On September 23, David Schembri '75 '77, the Business Breakfast Club's inaugural speaker, detailed the unusual marketing efforts his company, smart USA, employed during the U.S. debut of the smart fortwo. View the Quicktime video of his presentation.

David Schembri '75 '77 looks on as Business Administration Interim Dean Gerald Cavanagh, S.J., tries out a smart fortwo.

At the time, smart had no brand awareness, no existing dealer network, and no traditional consumer target group. However, the company did have a product with a distinctive, obviously different design, which smart was able to leverage into a winning campaign. While putting together the plan, the company looked not at other car companies but at leaders in other industries, including Starbucks for brand consistency, Apple for customer advocacy, and family restaurants for warmth and personality.

Schembri emphasized that the fortwo's target consumer group is non-traditional in that it is defined not by age or income, but attitude and lifestyle. He notes, "This group transcends generations and age groups, and represents thought leaders from many demographics."

Thus, smart's plans addressed four buying groups, which may overlap: entry-level consumers, buying their first car; urban dwellers, who are concerned about tight conditions/space/cramped conditions; baby boomers, looking for a second or third vehicle; and empty nesters, who, notes Schmebri, "don't need to haul children anymore."

The company also had to overcome safety concerns attached to a smaller-than-usual vehicle. Schembri says, "The safety engineering was done by the same team that handles safety for Mercedes S Class; the fortwo is the only vehicle in a non-luxury class which has an Electronic Stability Program. After the vehicle was offered for sale, it received two very high safety ratings from established safety agencies, which added to its credibility."

Another unconventional aspect of smart's launch was the company's reliance on earned media—coverage in news outlets such as CNN and Extra!, product placement in films such as The DaVinci Code, and features in high-end magazines. This allowed smart's publicity to be low-budget and flexible.

smart's unusual approach extends after the sale as well. While smart does some traditional customer relationship management—thank you letters to owners, customer satisfaction surveys, and owners' gifts—they also employ some more unusual techniques. The Worth the Wait Club engages future owners who have reserved their cars but not taken delivery yet, and the web site www.smartusainsider.com provides privileged information to prospective buyers.

The site includes a blog from Schembri but most of the content is generated by the users, owners and enthusiasts who trade information and anecdotes about the car they love, unfettered by any kind of corporate filter. Their unmoderated interaction allows the company to compile unfiltered opinions from their customers.

By all accounts, smart's "alternative" marketing program has paid off. The company created a buzz that is enduring and has taken reservations for its vehicles into 2010. Says Schembri, "It's easy to be proud of the smart car, and now we've turned our owners into advocates."

For more pictures from the Business Breakfast Club, please visit the online gallery. To watch Schembri's presentation, click here for the Quicktime video.