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Old 11th November 2013, 15:24   #16
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Default re: The Curious case of TV Advertising & Car Makers

One different point from my side.

Advertising on television is not cheap. It costs very high. Specially if you want to do it in the prime time on premium channels. Already manufacturers are on cutting costs due to stiff competition. If you look at the margins for normal car manufacturer like Maruti, Hyundai, Honda, Tata, Mahindra etc. its not even 10 %. Its generally in the range of 5-7%. Some are doing even losses like Chevy, Ford (not sure), currently Tata. So doing heavy ads on TV is tough for them. Whereas if you see other products like soap, toothpaste, shampoo etc, their margins are very high. Without ads they can't survive in the market. Doing Ads is their necessity. Without ads they will soon die in the market IMO.
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Old 11th November 2013, 21:39   #17
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Default Re: The Curious case of TV Advertising & Car Makers

@PROCRJ & @ creative420 I have to agree completely with you guys. Off late manufacturers have understood rather than spending huge on commercial advertisement on TV they all are going for other mediums like social networking and few innovative ideas / campaign like "Ecosport Discoveries". By doing this they can reach more prominent audience easily rather than shooting blindly.
Moreover in European countries and North America the TV commercials will be by the dealers and not manufacturers.
Not only luxury car manufacturer's are staying away from TV advertisements, the criteria is same even with mass manufacturers if you had noticed carefully how many times you had watched a commercial of Hyundai Sonata when compared to i10 or Alto when compared to Kizashi, hence this purely depends (inversely proportional) on the cost and sales count. To be honest I haven't seen a TV commercial for Ecosport in India yet.

Having said that all I couldn't digest is how could 50 paisa alpenliebe commercial is telecast-ed multiple times on almost all channels at prime hours .
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Old 11th November 2013, 21:44   #18
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Default Re: The Curious case of TV Advertising & Car Makers

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Originally Posted by aniketi View Post
Whereas if you see other products like soap, toothpaste, shampoo etc, their margins are very high. Without ads they can't survive in the market. Doing Ads is their necessity. Without ads they will soon die in the market IMO.
Apparently, some brands are so popular that they don't need to advertize.

Check out this link:

http://www.huffingtonpost.com/2013/0...n_3768504.html

According to the article, you are not likely to find an advertisement for the Rolls-Royce.

"The luxury carmaker doesn't do advertising as a brand and instead benefits from its reputation among its wealthy clientele, according to a spokesperson for the company. Even without traditional ads, Rolls-Royce beat a 107-year-old sales record in 2012, Luxury Daily reported at the time.
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Old 11th November 2013, 23:15   #19
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Default Re: The Curious case of TV Advertising & Car Makers

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Originally Posted by smartcat View Post


Some observations:

1) The premium car makers (Audi, BMW, Mercedes, JLR, Volvo) almost never advertise on Television. BMW X1 (with Sachin Tendulkar) was probably an exception.

2) As mentioned before, almost all car makers use TV ads for launching a new product/models. A few examples -

Maruti K10, Wagon R, Swift, DZire, SX4)
Hyundai i10/Grand/Sonata/i20
Toyota Innova, Etios, Liva
Honda Jazz
Tata Vista, Manza, Aria, Storme, Grande
Mahindra XUV500, Scorpio, Quanto
Renault Duster
Nissan Evalia, Sunny
Chevrolet Cruze, Sail/UVA
Ford Figo, Fiesta
Fiat Palio (with Sachin), Punto (with Yuvraj), Linea
We see ads for cars priced below 20 lac rupees much often than the ads for premium cars. This mainly because:

1. Most people deciding to invest huge sums on a luxury/sports car does a lot of research before going for a particular car. It is very hard to influence customers of this segment through ads. Whereas, a person buying a 4 lac hatchback could be easily influenced by ads boasting of the various features or mileage a cars offers, as customers of this segment mainly seeks practicality and utility.

If we compare newspaper or magazine ads of a 4 lac car and a 40 lac car the difference is evident.
For the 4 lac car various features or maybe a comparision with the competitors are provided . But for the premium cars, just picture followed by a tagline are the only things provided. This i think premium manufacturers provide ads just for the sake of it. See these.

The Curious case of TV Advertising & Car Makers-eonvsalto800.jpg
The Curious case of TV Advertising & Car Makers-p90085653.jpg

2. Sales figures of the cars are another factor regarding the ads. In our country A and B segment cars sell the most and people need to be made aware of the presence of these cars in the market, this is achieved through mass advertisement. But for premium cars which has a few takers, adverts are not going to help much.
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Old 12th November 2013, 10:45   #20
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Default Re: The Curious case of TV Advertising & Car Makers

How many times in the "MORNING "have you carefully studied that car ad in the newspaper, read and analyzed every feature printed and especially noted the conditions apply star* and then again read it when you get back home in the "EVENING". You just can't do that on TV.

It's all about your target audience. One day, I am at home at 7.30 pm watching a TV serial with my 80 year old Grandmother, Dad, Mom, Wifey, Sister and my daughter and channel surfing. Suddenly between a Lux soap and a Prestige pressure cooker ad, comes a "Range Rover" ad. And I say " Wow, Range Rover..What a beauty". My wife nods her head since she thinks its her duty to acknowledge me while all the others have moved on to whether Aiswarya's laugh is good or not?? So out of a total 7 people only 1(yours truly) has noticed the Range Rover and is surely not going to buy one unless I win multiple lotteries.

So basically a TV ad does not fetch car manufacturers good returns except for maybe building brand value while a print ad not only makes you advertise the car in more detail but also makes allowances for highlighting various offers, deals etc.
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Old 12th November 2013, 11:14   #21
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Default Re: The Curious case of TV Advertising & Car Makers

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Originally Posted by treadmark View Post
Having said that all I couldn't digest is how could 50 paisa alpenliebe commercial is telecast-ed multiple times on almost all channels at prime hours .
You have no clue how many HBCs (Hard-boiled candies) are sold every second in our country. One of my client is in this HBC business and although the turnover of these 50 paise products is huge, the profits aren't that great. But these cheap candies help them get a loyal base of customers who'll pick up their premium products like Alpenliebe Lollipop. And again, they advertise heavily hoping that the next time a kid goes to his local store he asks only for Alpenliebe, but then again a poster of "Get a FREE tattoo with two coffee bites" will very much change his mind.

@misquitas That's a good list of brands who do not advertise in a traditional way, but they do by creating online and offline content. So, in turn, that is a part of advertising too

Last edited by creative420 : 12th November 2013 at 11:15. Reason: Typo
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Old 12th November 2013, 12:33   #22
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Default Re: The Curious case of TV Advertising & Car Makers

There is difference on how an Ad impacts urban dwelling folks to the rural dwelling folks , the rural dwelling folks may not have a chance to see all the cars we see on urban roads and hence its very essential that with the penetration of media and satellite TV in rural areas , automobile makers make the most of it . Also it has got to do with the segment they are trying to reach for any product.
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Old 12th November 2013, 13:19   #23
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Quote:
Originally Posted by misquitas View Post

Apparently, some brands are so popular that they don't need to advertize.

Check out this link:

http://www.huffingtonpost.com/2013/0...n_3768504.html

According to the article, you are not likely to find an advertisement for the Rolls-Royce.

"The luxury carmaker doesn't do advertising as a brand and instead benefits from its reputation among its wealthy clientele, according to a spokesperson for the company. Even without traditional ads, Rolls-Royce beat a 107-year-old sales record in 2012, Luxury Daily reported at the time.
Luxury marketing is a different ball game.They have exclusive concerts /events/tickets for owners etc. Its more personal. They have to create an aura of "exclusivity "
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Old 12th November 2013, 14:13   #24
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Default Re: The Curious case of TV Advertising & Car Makers

We must note that the objective of any campaign (TV, internet or print) is 'Lead Generation' NOT sales. To that end, a judicious and cost effective advertising mix encompassing TV, print and internet is adopted by auto companies.

TV medium, which is the most expensive, is used for creating 'mind share' initially after a product's launch and sometimes, like in the case of Aria, used to convey a message (on significant price cuts, new sought after variant etc). Print and Internet are perpetually used to make the 'right noise' in the market and induce customers into inquiring about a car.

Unlike say a software product firm, Automobile manufacturing is a capital intensive business. The advertising spend has a direct impact on the vehicle's pricing, and of course the company's bottom line.
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Old 12th November 2013, 15:28   #25
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Default Re: The Curious case of TV Advertising & Car Makers

Advertising on Television is a huge expense compared to other print media and radio, and the manufacturers know the outcome even after advertising heavily on TV, their sales wouldnt increase drastically.

Products most advertised on TV are impulse purchase products, where a consumer doesnt research much and is just looking for trying out new things and thus such Ads help, on the other hand cars and properties are bought after planning and researching thoroughly, hence the consumer is very well informed.

As an automobile manufacturer the only thing they need to do is educate the customer that an "XYZ" car has been launched and it has "ABC" features, the rest of the work is always done by the consumer in such products.

If we compare the same with FMCG (soaps, detergents etc) people are open to try out a new product as advertised as the monetary risk involved is very low.

Thats the reason why Autos/Real Estate are advertised lesser compared to consumer durables.
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Old 13th November 2013, 13:26   #26
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Default Re: The Curious case of TV Advertising & Car Makers

The decision of buying a car is not a matter of seconds - which is generally done for FMCG or similar things which are commoditized to an extent. One visits and revisits many aspects before taking a final call and thus print media and other forms of advertisements are more preferred when it comes to products with longer life and larger investments
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Old 19th November 2013, 17:29   #27
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Default Re: The Curious case of TV Advertising & Car Makers

I love the new Mahindra ad "We Live Young, We Live Free, We are the Living" ... very nice catchy tune ...

However, a small grouse with M&M is that my beloved Scorpio has been relegated to a side attraction whilst it was their flagship which bailed them out of near-bankruptcy (one of my friends who worked in the Nashik plant said that back in the day, M&M folks used to say "There is a new jeep we are launching and if it does not click then we are done" ... not sure if this is accurate or not though)
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Old 21st August 2014, 21:24   #28
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Default Re: The Curious case of TV Advertising & Car Makers

Crank up volume of your speakers then play this commercial video

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Old 7th October 2014, 09:00   #29
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Default Re: The Curious case of TV Advertising & Car Makers

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Crank up volume of your speakers then play this commercial video
The sound of that Audi R8 was sonorous. Thanks for sharing.
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Old 7th November 2014, 20:27   #30
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Default Re: The Curious case of TV Advertising & Car Makers

Unbreakable:

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