WER - World Eye Reports
2007 REPORTS > CANADA - March 26, 2007
CANADA
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Subaru takes on the market on its own terms  
Katsuhiro Yokoyama, chairman, president and CEO of Subaru Canada
Although the catchphrase ‘‘Doing common things uncommonly well’’ was not invented by Subaru Canada President and CEO Katsuhiro Yokoyama, he has taken it to heart in managing Subaru’s daily operations.

Since coming to Canada in late 2005, Yokoyama has implemented a more transparent and accountable system internally while at the same time brainstorming with his staff to identify what exactly Subaru does well in Canada and what it needs to improve.

‘‘Subaru is known for two things: a) its all-wheel-drive (AWD) system balanced with good stability and handling; and b) its safety standards. Other makers have AWD systems, but Subaru’s goes anywhere, in any weather. We sacrifice neither comfort nor stability with our AWD. Similarly, all manufacturers claim to aim for safety, but we consider ourselves ahead,’’ claims Yokoyama.

With Canada being one-tenth the market size of the United States, systems and products are often developed for the U.S. and then shifted to Canada by default. But, Subaru has learned that this strategy may not be an optimal one.

‘‘I am vocal in claiming that the Canadian market is slightly different from the U.S., and should be approached differently in line with Canadian tastes and preferences. In Canada, for example, price and fuel economy are important when purchasing an automobile while in the U.S., exterior styling and quality are more important,’’ says Yokoyama.

‘‘Demographically, it is interesting to note that Subaru’s largest customer base is the retiree group. In order to increase our business, we need to attract a younger base. As price is important to younger customers, one of our new compact models in 2007, the Impreza, will target this group by carrying a more affordable price range,’’ he adds.

This new market approach should help Subaru Canada achieve its goal of selling 25,000 units by 2010, a considerable increase over the 16,190 sold in 2006.

Although educating Canadians on the merit of Subaru vehicles is high on Yokoyama’s list, what is more important is getting them inside an actual vehicle. ‘‘We know our cars are great for the climate of Canada, but it is not so important what we think. What is more important is what our customers think. If any one customer gets into the driver’s seat of a Subaru, we are confident that they will be pleased. Our mission, then, is to get them behind the wheel,’’ Yokoyama stresses.

As the front man of Subaru, Yokoyama has put energy and effort into its dealer network by way of increased training programs and the Subaru Advantage initiative. This program, initially undertaken in Quebec in the spring of 2006, looks to reverse the dealer strategy of talking to a potential customer 80 percent of the time about the price of the car and 20 percent about the car itself.

‘‘By reversing this ratio, the chances of showing our customers how Subaru is a better fit for them increase tremendously. This is the time we encourage our customers to get behind the wheel and feel the Subaru experience. This is when we remind our customers exactly why driving is such an enjoyable activity. After all, there is no magic solution in the auto industry. We have to focus on the very basics. We have to do common things uncommonly well!’’ he says.

www.subaru.ca

 
 
Table of Contents
Country Information
An economic partnership gets fresh boost
Honda: a case study in successful Japanese investment in Canada
Toyota forgets the competition but not its customers
Two world-class Canadian cities take center stage
British Columbia offers a winning brew
Bayshore offers more than a suite with a view
New leadership refocuses high-tech company’s efforts
Vancouver, Canada’s western capital, prepares to host the 2010 Winter Olympics
Hitachi ‘inspires the next’
Konica Minolta takes it to the top
Canadian IT company places Japan at forefront of localization efforts
Shiseido refines the art of branding
Japanese pulp operations face new challenge
Staying at the top of the heap
Things heat up for Yamaha
Adaptability in a rapidly changing market leads to quick growth
Subaru takes on the market on its own terms
Sony leads the high-definition entertainment revolution in Canada


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The Canadian government’s Web site contains the latest national news, information on immigration, taxes and even the weather, as well as services that can help you to start a business in the country. http://canada.gc.ca

 
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