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High stakes in car advertising game... |
High stakes in car advertising games
MARKETING GIMMICKS
"UGLY but it gets you there" was the advertising pitch which won the VW Beetle a 15% share of the SA car market in the 1970s. There were no boasts about performance, road holding, fuel consumption or resale value. It was the ugly duckling of the motor pool, surrounded by sleek, compact Japanese, European and American cars. That it survived the Second World War, the baby boomers and punk rock is one of the most confounding of marketing phenomena in the post-war era and the focus of university studies. "The Beetle appealed to people at an emotional level," says Jonathan Shubitz, executive creative director at Ogilvy & Mather Rightford Searle-Tripp & Makin (O&M), the advertising agency which has handled the VW advertising account since the late 1970s. "It provided a sentimental attachment to a bygone era, which is something the more modern cars could never do." By the late 1970s the Beetle was losing ground to new generation Japanese competitors and VW needed a replacement capable of challenging the Japanese on price, performance and features. In 1978 it introduced the Golf, which turned out to be a worthy successor. By 1980, VW's market share was 21%. But the early Golfs earned a reputation for shoddy quality and poor reliability and by 1984, market share had halved to 10.6%. The VW badge was rusted and worn, and in need of a make-over. As a start, R250-million was invested in improvements to quality. O&M, working together with VW, devised a marketing and advertising programme around the theme, "Isn't that what you'd expect from VW?" aimed at the public, dealers and VW factory workers. Out of this came some of the most successful TV vehicle advertising campaigns in recent years, including the huge 864-car VW logo, so vast it could be viewed only from the air. And more recently there was the Beetle advertisement featuring the life story of a Beetle as it passed from one owner to the next, against a backdrop of changing fashions. These campaigns, rather than focusing on a specific model, created a powerful branding around the VW "family" -- those who make, sell, service and drive its cars. Other campaigns emphasised the strengths of particular models. David Kramer's hyped-up adventures in the Volksie Bus, selling the idea of a spacious interior, had a big impact on sales. In 1984, responding to the general trading down in the vehicle market, VW planned to launch a low-priced model under the name Econo-Golf. "The original plan was to make it available in two colours, beige and white," says Shubitz. "We suggested that VW call it the Citigolf and launch in Mondrian-style bright yellow, blue and red. Within two months of the launch sales hit 200 a month. By 1996 it was 2 400 a month."
A comparison of adspend by motor manufacturers shows that Toyota pays handsomely for its market leadership. It accounts for more than 30% of the total adspend by vehicle manufacturers, in return for a 25% share of the new car market. In 1996, it was displaced by VW, which grabbed 28.6% of the new car market, but has since regained its market dominance. VW, in contrast, accounts for 12% of total adspend by vehicle manufacturers in return for a 21% market share in 1997. Other factors, such as performance and features, are strong selling points, but no one doubts the impact of advertising.
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