Third Gear

Entries from October 2010

2011 Volvo S60 – A Volvo that Goes Naughty

October 28th, 2010 · No Comments

Re-envisioned, re-designed, re-released. This is all about Volvo’s great new model, the S60.

Activated with power, momentum and stylish design, and still with the safety features from the heritage Volvo has left, S60 thoroughly refreshes people’s mind. Frankly, not everything has to be German – cars are no exceptions.

Once geared up with the 3.0 Liter, 6-Cylinder Engine that throws out 300horse power, it becomes the most dynamic model Volvo has ever built.  But this isn’t it – Volvo is determined to create something that ultimately integrates comfort, sportiness and safety. It is the first vehicle in the market that implements Pedestrian Detection with Full Auto Brake. When the car is running under 30 mile/hour, it will send a warning to the driver and automatically come to a full stop if a pedestrian stumbles into the traffic, avoiding a collision eventually. Volvo says that 70% of the traffic accidents around the world take place under 30 mile/hour, so perhaps majority of such incidents will be avoided if everyone drives a Volvo – ideally.

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Segmentation/Positioning analysis of S60

Apparently, Volvo intends to overhaul its image with this brand new model. Years ago, Volvo entered the market with its competitive safety package and has then attracted a certain number of buyers concerned with security of vehicles – these buyers are the target market. However, its somewhat outdated appearance and slack in power in previous models, plus the enhancement of safety features from its rivals, Volvo’s market share plunged. With the advent of the S60, we can clearly witness the ambition of this veteran manufacturer – restoring the pie. The S60 model targets the segment of young buyers who are fond of sportiness but without sacrificing comfort and safety features (in contrast to cars like Subaru WRX STI or Mitsubishi Evo, which seems to only focus on momentum). The positioning? A luxurious, fashionable, naughty car.

Pedestrian Detection with Full Auto Brake

Tags: Uncategorized

Models Rarely Seen on the Road – Reasons?

October 12th, 2010 · No Comments

Walking on a busy Vancouver city street, you will, if you are observant enough, find that some car models, such as Toyota Camry and Honda Civic, can almost be spotted every other second. On the other hand, when was the last time you ever saw a Lincoln MKS? A Volvo S80? Or a Volkswagen Phaeton?

You might claim that price is the decisive factor because financially, a Toyota or a Honda remarkably cuts your expense in all aspects. You might be partially correct, since few people in today’s world are able to purchase a Ferrari; and that is the reason why Ferraris are sporadic.

Please think again. Several premium brands such as Mercedes, Range Rover and BMW tend not to provide buyers with inexpensive models, but they are still everywhere. Whereas some rare models in the market, Ford Fusion and Buick Regal for examples, are actually less costly.

Right, this is trickier than you thought. But at least it tells you that money is not everything – people are looking beyond the sticker price. So what are consumers really looking for? The answer lays in a particular order: affordability, cost efficiency, word of mouth, and brand recognition.

  • Affordability: Money does come as the first issue, and that’s partially why a Ferrari or a Lamborghini is much more likely to catch your attention than a BMW or Porsche – they are not everywhere.

  • Cost effeciency: Fewer manufacturers these days over-estimate what their models. Prices are carefully determined in correlation to the overall quality of the vehicle. However, it does not mean that such situations do never exist. Take BMW X6 for example, you pay a premium price for a car that virtually does nothing special. What are you paying for?

  • Usefulness: Mercedes G models and S models are at the same level in terms of pricing. But the latter is too much more commonly spotted. As an off-road oriented model, G Class are affordable to S buyers, and the models provide excellent cost efficiency seeing what you get from what you pay for. But not too many folks around will recommend you a G wagon simply because they are not very useful. You don’t usually drive them in urban areas as it is going to be a waste.

  • Brand recognition: Volvo S80 and Volkswagen Phaeton are recognized as great cars, ONLY by those people who really know them. An S80 is a combination of superior safety and remarkable quality but they are not too popular. A Phaeton by no means is inferior compared to Mercedes S Class and BMW 7 Series with its blend of high-end technology, appealing interior and massive power. The majority of the population, however, still does not usually give a second look to such cars. It is time for the manufacturers to consider market penetration strategies if ever are willing see a growth in sales.

Tags: Automobile Marketing Campaigns · Models Marketing Review - Strengths & Weaknesses

Off-road SUVs. Which One is Your Favourite?

October 1st, 2010 · No Comments

Hello and welcome to the third post. If you are an SUV lover, you have come to the right place. If you aren’t, on the other hand, you might reconsider a little bit. After all, what’s wrong with a sizable, roomy, bold and presumably aggresive vehicle roaring on the road?

Well, modern SUVs are not necessarily always meant to be full of noise or aggresion. But rather, some of them are designed ot be quiet, smooth and elegant, without sacrificing their size or power. Now, let’s take a look at several typical off-roaders and their target market.

SUVs originally were designed for rural buyers who required both on- and off-road driving. Some of the current SUV models in the market are still equipped with stiffened suspension, all-wheel drive and towing capacity, which together enable the go-anywhere ability (in a relative term of course).

Model 1: Volkswagen Touareg – “Brains, Brawn and Beauty”

Strength: You have it right – it’s VW. For decades, Volkswagen has followed its legacy and built vehicles with both quality and performance with affordable pricing. Starting from $48,440, a fairly reasonable price for its level of performance (Go ahead and check out the video where a Touareg tows a Boeing 747), Touareg is truly a people’s car.

Target Market: For drivers constantly venturing off-road, this model is totally worth a consideration. For those who are looking for elegant, stylish design and impressive on-road manners, Touareg will by no means dissapoint them either. Its highly capable system design delivers only the excellence.

Weakness: If you look forward to driving a car that draws pedestrians’ attentions with your brand, this is not the right one for you – because it’s Volkswagen, something not designed for attacting oculus. Also, if you want to have a seven-seat car and with plenty of cargo space, try look for something else. This is only a mid-sized SUV.

Model 2: Land Rover Discovery – “Strong. Spacious. Versatile.”

Strength: In comparison with other cars, Land Rover Discovery is perhaps an SUV just for off-road, even though sometimes found on urban streets. Once equipped with a superbly powerful V8 petrol engine which delivers 370 horsepower, few can beat a Discovery where the road ends.

Target market: scientifc expeditions, militaries and adventurous buyers who seek for bold style in a vehicle.

Weakness: Relatively few people are big fans of the rough appearance. Furthermore, during this period of time where the oil price is skyrocketing, people might turn to competitors with better fuel economy. Land Rover’s family has been quite notorious in fuel consumption for a while.

Model 3: Mercedes G Class – “A Powerful Presence for Over 25 Years”

Strength: German. Heritage. Nostalgia. Excellence. Dignity. Best of all, Mercedes. If there is something beating Land Rover in off-road capabilities, this is it. This is one of the few cars on the streets stubbornly refuse to switch their look and thus a G-Wagen keeps reminding everyone of lives two decades ago. If upgraded by AMG, its might gets redoubled and the car goes anywhere – you name it – deserts, forests, mountains, wetlands, snowlands… Its adventurous style will never fade away.

Target market: Militaries, expedition teams, keen drivers who “believe in staying strong” and seeking to have “personality personified”. Canadian forces have them as military vehicles, and so do other armies. Some groups of people do genuinely love the look. Thus they become the targets.

Weakness: If there is a drawback, it’s the price. Starting from $114,400, not yet achievable by most civilians – and that is just the price for a base model. A fully equipped one could go anywhere up to $160,000, so it’s perhaps just a dream for many. Also, it’s worth mentioning that quite a number of people do not much appreciate the appearance. They deem it to be outdated. And perhaps it is.

Model 4: Toyota FJ Cruiser – “King of the hill”

Strength: Ever thought that Japanese engineering creates something like this? Truth is, it’s cool. An FJ Cruiser is a combination of stylish design and off-road capabilities. Being popular among the younger generation, it is not uncommon to see them on streets day by day. Moreover, it is reasonably comfortable and luxurious despite its somewhat rugged look.

Target market: For those who drive to work on-road every week day and spend their weekends in the countryside, this is an ideal SUV. After all, a good-looking vehicle is much appreciated everywhere.

Weakness: With a base price of $31,900, it may turn some buyers away for cheaper off-roader options. This is because that a such basic model does not include much – not even AWD for an off-road SUV. Also, its fuel economy is not of great reputation.

Model 5: Jeep Wrangler – “Best-in-class”

Strength: Many do think that the rugged look of a Jeep is the strength personified. Jeep is actually one of the most off-road oriented vehicles in the market, and with options of relatively cheap models. Thanks to an excellent suspension system, a Jeep is truly born to be maneuvered in the wilderness. It’s hard to get away without considering an off-roader costing only $19,000.

Target market: Off-road driving norms with limited budget on vehicle spendings will find it desirable. Rugged style lovers will also appreciate this model.

Weakness: A Jeep Wrangler dramatically compromises on the road. No matter in what aspects: appearance, performance and fuel economy, there always seem to be better alternatives. Stability inside the car is another issue.

Touareg

Tags: Models Marketing Review - Strengths & Weaknesses