Chrysler Advertising

HOT off the presses.

Chrysler to plow more cash into marketing



Reuters / November 18, 2003



DETROIT -- The Chrysler unit of DaimlerChrysler is planning a major
increase in its advertising and marketing next year to support the
launch of nine all-new or updated vehicles.

Chrysler Chief Executive Dieter Zetsche announced the boost in
spending in remarks to reporters on Monday, saying the company
recently ratcheted up its North American "marketing communication"
budget for 2004 by $250 million.

Zetsche declined to comment when asked about the overall budget for
marketing at Chrysler, or on the significance of the increase in
spending at a company that has been seizing on every apparent
opportunity to cut costs to return to profitability.

But he said the spending should have a favorable impact on revenues
because it was planned to support key new vehicles like the redesigned
2004 Jeep Grand Grand Cherokee and the 300 C sedan, a vehicle he
touted as "clearly the new flagship of the Chrysler brand."

Other new or freshened vehicles set to make their debut next year
include a diesel engine powered Jeep Liberty compact sport utility
vehicle, which Zetsche said would have greatly improved fuel economy
compared with the current model.

"Obviously profits don't always grow by reducing costs sometimes it's
the opposite," Zetsche said.

The new models are part of a product onslaught of 25 new vehicles over
the next three years.

He said the planned $250 million in additional marketing costs next
year did not include spending on consumer incentives such as
interest-free financing and cash rebates. But Zetsche did say Chrysler
was not planning to avoid incentives entirely on the new models.

 

Previous to this announcement Chrysler's ad budget was $1.

When mom is driving the young daughters to prep school in a Hyundai
Elantra on TV you're damn right Chrysler better get off their ass and
start advertising. Who else is sick of the constant ads from Jap
makers and SUV's from everyone.

Advertising is what raises your profile - not jumping around the
country to dealer meetings and press junkets where cameras aren't
allowed.

Welcome to North America Mr. Zetsche.

Where people are glued to their TV's (not like in Europe).

 

People that watch a lot of TV. And this might sound like a cheap shot
but it seems to me that the type of people that spend enough
time in front of the boob-tube to actually remember Hyundai Elantra
TV ads are probably not doing much with their lives, and as a result
are probably not making enough money to be in the class of new car
purchasers that Chrysler is targeting.

Ah, but keep in mind that those dealers advertise too. And they
(presumably)
know how to do it a lot better in their own markets. So it makes a lot more
sense to make friends with the dealers and when you do your advertising, you
do it in conjunction with those dealers.

And as for the press junkets - those are advertising.

If people spent as much time as you seem to think watching
advertising-driven
television on their TV sets, then why have the Neilsens continued to show
declines in total viewership for the last 20 years, and why are the sale of
DVD's
going great guns.

If he wants to effectively advertise Chrysler on TV he better start paying
for product
placement in movies and such.

Ted