Subaru Case Study - The Arthur Page Society

considered. First, Subaru is a small Japanese auto manufacturer offering six automobile models
compared to Ford Motor Co., a large U.S. auto manufacturer offering 16 (consumer) automobile
models. Subaru sales represent a mere fraction of Ford’s, and the former has a history of
targeting progressive, liberal niche markets – gay or straight – to sell niche car models. Ford, on
the other hand, is a mainstream brand targeting a wide variety of consumers, both liberal and
conservative. Ford was the sixth largest U.S. advertiser in 2008 spending $1.4 billion, whereas
Subaru’s 2008 advertising budget dwarfs in comparison (~$200 million).
Because of their differences, both companies face unique challenges moving forward as
they continue to strengthen and diversify their relationships with gay and lesbian stakeholders.
However, given Subaru’s successful relationship cultivation and unwavering commitment to the
gay and lesbian communities, the company’s niche integrated communication efforts have been
more successful than Ford’s – particularly considering how Ford initially handled the AFA
boycott. Subaru has positioned itself as more than a car company seeking to capitalize on the
gay/lesbian dollar, but rather as an ally to gay and lesbian stakeholders.
SUBARU’S CURRENT DILEMMA: IMC SUSTAINABILITY
As competition increases and more automotive companies develop relationships with gay
and lesbian stakeholders, Subaru will need to retain its competitive advantage using both
advertising and, even more so, public relations tactics. Between 1995 and 2005, Subaru’s
competition was largely luxury automotive brands that targeted consumers of a different
socioeconomic status. New gay and lesbian media outlets have appeared regularly within the last
decade, therefore providing fresh, unique, and diverse avenues for Subaru to reach its brand loyal
gay and lesbian consumers. As evidenced by Subaru’s penchant for sponsoring new gay-targeted
products, if more products are not created in the near future, print readership continues to decline
in general, and advertising audiences and dollars continue to move away from traditional media
sources, Subaru must keep diversifying its integrated marketing communication efforts in years
to come. In the highly competitive automotive industry, it is necessary for Subaru to prove that
its gay and lesbian IMC strategy is sustainable into the next decade as well.
Furthermore, although a loyal contingent, gay and lesbian consumers represent just one
of Subaru’s niche markets. While the market has proven to be a lucrative, loyal consumer base,
not all gays and lesbians consume gay-targeted media and therefore may be unaware of Subaru’s
efforts. The auto manufacturer needs to reach additional consumers regardless of their sexual
orientation. As Jim Hall, an auto analyst with 2953 Analytics, states, “You don’t grow by selling
to the people you’ve sold to before.” 246 To remain competitive in the U.S. automotive industry in
the long-term, Subaru needs to grow its consumer base by pursuing other niche markets without
damaging the relationships it has cultivated thus far.
27