google
yahoo
bing
 
February 19th, 2009 by Jessica Tsai

General Motors takes the cake in the early weeks of 2009, leading the way for what analysts declare to be a very painful year for sellers and buyers alike.

Combined, General Motors and Chrysler are asking for $21.6 billion dollars for a bailout. GM reports that it will not only be cutting 47,000 jobs this year, but for now, plans are in the works to phase out its Hummer, Pontiac, Saab, and Saturn brands. GM will be phasing out Saturn by 2011, according to the Wall Street Journal, or 2012, according to the New York Times. This initiative strips the once automotive giant down to four brands: Chevrolet, Cadillac, Buick and GMC.

Chrysler is lightening its load but still seems, at least relative to GM, to be sticking by the tagline for its Dodge brand that, ironically, embodies the mentality that likely got this member of the domestic “Big Three” into trouble — “bigger is better.”

According to reports by the WSJ, the company’s plans for survival isn’t very convincing, if only because it doesn’t seem nearly drastic enough.

Read the rest of this entry »

Post to Twitter

January 9th, 2009 by Christopher Musico

Oh, what will those luxury car makers think of next?

According to a story found in USA Today, later this year Lexus vehicles, produced by Toyota, will be delivered with a system including the capability for voice messages sent directly from the automaker to its drivers — affectionately known as Lexus Insider.

The service will reportedly enable Lexus to send audio messages to owners willing to participate on whatever subject they choose, including the top tips on how to best utilize your dream car’s features or even suggestions for a scenic drive since the system will be able to hone its messages depending on vehicle type and even zip code.

In the USA Today article, Jon Bucci, vice president of Toyota’s U.S. advanced technology unit, reportedly said, “We’re not going to barrage customers with marketing messages.”

Well, we’ll see about that.

Consumers are already engulfed with marketing messages on all fronts, including traditional advertising, telemarketing calls, and even cross-sell/upsell opportunities in which individuals reach out to a contact center with a product or service-related issue.

A car — seen as one of the last vestiges of escape for many — seems like the last place most would want to randomly hear messages about the latest and greatest Lexus has to offer.

Since Lexus Insider has not been installed into any new cars as of yet, we must give it some time before we pass final judgment. For starters, an important plus to this program is that it is reportedly only for those who authorize it. That’s a great first step, allowing the customer — well, the driver — the choice of how he would like to be serviced.

The trouble may begin for those who do elect to have this feature in several ways:

  • a “talking car” seems cool … let’s add the feature in even if we don’t know what it truly entails;
  • it can help you pick out the best scenic routes to impress your significant other;
  • it can enable you to best utilize your hazard lights and other safety features after you lose control and find yourself in a ditch after swerving to avoid a squirrel … to impress your significant other; and
  • you may have only wanted Lexus Insider for one specific purpose but then never utilize it again.

Undoubtedly Lexus will have some work to do in fine-tuning just how often it will send unsolicited messages to its drivers. Time will tell if this feature may hit critical mass and eventually trickle down to non-luxury cars.

What do you think about this? Is it another sneaky ploy to cram in some marketing messages, or is it the next avenue — pun slightly intended — of marketing?

Post to Twitter

August 28th, 2008 by Jessica Tsai

The New York Times published an article the other day, commending Japanese auto-manufacturer Honda for sticking to its guns while everyone else was was living by the mantra bigger is better. With outrageous gas prices and rising customer concerns about the environment, companies are expected to make a serious investment in more eco-friendly solutions. More importantly, Honda committed to a noble brand message and stuck to it — now it’s reaping the rewards.

While industry sales drop 3 percent, Honda is seeing a 7 percent increase in sales for the first seven months. Online automotive resource Edmunds.com released its forecast for auto sales this month. Compared to August 2007, Honda will see a 0.9 percent increase in sales, while Chrysler, Ford, and GM sales are expected to decline 34, 16.3, and 27.5 percent respectively.

Honda, the author writes, “never veered from its mission of building fuel-efficient, environmentally friendly cars.” Since the 1960s, the company has been manufacturing cars under the philosophy, “blue skies for our children.” The article failed to mention, however, that it wasn’t always clear skies for Honda. When sports utility vehicles (SUV) became popular in the 1990s and early 2000s, sales of smaller cars took a hit. An article in the LA Times from 2001 reported on a study by J.D. Powers and Associates, which revealed:

Upper-mid-size sedan (Camry, Accord and Taurus) consumers are about seven times more likely to switch to an SUV [in 2001] than they were in 1999;

2 percent of customers shopping for upper-mid-size cars in 1999 switched and bought SUVs. In 2001, that number reached 15 percent;

the market had one “crossover” vehicle in 1997; by 2001, there were 18.

In response to consumer demand, Honda came out with its own crossover vehicle — the Honda CR-V — in 1996. But even so, the company stuck to its green-roots, and delivered a vehicle that looked like an SUV, but was built with the economic efficiency of the Honda Civic in mind. Motortorque.com cites CR-V sales increases of 28 percent from 2006 to 2007 (but notes that 2006 numbers were for the previous generation CR-V), compared to the overall SUV sector, which dropped 4 percent.

It’s interesting how companies are always after that customer loyalty, and yet, one of the problems industry experts often bring up is the fact that companies aren’t always loyal to their brand. McDonald’s, for instance, went through a difficult time when the company “took [its] eyes off the fries” . The fast food restaurant boasts fast, friendly service, but for a period, focused on building more locations rather than the interest of its customers (e.g., health and nutrition).

Even a mere tagline can reveal a lot about what you are — or aren’t. I interviewed Steve Cone, author of Powerlines, who spoke to the fact that if companies are consistently changing their brand message, how can they possibly expect customers to identify? Facelift after facelift may be more new and exciting, but in the end, the customer won’t know what you really look like.

Branding, however, is an elusive concept — marketers want something fresh, but it needs to be consistent. Even more challenging is seeing whether the premise of your brand is actually resonating with the consumer. Honda probably went through a period of doubt, but building a business requires passion and commitment. Look at how well that’s paying off now.

Post to Twitter



RSSFeed


Get Adobe Flash playerPlugin by wpburn.com wordpress themes
Home | Get CRM Magazine | CRM eWeekly | CRM Topic Centers | CRM Industry Solutions | CRM News | Viewpoints | Web Events | Events Calendar
About destinationCRM | Advertise | Getting Covered | Report Problems | Contact Us