Introducing SEAT into the U.S. market

Global Marketing and Strategy

• What is SEAT? It´s history• Company profile• SEAT models• How?– Ibiza– Volkswagen?–Where?

• Autoemoción: defining values• SEAT in Spain: position and segments

INDEX

WHAT IS SEAT? IT´S HISTORY

Introducing SEAT into the U.S. market

What is SEAT?

Video

• Only Spanish automobile company• Founded in 1950 by the Spanish

Government• Developed the car market after the

war with affordable products• FIAT: technological partner

What is SEAT?

• Part of Volkswagen Group (7.2 million vehicles sold in 2010) since 1985

• Sales leader in the Spain

What is SEAT?

COMPANY PROFILE

Introducing SEAT into the U.S. market

• 340.000 units sold in 2010• Net sales: $4.6 billion• Product facilities in Spain (Barcelona)

and Portugal• 11.000 employees• Export ¾ of production• Present in 73 countries

Company profile

SEAT MODELS

Introducing SEAT into the U.S. market

Mii

SEAT models

León

Altea

SEAT models

Exeo

Alhambra

SEAT models

Ibiza

HOW?

Introducing SEAT into the U.S. market

• Just one model: Ibiza• To be distributed by the Volkswagen

network• Expands Volkswagen portfolio

(smaller than VW Golf/GTI)• Two variations: Bocanegra & Cupra• The most sporty and equipped

variations

Ibiza

• Engine: 1.4 TSI 150 HP twin charged

• DSG automatic transmission (7 gears)

• Sporty suspension• Max speed: 131 m/h• Fuel consumption:

– Urban. 34,9 mpg– Hgway: 53,3 mpg

Ibiza Bocanegra

• Engine: 1.4 TSI 180 HP twin charged

• DSG automatic transmission (7 gears)

• Sporty suspension• Max speed: 140 m/h• Fuel consumption:

– Urban. 34 mpg– Hgway: 53,3 mpg

Ibiza Cupra

• Two options:– Develop SEAT brand in the USA • Scion model• More investment

– Distribute the Ibiza as VW Ibiza, expanding VW product line• Does Ibiza match the VW values?

Volkswagen?

• Southern US: California, New Mexico, Arizona, Texas.

• Focus on major cities: San Diego, Los Angeles, Phoenix, Austin, Houston.

• Capitalize on the familiarity of the product in Mexico (2.7% market share, 13,000 cars sold)

Where?

AUTOEMOCIÓN

Introducing SEAT into the U.S. market

• A range of cars delivering the thrilling combination of superior engineering and pure enjoyment

• SEAT is a dynamic, design-driven, young-spirited brand, constantly seeking to create new levels of quality car enjoyment.

• SEAT is Spanish. And German. • SEAT is passionate perfectionists.• SEAT is emotional technologists• SEAT gives design a purpose. SEAT

brings technology to life

Autoemoción

Autoemoción

SEAT IN SPAIN:POSITION AND SEGMENTS

Introducing SEAT into the U.S. market

SEAT in Spain: position

Passionate

Upper class rational

Upper class passionate

Lower class rational

Lower class passionate

The exotic

The elitist

The sporty

The What??

The practical

The show-offs

• Gearhead– Loves driving– The car is a

hobby– Risk taker– Low income– No family

responsibilities

SEAT in Spain: segments

• Impulsive dad– Second car– Small

adrenaline boosts

– Income available for other activities/needs

– Low/medium income

SEGMENTS

Introducing SEAT into the U.S. market

• Gearhead– Be different– Sporty– Economic

Segments: Why?

• Impulsive dad– Fun– Feel young

again– Freedom

• Gearhead: He– 26 years– Construction worker – Rent studio– Live alone– No girlfriend– $7.000 in credit card

debt– Honda Civic 92– Lives in Hollywood– Spare time: friends, car,

going out– Travel abroad: Mexico– Gym: weight lift

Segments: Profile

• Gearhead: She– 23 years– Dental hygienist– Rent a room– Lives with a roommate

(friend of high school)– Boyfriend– $2.000 in credit card

debt– Honda Civic 92– Lives in South Central– Spare time: friends,

shopping, clubbing– Travel abroad: never– Gym: spinning, Thai box

Segments: Gearhead

Joey C.

Jennifer Rodrigu

ez

• Impulsive dad– 37 years– Garage manager – Owns a house– Wife and 1 child (7

years old)– $200.000 mortgage– Maxima 2009– Lives in Burbank– Spare time: sports bar,

family– Travel abroad: Mexico,

Paris (Honeymoon)– Gym: never goes

Segments: Profile

Segments: Impulsive dad

TomBrinkman

COMPETITION

Introducing SEAT into the U.S. market

Vital factors

Vital factors: hedging the risk

• Segment not defined in the US.• Purchase driven by feelings, not by

specifications.• Competitors quite different, but seen

as similar in the consumer´s mind.

Competitors: product class

Competitors: product class

Mini Hyundai Veloster

Mazda 3

Competitors: product class

Make Engine Horsepower Length MPG city MPG Hwy

Cargo volume (cu

ft)Price $ Passion/

Image

Mini Cooper 1.6 121 147 in 29 37 5.7 21.500 8Mini Cooper

S 1.6T 181 147 in 27 35 5.7 25.500 9Hyundai Veloster 1.6 138 166 in 29 38 15.5 19.300 5

Mazda 3 2.0 2.0 155 177 in 28 39 17 19.800 6

Mazda 3 2.5 2.5 167 177 in 22 29 17 24.200 6

Competitors: product class

Competitors: product class

Make Engine Horsepower Length MPG city MPG Hwy

Cargo volume (cu

ft)Price $ Passion/

Image

Mini Cooper 1.6 121 147 in 29 37 5.7 21.500 8Mini Cooper

S 1.6T 181 147 in 27 35 5.7 25.500 9Hyundai Veloster 1.6 138 166 in 29 38 15.5 19.300 4

Mazda 3 2.0 2.0 155 177 in 28 39 17 19.800 5

Mazda 3 2.5 2.5 167 177 in 22 29 17 24.200 6SEAT

Bocanegra 1.4 150 157in 35 53 10 21.000 7

SEAT Cupra 1.4 180 157in 34 53 10 24500 7,5

Competitors: product class

Category competition

Generic competition

INNOVATIONS

Introducing SEAT into the U.S. market

Innovations: Pit Stop Service

• Service provided by a truck

• Wherever and whenever the client needs

• Racing image

Innovations: e-replica

• No physical connection.

• Same format, apps and connectivity as cell phone/tablet/pc.

COMMUNICATION SAMPLES

Introducing SEAT into the U.S. market

Looking for trouble?Take your SEAT

NEW IBIZA BOCANEGRA

Take him for a walk. No need for the baggies.

NEW IBIZA BOCANEGRA

Entertainment on board?Take your SEAT

NEW IBIZA CUPRA