Agency: Graham Poulter Advertising Author: Joanne Fisher

Lada Cars - Moving Metal

Lada, the tenth largest importer of cars into the UK has, in 13 of the 16 years of its operation in the UK, improved significantly on its previous years' sales performance.

In 1989 it sold 28,061 cars. Although it was the 14th best-selling marque - outselling 23 other marques, its performance for the year was 8% down on that of 1988, its market share decreased from 1.39 to 1.22% and there was a shortfall in sales compared to its 1989 target of 30,000 units.

Lada's downturn in sales performance continued into 1990. By the end of February its sales were down by 43% compared to the same 1988 period, although the UK car market had only declined by 9% overall during this two-month period.

Research undertaken by Lada not surprisingly concluded that the root cause of Lada's downturn was high interest rates, high mortgage rates, the poll tax, general economic uncertainty and the resultant decline in disposable income. The economic climate had undoubtedly affected Lada's target audience.