Posts Tagged ‘David Smith’

Creative motor marketing

Sunday, November 9th, 2008 by Jon Clements

 

More than a nation of dog lovers, the British love their cars. Third largest car in the EU, 2.4m new cars registered in 2007 and 850,000 employed by the industry. But more even than cars, I’d say we love a bargain.And what a bargain online car dealer, Broadspeed.com, was offering this week: £20 grand worth of Dodge Avenger, but not just one - “buy one, get one free”.  Company MD, Simon Empson, speaking in The Guardian, couldn’t have been more understated when he said: “It’s the power of marketing, I suppose.” Amen, came the holy choir of marketeers across the UK.

Serious times call for serious measures. And those measures now include the motor industry calling directly on the Government to orchestrate a funding package to resuscitate the retail motor trade. The Society for Motor Manufacturers and Traders (SMMT) signalled the depth of the problem back in August, when reporting that month’s sales as the worst since 1966. At the time the SMMT caught some flak from the trade for “talking down the market”, and the messages seemed confusing, as with a bi-annual registration change the old focus on comparing August sales seemed misplaced.

But the industry’s lobbyists could clearly see the stark words written in the grime of the car market’s chassis. Yet it was probably David Smith, head of major - and iconic - motor manufacturer Jaguar Land Rover, going on the Today programme that added the true weight of the motor business to helping shift interest rates south by 1.5% at the end of last week. So, with potentially more cash slushing around people’s wallets and the prospect of another publicly-funded bail out package, the car industry should be quids in. But, as the BOGOF dealer offer showed, it’s time to be innovative in marketing, with a combination of tactics to drive people through showroom doors as well as giving them a good deal. It’s also an opportunity to test drivers’ brand loyalty - if someone will try a new marque at the right price, that brand might win a new customer for life.

Talking about the situation with my father - a motor business veteran of 50 years - he was remarkably sanguine. Having seen and sold his way out of economic lows across the decades - when even some UK car makers were not just helped by the state, but owned by it - the industry, he said, would get back in gear again.