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The Japan Times
WORLD EYE REPORTS
GREECE







©THE JAPAN TIMES
Saturday, February 22, 2003

Power pushes automaker's active image

Subaru Motors Hellas has rallied its way to success in the Greek auto market. Through hands-on presentations during test-drive campaigns, showroom visits, exhibitions and rally competitions, Subaru has penetrated a complicated market. Their current image of quality and strong brand awareness did not come easily, though.

Their general manager, Theodore Clouvas, explains, "When we assumed control of the Subaru brand in 1996, we had to start from below zero, because previously Subaru vehicles were sold through small independent distributors who lacked quality customer support, service and parts. This gave Subaru a poor reputation and consumers did not give the brand the respect it deserves."

At the same time Subaru began building larger cars. Subaru completely changed its approach from marketing small reliable cars to focusing on high-performance and SUV vehicles. Subaru Motors Hellas restructured Greece's operations, changed its image, adopted a new business plan, and injected new capital.

Subaro Motors Hellas' General Manager Theodore Clouvas (left) and Managing Director Alexander Ellinas

For the first three years Hellas invested in the company's image instead of focusing on profits. Today it has succeeded in creating a top brand name in Greece and is continuing to increase annual profits. Subaru is currently the leader in the high performance car segment, with 25 percent of the total market.

The Subaru brand is more expensive than other brands in its segment, but consumers consider it to be of good value due to its quality and reliability. All Subaru vehicles have all-wheel drive performance and an extensive warranty program, giving them a competitive advantage over other cars.

Since 1999, long-term leasing has been an important portion of their business, currently leading to 60% of their sales. Due to this positive response, they are building demand for their active driving experience by inviting members of the local corporate community to test drive a car of their choice on weekends.

Especially attractive to Greek consumers is the best selling Impreza, which has a turbo charged 1.6 liter engine that produces 143 horse power. In Greece, if you have a car with a smaller engine but high output, you still get great performance, but pay less in taxes.

The second best selling model is the Forester. It focuses on the needs of the driver and offers benefits unmatched by other companies.

To ensure a prosperous future, Subaru Motors Hellas is building up its after-sales network, including new state-of-the-art service stations in Athens and Thessaloniki. The top priority is to provide the same level of service throughout the country and maintain the Subaru Motors Hellas business plan.

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