Chrysler boosts ads to avoid rebates

[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.

[mich_132003]

I just love US Corporations. Spend $100 million in ADVERTISING to increase sales. Wonder if they ever thought to continue to lower prices on their product, spend less in advertising and see what that does to sales. Just my $.02.

[Dalite]

I agree with that.

Also, rather than spending to $100,000,000.00 in advertising to reverse the trend of "Customer Numbness" to discounts, why couldn't they spend the $100.00 extra per unit sold to have it reach the customer with the previous year's proven appreciated customer comfort items that were deleted in current production.

And the most tragic thing about this entire lost sales dynamic is that they will probably make deeper cost-cutting deletions in the next year's (2004) production, and wonder why their sales continue to shrink against other domestic production; not to mention against the foreign market.

If their goal is to "slightly exceed 2002 summer sales", then they should slightly get the product closer to 2002's build level and go from there.

An old parable that may apply here :

"It is hard to consume like a humming bird and deficate like an elephant"

(Note: an attempt has been made to make this parable more palatable for presenting to the masses).

[earringboy]

..and another thing, when ya'll made your Cruiser purchase did you happen to notice the 'loyalty mailings' charge on your invoice from Chrysler? It was $49 on mine and I bowed-up and refused
to pay it...it was explained to me that was required and added on just like the freight charge by corporate, it was for all the surveys and that Chrysler quarterly magazine with Celine Dion in it...then I really bowed-up and the charge was removed or eat by the dealer...

[PTGT-NH]

I don't have that charge on my invoice. Maybe my dealer automatically eats it?

I don't know about you guys, but I have NEVER seen a commmercial advertising the PT Cruiser on TV. I've seen a generic ad where you see it very very briefly. They say that PT sales are down. Advertising does work to keep a car in the public eye and that helps sales. Even though it's the top selling SUV, Ford still advertises the Explorer. They advertise it to keep it in the minds of consumers. Maybe Chrysler should try that with the PT (though the Pacifica will prolly get the attention since it's new and flopping with about 5k Pacificas sold so far).

[Puck]

There has been at least one PT ad on TV. Boy & girl drive up in his PT. They enter the house for a little dancing and perhaps some romance. She picks his pocket (gets his keys) runs out and drives off in his PT. Cute!

[DTs_PTGT]

Puck,

I've seen that commercial a bunch of times . . . about a year ago! I don't see that one on TV anymore. The only other commercials that actually show the PT (2 in their currently running ads that I know of) show it only briefly and it's one of those commercials that show all Chrysler models.

I guess I'm saying I haven't seen a PT specific commercial since the "pickpocket" one.

[Kirby]

I'm sick to death of seeing silver cars running at high speed on the desert!!! Even though I own a PT it is hard to make out what the make or model is they are all so bland and vanilla.

These commercials make me think strongly about purchasing a TiVo to remove them. Excuse me I think I'm going to puke just thinking about these commercials (sea sickness)!