[Dalite]

cross-posted from rec.autos.makers.chrysler


Chrysler boosts ads to avoid rebates
By Mary Connelly
Automotive News / June 01, 2003

DETROIT -- The Chrysler group will pour an additional $100 million
into advertising through Labor Day to bring buyers into showrooms. The
spending is designed to boost sales without profit-eroding rebates and
other incentives.

The new program, called the Summer Sales Drive, will include more than
24 new 30-second TV commercials, a new national print campaign, radio
spots and Internet-based promotions, a company source says. The
campaign retains the company's "Best Value in America" theme.

The company's internal goal is to increase sales slightly over the
June-August period from last year, when the company sold 599,279
units. The company is scheduled to reveal its advertising blitz today,
June 2, the day vehicle incentives expire.

The Chrysler group will not try to outspend competitors on vehicle
discounts, a company executive says. Industry incentive levels already
are steep, and discounts such as 0 percent financing no longer
resonate strongly with consumers.

"Consumers are numb to discounts," says George Murphy, Chrysler group
senior vice president of global brand marketing. "They want to know
what is going on from a product point of view.

"If we can get people to dealerships, with competitive incentives, our
warranty and good dealers, we can get people closed," Murphy says. The
company will tweak vehicle incentives, but Murphy declined to provide
details.

"With $100 million, our share of voice is at a level where we can tell
consumers about the deals we have and a warranty, and a lot of new
products like Pacifica," Murphy says. The company is trying to pack a
punch by combining its money with spending by individual dealers and
the company's dealership advertising associations, he says.

"The ads will all have the same look and feel," Murphy says. He adds
that the goal to slightly exceed 2002 summer sales assumes that the
industry will lag last year's performance.