PolarBear

Come out here- you'll know the horsepower, gas mileage, or towing capacity of every Nissan and Toyota offered by the end of just about any evening.

Now I have to be careful. Dealers...ummm... like to run with what they know works. We know pickups sell. We know Explorers sell. Sooo... the regional ad group hammers already successful products, then pats themselves on the back for the great job they're doing. I suspect there's a little of that going on nationally too. We do print and, to a lesser extent, TV ads with the co-op dollars. Here's an interesting thing- we've noticed TV isn't necessarily a cost-effective way to sell product at our dealership- inet and print are much more cost effective for that purpose. Remember, this car-sale thing isn't a hard puzzle: 1. Why buy brand X? features/benefits. That's the manufactuers gig. 2. Why buy brand X here? Superior sales/service, etc. There's the dealer's gig. 3. Why buy brand X here, now? The wheeling & dealing aspect of the car biz. Regional advertising? Promos, etc. Then comes the hard part- service, and a good product are what's going to keep that customer coming back to a Blue Oval. A few decades ago, that wasn't a hard sell.

I'm going to disclaim LM, since I have zero experience with that product, other than owning (our second) Grand Marquis. On the other side, the Ranger still competes successfully, with rebates and proper ad support. Although an aging product, the Ranger has a stellar rep as a functional, durable, value-priced compact truck. On that basis, it's not a hard sell- even against newer, fancier, and more expensive competition (priced a Colorado or Tacoma lately?). In our region, advertising is focused on trucks and SUV's. That's fine, but a F-Series has a fine rep and a large, devoted following. Translated, most everyone already knows what the product is and where to find it. The CV? Good question. It's not really a "switch rig," meaning those in the market will buy a CV or a GM.... or not look at them at all. Then again, it's been so long since anyone tried a marketing push on the model, I can't even predict what would happen. The first step, if you spent the ad dollars, would have to be to get dealers to inventory the model in the first place. I'd personally like to see advertising directed towards markets with the highest potential sales increases- Focus's, 500's, and now Fusions. There's grounded inventory, a product that's competitive in it's segments, and a National Marketing Plan in place. The Corvette is an interesting study in internet marketing- primarily because that model takes the lions share of Chevy inquiries. I point this out because Corvette buyers aren't typically looking on the net trying to decide whether to buy a 'Vette or a Boxster. They know what they're going to buy, it's just a question of what equipment, how much, and where to buy it. Don't need a step #1 (TV) with that product, unless you're trying to draw bowtie traffic into the showroom. That's where the Mustang is more effective- most Ford dealers have Mustangs to show, something not true of Chevy dealers and Corvettes. re: Regional marketing people. Honestly, they listen, but I think those decisions aren't made here, so the folks that need to be listening may not be getting the message.

Why not just pull a Budweiser and have both?

I'm wondering the same thing, since I've driven both...often. The Cobalts quieter, more powerful, and while the driving dynamics aren't stellar, are certainly adaquate for the target market.

Six full-time people in internet- no, we don't underestimate it, and have the investment to prove it. But... 1. It's great the under-35 crowd uses the internet more- that's fact. But the folks with the money- your primary and largest block of new car buyers, are over 35. More to the point, they gravitate towards the more profitable products, not entry level lines. 2. People do use the net and the paper when they're in the market. I'd like to see the percentages of people that didn't know they were in the market until they saw something that caught their eyes- it's huge. The Mustang campaign drove people into the showrooms that weren't necessarily Mustang buyers. The Impala and Cobalt ads are bringing people into the showroom that weren't necessarily GM shoppers or buyers. The TV campaign didn't sell the cars, but it put us on the shopping list- and that's step #1. 3. Internet will be the #2 medium within a few years. I contend Ford's ignoring the #1 medium though, and it's costing Ford....and us, a ton of business through lack of exposure. The next time you see someone driving a new Camry or Accord, ask them what they know about the Ford Fusion. Or ask a recent Subaru Outback owner what they know about a Freestyle. I'll bet you lunch you'll be greeted by blank stares more often then not. The sales numbers in the Pacific Nwst prove it. Uh, they do have a Denny's out your way, right?

Uh oh. We're in a lot deeper trouble than I thought- especially after this comment: "Ford and their ad agency researched the media usage of the Fusion target and Internet won out over TV. Believe me, there is a lot of time and money spent on researching how to reach your target." Television creates the exposure, need, and desire to research a model further. The internet and the newspaper are merely tools to accomplish that objective- but without the first step, the second and third step are doomed. Don't believe me? GM hammers the Impala and the Cobalt in our region- and we can't keep one on the lot. Ford keeps the 500 and the Freestyle as well-kept Corporate secrets. It's working. Before you think I'm flying off the wall here- over 30 years experience in sales/sales mgt, Chevy and Ford. 4th largest volume Chevy store in our region, fifth largest Ford store in our region- out of a small town in an outlying semi-rural area. Just my way of saying I'm not a newbie when it comes to advertising and marketing. :rolleyes: This is Ford, not Audi. The majority of our customers aren't sitting at home surfing the net looking for a new car, they're getting glimpses of interesting stuff on TV while cooking dinner or helping kids with homework. Unfortunately, up here, it's everyone elses stuff.

I've said it before, and I'm sure I will again. While Ford and GM worry about Toyota and Honda, the Japanese have something even more worrisome coming up from behind. Those Hyundai characters are getting good. Their learning curve is almost scary.

Dang- they learn fast, don't they? :o

Haven't heard anything, although it's doubtful a diesel will show up in the Tahoe/Suburban anytime soon. Look for a hybrid Tahoe fairly soon, though.

I'd imagine a good percentage of that money is in the US. Toyota (and Honda) are traded on the NYSE, so they have to comply with SEC disclosure regulations. On that same note- have you noticed that, instead of trying to compete with us, what they really want is to be us? I remember reading a few years ago that Honda was seriously considering moving it's main operations (Corporate Headquarters, etc) to California?

I'm sure they didn't... but the car is solid, reasonably well screwed together, quiet (for it's class), and inoffensively styled. For puddlejumpers, that's about all they have to be. Oh yeah, they have to stay out of the shop too. Simple formula- makes you wonder what took GM so long.

It's a cheap little car, fer chrissakes! :P Seriously, though, people in this price range have no illusions of what they're buying- typical Cobalt sticker prices land it firmly in Kia/Hyundai territory. I chalk this one and the Impala up on GM's plus column.

There's one number on Toyotas Balance sheet that you guys missed, and it's huge. Retained earnings. This is a Microsoft type ploy- taking surplus earnings and socking it away as a reserve against future expenses. How much, you ask? $87 Billion- $84 of it in LT investments. That's $40 billion more than they had 3 short years ago. Microsoft ran afoul of the IRS a few years ago for doing the same thing. It's a strategy that only companies awash in cash implement.

In all fairness, though, Ford is eventually going to have to take the Toyota approach with their dealers- outstanding customer CSI, both in sales and service, will be the price of keeping the franchise. It's been proven, over and over again, that great service really is a viable business model.

Anyone else think it's aesthetically challenged? Honda did that drop-snout/ rounded rear on the Accord, and it didn't work for them. 'Course, they still sell....... little badge on the hood still has quite a draw.