GENEVA -- Seat is implementing a new marketing strategy to raise the profile of the struggling Spanish brand.
"Awareness and image are going to be a big focus for us this year," Seat President Andreas Schleef told Automotive News Europe. "My job is to improve Seat's image."
Schleef said Seat's problem is that too many customers outside its home market don't know the brand.
To improve its image in the rest of Europe, Seat will sponsor more events, Schleef said.
Seat executives did not give further details of how they will raise the brand's profile.
Last year, Seat recruited tennis legend John McEnroe to help advertise the Altea. But even McEnroe said: "The truth is that I didn't know the Seat brand, since it doesn't sell cars in the US."
New team
Schleef now has a new team to lead Seat's brand-awareness push.
- Giuseppe Tartaglione, a former Fiat executive, became the carmaker's new sales and marketing vice president in late December.
Part of Seat's problem has been consistency at the top.
Tartaglione is the brand's third sales and marketing leader in the last five months -- succeeding Lars-Henner Santelmann and Harald Schomburg.
Tartaglione said the recent appointments of Salinas and Hinrichs show Seat's sales and marketing is a major priority.
"This reinforcement of the area means a firm push in the right direction," said Tartaglione, who came to Seat from Fiat Powertrain Technologies where he was responsible for marketing and customer relations.
Premium doubts
Seat, which is part of the Volkswagen group, was placed under VW group's Audi brand portfolio in 2002 as part of a strategy to give Seat an upscale, sporty image. Until then, Seat was known for its low-cost cars. But VW decided that Skoda, its Czech subsidiary, would be the group's low-cost brand.
For Seat, the strategy has not paid off. Seat lost customers who once bought its cars because of their low prices.
And it failed to attract new buyers who would pay a premium for its sporty offerings.
Alastair Bedwell, senior manager of London-based market resear-cher J.D. Power-LMC, said Seat has a long way to go to improve its level of awareness in Europe.
"Seat is a little lost among some of the other European brands," Bedwell said. "I think consumers make the connection in terms of quality and the ties to the Volkswagen group. But they've had trouble positioning themselves in the premium side of the market because the product has not conveyed the message well enough."
Four-year decline
Seat has suffered a four-year sales decline. Last year Seat built 409,586 cars down from 458,460 in 2004, according to J.D. Power-LMC. Last year, Seat also reported a net loss of E62.5 million.
Seat is undergoing a profound restructuring designed to transform it into a remodeled brand with a freshened product lineup. Seat plans to offer more derivatives of existing models. The brand's core product line will retain sporty styling, but Seat's brand image will also include utility.
Seat will expand its product lineup this autumn with a station wagon version of the Altea. In early 2007, Seat will offer a car-derived van based on the VW Caddy. The van is expected to compete against the Citroen Berlingo and Renault Kangoo.
The car-derived van will serve as an entry-level product until a new model can be developed to replace the Arosa minicar. The slow-selling Arosa was dropped in 2004. Its replacement will not come to market before 2010.
