Tag: Marketing

By on May 10, 2011

Honda’s latest Civic may not have made a great impression on TTAC’s Best and Brightest, but the new compact isn’t targeting any one buyer anyway. As theinspirationroom.com reports [click through for new ad videos], Honda’s new Civic campaign is all about broadening the model’s appeal… to five specific stereotypes.

The campaign features five distinct characters, each representing a different model. The Urban Woodsman, Jack, lives in the city but is at home in the woods. He likes his Hybrid for its great fuel efficiency, which comes in handy on his many trips to the great outdoors. The Zombie, Mitch, is a salesman who’s into high-tech gadgets. His Civic Sedan is loaded with options like Bluetooth HandsFreeLink and navigation system with FM Traffic. The Monster, Teeny, is a bubbly and studious college coed. Her practical nature and frugal budget align with the fuel-efficient HF model. The Ninja, Aiko, is cute, innocent and deadly. A martial-arts phenom who’s partial to red licorice and arcade games, she pairs well with the high-energy performance of the Si model. Cesar, the Champion Luchador, is somewhat of a celebrity. He’s handsome, charming and a bit vain so he, of course, appreciates the Civic Coupe’s sleek lines.

Of course, Honda never needed this kind of segmentation silliness (which reeks of the “brand central studios” that Bob Lutz rips in his new book) in order to make its Civic one of the best-selling nameplates in the US market. Meanwhile, the requisite price of this kind of “personality profiling” is that the mass market “profile” (i.e. the people who buy the majority of Civics) gets a short shrift compared to the smaller but sexier niche profiles. As a result, Honda signals that it sees the bulk of Civic buyers as “zombies,” with no distinguishing characteristics besides a vague affinity for tech toys. Compare this to the legendary tagline “you meet the nicest people on a Honda,” and you’ll begin to get a sense of how far Honda’s marketing has fallen in recent years…

By on May 10, 2011

Detroit’s brand managers, particularly those at the resurgent premium and luxury brands, have made West Coast sales a high priority as they seek to bring new buyers into once-moribund brands like Buick and Cadillac. California, in particular, is a huge market for luxury and premium cars, and it’s generally an edgier, more youthful market that has long shunned domestic offerings. Everything from “lifestyle events” to no-cost hybrid drivetrain options on Lincoln MKZ have been introduced in an effort to get California’s copious yuppie population interested in Detroit luxury, but the results just haven’t shown up yet. According to Ford’s Mark “MKF” Fields [via AN [sub]], only about 25% of MKZ buyers were tempted by the free-hybrid deal in March, and meanwhile, the San Francisco Chronicle reports that the Golden Gate City has just lost its final domestic auto dealership, a Ford/Lincoln store. Detroit may be California dreaming, but the Buicks and Lincolns of the world are still a long way from gaining ground in the West Coast.

(Read More…)

By on May 9, 2011

In TTAC’s early years, we spilled much digital ink over GM’s bloated brand portfolio, wondering again and again what brands should be cut, which should move upmarket and which should move downmarket. It’s a fun exercise, but one that history has largely passed by. Not only did GM cut Saab, Hummer and Pontiac in its bankruptcy, but Chrysler has more than doubled the potential number of brands to be sold through its distribution channels, shifting the brand-clutter center of gravity towards Auburn Hills. But GM isn’t done struggling with the legacy of the Sloan system, as GM North America boss Mark Reuss tells Automotive News [sub] that GM still has at least one major branding battle on its hands: Chevy versus GMC.

We need to make sure that we drive the differentiation in the product and the price to create that separation that we know we can on GMC and Chevrolet. I don’t think we have the margin opportunity set up quite right with GMC.

(Read More…)

By on May 9, 2011

Of all the barriers standing in the way of commercial success for electric cars, the “image issue” is perhaps one of the least understood. Most EV firms have embraced the distinctively Western “green consumption” trend, in which a kind of environmental asceticism drives consumer values of downsizing and ultimately self-denial. But making a conscious choice to not use gasoline and accepting whatever the market happens to offer is not a phenomenon that automakers can expect to sustain itself. If they ever want to achieve mass acceptance, EVs need an image context that goes beyond graywater recycling, “freeganism” and other highly conscious but ultimately self-denying lifestyle choices.

Racing is one obvious way to broaden EV appeal, as it highlights the positive performance aspects of EV drivetrains, but sadly no major OEM will commit to an EV racing series. Besides, racing hardly builds on the existing (if limited) green appeal of EVs. Enter the EV as disaster response vehicle. The NYT has a fantastic story about the use of EVs in rescue efforts after the Japanese quake/tsunami, when gas was largely unavailable. The story proves that EVs, far from being mere lifestyle accessories, can be hugely useful in the right circumstances. And because so many green lifestyle choices stem from a perspective of apocalyptic expectation, this story both broadens and builds on the EV’s existing appeal. Most importantly of all, pictures like the one above will do more to banish the limp-wristed, “anti-luxury” image that curses EVs than just about anything else. Just as SUV buyers would swell with pride seeing an ad image of their Explorer in off-road conditions they would never visit themselves, the image of EVs running first-responder missions in a quake-torn Japan could be of lasting significance.

By on May 5, 2011

Electric car makers like to make a big fuss about how their clean-green automobiles are going to “change the industry.” Sometimes those instincts lead to hubris and overreach (ahem, Tesla), while other times the changes make you long for the relative simplicity of the new car dealer fandango we all go through to buy “regular cars.” In the case of Think, the business innovations (namely the innovation of relying on accumulating local tax credits to get the price to seem as low as possible) are enough to make the world of dealer markups and delivery charges seem downright quaint and homey. And that’s not the way to change this business…

By on May 3, 2011

Hyundai’s latest Assurance marketing technique, which guarantees resale values on all 20111 model-year purchases, is already being hailed as the latest in a line of creative, zeitgeist-appropriate incentives. The one downside of guaranteeing residual values: well, people are free to draw their own conclusions from them. For example, it seems safe to say that the Azera and Accent should probably be replaced fairly soon, as their weaker resale values make them stand out from an otherwise extraordinarily consistent lineup. What’s that you say? The new Accent was announced at the same time as the resale guarantee? And an attractive new Azera replacement will be launched within a (the?) year? Er, carry on then.

In all seriousness, whenever Hyundai comes out with a new “Assurance” program, I’m sure a number of other brands look at copying elements. The genius of this latest program, however, is that it only really works if your entire lineup has been updated in a recent and consistent manner. Imagine a chart like this for certain other brands, and you’ll realize that the benefits of a strong and (possibly more importantly) consistent product line can be far reaching indeed.

By on April 20, 2011

Especially since the Legacy/Outback started ballooning and the Forester got a dealer-demanded homogenization, the Impreza has been my personal favorite Subaru (my significant other owns an ’08 wagon). It may not win any fuel economy contests in its size class, but the weight of its AWD system and grunty 2.5 liter engine make it a solid baby grand tourer compared to its front-drive competitors. But with gas prices now climbing steadily towards “freak-out” levels and competitors lounging on the 40MPG beach, a consistent 26 MPG no longer cuts the mustard. And so the new Impreza will lose its 2.5 liter engine in favor of a 2.0 unit which, along with some weight loss and a CVT will power the new Impreza to a 27/36 MPG EPA rating (25/33 with the manual transmission). Far be it from us to complain about less weight and more fuel economy, but it feels like the Impreza may be giving up some of its niche appeal in search of mainstream acceptance… not that there’s anything wrong with that.

(Read More…)

By on April 20, 2011

Hyundai has received a lot of attention recently for improvements in its product lineup, but as TTAC has proved, it’s actually the brand’s non-product innovations  that can be most closely tied to its recent success. Hyundai’s biggest sales growth in the US market has come on the heels of its 100k mile warranty and its Assurance buy-back program, rather than the introduction of any new car. And so, although Hyundai has revealed its new Accent (which we already showed you), the big Hyundai news coming out of New York is the brand’s latest Assurance feat: a trade-in value guarantee. The program rolls out in May, and Hyundai USA CEO John Krafcik tells the DetN that

Depreciation is a big unknown. It’s like giving one of the big benefits of leasing, but you’re still owning the car. We’re already one of the highest brands in loyalty, and we think this will help.

It certainly can’t hurt.

By on April 18, 2011

Cars like Cadillac’s 556 HP, rear-drive, manual transmission-equipped CTS-V SportWagon are the kind of offering that enthusiasts lust after, even if a relative “value-price” of $70k-ish keeps it in aspirational territory. And by offering a CTS “Performance Edition” with the option of mating a six-speed manual to GM’s well-liked 3.6 liter V6, Cadillac gives enthusiasts an appealing opportunity to bask in some of the V’s reflected glory. But apparently not many enthusiasts are interested in pursuing this opportunity, as InsideLine reports that the manual transmission option will be dropped from the 2012 CTS 3.6.

(Read More…)

By on April 6, 2011

Prices for the Saab 9-5 SportCombi have leaked in Sweden, and according to Autobild, the wagon version actually costs €114 less than the sedan. Whether they’ll make the same offer outside of Sweden isn’t clear… but then neither is anything about Saab’s future. And instead of haranguing the poor Swedes about the questionable financial sense of this decision, let’s just agree that desperate times call for desperate measures. If nothing else, Saab’s wagon-centive sets it apart from the industry’s business-as-usual.

By on April 1, 2011

Toyota reports [PDF] that it has increased its MSRPs by an average of 1.7%, as the automaker seeks to regain control over pricing which has taken a hit in the year since its recall scandal. Of course, the fact that the firm’s supply of vehicles is likely to be limited by the chaotic aftermath of the Japanese earthquake and tsunami was causing its transaction prices to rise anyway, but Toyota tells Automobile magazine that the MSRP increase

has no relation to any production shut downs or shortages stemming from the recent disaster in Japan

Uh huh. Whatever you say.

By on April 1, 2011

Somebody must have slipped Fiat-Chrysler CEO Sergio Marchionne some Sodium Pentothal as an April Fools joke, as he’s just topped his previous high-water mark for ill-advised candor (set earlier this week). Automotive News [sub] quotes the feisty CEO admitting

The economics of EVs simply don’t work. On the 500 that (Chrysler) will begin selling in the U.S. next year, we will lose over $10,000 (per unit) despite the retail price being three times higher [than the gas version].

Like, Zoinks! I spent some time in a Cinquecento last weekend, and though it made a great little LeMons pace car and is honestly quite fun to drive, it’s not much car for the $15k-$19k+ Chrysler wants for a 100 HP version. Spending three times that amount for a money-losing electric version simply boggles the mind. Or do they celebrate April Fools Day in Italy?
By on March 31, 2011

When Chevrolet announced a few months ago that its new Cruze compact sedan would start at $16,995, more than a few people (who likely had not had a chance to personally experience the new car) were shocked. The Cobalt, which the Cruze replaced, had been priced nearly $1,300 lower—and had required incentives to sell at that price. Now Ford has announced pricing for the totally redesigned 2012 Focus, and it starts at…$16,995. (Read More…)

By on March 29, 2011

Now that the economy is recovering and Hyundai has a new generation of more upscale offerings on its dealers’ lots, the automaker’s job-loss-protection program is going away, reports Automotive News [sub]. The one-year protection will be available on Hyundais purchased through the end of this month, but as sales boss Dave Zuchowski puts it

We actually see the elimination of the job-loss program as a sign of a recovering economy and we had never anticipated that this would be an enduring program. We welcome the day when it’s really no longer as relevant in the showroom or as required in the marketplace.

(Read More…)

By on March 22, 2011

Think BMW sells a lot of cars in the US? The German automaker may have registered nearly 20,000 “sales” in the US last month, but according to the analysts at Polk, over 50 percent of its “sales” in 2010 were actually leases. No wonder BMW’s best-seller, the Dreier (3 Series), occupies a nearly unique position on the price-volume frontier. And apparently BMW will continue to look to non-sales for future sales growth, as Automotive News [sub] reports the firm has launched a new car-sharing joint venture in Europe aimed at bringing in a million new customers by 2020. The pitch: sleek new Bavarian metal, as well as the ability to pick up and drop off vehicles anywhere, thanks to smartphone vehicle tracking. But the biggest pitch, say BMW sources, is to people who would never buy a new BMW… or even lease one. And they’re not just talking about poor folks either…

(Read More…)

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