square foot. (McEwen)
Lastly, Buick should expand the breadth of the qualities that make their brand appealing. They
are strongly focusing on design and style along with technology. This is indeed key to changing
their image and appealing to a younger generation. However, overall, those two qualities still
score the lowest in Consumer Reports studies that measure the most important factors the
population as a whole considers when purchasing a new vehicle (Best Car Brand Consumer
Report). See Appendix 3. The number one factor is still safety, which Buick’s newest cars have
scored extremely high in and this should be integrated into their marketing.
Conclusion
Buick has been an American icon for over a century, with the brand representing the roots of the
auto-mobile industry. But time might not be on their side anymore as they have started to
transform to a “has been.” The company’s growth over the decades, setbacks notwithstanding,
shows what Buick is capable of under the General Motors (GM) umbrella. Buick understands
the need to adopt multiple strategies which will enable the company to compete with the likes
other expanding automakers. To do this, they need to continue to reinvent all components of the
current market’s Buick brand knowledge. While this will not be a small feat, the development
of a sound brand management plan and continued market research can enable the Buick brand
name to make a comeback over the next few years.

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Brand Positioning Statement
“For customers who want luxury, comfort, cutting edge technology, and performance, Buick
provides the safest and smoothest driving experience with their reliable fuel efficient vehicles.
We are luxury yet affordable – ‘Luxury as it Should Be’.”
Appendix 1:

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Appendix 2:
(full listing of additional questions are present in the “autosurveysummary” attachment)
Appendix 3:
Factor 2012 (%) 2011 (%)
Safety 65 65
Quality 57 57
Value 51 51
Performance 49 47
Environmentally friendly/green 29 28
Design/style 24 25
Technology/innovation 18 17

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