Published on November 16, 2007
The All-American Car: Jeep: The All-American Car: Jeep Times Infinity, Inc. Sadie Siegal Andy Logan Sean Daly Vincent Prange Frances Odziana Jessica Shecter July 14, 2004 Company and Product Analysis: Company and Product Analysis After WWI, the US Army was looking for a fast, lightweight all-terrain vehicle. They put out a call to automobile manufacturers asking for a prototype that would meet all of their requirements. The Bantam Car Company and Willys-Overland were the only companies that responded. Karl Probst designed the first prototype for Bantam Car Company. Based on the Bantam prototype, Willy’s “Quad” and the Ford “Pygmy” prototypes were developed with their own changes and modifications. Willy’s Quad prototype was the only vehicle that met the Army’s power specifications. The Army awarded the contract to Willys. Willys-Overland granted the US government a non-exclusive license to allow another company to manufacture the vehicles. During WWII, Willys and Ford filled 700,000 orders. The first civilian vehicle was called the CJ-2A. This vehicle was for construction workers and farmers. In March of 1987, Chrysler Coorporation (which is now DaimlerChrysler) bought out the company and replaced the car line with the Jeep/Eagle Division. Slide3: The All-American Car “Go-Anywhere, Do-Anything, Haul-Most-Things, Fix-it-Yourself Vehicle” Jeep is known for its rugged image and has a reputation as an authentic mountain machine. It is one of the few companies that have been able to established such a well defined brand image. It is easy to associate the car with a certain active lifestyle. With merchandise, the company has help promote this lifestyle. Jeep sells everything from tents to mountain bikes and clothing. The company alone has brought in $200 milllion worth of merchandise annually. There is a certain “Jeep Culture.” Most of the owners like to go off-roading. There are magazines that dedicated to this activity as well as community adventures that are listed on their website. These community adventures have information on where and when Jeep off-roading events are. On of the adventures is call Jeep Jamboree, which is a family off-roading outing. Another phenomenon of the culture is the “Jeep wave.” Anytime you see another Jeep, whether it is near or far away, you casually put your right palm on the steering wheel and raise your four fingers. “DaimlerChrysler’s mission is to have global presence, strong brands, broad product range, and technology leadership.” www.daimlerchrysler.com Jones, 1995 Slide4: The most popular physical attribute is its off-roading superiority. Jeep vehicles have great articulation, ground clearance, maneuverability, water fording and traction. They have been tested by the trail rated system, which consist of a series of grueling off-road tests. These vehicles are known for being durable and long-lasting cars. This brand is a great match for someone who lives a very active lifestyle. The Jeep brand is different from other brands by its ability to promote a certain culture and have one of the most well defined brands in the business. These vehicles give a sense of being patriotic due to their part in WWII. It is the original rugged passenger vehicle. Other companies have not been able to compare with Jeep’s off-roading superiority. Physical Attributes, Benefits and Brand Differential Slide5: Jeeps has 3 main vehicles Wrangler Unlimited (starting at $24,995) Rubicon (starting at $26,060) Sahara (starting at $25,885) Sport (starting at $22,295) X (starting at $20,310) SE (starting at $17,245) Liberty Renegade (starting at $23,340) Limited (starting at $23,180) Sport (starting at $18,990) Grand Cherokee Overland (starting at $38,165) Limited (starting at $32,840) Freedom (starting at $29,287) Special Edition (starting at $29,050) Laredo (starting at $28,550) Each vehicle comes in a different package. These packages come with certain features that are either standard or optional. These features are in the capability, interior, exterior, safety and security of the vehicle. A consumer can choose which vehicle that bests match his/her needs and wants. Cars are distributed through dealerships and through rental car agencies. These cars are purchased in fleets. Some vehicles are purchased straight from the manufacturer. These vehicles perform well in bad weather, rugged road terrain and recreational activities. It is the car you can take anywhere. Slide6: Market analysis Jeep is part of the light truck automobile market. Specifically specializing in the SUV marketplace. Jeeps leading selling car is the grand cherokee. Sales Figures For light trucks in Units Jeep was 5th in 2000, selling 495,434 units in a tough marketplace behind chevy and ford which have more products in the light truck market. Jeep Sales Figures in Units 2000 1999 1998 1997 495434 554466 459294 472872 Slide7: Trends & Growth *One trend in this market is vehicle color. In the light truck market, white is most commonly selected. While the rest of the light truck industry fell from 98-99 some brands managed to increase such as jeep and GMC. Trends in the sales data would flucuate from year to year, but in 1999 sales for jeep improved greatly because of the SUV crave. Other than the jump between 98-99 the market remains consistent. As the automotive industry continues to grow by leaps and bounds they must now pay attention to outside factors when producing cars and trucks. One factor would be oil and gas prices increasing every day. Heavy SUV gas gusselers are not going to be wanted. Overall this market is going to remain consistent until the outside factors aren’t a concern. *Another trend in the light truck industry is the vehicle electronics. The shared cost of vehicle production is increasing as time and technology becomes more advanced and customers expect bigger and better things. 22% 2000 25% 2005 29-33% 2010 33-40% Slide8: Top Three Direct Competitors of Jeep, (Domestic-2002 & Worldwide-1999) General Motors 2. Ford 3. Toyota Market Share Distribution of Top Three Competitors of Jeep, 2002 (Domestic) General Motors 28.4% Ford 20.2% Toyota 10.4% Total Market Share of Top Three Competitors 59% Market Share Distribution of Top Three Competitors of Jeep, 1999 (Worldwide) 1. General Motors 24.7% Ford 13.2% Toyota 9.8% Total Market Share of Top Three Competitors 47.7% Slide9: Competition’s Strengths General Motors Has many brands, (Buick, Cadillac, Chevrolet, GMC, Pontiac, Saab, & Saturn) Produces cars through it’s Holden, Opel, & Vauxhall units Has stakes in Isuzu Motors, Subaru, Suzuki Motor, Fiat, & Daewoo Auto & Technology General Motor Acceptance Corporation (GMAC) provides financing First in total market share domestically 2002 and worldwide 1999 Ford Has many brands, (Ford, Lincoln, Mercury, Mazda, Volvo, Jaguar, Land Rover, & Aston Martin) In 2002, had the top selling SUV (Ford Exploer)-433,847, nearly doubling its closet competitor (Chevy Trailblazer)-249,568 Second in total market share domestically 2002 and worldwide 1999 Toyota Has many different types of cars, SUVs, & Trucks, (Avalon, Celica, Camery, Celica, 4-Runner, Highlander, Tacoma, & Tundra) Fourth in total market share domestically 2002 and Third in total market share worldwide 1999 Slide10: Competition’s Weaknesses All three top competitors of Jeep show signs of weakness in European markets compared to their overall worldwide market shares Market Share Market Share Ford 10.8 % Volkswagen 18.7% GM 10.8% PSA Peugeot Citroen 13.1% Toyota 3.7% Total Market Total Market Share 25.3% Share 31.8% Slide11: Consumer Analysis demographics Slide12: Psychographics Jeep Cherokee and Grand Cherokee: The average Grand/Cherokee owner is happy with their life the way it is. They lead an active lifestyle and participate in some sports or exercise at least once a week. They enjoy spending time at home with their family, but also enjoy going out and shopping. When shopping Cherokee owners tend to purchase products that are recyclable. Also, they believe that advertisers are truthful and they plan ahead for expensive purchases. Grand Cherokee owners tend impulse shop, but both are brand loyal and pay extra attention to brand names. They are trend setters among friends and are commonly the first to own the latest electrical equipment. They feel financially secure and pay for financial advise. They are both good at managing money, however, Cherokee owners spend money without thinking the purchase through, Appearance is an importance and they are willing to spend what they can afford to look younger and make sure to exercise regularly. Politically Cherokee owners agree with more moderate to liberal views, and Grand owners tend to be somewhat conservative to moderate. Their self-concept reflects an affectionate/passionate, intelligent, trustworthy, and competent person. They are humorous and funny and like to be social able. Jeep Wrangler: The average Wrangler owner is happy with their life the way it is. They enjoy participating in a sports or exercising at least once a week and plan ahead for expensive purchases. They are also trendsetters among friend and spend money without thinking. Politically they are moderate and sway their views depending on the topic. Their self-concept reflects an affectionate/passionate, courageous/adventurous, open-minded individual. They see themselves as trustworthy, competent, and intelligent. Slide13: Media habits U.S. Economy Impact: U.S. Economy Impact Sales of Chrysler brand units were up 14 percent in January 2004, selling 33,936 units compared to January 2003 sales of 28,598. Despite poor weather conditions in many parts of the country, customers visited showrooms nationwide and the sales reflect that economic indicators are pointing up The economy and the financial markets are gaining momentum Chrysler has developed new, distinctive products in the market The Jeep concept car called Treo. It uses fuel cell technology as well as hydrogen fuel cell powering all four wheels via dual electric motors. It is designed to operate in all types of environments. Fuel cell is an electrochemical energy converter on board the vehicle to generate energy from hydrogen for an electric motor. For fuel cell to go on the market, fuel and infrastructure issues must be clarified worldwide as well as political community, mineral oil industry and the energy sector. www.daimlerchrysler.com New Diesel Engines Advances the Technical Aspects of Jeep Market: New Diesel Engines Advances the Technical Aspects of Jeep Market Chrysler brought out several new diesel engines for export markets in 1999 and 2001. The 2.5 will be used in minivans and Jeeps, the 1.9 in cars, and the 3.1 in Jeeps. The 1.9 and 2.5 liter engines will be direct-injected four-valve turbodiesels, and in 2001 and 1999. They include common rail fuel injectors and meet Euro III emissions standards. The 3.1 liter turbo Diesel has five cylinders also meet Euro III. All are being designed to have better gas mileage, performance, and noise, vibration, and harshness levels than current engines. Chrysler appears to be switching to Mercedes diesels. The Jeep Liberty was available in limited numbers in 2003 with a Mercedes common rail turbodiesel. Regulations Protecting the Environmentthat influence Advertising and Promotion: Regulations Protecting the Environment that influence Advertising and Promotion For DaimlerChrysler, a responsible approach to protecting the environment forms a key aspect of safeguarding the ongoing success of the Group. Our measures for protecting the environment encompass not just production processes but the entire product range, and take into account the whole product life cycle-from the utilization of raw materials, product development, production and product use all the way to disposal and recycling. Environmental Report 2004: Significant Advances in the Reduction of Fuel Consumption an Exhaust Emissions With the initiative "Energy for the Future" DaimlerChrysler is illustrating the commitment to the environment as a part of its social responsibility for sustainable mobility. DaimlerChrysler presented the world’s first synthetic diesel fuel, which does not affect the CO2 atmospheric balance in the atmosphere during driving. DaimlerChrysler protect natural resources by including renewable raw materials in our products and processes, by conserving energy, and by focusing on recycling possibilities during the design and development stage of our products. The Social Acceptability of Jeep: The Social Acceptability of Jeep View A: Jeeps are considered a safe automobile because of their size and off road stability View B: Jeep automobiles main conflict with the environment is the amount of gas and fuel that is required for operating. Slide18: Conclusion Jeep has done well in establishing their brand image. It is a type of culture in itself. The all American vehicle is not only known for its ruggedness and sporty appeal, but it is also one of the most durable cars on the market. To go along with the Jeep image is their merchandise that caters to the lifestyle of the consumer. Annually, Jeep sells and licenses more then $200 million in merchandise. Jeep’s reputation and off-road superiority as being the vehicle that you can go anywhere with, doesn’t count for much with today’s sport-utility buyers. Consumers are now more intrigued with luxury such as rear-seat entertainment systems and air-cooled upholstery. Jeep has a strong opportunity to utilize a new advertising and promotion campaign that can focus on the luxury of the vehicle. Giving consumers the image of a vehicle that is not only luxurious but also maintains the rugged, tough image of Jeeps, will give this brand the extra edge against the competition. WORK CITED: WORK CITED 2004 Jeep Wrangler Rubicon 241598. Retrieved on 7/11/04. http://www.dullesauto.com/Jeep/241598.html DaimlerChrystler Home Page. Retrieved on 7/8/o4. http://www.daimlerchrysler.com/ Simmons Study of Media Automotive News: 39, January 08, 2001. ISSN: 0005-1551 Automotive News Market Data Book Supplement: 35, May 1999. ISSN: 0005-1551 Research Alert,18 (9):7, May 05, 2000. ISSN: 0739-358X Electronic Business, 28 (10):64(5), October2002.ISSN:1097-4881 market share reporter-hf 5410.m35 2004 (ref) world market share reporter-hf 5410.w67 2001/2002 (ref) http://www.generalmotors.com http://www.fordmotors.com http://www.toyotamotors.com http://www.jeep.com http://www.daimlerchrysler.com http://www.myjeeprocks.com Jones, Parnelli. “5 automobiles that changed the world: wheels of fortune” Forbes. 23, October 1995: 178 Washington, Frank S. “Bicycles to bathrobes, makers’ merchandise boosts brands, profits” Automotive News. 28, July 1997: 3 Muller, Joann. “Jeep’s identity crisis; Can it retain a tough image as it expands to a cushier line?” Business Week. 12, August 2002: 70 Foster, Patrick R. The Story of Jeep. Wisconsin: Krause Publications, 1998.