Automotive News - November 3, 2008 - (Page 14)

14 • NOVEMBER 3, 2008 New ads aim to raise Suzuki’s low profile Kathy Jackson kjackson@crain.com EDITORIAL STAFF 313-446-0361 E-mail autonews@crain.com Web site www.autonews.com Keith E. Crain Publisher and Editor-in-Chief Peter Brown Associate Publisher and Editorial Director DETROIT 313-446-0361 Fax: 313-446-0383 1155 Gratiot Ave. Detroit, MI 48207-2997 David Sedgwick Editor dsedgwick@crain.com Edward Lapham Executive Editor elapham@crain.com Richard Johnson Managing Editor rjohnson@crain.com John K. Teahen Jr. Senior Editor Mary Beth Vander Schaaf Deputy Managing Editor Charles Child International Editor David Kushma Retail Editor LOS ANGELES — If Suzuki can’t get traction when small-car sales are soaring, when will the brand get going in the United States? Except for the XL7 SUV, all of the Japanese brand’s models have fuelefficient four-cylinder engines. All have four- or all-wheel-drive capability. Suzuki’s 7-year/100,000-mile transferable warranty is one of the best in the industry. And its vehicles are priced lower than competitors’ comparably equipped products. But Suzuki has a problem. “Consideration is still pretty low,” said Gene Brown, American Suzuki Motor Corp.’s marketing and product planning vice president. “We’re a brand that’s not well-known.” On top of that, Suzuki’s alreadypaltry annual advertising budget — estimated at about $120,000 — was cut 10 to 15 percent this year, he said. “Our sales are down, so our budget is down,” Brown said. “But if we’re not out there (with advertising), we don’t make the list at all. So it was time for some fresh thinking on the brand.” “SUV-asaurus,” a TV spot for the Suzuki Grand Vitara, will run on the Discovery Channel, online and at movie theaters. Dave Guilford News Editor James B. Treece Industry Editor small is the new big. “ In this environment, New ads Working with a lean budget, Brown knew that Suzuki had to make a splash — a big, bold statement with its 2009 lineup. The small SX4 crossover and sedan and the freshened small Grand Vitara SUV, which got a new four-cylinder for the 2009 model year, have the most potential, he said. Eager to spice up Suzuki’s image, Brown agreed in April to let a small, well-respected agency, Siltanen & Partners in Marina del Rey, Calif., come up with some ideas. At the time, Suzuki’s lead agency was Dentsu Next in Brea, Calif. Brown liked Siltanen’s proposals for the Grand Vitara and in July awarded the agency the entire auto account, leaving Dentsu Next with motorcycles and all-terrain vehicles. “There was always the question mark if our cars are as fun as our bikes,” Brown said. “These new ads show that they are; I’m very pleased.” New spots for the SX4, which began airing in late September, take potshots at the popular Mini. The ads show the SX4 in a Superman-type cape proclaiming that it has standard ROB SILTANEN Siltanen & Partners ” Jesse Snyder Senior Writer Karen Faust O’Rourke Insight Editor COPY EDITORS: Bob Allen, Tom Fetters, Patricia C. Foley, Kenn Jones, Gregory Skwira Susan Zavela Bamford/Graphics Editor Rick Kranz/Product Editor REPORTERS: Leslie J. Allen, David Barkholz, Mary Connelly, Ralph Kisiel, Jamie LaReau, Arlena Sawyers, Robert Sherefkin, Richard Truett, Bradford Wernle, Amy Wilson Mary Raetz Director, Automotive News Data Center Debi Domby, Camille Pippen Research Assistants Dan Jones Office Manager Robertta Reiff Editorial Assistant Corinne M. Price, Michael Garrison Information Center LOS ANGELES Mark Rechtin/Bureau Chief 310-739-8009 Fax: 310-832-6362 Kathy Jackson/Reporter 323-370-2481 Fax: 323-655-8157 Alysha Webb/Reporter awebb@crain.com 6500 Wilshire Blvd. Los Angeles, CA 90048-4947 NEW YORK Diana T. Kurylko/Reporter Phone/fax: 908-273-6059, dkurylko@crain.com WASHINGTON Donna Harris/Reporter 540-668-7295 Fax: 540-668-7296 Harry Stoffer/Reporter 202-662-7212 Fax: 202-638-3155 814 National Press Building Washington, DC 20045-1801 MID-SOUTH Lindsay Chappell/Bureau Chief 615-371-6654 Fax: 615-371-6655 April Wortham/Reporter/615-371-6617 104 East Park Drive, Suite 315, Brentwood, TN 37027 SHANGHAI Steven Ribet/Staff Reporter (86) 21 6431 1227 sribet@crain.com TOKYO Hans Greimel/Asia Editor +81-3-3828-9060 Fax: +81-3-3828-9061 hgreimel@crain.com Yurakucho Denki Bldg., 20th Floor 1-7-1 Yurakucho, Chiyoda-ku, Tokyo 100-0006, Japan TURIN Luca Ciferri/Reporter/lciferri@craincom.de +39-011 961 0194 Fax: +39-011 961 0113 Viale Cavaglia, 8 10029 Villastellone (TO) Italy STAFF CORRESPONDENT: Eric Freedman/Legal file, 517-337-0269 www.autonews.com DETROIT Dave Versical/Editor Automotive News Online dversical@crain.com 313-446-6789 Philip Nussel Managing Editor, Automotive News Online Victor Galvan/Web Editor vgalvan@crain.com 313-446-0345 Scott Kennedy/Multimedia Editor Print ads for the Grand Vitara from Suzuki’s new automotive ad agency, Siltanen & Partners, feature the vehicle’s new nickname, the GV, and the brand’s new tag line, “Live large. Drive small.” navigation, awd and more horsepower than the Mini. The ads also maintain that the SX4 is less expensive and has a better warranty. Quirky ads for the Grand Vitara begin airing this month, when the updated vehicle goes on sale. A twominute TV spot called “SUV-asaurus” will run on the Discovery Channel, online and at movie theaters. It shows dinosaurs dressed in SUV attire being replaced by a hipper and more fuel-efficient Grand Vitara. In an online Grand Vitara “Monster” ad, the SUV growls at Honda’s CR-V crossover and brags about having more horsepower, a better warranty, more off-road capability and a lower price than the CR-V. Magazine ads describe the off-road capabilities of the Grand Vitara. New nickname The Siltanen agency has given Grand Vitara a new nickname that is used in ads: the GV. “The Grand Vitara name did not fit the car,” says agency Chairman Rob Siltanen. “It is not grand or big or old. We wanted to make it sound hip, so we started calling it the GV and creating the ads in a fashion sense to make the car look young and hip.” The Siltanen agency also came up with a new tag line for Suzuki: “Live large. Drive small.” “In this environment, small is the new big,” Siltanen said. “Our ads have to do the work. We’re outspent 10-to-1. We do have an enormous challenge.” In 2006, Suzuki sold more than 100,000 vehicles for the first time. But since then, sales have been flat, coming in at 101,884 in 2007. Through September, sales were down 9.1 percent from the year-ago period to 74,517 units. Brown says most of the ad money will be spent on TV spots for the Grand Vitara and SX4. Print and online will make up the rest of the budget. Suzuki hopes to sell 200,000 vehicles over the next few years, but Brown says the brand needs a cool and respected personality. Says Brown: “The GV spot — that’s where we need to be.” c Suzuki’s new ad strategist: This brand has soul Rob Siltanen has plenty of auto advertising experience. While creative director at the Chiat/Day agency for several years, he worked on the Nissan and Infiniti accounts and supervised several big launches. In 1999, Siltanen started his own agency, Siltanen & Partners, with an emphasis on landing an auto account. In 2007 he came close when his agency was a finalist for the Hyundai business. This year, Siltanen, 44, went calling on Suzuki. And in July, his agency won the account. He spoke with Staff Reporter Kathy Jackson about his vision for the brand. Why did you approach Suzuki? Suzuki has an opportunity to capitalize on this market since small cars are red-hot. When we started analyz- questionanswer Siltanen: In planning Suzuki’s marketing, his agency looked at how the Japanese marketed their cars during the ’70s gas crunch. ing the brand, we discovered people didn’t know them. We were looking at how Toyota, Honda and Nissan made their moves during the gas crunch in the ’70s. They only had small cars. Suzuki is in a similar position. Honda and Toyota still have small cars. How can Suzuki outshine them? The brand has a very cool soul. They make ATVs, motorcycles, engines for motorcrafts. Their cars are typically all-wheel-drive or four-wheel drive — vehicles that allow you to go anywhere. The SX4 has standard navigation under $16,000. These features allow you to have great freedom and still have fun. But the overall image for the cars is not up to speed to where the brand should be. So we came up with the slogan “Live large. Drive small.” The new Grand Vitara ads go right after the Honda CR-V in a humorous way. When you drive up in a Suzuki, the response needs to be, “Isn’t this car cool?” It’s not the same old Honda. We want people to know GV is a true off-roader, has more horsepower than the CR-V and costs less. We also started calling it GV and creating the ads in a fashion sense to make the car look young and hip. Who is Suzuki’s customer? Typically someone 25 to 45. It could also skew younger to folks getting their first car. What about the new Equator pickup and the mid-sized XL7 SUV? The truck and XL7 will be in the background. They’re looking at less than 5,000 units for the truck. So Suzuki can make some noise, even with a tiny ad budget? We wish there was more money, but the timing is right for the brand — to give it a voice that is fun and youthful. This should be their time to shine.c http://www.autonews.com http://www.autonews.com

Table of Contents Feed for the Digital Edition of Automotive News - November 3, 2008

Credit? Come and get it, industry groups say GM's product delays signal dire health Ford sticks with small-car plans Mitsubishi CEO: Let's halt Galant production in U.S. A dealer â and his reputation â on the ballot Help vehicles shed pounds American Axle posts loss UAW hires bailout adviser Ford to spend $200 million to upgrade 2 Ky. plants No off-lease cars? Certified will find others Arlena Sawyers China's stock market plunge has spooked car shoppers Advantage, Ford: Mulally likes owning Ford Credit Supplier execs join innovation panel at congress Quietly, Mini seeks 500 drivers to lease electric car for a year Reynolds bolsters document business Winterkorn: Audi needs to build in U.S. The great revenue drop of 2008 Bidders bet they can rebuild Heard 1 size fits all NADA: Give us tax incentives, dealer loan guarantees Campaigns' climate, energy plans hit economic wall Detroit 3 need and deserve U.S. help now Chrysler needs a buyer, but not GM Dealers pay fair share of taxes Washington hurts, not helps, electrics Compressed natural gas is the best fuel New ads aim to raise Suzuki's low profile Suzuki's new ad strategist: This brand has soul Fuel efficiency is coming â it just takes time Electrics edge closer by 2010 Tougher CAFE standards loom R&d chiefs shift gears for an electric future Japan carmakers lead charge into electrics Buffett backs BYD's sketchy plan for U.S. electric car Q&A: BYD envisions 2010 exports to U.S., Europe Girding the power grid for an electric fleet Hype powers plug-in vehicles Coachbuilders see salvation in electric cars Electric vehicles are charging into Europe Expect stop-start's big start to arrive in 2010 Flexibility will help Honda survive the storm Nardelli: Bailout not perfect â but needed Audi goes high-tech to boost service Acura offers quick service to win business Toyota's fashion fan Picture this Hondaâs N.A. operating profit falls 80.6% in quarter Aug. RV shipments fall 44% VW drops hints about car for new Tenn. plant Mexico sales fall 10.7% in September Honda to boost CR-V, end Civic output in Ohio Ford and GM jockey for steel discounts Dealers Ford Credit seeks to tap $700 billion package GM will end a used-car incentive early Nissan, Mitsubishi, Mazda recast fiscal 2009 forecasts Metaldyne to bondholders: Take 30% or Chap. 11 looms Detroit 3 ties hurt profits of dealer groups GM takeover would eviscerate Chrysler ranks, model lineup Mitsubishi plans electric hauler To match Toyota, Nissan offers 0% loans Sticker, sticker at the mall, what's the cheapest of them all? The Versa Waiting is what it's all about, Alfa Buy Chrysler? GM should sell Buick to SAIC Pickups pumped up by pump price plunge Chrysler hybrids, we hardly new ye Ghosn: Your best partner is a president in your pocket Sonic wins, but Mercedes wants last word

Automotive News - November 3, 2008

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