GM's biggest challenge: the 106-year-old Buick brand

These Buick sales results suggest that if the decision about which GM brands to retain in the new GM had been made based on performance in this country, Buick would have fallen by the wayside. But since Buick plays a key role in GM's successful operations in China, now the world's largest new vehicle market, the brand has dodged the bullet and will live another day.

Going forward, then, Buick obviously needs to be re-positioned in the United States.

Current Buick advertising is attempting to do just that by emphasizing two themes - premium vehicles at an affordable price and attractive styling ("Take a Look at Me Now"). In other words, Buick is trying to stake out a position as the styling leader in the near luxury market. Buick's current product portfolio, in part, supports this marketing campaign, as both the Enclave and the 2010 LaCrosse offer distinctive and appealing designs, both inside and out. The styling of these two products is light years ahead of the stodginess of the Buicks offered just a few years ago.

However, this marketing strategy has some challenges. A major challenge will be in appealing to owners of near luxury cars from the Asian and European luxury brands that have had a better reputation for quality. It is not clear that these drivers perceive the new Buick products as more appealing than their current vehicles. These owners may perceive the Buick models as being larger and therefore less fuel efficient, which they are, than their current products.

What's more, many of these import drivers are in their thirties or forties and would never visit a Buick showroom, where the typical shopper is in his sixties, let alone buy one.

Buick may have an easier time appealing to owners of domestic products; these drivers are more likely to consider another domestic brand, in part because the perceived quality discrepancy is less of a concern.

If Buick is to continue its strategy of aiming to be a near-luxury, styling leader, the following actions should be considered:

• Expand the product portfolio to include smaller products that continue the brand's approach of providing dramatically appealing styling at a competitive price.

• Incorporate the two themes of affordable luxury and styling into one tag line.

• Incorporate the new tag line into each and every marketing activity, including public relations, merchandising and advertising.

• When possible, communicate the superior quality of the Buick brand to address the continuing perceived inferior quality of domestics. Initially price below the competition, and raise the price over time as the perception of Buick improves.

Use "hidden" incentives such as lease residual enhancements or dealer cash and avoid use of blatant customer incentives, which will tarnish the brand image.

Finally, be patient - Buick's association with older drivers is so well entrenched that it will take years of consistent marketing to re-position the brand.