A case presented in Summer 2009 on the subject of Integrated Marketing Communications. An IMC campaign is developed for Subaru Canada's 2009 season with a target number of purchases of 1500 Subaru vehicles by the end of the year.

1. Phase 3: IMC Program Presented by: Hana Arjan Mark Bundang Alberto Palomino Carranza Karim Hassouna

4. Hierarchy of Effects

6. Our TM Purchase Objective Illustrated Desired Action

7. What are the Hurdles? SUBARU LOYAL Luxury Brands AUDI BMW LEXUS INFINITI STATUS PERFORMANCE FEATURES OPTIONS Entry Level cars Fully Loaded

11. Which models win for this Target Segment? THE LEGACY 2.5GT spec.B Sedan $41,995 THE FORESTER 2.5XT Limited with Multimedia Option $37,295 THE OUTBACK 3.0R Premier $43,595 THE TRIBECA Premier Package $48,195

12. Stakeholders and Cycle of Purchase

13. The Stakeholders Current Customers Friends and Family Auto Press Dealerships Sales Personnel Potential Customers 2 3 4 5 6 1

14. Customer Purchase Cycle I AM IN THE MARKET Search for options Visit Dealerships Test Drive ROUND II Research options Consult Family and friends Visit Dealership Test Drive Purchase Service

15. Who does our IMC campaign touch? Auto press , blogs, internet Family and friends Current customers Dealerships I AM IN THE MARKET Search for options Visit Dealerships Sales Personnel Test Drive ROUND II Research options Auto press , blogs, internet Consult Family and friends Family and friends Current customers Visit Dealership Test Drive Dealerships Sales Personnel Purchase Service

17. IMC Tools Objectives Overview Awareness Comprehension Conviction Action Overall Goal toward Potential Customers 201,600 aware of our message 115,200 understand our message 14,400 go to the dealership, motivated by our message 1,500 buy a Subaru in the 40k+ range Advertising X Sales Promotion X X Public Relations X X X Direct Marketing X X X Internet X X Personal Selling X X

18. IMC Tools Mix The Amazing Simpkins Grid Advertising Sales Promo Public Relations Direct Marketing Personal Selling Internet Potential Customers X X X X X X Current Customers X X X X Friends and Family X X Auto Press X X X Dealerships X Sales Personnel

19. The IMC Tools

28. Associations to Target The Canadian college of family physicians Canadian Accountants

36. Internet

42. Time and Geography

43. Canadian Largest Urban Centers City Population 1 Toronto 4,551,800 2 Montreal 3,256,300 3 Vancouver 1,836,500 4 Calgary 938,300 5 Ottawa 863,000 6 Edmonton 812,400 7 Hamilton 645,100 8 Quebec 643,200 9 Winnipeg 637,900 10 Kitchener-Waterloo 422,514 11 St. Catherines - Niagara 308,596 12 Victoria 304,683

44. Car Industry Seasons in Canada Stats Canada

45. Tactics Blocking Chart Part I

46. Tactics Blocking Chart Part II

47. Budget Setting

50. Scenario two: Three year perspective In $000’ Year 1 Year 2 Year 3 Incremental Sales (Average selling price 40,000) $60,000 $80,000 $90,000 Incremental gross Margin $3,000 $4,000 $4,500 Incremental IMC Budget $1,840 $1,750 $1,872 A&P Ratio of Sales 3.0% 2.2% 2.08% Net Gain +$1,210 +$2,250 +$2,628

51. Summary of IMC Costs

53. Evaluation of Overall IMC campaign

55. Any Questions? Please do not hesitate to ask any of the members of your dedicated Subaru Team! Hana Arjan Mark Bundang Alberto Palomino Carranza Karim Hassouna

57. Competitive Landscape Subaru Models Type Sedan 40-50K Sedan 40-50K SUV SUV Crossover Model Subaru Legacy 2.5GT spec.B Sedan Subaru Impreza STI Sport-tech Package Subaru Tribeca Premier Package Forester 2.5XT Limited with Multimedia Option Outback 3.0R Premier Price $41,995 $45,995 $48,195 $37,295 $43,595 hp 246 hp @ 6,000 rpm 300 hp @ 6,000 rpm 256 hp @ 6,000 rpm 224 hp @ 5,200 rpm 245 hp @ 6,000 rpm Leather Leather Interior Leather interior Leather interior Leather interior Leather interior Wheels 18" aluminum alloy wheels 18" BBS aluminum alloy wheels 18" aluminum alloy wheels 17" aluminum alloy wheels 17" aluminum alloy wheels Navigation Navigation system Multimedia Centre with navigation system Navigation system Navigation system Navigation system Music Harman Kardon speaker system AM/FM/6CD/MP3/WMA Premium audio system Premium audio system with XM® Satellite Radio Premium audio system with XM® Satellite Radio Harman Kardon speaker system Extra entertainment Bluetooth® hands-free system SIRIUS® Satellite Radio Bluetooth® hands-free system SIRIUS® Satellite Radio DVD entertainment system DVD entertainment system SIRIUS® Satellite Radio

58. Competitive Landscape Sedans Brand SUBARU AUDI LEXUS BMW INFINITI Type sedan 40-50K sedan 40-50K sedan 50K+ sedan 50K+ sedan 50K+ sedan 50K+ Model Subaru Legacy 2.5GT spec.B Sedan Subaru Impreza STI Sport-tech Package Audi A4 3.2 FSI Quattro Lexus GS 350 RWD 335i Xdrive AWD Infiniti M35x AWD Price $41,995 $45,995 $50,900 $52,450 $51,500 $54,900 hp 246 hp @ 6,000 rpm 300 hp @ 6,000 rpm 265 hp @ 6500 rpm 303 @ 6200 rpm 300 @ 6200 rpm 303 HP @ 6,800 rpm wheels 18" aluminum alloy wheels 18" BBS aluminum alloy wheels 17" aluminum alloy wheels 17" aluminum alloy wheels 17" aluminum alloy wheels 18" aluminum alloy wheels navigation Navigation system Multimedia Centre with navigation system Not Included Not Included Not Included Not Included music Harman Kardon speaker system AM/FM/6CD/MP3/WMA Premium audio system Bang & Olufsen premium sound system AM/FM Stereo Cassette, Compact Disc Autochanger CD Player, MP3 HiFi 10-speaker sound system, incl. 2 subwoofers Precision Phasing audio system with, XM® Satellite Radio, single-feed 6-disc CD, MP3,WMA Extra entertainment Bluetooth® hands-free system SIRIUS® Satellite Radio Bluetooth® hands-free system SIRIUS® Satellite Radio Satellite radio preparation* Satellite Radio Ready Satellite Radio 12 montha subscription Bluetooth® hands-free system

59. Competitive Landscape SUVs Brand Subaru AUDI LEXUS BMW INFINITI Type SUV SUV SUV 50K+ SUV 40-50K SUV 40-50K SUV 40-50K Model Subaru Tribeca Premier Package Forester 2.5XT Limited with Multimedia Option Audi Q7 3.6 FSI Quattro Lexus RX 350 X3 Xdrive 30i AWD Infiniti FX 35 AWD Price $48,195 $37,295 $55,000 $46,900 $45,300 $51,800 hp 256 hp @ 6,000 rpm 224 hp @ 5,200 rpm 280 hp @ 6200 rpm 275 @ 6200 rpm 260 @ 6200 rpm 303 HP @ 6,800 rpm Leather Leather interior Leather interior Leather interior Leatherette Leatherette Leather interior wheels 18" aluminum alloy wheels 17" aluminum alloy wheels 18" aluminum alloy wheels 18" aluminum alloy wheels 17" aluminum alloy wheels 18" aluminum alloy wheels navigation Navigation system Navigation system Not Included Not Included Not Included Not Included music Premium audio system with XM® Satellite Radio Premium audio system with XM® Satellite Radio Bang & Olufsen premium sound system AM/FM Stereo 6-Disc CD Changer MP3 Audio Capability CD Player, MP3 HiFi 10-speaker sound system, incl. 2 subwoofers 11-speaker Bose® premium audio system with Burr-Brown DAC, AM/FM/CD with MP3 playback capability and Radio Data System (RDS) In-dash, single-feed 6-disc CD changer Extra entertainment DVD entertainment system DVD entertainment system Satellite radio preparation* Satellite Radio Ready Satellite Radio 12 month subscription Bluetooth® hands-free system

63. Approach to creating Awareness Internet Advertising 130,000 clicks Print Advertising 70,000 people Displays 30,000 people Objective: Create Awareness in 210,600

64. # of luxury cars sold in Canada in 2008 Assuming the 5-year purchase cycle, we can multiply this 86,000 by 5 to get 430,000. This could be used as an approximate number of luxury brand owners there are in Canada at this point in time. That figure is 339,700 if we exclude the francophone market (21% of CA pop.) Our PMB-derived 288,000 Target Market is well within that figure. Source: Autonet.ca 86236 3,513 Volvo 1,452 Saab 5,236 Cadillac 10,297 Acura 16,967 BMW 8,136 Lexus 12,644 Subaru 8,002 Audi 4,696 Infiniti 15,293 Mercedes Sold in 2008 Brand