Subaru aims to grow beyond niche without losing core customers
For all of the Nineties and most of the Naughties, Subaru was known for standard all-wheel drive, gobs of ground clearance, and great gas mileage. They were the kinds of vehicles that could go anywhere and bring any gear and sustain the ecosystem to which you were bringing your roof-mounted kayak.
My aunt and uncle are quintessential Subaru people. A pair of aging hippies who live in upstate New York, they look for transport that can tackle snow, sip gasoline, and repel McCain/Palin bumper stickers like the wrong end of a magnet. They brag that their 2001 Forester and 2004 Legacy are even groovier than the VW Bus my uncle called home in the ’70s. But for their next cars, my aunt and uncle are looking elsewhere.
Why? Because Subarus have become too conventional, they claim.
Subaru used to be as alternative as a Nirvana concert. But in the past five years Subaru has decided to graduate from college and ditch the flannel wardrobe. Why go mainstream now? And can the brand retain its existing core customers in the transition to adulthood?
Subaru’s interesting reputation has largely been the result of interesting products. Its quirky car lineup served two loyal niches: blue-state liberals and red-blooded car enthusiasts. Polar opposites at first glance, the two demographics were united by their love of standard all-wheel drive and by their respective penchants for the peculiar.
The first group, which my aunt and uncle fall into, could be described as outdoorsy, off-the-beaten-track types. They loved the unique combination of utility and frugality. Subarus were segment-buster and they had character.
There’s no way you’d find The Man sitting behind the wheel of a Subaru. This is the brand that produced the Outback, a “Sport Utility Sedan” with the ground clearance of a Dodge Durango. This is the brand that gave us the Forester, which GayWheels affectionately called, “a woman-appreciating superhero in sheetmetal.” And this is the brand that brought you the BRAT, a high-mpg cult classic car with a pickup truck bed.
The automaker’s other group of loyal followers are adrenaline-junkie boy racers who love Subaru’s unique take on practical performance. It turns out that the same all-wheel drive system that can claw through New England winters is also great for carving up twisty roads.
Inspired by their success in World Rally Championship racing, Subaru released the Impreza WRX and STI in North American as performance flagships. With their gigantic hood scoops and enormous rear wings and Porsche-inspired turbocharged engines, enthusiasts were drawn to the brand.
Look at Subarus today, however, and you’ll see products and advertisements intended for – gasp – normal people!
The brand is now hoping to lure buyers away from mainstream adversaries by conventionalizing its entire vehicle lineup. From a numerical standpoint the plan is working. Subaru sold more cars than ever in 2009 and is on track for a new record in 2010. A sign of success with the everyday crowd: Subaru won the Automotive Lease Guide’s 2010 Best Mainstream Brand award.
But lest you think that Subaru is giving up pine trees for profits, consider that the brand won a 2009 Corporate Responsibility Award from GLAAD for its ”long-standing and public commitment to the LGBT consumer.” Subaru’s factory in Indiana is also the first of its kind to reach zero-landfill status; 100% of waste is reused or recycled. And every new Subaru product is at or near the top of its class for fuel mileage.
Though the styling may be less quirky than it once was, Subaru vehicles can still go anywhere, carry everything, and sip gasoline without breaking the bank. The sales numbers and awards are proving that it is possible for a small brand to grow beyond niche status without losing its core constituency. And that means that there’s a whole new group of Subie owners who will Feel The Love.
