http://thebrandbubble.disqus.com/enWed, 14 Jan 2009 14:02:41 -0000http://thebrandbubble.com/blog/?p=96#comment-5117090<p>Great example. The better you know your customers, the better your brand can create meaning and relevance--and the stronger your brand relationships. Subaru was smart to build on its strengths with its target audiences. Subaru was just as smart to avoid "the heroin of rebates and other deals."</p><p>I recall a few years ago when the new VW beetle was battling the newer Mini and Z. Instead of taking the automatic choice with another rebate program, VW looked closely at its target audience and chose to add value. WV became the first automaker to tie with Apple (another brand where design truly matters) and offer a free iPod and docking station. They also gave a gift certificate to <a href="http://Amazon.com" rel="nofollow noopener" target="_blank" title="Amazon.com">Amazon.com</a> as a test drive incentive.</p><p>Results: VW reversed sales declines and exceeded sales objectives, moving 6,000 Bugs with the promo. They exceeded their test drive objective, as well, getting 3,500 folks to take a spin. And here's a kicker. According to <a href="http://Edmunds.com" rel="nofollow noopener" target="_blank" title="Edmunds.com">Edmunds.com</a>, while the competition pumped an average $2,600 worth of incentive dollars into their cars, the VW program was estimated to cost only about $450.</p><p>Know your target. Make smarter marketing decisions. Subaru certainly has, as VW did in the past.</p>Paul HydzikWed, 14 Jan 2009 14:02:41 -0000http://thebrandbubble.com/blog/?p=96#comment-5107571<p>Perhaps this is true.</p><p>An alternate explanation for the success of Subaru is that the automaker has a strong sense of what is manufacturing (vehicles that are designed to operate exceptionally well in challenging weather and terrain) and to whom it is selling (as stated, customers in the Northeast and mountain states).</p><p>Unquestionably, there is a network effect at play for a company like Subaru. More significantly, that network effect has geographic and functional components that spur, not hinder, word of mouth - be it online or off.</p><p>In a down automotive market, utility is going to continue to drive real value. How fitting that auto makers who have forgone utility for upmarket aspirations are now having difficulty finding people who will evangelize on their behalf.</p>Ian FitzpatrickWed, 14 Jan 2009 01:04:34 -0000