Automotive industry The 73rd Geneva International Motor Show opens its doors today with a 20 percent increase in exhibition space. It remains to be seen whether the record space is a good omen for the industry.
The fact is: In marketing, almost all manufacturers have reduced the speed of their advertising engines despite ambitious model offensives. But it is also a fact that when it comes to advertising, the automotive industry continues to outpace other sectors of the economy. Apparently, car manufacturers are not letting negative forecasts spoil their mood. And this applies not only to the world's largest advertising markets - the USA, Japan, Germany, England, France and Italy - which are also car manufacturing nations. Apart from publishing houses, which top the hit list of advertising clients mainly thanks to their own advertisements, the automotive market is also in first place in Switzerland, ahead of retail and finance. The local automotive market, which according to Hanspeter Schick, Director of Auto-Schweiz, has an annual direct and indirect turnover of 75 billion Swiss francs, is characterized by an extremely dense and relatively young vehicle fleet. Mr. and Mrs. Swiss proudly drive around in the best-equipped and largest cars in terms of engine capacity - with the exception of the USA. And on average, they buy a new car every seven years, including used cars - even though the average lifespan of a car has risen to over 12 years. When it comes to cars, not much can be explained by rational reasons in the affluent country of Switzerland. Nothing seems to diminish the fascination and the promise of freedom on four wheels. Despite accident statistics, environmental pollution and the price of gasoline, the car remains the leisure society's favorite child. However, the Swiss automotive industry sold 295,109 new cars last year, around seven percent fewer than in 2001. To boost sales figures, more and more importers are therefore resorting to drastic incentives. Discounts of up to 8000 francs per new car, favorable financing models and free gasoline and service are widespread. "Unlike in the upper displacement classes, where money is still easy to come by, dealers of mid- and lower-range cars are increasingly relying on such strategic measures," says Martin Schatzmann, deputy editor-in-chief of Automobil Revue. This is because only driving cars increase the advertising effect by establishing themselves in people's minds, promoting interest, inspiring confidence and triggering a desire to buy. "If a new model is still not on the road after a certain period of time, consumers are hardly motivated to buy this car," says Schatzmann.
Although the car industry slowed down slightly last year due to the economic slump (-1.1%), the importance of car dealers in the Swiss advertising pie continued to grow. 9.7 percent of all advertising expenditure, or 363.5 million francs, went into the sputtering advertising engine. Corporate advertising for new vehicles alone contributed 346.7 million francs. Print products benefited the most, accounting for around 70 percent of advertising expenditure.
In the past, however, newspapers, magazines and trade journals were even more popular with car brand advertising managers. In the last four years, their share has shrunk from a good 75 (1999) to just under
70 percent. In terms of share, newspapers have lost the most since 1999 (-7.8%). The slowdown in marketing budgets is even clearer when you look at the decline in absolute figures: Within four years, print advertising spending in the automotive industry fell from around CHF 281 million to CHF 255 million. In the fast lane in the media mix was the poster, which in 2002 with
34.7 million francs, twice as much car advertising as in 1999. Pierre C. Meier, Editor-in-Chief of the specialist publication Media Trend Journal, is also convinced that this is a logical trend: "On the one hand, it allows a new model to be put 'on the road' quickly during its launch phase and thus into its future environment. On the other hand
the emotional appeal of this medium can also be strengthened."
Hanspeter Schick cites the fact that classic advertising has not suffered much from the slowdown in car sales as a possible reason for this: "If everything goes normally, we expect sales to be just as high this year due to the high demand for replacements. After all, there's no point in always operating with bad scenarios." With these prospects for the lucrative new car business, who would dare to reduce their advertising expenditure? Even if higher advertising investment does not always mean higher sales figures and advertising is only one tool in the overall marketing mix, it is clear that ten of the twelve big spenders in the car market are among the brands with the highest sales.
BMW is one of the few exceptions that have increased their communication investments. For three years now, the Bavarians in Switzerland have not only been having fun driving, but also advertising. The luxury brand has constantly increased its gross advertising expenditure and in the last three years has risen from 14th (2000) to
4th place. In terms of market share, it overtook Fiat during this period and landed in 9th place behind Mercedes. Philipp Odermatt, Head of Corporate Communications at BMW Switzerland, on the advertising strategy: "The gross advertising investments are in relation to the competition, to our own brand or product portfolio and to growth in general. BMW has launched many new cars in the past and will continue to do so in the future. This is the decisive reason why advertising investments have increased and will continue to do so."
Even more important for BMW than its position in the ranking of the most advertising-intensive car brands is probably its second place on the popularity scale in German-speaking Switzerland - as well as in Germany. The styling, which has stood out from the competition for years, the reliability and engine culture as well as the overall impression of the car have built up this stable image and popularity base, which guarantees the Munich-based company a high level of brand loyalty.
Audi has also cultivated its image in an exemplary manner following its repositioning in the VW Group. According to the Tamedia car study, the four Ingoldstadt rings stand for
the most popular car brand in Switzerland. "Consistently and over
across all levels we have
The brand claim 'Vorsprung durch Technik' has been implemented for the first time," says Ernesto Larghi, Head of Brand Audi Switzerland. With the in
trading-up in the 1980s, communication also began to convey the brand values of innovation, quality, design and the character traits of "sporty, emotional" with the "necessary self-confidence". "The prerequisite for this was a commitment to the premium brand.
The strategy and corporate culture were aligned with this," says Larghi, describing the brand revitalization. And this is naturally also reflected in the independent advertising implementation and the media mix. "Provided that the political and economic situation does not deteriorate further, we are planning to advertise on a similar scale to last year," says Larghi. Balm for the industry. After all, most car importers are not expecting their advertising spend to grow this year.
The three best-selling brands VW, Opel and Renault are experiencing a slight slowdown in advertising expenditure. Renault's in-house agency Publicis, where Account Director Thomas Fux and Group Account Director Philippe Meyer have been managing the French brand's budget for years, sees no reason to make any major investments despite the "Car of the Year" award for the Mégane II. "A title like this is important for communication. But it remains related to the model," says Fux. Before the international campaign took flight, two special advertising motifs were created for the model and the award logo was used in all communication media. However, the award could not be exploited for the brand. The Pw manufacturer's periodic surveys, which include brand comparisons, purchase-deciding criteria and brand values, continue to point the way forward. "At the end of each year, we compare whether we have come closer to our core values such as customer proximity, innovative strength and the courage to develop new vehicle concepts," says Fux. Ultimately, Renault wants to rebuild a clear brand image within the model range that no longer operates with different model worlds.
GM's Opel brand has similarly revamped its brand strategy. In Rüsselsheim, former BMW manager Carl Peter Forster wants to improve cost structure and quality with the Olympia program. In contrast to previous years, in which the individual car lines were positioned separately, all models are now to contribute more to the creation of the brand image, according to the advertising agency McCann-Erickson, Geneva. Managing Director Curdin Janett: "This strategy sets the creative guidelines for all markets. Within these guidelines, we can respond to the needs of the Swiss market. For a smaller market like Switzerland, this communication strategy pays off. Whereas previously there was a lack of advertising pressure to really position each car line independently, today a more homogeneous brand image is created." Opel is still keeping the launch campaign for the new Meriva minivan, which is celebrating its Swiss premiere at the Geneva Motor Show, under wraps. In this segment, every communicative move is checked for possible reactions from the competition - especially if, like Opel, you want to recapture market leadership.
"The last male preserve "Nowhere are dreams and reality as far apart as in the world of the car. "We still use cars to live out our irrational desires and urges," says Andreas Steinle, Managing Director of Trendbüro Hamburg, explaining the unbroken fascination with cars. This relationship box is particularly pronounced in campaigns for new off-road vehicles. "We see this as a 'last male reserve'. You can indulge in the myth of being really cool and conquering the world with an off-roader."
Steinle sees adjustments in the value set of advertising communication for cars in the decrease in functional arguments and the increase in irrational arguments, such as the Mini, whose claim - "Is it Love?" - is exemplary of this trend. "Love alone is enough to drive this car. You don't need good reasons, because there aren't any. Compared to other small cars, the model is expensive and not very practical." But that is no longer a problem today: people openly acknowledge this contradiction on four wheels. Trend researcher Steinle sees martial-masculine advertising, as in the case of Lamborghini in the fast lane, as a counter-trend to the warm and harmless variant. The racing car brand advertises with a chainsaw whose teeth consist of many small Lamborghinis. "It's a clear statement of intent: My car is a weapon," says Steinle. Sixt also played its part in the redesign of the genders and celebrated machismo. For the car rental company, JvM/Isar put this quote in Dieter Bohlen's mouth: "The only woman I let tell me anything is my navigation system." (la)
Luca Aloisi
