Marketing in Luxury Cars World - Case Study Example

Marketing and advertising promotions influence car buyers in many different ways. Product placements, "buzz" campaigns, and sponsored and independentWeb sites influence buyers at different points in the purchase process. Marketers adopt something like the just-in-time approach that is best practice. They recognize that different consumer segments respond differently to each model at each point of the purchasing funnel--and must choose their medium and message accordingly. The print ad of the Porsche Cayman is simple and direct. The effort for Porsche Cayman, which has a shadow theme, promotes the car as mischievous by touting its aggressiveness in power and handling, and its style. The ad has a creative bent helped by the tag "Engineered Mischief" which shows the car driving along and in the process casting a shadow shaped like a pitchfork. The advertising copy reads: "Born with a silver pitchfork in its mouth." In terms of consumer behavior, the focus of the Porsche Cayman print ad is targeted on persons who have a heavy substance and style. The Porsche Cayman cars are known for quality and performance advantage over most American-made cars. This constant superior car performance of the Porsche Cayman puts a high premium on these brands of cars. The Porsche Cayman wants to reinforce their sophisticated, high-class image by advertising and promotion that is highly focused on persons with status and privilege. In terms of over-all strategy, the marketing of this car is directed to the wealthy businessmen and executives as shown by the ad copy. The ad is directed to both the young and mature businessmen and executives as shown by the visual image of the devil's pitchfork which connotes great excitement, fun, breaking the barriers and adventure for the targeted market. The distribution of the car is handled by well-trained dealers. Toyota Lexus The print ads that the being introduced, each focusing on one of the pillars of the campaign. The print ads appear in magazines, including Time, Newsweek, Fortune, Real Simple, and Architectural Digest. The ad cites the economic impact: it focuses on Toyota's new plant in San Antonio, Texas, which directly employs 2,000 people and adds thousands of other new jobs to the area. The headline reads: "Can a pickup give 2,000 people a lift Why not" The ad cites a strong environmental commitment: it presents Toyota's aspirations for zero emission vehicles and zero waste in its plants. The headline reads: "Can you have an impact by making none at all Why not" The ad stresses social responsibility: it highlights Toyota's Driving Expectations Program, which teaches valuable defensive driving skills to teens and their parents. The headline reads: "Can the most important safety feature in a car be a teen driver Why not The ad campaign has a "vision" The text of the ad reads: WHY NOT Two words that are filled with possibilities. They can turn a challenge into an opportunity. An obstacle into an inspiration. It's a question we ask ourselves at Toyota every day. Because we're continuously looking for new ways to improve what we do. By asking tough questions. Can we make a car that has zero emissions Can we improve the economy of a community Can we enrich the lives of people around us Why not Toyota Lexus focused on market research to determine why a particular consumer segment loses interest in one vehicle while maintaining interest in another. Toyota Lexus acts to unplug that bottleneck by presenting a special options package to car buyers at an early stage of consideration or by staging invitation-only test-drives for new models. Brands that become familiar to people early in their lives are more likely to be purchased by them when they first buy cars. Toyota Lexus targets high-potential segments. It uses market segmentation for the Lexus branding effort. Japanese carmakers are leaders of targeting. The Lexus team started with the styles, needs, and values--identified through consumer research--that motivated its target market. The team identified 20 distinct segments and suggested ways to attract each. Design and marketing decisions flowed from that early market understanding. The success of the Toyota Lexus and the holistic approach that created it, influenced subsequent product-development efforts. For the makers of Toyota Lexus, they isolated purchasing bottlenecks. The management mde sure that customers get the best treatment from the salespeople and they had improved the show rooms' appearance. They improved the relationship sides of brand management to make them purchase the vehicle. The 2007 "December to Remember" ad campaign of Toyota Lexus returns to its roots with the surprise element, while also reaching out to a new shopper -- the self-giver. Even though the campaign entered its eighth year, the advertising campaign still has a strong impact with consumers and it is highly anticipated during the holidays. Approximately 10 percent of Lexus vehicles sold during the holidays are purchased as gifts and dealerships across the country stock up on big red bows to help customers recreate the experience in their own driveway. In the spot titled, "Hockey Practice," a husband and son surprise the wife and mother with a brand new Lexus adorned with the red bow. The husband tricks his wife into thinking that he is unable to pick up their son from hockey practice. When the frustrated wife steps outside their home, she receives the surprise of a lifetime-a Lexus for the holidays. The spot titled, "Self-Gift" focuses on the popularity of treating oneself during the holidays. The spot shows a young man opening odd gifts from a reindeer made of Christmas tree bulbs to a cuckoo clock. The voiceover states, "If you didn't get everything you wanted this holiday season, just remember, there's no law that says you can't get yourself a little something." The spot then cuts to the man getting into a new IS, adorned with a big red bow. Tips include the traditional big red bow, hiding the car in the driveway and giving the keys as a gift. The outcome of the ads is a surprised and happy recipient. Toyota Print Ad Mercedes Benz aggressively markets its luxury vehicles by expanding the range of consumer benefits. The company makes use of relationship and process benefits to unlock bottlenecks in the car purchasing funnel. Mercedes Benz's innovative sales process addressed two classic bottlenecks, occurring between consideration and short-listing and between short-listing and purchase. To convey a fuller range of benefits at a number of points along the funnel, carmakers can use special events to promote interaction with a brand before consumers make contact with dealers. They hold motorshows where thousands of enthusiasts reinforce one another's commitment to the brand and go on to evangelize the unconverted. Carmakers can also communicate with the consumer on-line at the company Web site, refurbish their showrooms, train their sales forces to satisfy more demanding upscale buyers, and deliver demonstration models to the homes of people reluctant to visit dealerships. Our study of one manufacturer suggests that such efforts could cost $15 million but would pay for themselves in about three years--and sooner if the company targeted its efforts at freer-spending market segments. Mercedes Benz concentrates on consumer touch points. The auto sector, perhaps more than any other, has seen an explosion in the number, variety, and depth of information sources available to consumers. More than half of all car buyers in 2000 used the Internet to help them make their purchase decision. That gives original-equipment manufacturers a new tool for observing the customer relationship and for influencing the consumers' brand experience before and after purchase. Mercedes Benz's consumer Web site is an electronic brochure which aims to interact with their clients. Direct mail is used to its full potential. When tied to a print advertising campaign direct mail can explain benefits to particular consumer segments and establish a base of likely prospects. Mercedes Benz, at the introduction of its M-class SUV, developed a series of eight mailings to a cross section of affluent US households, many of which had a history of Mercedes ownership. The initial mailing, sent out when the company's first US plant was under construction, described the program's progress and included the Mercedes three-pointed-star emblem as a gift. Recipients who returned a survey were given additional information about the cars' development. That campaign produced a self-selected list of 100,000 prospective customers and helped Mercedes sell out its first run of the M-class. The move to just-in-time marketing involves significant changes across the business system, from product development to marketing to retailing to after-sales service. Active brand management requires painstaking consumer research, and expensive and promotion--activities that are already on every car company's "to do" list. To compete in the cluttered car market, companies must rely on integrators of products and the way they are marketed. As the general managers of the brand, these integrators should have broad authority, an understanding of the profit drivers, and access to direct-marketing resources to pursue receptive customers. Great brands in the car industry are built on customer relationships. Features, benefits, and prices can be duplicated; emotional connections cannot. A deep connection with customers sustains Mercedes Benz even in hard times. Toyota Lexus wins hearts with its innovations and style. The public associates Porsche Cayman with confidence, security and personal attainment. Read More