RE: What it would take to make new Alfae competitive in North America

["Michael S. Sweigart" <msweigart@domain.elided>]

A good marketing/advertising plan strictly enforced through dealership
co-op would help to consistently increase brand awareness and
positioning. (my english teecher once told me to start with a good lead
sentence heh)

Since my company works at both the dealership and manufacturer level for
both Internet and traditional advertising, we have witnessed some
franchises do very well with either destroying or increasing their
market share and customer interpretation of their marketing message.
There are many factors involved here, but some manufacturers take
greater care in enforcing compliance of specific marketing messages to
their franchised dealers.

Most of the successful manufacturers have done a very good job with
co-op advertising. Bascially co-op advertising means that the factory
will kick in a percentage of the money if the dealership advertises in a
specific manner. Logo size, (yes even the font), vehicle choice,
certified vehicles, message and tagline, etc are all part of the co-op
standards. If dealers meet the standards, they get to use this "free
money" supplied by the factory. Dealers are happy to get the extra ad
money and the factory is happy their message is carried through
properly. Dealers who choose to do their own thing don't get the free
money from the factory.

Obviously if the manufacturer is enforcing a bad message then this is
not good, but if the factory does not enforce proper co-op advertising
for a good message then dealers are left to do whatever they want which
sometimes means causing damage to the brand image.

Since we have a "soon to be" mini dealership client, we have been privy
to see some of the Mini advertising materials. If this is enforced as
strongly as BMW enforces their co-oppable advertising then it is nearly
certain that the corporate message will reach all of the consumers
properly. BMW has been one of the most anal (PC term: neurotic) with
enforcement of specific corporate messages.

Alfa, (if and when) they come back to the US should obviously pay great
attention to not only their overall marketing angle/objective/audience
but also to how this message is enforced at the dealership level. From
our experience, GM is one of the most lenient of all in enforcing the
brand message at the dealership. I've seen some factory reps sign off on
some very questionable advertising.

If Alfa positions their vehicles like a GM-type vehicle then we will see
ads for Alfas at "less than invoice price", and "no money down", or
perhaps "no credit, no problem!". However if they model themselves after
the more upscale vehicles (fairly strictly-enforced advertising for BMW,
Audi, Lexus, etc) with specific advertising guidelines in effect (and
enforce it) they can do a lot better keeping a good brand image.

None of us want to see "Alfas for less" on their local cable station a
few years from now- or do we =)

-Michael in New Jersey
-----Original Message-----
From: owner-alfa@domain.elided [mailto:owner-alfa@domain.elided] On Behalf Of
Joe Garcia
Sent: Tuesday, January 08, 2002 10:46 PM
To: alfa-digest@domain.elided
Subject: What it would take to make new Alfae competitive in North
America


Thus saith dsedon@domain.elided

>i agree that these [excellent dealer service, & "reverse" sticker
>shock]
>are what got lexus' foot in the door.  *however*, the reason >lexus has

>been able to maintain & grow its market against the likes of >bmw & mb
is
>due to the fact, that in areas of most concern to most >n.a. car
buyers,
>the lexus is simply a better car:  quieter, smoother, >better
fit-n-finish,
>better quality control, and better reliability.  >*these* are the tings

>that sell cars in america.

Right, and THIS is where the "reverse sticker shock" becomes a factor.
When
the average sorta-affluent car buyer looks at the "quieter, smoother,
better
fit-n-finish, better quality control, and better reliability" s/he
expects
to pay $X. When the actual sticker price is $.85X the sale practically
writes itself up. If all that same quality cost MORE than the potential
buyer expected, sales will be rather disappointing.

>if alfa can do this, they will be successful, whether fwd, awd, rwd,
> >sporty, or bland.  period.  i yust hope that they throw a bone to us
> >lunatic-fringe enthusiasts, the way bmw does w/its *m* series, & audi

> >does w/its *s* series...  lexus, it seems, is even getting into the
> >*sporty* act, w/its 6-sp in the gs300, & the is300 w/6-sp.

Amen, Br'er Douglas, preach on. Testify.

-Joe in reasonably sunny SoFla


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