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Automakers use innovative marketing to sell new cars

Dubai: Selling new cars in any economic downturn is notoriously tough.

As prospective customers move from showroom to showroom this summer in the UAE, they will encounter different pitches aimed at targeted audiences as new model launches push for success despite the tough economic conditions.

Repeated buzzwords from sellers will likely include 'safety' and 'lifestyle'.

The UAE is one of the most severely affected automobile markets worldwide, said Tomas Ernberg, managing director of Volvo Cars Middle East .

The market for new cars and SUVs has dropped 40 per cent since January, he added. Ernberg hopes Volvo 's marketing campaign based on road safety will help with sales.

In January they launched the new XC60, a 'premium compact' SUV. Before explaining the shift in buying patterns from larger SUVs to the smaller models, Ernberg talks safety.

"Seventy-five per cent of all accidents happen at 30 miles per hour or below," said Ernberg.

Volvo 's new XC90 features 'City Safety' - a laser beam at the front of the car which automatically stops the vehicle if a collision seems imminent.

"The product stops you, and it stops itself" is the slogan for the new XC90.

They are also tying safety with cost consciousness.

"Due to this we have insurance companies reducing their prices in the Middle East and Europe," Ernberg said.

Going one step further, Volvo will be starting a road safety campaign in the UAE media within the next couple of weeks, inviting people to talk about their experiences of losing loved ones on the roads.

The Swedish brand is not as well known by UAE nationals as other luxury stalwart brands such as Mercedes, explained Ernberg. He added that the safety campaign would target the local population.

"Of the local population, only 13 per cent wear seatbelts," he said. "And that's scary."

Other dealerships are prioritising the safety elements of their cars as major selling points, from the new Golf GTIs adaptive cruise control, to the 2010 Mazda 3 coming with front and rear disc brakes for the first time.

These smaller cars are still prioritising the lifestyle element of their marketing - having homed in on a specific target customer.

As Volkswagen prepared for the launch of their new Golf GTI in the UAE earlier this month, they had a clear picture of who they were trying to reach.

"Our target audience[s] for the Golf GTI [are] the young, educated, successful people," said Stephan Mecha, managing director of Volkswagen in the Middle East. Although they are not experiencing a particularly swift increase as hoped for in this demographic, "people are attracted by this profile," he added.

Volkswagen will be jostling with Mazda for such customers. R. Krishnan, managing director of Al Galadari describes the Mazda brand as a "youth icon," explaining that their customers are young people looking for a "stylish, insightful and spirited" car.

The secret to associating a car with a lifestyle, when it is not a high-end luxury brand, is design, say the auto bosses.

The shape of the new Mazda 3, launched in the UAE yesterday, is different from the 2004 model. Mazda describes it as a 'sports compact'.

"The inside is also more ergonomically designed," said Krishnan.

KIA has launched two new models this year - the KIA Serato, and the KIA Soul. For both, the design is meant to underwrite the lifestyle brand.

Amei Ramesh, product manager at Al Majid Motors who sell KIA cars in the UAE describes the Serato as "much sleeker, more aerodynamic" and the Soul as "a stylish car".

Although many companies have cut marketing budgets in general, when it comes to launches, most are still pulling out all the stops.

To reduce costs, Volvo has cut its marketing budgets by 40 per cent, said Ernberg. But it made no cuts for the XC60 launch.

Volkswagen also said they maintained budgets for the new GTI launch, but have diversified advertising to include interactive online advertisements.

By Jane Ferguson

© Gulf News 2009