Where’s the innovation in the car industry?
A marketing magazine asked me the following question?
It gets to the heart of the discussion that advertising is only ever one part of marketing.
Q.
WHAT SHOULD CAR MARKETERS BE DOING?
Falling sales and a collapse of finance options is threatening to cripple the automotive industry. Consequently, car marketers need to step-up their game If you had a car client, what would you advise them to do. Is it time to go retail or adopt a creative approach and focus on the brand? Should car ads be serious or use humour in the current environment? Chrysler is pushing its marques in a pro-American ‘Yes we can’ campaign – are there any tips in this for other car marketers?
A.
“SELLING LIKE HOTCAKES”
* First Toyota Prius on sale in Australia in 2001 – 137 sold.
* In 2006 – 2000 sold.
* First five months of 2007, 1300 sold. May tally of 380 sales is monthly record.
* Costs $37,400 to $46,900.
* Honda Civic Hybrid costs $32,990, but regularly sells out its 80 cars a month allocation.
Source: Federal Chamber of Automotive Industries.
Ok, so it’s a year out of date, and a lot happened in that year, so let’s look at some very recent numbers from another category:
“Apple revenue grew 35% year-over-year to $9.6bn, an increase of almost $2.5bn, according to its first quarter 2009 results” Posted Jan 2009.
My point is people don’t buy the ads, they buy the products and it’s the underlying innovation where car manufactures have to start. I had had been given 40 personal demos and rave reviews (oh and actually bought one) for the iPhone before I saw an ad for one. Don’t start with a wacky ad formula to try and charm consumers into buying- start with some value that rewards them for buying.
This doesn’t always mean retooling the entire factory, depending on the task at hand you might want to:
• Personalise: allow consumers to create personal designs on the outside of their cars and express their personality (can’t the industry do better than an optional racing stripe of a Ford Laser?)
• Harness WOM: seriously reward and incentivise passionate owners to entice others
• Target: produce, frame, price, package, sell and service to an aged, female, asian, gay, urban, mothers (any other sizable/relevant group or community)
• Innovate: Where’s the car that comes standard with LPG? Where’s the car that’s built for grubby kids in the back seat (can be hosed out)?
• Finance: Why screw punters with a separate finance company? Make your money on the car and provide company finance at cost, lease, hire-purchase. Retail companies have x4 year interest free. What are the options around cars?
• Engage: If the game’s test drives – then get experiential! Offer an alternative to public transport, weekend- come-to-your-home test drives, pick-up from work test drives- hell, start a manufacture “at cost” car rental company. What about a free community car pool?
• Empower: Which brand is getting behind hypermiling? http://en.wikipedia.org/wiki/Hypermiling providing the information, games, community, events and rewards for this to gain momentum (pardon the pun)
• JV/ Licensing: What car brand might JV or licence a co-branded model with interior designed by Benetton, Prada, Apple, bang-olufsen?
People aren’t just consumers, they’re people first. They want a car that they like the look of, the features of and that will suit their lifestyle. Then they buy into the brand to take away any risk and for the self-expressive and emotive benefits it can bring.
