Sunday, February 11, 2007

Detroit's Big Three Try Harder To Win Over Customers

Author: Anthony Fontanelle

Article:
Never before have consumers been courted by Detroit's automakers
the way the latter are doing now. The industry that has been
long dominated by Detroit's Big Three - General Motors Corp.,
Ford Motor Co. and DaimlerChrysler AG's Chrysler Group - is
threatened by the dominion of foreign automakers. This is the
reason why Detroit's automakers are doing their best to win over
customers being wooed by foreign rivals.

The competition is so hard-hitting that the financial turmoil
engulfing Detroit's Big Three is made obvious to all. The bright
side of the quandary is that auto customers find themselves in a
situation where they are deluged with smart alternatives that
are tailored to satisfy their individual needs. The
consumer-minded strategy is announced at the Chicago Auto Show.
In said the show, automakers have announced the some strategies
like letting potential customers to test drive the car from
their home.

Fresh techniques are now being resorted by the automakers to
capture at once the desires of enthusiasts and make them stay
with the brand. Employing new technology, interesting features
and stunning designs are some of these tactics being tried these
days. Chrysler, for one, sends researchers out to watch how real
people use their vehicles to gain insight into how to make
improvements. "The standard that used to satisfy people 10 or 12
years ago is completely unacceptable today," GM product czar Bob
Lutz said during Chicago Auto Show's media preview. "And if
consumers aren't happy, there's plenty of places they can go."

Detroit's automakers, while facing the one of the greatest
challenges in their existence in the automotive realm, manage to
battle their standing problems. The executives of these
companies said that they cannot just match products that are
being churned out by Japan's Toyota Motor Corp. and Honda Motor
Company. In fact, they are saying that they have to do better.

Part of the strategy to rise from gloom is to stride a chord
with potential customers. Appeal to customers is essential to
automakers. To keep the appeal, GM rolled out a fresh customer
service strategy at its Saturn brand. The strategy covers
delivery of vehicles by Saturn dealers directly to the
customer's house or office. Some dealers have since adopted the
practice however Saturn will be the first to do it en masse.

Saturn will also be offering 24 hours service online. Saturn
concerns like model problems and choices could now be addressed
any time of the day. Saturn auto parts problems involving Active
Brakes Direct
, engine and suspension could be entertained by
the said service. "We really looked at what great brands are
doing to differentiate themselves in the marketplace," Saturn
General Manager Jill Lajdziak said, pointing to industry giants
such as Starbucks Coffee Co. and Apple Computer Inc. "Flawlessly
aligning their product with consumer demands is a strength of
both companies," she said.

Also, a shower of strategies is anticipated in the auto
industry. "More Saturn-like approaches are likely on the way
from Detroit carmakers," said Joseph Phillippi of AutoTrends
Consulting in Short Hills, N.J. "This is the classic case of the
oft-noted axiom, 'It takes one bad car to lose a customer but it
takes you massive amounts of money to win that customer back.'"

As competition increases, the chance of winning over customers
is getting slimmer. "This hypercompetitive environment, it's
going to make you do things you wouldn't have done before," said
Cisco Codina, head of marketing, sales and service for Ford in
North America. "When you have such a crowded marketplace, you
have to have a more articulated message. The problem is, how far
do you go?"

At Chrysler, the company is trying to be hyper-sensitive to
customers. Last year it began having people watch unwitting
drivers in their vehicles. "As there's more competitors and more
market segmentation, you've got to be more precise," said Frank
Klegon, Chrysler's vice president of product development. "It's
not just 'I think blue is the favorite color' anymore. You've
got to get objective data and apply that."



About the author:
Anthony Fontanelle is a 35-year-old automotive buff who grew up
in the Windy City. He does freelance work for an automotive
magazine when he is not busy customizing cars in his shop.

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