Saab 9-3: Market Positioning

Saab Enters Premium Compact Sport Sedan Segment

•First Saab in premium, compact sport sedan segment
•Focused on involving, “fun to drive” experience
•Sedan format broadens appeal
•Saab customer profile analysis
•Saab Unlimited customer focus

“The new Saab 9-3 is for modern, youthful professionals who are independent thinkers. They want a great driving experience and a car that sets them apart from the mainstream.”
– Knut Simonsson, Brand Director, Saab Automobile

The new Saab 9-3 Sport Sedan places Saab head-to-head against the established players within the premium compact sport sedan sector, offering a new, alternative, more self-expressive choice.

The new 9-3 will see Saab compete for the first time with a four-door sedan in the growing entry luxury, or compact, segment where it will be targeted at youthful, professional and business-oriented customers who want to enjoy a product offering sporty, dynamic performance without following the crowd.

In replacing the three and five-door bodystyles of the previous model, the new 9-3 Sport Sedan spearheads the biggest model roll-out program in Saab’s history. The launch of a four-door sedan format is the first stage in the creation of a bold, new family of cars, each model adopting a unique bodystyle and focused on the particular requirements of a different niche in the market.

Putting sporty appeal first
A key requirement in the design brief for Saab’s new sport sedan was the development of a clear “fun-to-drive” appeal; to deliver a rewarding experience with a high level of driver involvement.

Designed and built from “the driver outwards,” the new 9-3 gives Saab’s traditional philosophy a new focus. The outstanding qualities of the chassis, the refined performance of the turbocharged powertrain and the driver-orientated cabin are integrated as never before. The more sophisticated and involving driving experience sets a new benchmark for the brand.

It is a formula aimed at winning new “conquest” customers from other premium-class brands, as well as appealing to existing customers and those aspiring to move up from the “volume” sector of the market.

The development program for the new 9-3 has included the most intensive benchmarking process ever undertaken by Saab. The performance of key competitor products was compared across a wide range of parameters including: handling, ride, steering, braking, powertrain performance and refinement, interior functionality and ergonomics, build and materials quality, comfort and, of course, safety. The performance of the new Saab 9-3 in all these areas is designed to exceed, or at least equal, the best in the sector. Overall, it promises to set a new standard for the class.

Customer profile
Targeted customers are 30 to 40 year-old professionals. The new 9-3 is designed to appeal to a growing proportion of the market who want a sport sedan that is more distinctive, yet less ostentatious, than other products in the segment.

The typical Saab owner in the U.S. differs slightly from the segment averages. They are more likely to be female, married, have a graduate degree, and a higher household income.

Saab Owner Entry Luxury Segment Average
Married 72% 65%
College graduate 86% 70%
Post-graduate 43% 33%
Annual HHI $135,870 $111,405
Gender split 51% female 49% female

In the U.S., the qualities buyers require from a premium product, regardless of brand, can be summed up as: exterior style, reliability, fun to drive, manufacturer reputation, and safety.

Targeted range
In adopting a sedan format, Saab is confident that the appeal of the new 9-3 will be significantly broadened. Research shows that there are many more potential customers for a premium sedan than there are for a premium hatchback. The product range is structured to appeal to each of its target customer groups.

The range-topping 210-hp 2.0T Arc and Vector variants are expected to provide a highly-competitive alternative to current products from the established segment leaders. For the first time in the 9-3 segment, Saab combines the widely-acclaimed performance of its turbocharged engines with a sport sedan bodystyle.

For those moving up into the premium sector from a wide number of “volume” manufacturers, the Linear variant, with 175-hp 2.0 turbo engine, focuses on an attractive value while maintaining superior performance, safety, and impressive standard equipment content.

For current 9-3 owners, the new range is an opportunity to enjoy Saab’s latest technology, promising a significant step forward as a more sophisticated and much stronger, even more fun-to-drive automobile.

The new Saab 9-3 Sport Sedan offering addresses the entry luxury customer preferences. The entry luxury segment market is dominated by four-door sedans – with 98 percent of sales coming from that bodystyle. Over 75 percent of intenders prefer a four-door sedan compared to only 16 percent selecting a hatchback.

Saab Unlimited
Saab’s entry into the premium, compact sport sedan segment is being complemented by the development of a new marketing and retail strategy, Saab Unlimited.

At the start of sales, 300 dealerships in major markets around the world will have been upgraded and appointed in prime locations as Unlimited Partners. The branded style of these facilities and the services provided will meet the highest standards of customer care.

At a small number of prestigious, cosmopolitan locations, there will also be City Centers, aimed at taking the Saab brand out to where potential customers work, travel, shop or simply socialize. These sites are designed to give Saab optimum exposure as shop windows for the brand.