Category: Automotive World

Chevrolet: From “Like A Rock” to “The Dollar Menu”

2014 Chevrolet Silverado LTZ
AlBargan / Foter / CC BY-ND

Chevrolet has been launching campaigns to attract an assortment of consumers for years by offering cheap prices for those who have poor credit or can’t afford buying a new car due to their financial situation. While that is a noble cause, one that has probably been successful, there are major implications the auto manufacturer faces by making such offers. After the launching of their latest marketing campaign, “Chevrolet’s Dollar Menu”, they’ve unofficially solidified their fate as being the McDonald’s of the automotive world.

The deal is one dollar down payment in a lease offer for the Chevy Cruze and Chevy Silvarado, making them the cheapest lease offers on the market today. Forgetting about the incentives, limited mileage because of a lease, and the deal itself, let’s take a step back for a minute and let this sink in. A dollar menu for an auto brand, not a fast food restaurant, but an American auto manufacturer.

With all the recalls Chevy has had to endure, and now offering some of their lineup for a dollar, they’ve now opened themselves up to the perception of being the car equivalent of McDonald’s. When it comes to the food McDonald’s offers, you could say, “It’s cheap, but in the long wrong could cause obesity”. Chevys are now cheap, but could break down 2,000 miles later. This is not the best approach for a struggling auto maker and completely makes the brand look bad by subliminally saying, “Our cars are lemons and no longer of good quality”.

Chevrolet was once a proud American auto maker, the Camaro and Corvette were highly coveted by young adults, the Silverado was a very popular and durable pickup truck, and the Impala and Malibu were decent four door sedans that could hold their own against their American counterparts. Even the commercials sent better messages by going with the slogan “Like a rock”. In a matter of 15 years, Chevrolet has gone from being a respected manufacturer, to being the prime example of not buying American when it comes to cars.

Instead of the dollar menu approach and sounding like a fast food restaurant, Chevy should try a strategy similar to Honda. The Honda Fit is being marketed as an affordable, yet fun and efficient compact hatchback that fills every need for young adults, as they’ve been the target of this recent advertising effort. Chevy has the Spark, Sonic, and Cruze, all with starting prices under $20,000, and this should be the basis of a marketing campaign. Honda isn’t playing the Chevy game by being a Burger King or Wendy’s, and instead has a sound marketing strategy to a specific audience who are in the market for the hatchback.

The Sonic is a fun, hot, little hatchback for Chevy, and they should roll with it as being the backbone of affordable cars in their lineup. In all honestly, if a Cruze is only $1 down, I don’t think I’d be willing to pay the $169 a month as it doesn’t seem worth it, and would then think that the Sonic or Spark should be offered for $.50 or $.75 down on a lease offer.

When it comes to the automotive world, there should never be a dollar menu. ‘Like a rock” was a better slogan as it promoted a durable and quality vehicle lineup by an American automaker. Chevy has a lot of work to do when it comes to brand image after the countless number of recalls, but if they really want to be respected again, they need to drop the dollar menu immediately.

Auto Marketing: Are Car Manufacturers Becoming Too Much Alike?

Let’s go back in time for a minute to the late 1990’s to early 2000’s in the automotive world. What has changed since those days? Are consumers more confused now than ever? Are car manufacturers becoming too much the same, losing that individuality and no longer catering to the loyal customers they’ve had for probably generations? These are the questions that no one is asking, and in an industry that is constantly changing, why have blurred lines appeared where consumers can’t decide on what the better brand is, and instead just go along with tradition?

In the late 90’s if you wanted luxury you probably would buy a Mercedes Benz, BMW, or Cadillac. For the average family vehicle that was reliable and safe you’d go with the Honda, Toyota, Subaru, or Volvo. The young and dangerous teenager who wants speed would maybe look at a Ford Mustang, Chevrolet Camaro, or Pontiac Firebird. And for the person that wanted a pickup truck, Dodge, Chevy, GMC, and Ford were constantly advertising on TV to appeal to that specific person.

However, today there is such a variety of vehicles in the same price range that often get forgotten, not because they’re of poor quality, but they’re neither marketed correctly nor presented as an individual car manufacturer that stands out from the competition. For example, the average consumer who has no loyal ties to one specific brand will look in multiple categories such as, fuel economy, safety, performance and price. Yet most likely, they’ll only compare the car brands and models that are most prevalent in their lives that have been marketed to them constantly over the years.

As I wrote in a previous article, the 2015 Chrysler 200 is priced from $21,000 to $31,000, putting it in the same price range as the Toyota Corolla, Volkswagen Jetta, Honda Civic and Accord, the Mazda 6 and the list could continue on for a while. What the average consumer who wants performance while still owning a four door sedan doesn’t realize is that the 200 comes with a V6 engine that supplies 295 horsepower, completely blowing away the competition in it’s class in performance. Any one of the cars listed are also subjected to the same reality that poor marketing and a person’s personal preference completely drives their buying habits.

Let’s take a look at the new crossover SUV market that is constantly growing that includes the BMW X1 and the all new Audi Q3. Besides looking good, and for BMW and Audi the brand recognition, what do they really have to offer that other manufacturers can’t? Because luxury brands are now entering markets that are now rivaling Ford, Honda, Toyota, Volkswagen, and Mazda, consumers will now look to just the luxury brands and skip over what the traditional brands in that price range offer.

What used to be a black and white market has now become an array of colors, and while that is great news for the consumer, the manufacturers may end up losing in the end. If the consumer wants a small compact sedan, they’re going to be attracted to the Audi A3 or Mercedes Benz CLA without looking at what the other auto brands have to offer. The sports car market has remained the same over the years, as there is still a price margin wide enough where younger consumers will look to the American muscle cars over the BMW 2 series and others in that category.

The auto market has certainly become competitive, but along with it is the loss of individuality. Most have LED lights, leather seats, MP3 capability, power windows, keyless entry, and other technologies and comforts that were only found on the most luxurious of brands in the late 90’s. There needs to be better marketing strategies from auto manufacturers, whether that be target advertising, or mass marketing that reaches a variety of different people. BMW, Audi, and Mercedes Benz will be catering to a whole new audience; the audience that once bought Hondas, Toyotas, Volkswagens and Fords. TV commercials aren’t enough anymore as brand recognition is enough for consumers to get fixated on one manufacturer.

Right now there are multiple options at all different price ranges, but the consumer doesn’t know it. These auto manufacturers need to become unique again and cater to the specific audience they knew would buy their brand for many years to come. For the time being, the German luxury car segment is taking over, and if the other manufactures don’t step up their game, they’ll be in a for a rude awakening if and when Audi, BMW, and Mercedes Benz introduce the smaller vehicles they’ve been selling in Europe.