Friday, August 21, 2009

Auto Industry Ad Execs: Quick - Your Cheese is Moving!

2-3-0. I can't seem to get those numbers out of my head.

Forget about recession woes for just a second. Eventually, industry will level off to normalcy with or without TARP, Cash for Clunkers or anything else the government invents. And when it does - the two main selling points auto execs tout in their traditional advertising, MPG and PRICE, will be rendered obsolete.

Why? Well, the next ad promoting an estimated 30 miles to the gallon will seem like peanuts now that the MPG bar has been raised to 230! Give me 200 MPG or it's not worth talking about.

This past Tuesday, a report came out that India's Tata Motors new Nano car passed Euro IV safety tests, which are similar to those required by the US Department of Transportation Safety. With minor modifications - the Tata Nano could start selling in the U.S. by 2011 for as little as $3800.

You have to wonder how an auto brand will be able advertise an $18k car that gets even 50 MPG with a straight face. Where's the market differentiation? In horsepower? Color choices? Maybe it'll be the cool music bed that blares in the background.

Or, perhaps using the same tactics that endeared a Subaru to a core group of outdoor enthusiasts and created an immediate legacy for the Mini Cooper among consumers through VIP treatment at targeted events will be the new method for marketing car brands. If that's the case (which it should be), properties need to be gearing up to make room for test drives and photo ops so event goers can get a glimpse at the emotional appeal "behind the wheel" of something other than a Nano.

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