Subaru to boost brand image with regional campaign

The initiative ties in with the 6 July announcement that Subaru and Fuji Heavy Industries had entered into a memorandum of understanding with the Tan Chong Group to assemble Subaru compact sports utility vehicles (SUVs) in Malaysia. The cars, which will roll out at end of the year, will be marketed in Malaysia, Thailand and Indonesia.

Subaru also plans on increasing its presence in the region by up to ten times, with 20 sales and distribution outlets to operate in Malaysia by 2014, from just two today. Indonesia and Thailand will also host 20 new outlets over the next three years.

This growth spurt is in large part due to the tax exemption vehicles manufactured in Malaysia will enjoy in the Southeast Asian region, upon implimentation of the Association of Southeast Asian Nations (ASEAN) free trade agreement. At present, import duties on automotives in the region can be as high as 50 per cent. The manufacture of vehicles in Malaysia will allow the distributor to price its vehicles lower and sell at higher volume.

Motor Image distributes Subaru vehicles in 10 countries across Asia-Pacific including China, Taiwan and Southeast Asian nations.

"The brand campaign is aimed at ramping up Subaru's brand perception in the region before the major roll out," Glenn Tan (pictured), group chief executive of Motor Image said in a phone interview yesterday.

Market research conducted in Malaysia, Thailand and Indonesia had indicated that Subaru had a weak brand presence in these markets, explained Tan. "We plan to change this with a brand building campaign which will likely emphasise Subaru's safety and driveability."

Although the brand had been aggressively marketed in Singapore, the group was forced to dial back on its marketing initiatives as the downturn affected its quotas (the number of cars allocated to the region). "It's not just Subaru. The market as a whole suffered a setback of about 20 per cent over the past two years. Now we have the chance for a significantly enlarged base," said Tan.

The campaign will target potential SUV buyers, particularly those buying for practical reasons like family and work.

"We are still finalising our branding strategy and we are considering all platforms including TV, print and digital. Currently we are in talks with cable TV networks like Astro in Malaysia and channels like Fox International," he added.

Rolled out across Asia-Pacific, the campaign is also intended to help boost sales in Taiwan, China and the Philippines - key new markets for Motor Image, said Tan.

"We will also have a strong presence, with our latest vehicles, in motorshows held in Indonesia, Malaysia and Thailand," he added. 

On board for the campaign is Motor Image's agency of record, Sparkfury and PR agency Icon International Communications.