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November 12, 2009

GM Bets Naming of New Buick Regal Will Drive Younger Buyers To Its Doors

It's pretty much been an open secret since last month on the blogosphere that GM is planning on bringing back the Buick Regal.

This brand name revival will essentially be modeled after the Opel Insignia, which has been selling very well in Europe and was in fact the 2009 European Car of the Year - 64,000 of these have also been sold in China over the past year, where Buicks are very well regarded.

buick-regal-burgundy.gifThe mainstream news has finally broken the story, but notes that this premium brand has traditionally appealed to older buyers (the average age of a Buick buyer is 57 vs 46 for all new vehicle purchases, and five years ago it was 62). However, this new youthful, sporty design is meant to "drive the age down" into the mid 40s.

The Regal nameplate has been on the market for six years and is still one of the names most associated with Buick by consumers. Which explains why they are pushing the brand hard in LA, especially since Buick traditionally sells poorly in age-obsessed California and this is where the image of the brand name might find a lift.

Many people out there think that the Regal name, and indeed the Buick name, is beyond redemption, but its clear why GM is hanging on to both: The Chinese love the Buick and Regal names and the car itself has proven to be a winner overseas.

Buick is betting that name recognition will carry the day in the US. As an automatic win in China, a probable win here in the United States, where the car is clearly geared for the younger buyer, doesn't sound like bad odds.

This appears to be a good branding move simply because there is still a large amount of equity in the Buick Regal name. Time will tell.

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Posted by William Lozito at November 12, 2009 9:52 AM
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