Credit where credit is due. General Motors âledâ and the rest of Detroit followed. That counts for something these days. GM shaved the flesh off their bare bones and one Lindsay Lohan month later, theyâve had record sales for the month of June â 47% growth versus DCXâs 5.2% and Ford's 1.4%.
The result? Daimler-Chrysler and Ford plunge head first into the bottomless pit by offering similar deep-discounts, albeit with different fancy names like Employee Purchase Plus so that consumers can tell one desperate marketer from the other.
Todayâs question âo the day will be whoâs laughing last and loudest? GM or the invasion of Japanese manufacturers that are no doubt reaping immense satisfaction from watching Detroit implode.
Is it surprising that consumers flocked en masse to take advantage of this seemingly unsustainable offer (GM are extending through August 1)? Hardly. Itâs a no brainer really. The real keys are as follows:
1) how much longer can this be kept up?
2) What will happen in 3+ years time when these same consumers are back in the market?
3) How many true impulse purchases did this promotion really capture? Itâs one thing to capture a piece of the pie that was currently in playâ¦especially at the hands of their competitors; itâs another thing altogether to build incremental business through growing the category â even if this expansion is temporary
In keeping with todayâs empowered, connected, intelligent and âone step ahead of the curveâ consumerâ¦the gig is up. The expectation is now firmly set that the âpriceâ of entry has been fixed at employee levels. And once the bar has been âloweredâ, itâs a tough act to emulate, deviate from and maintain.
Worse still, consumers now know that auto manufacturers can afford to price their cars so low and this kind of transparency will prove to be a challenge down the line.
P.S. If the promotion was so good, why the need to extend it? :)
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