Interesting Idea about the Jeep Brand

[ScramFam]

Hi Folks, this idea came from a research company we use at work. I figured you guys would have great opinions.


"Next week's Retail Automotive Summary will include a piece on one
potential Chrysler alternative: Scrubbing the corporate name and
replacing it with "Jeep Corp."

As unlikely a scenario as that may be, consider the findings of our
just-completed Purchase Path study:

1. "Jeep" has a higher acceptance among the youth market, mid-age and
the boomer markets than "Chrysler"

2. Product quality perceptions are third higher for Jeep than
Chrysler and rival Honda

3. Consideration of a Jeep product is twice as high as consideration
of a Chrysler product among all age groups

4. Jeep is nearly twice as "acceptable" to "friends, relatives,
co-workers" than "Chrysler." (Put simply: No one makes fun of you for
driving a Jeep.)

5. Jeep has a positive rating 70 percent better than Chrysler in
terms of "my image."


We'll publish the study results next week.


Is it a feasible alternative to selling to or merging with another
automaker? With one possible exception, it would appear so.

-- Chrysler Corp. cars can be dropped from the lineup with little
negative impact either financially or perceptually (among new-car
shoppers).

-- Judicious cosmetic (and eventual content) changes would turn
already well regarded Dodge trucks into "Jeeps."

-- The Dodge truck platform would allow the return of such nostalgic
names as Wagoneer, Comanche, Cherokee, which all continue to have
highly positive ratings among former owners.

-- The dealer body remains unchanged only more profitable by being
able to concentrate on the most profitable products in the current
Chrysler lineup.

-- The only question is what to do with minivans.

 

[bigwalton]

OOH, I'll play, my suggestion

Drop Chrysler like a rock. Waaaaay too much baggage with the name and that's what's associated with the bailout that's getting so much horrible press.

Go to:
Jeep - JK and Grand Cherokee, drop compass, patriot, commander and move the Nitro name over here to replace the Liberty (pick one version and stick with that with the name Nitro) while you're at it, give them all solid front axles ;-) AEV should be leveraged as the TRD for Jeep

Dodge - Trucks and Sprinter, does the study cover the perception of the Dodge name with the quality of the trucks?

Caravan - promote this to a brand, it practically is anyway, and keep the Minivans here with possibly something like the Compass and the small car offerings.

 

[sanderson9]

No marketing expert, but here's my thought.

Ask the respondents what vehicle they envision when you say Jeep, and same for "chrysler". Jeep conjures the open air ruggedness of a Jeep (CJ/wrangler/TJ/JK). I think that even the Grand Cherokees and Liberties gain some respect from their association with the open-air jeeps. If you try to sneak in a Sebring or whatever else (any sedan/coupe car) they sell, it will besmirch the Jeep name, heritage, and brand perception. Consider if Jeep would have pushed the Patriot and Compass harder, I really think they're a drag on Jeep's good 'brand'.

 

[admin]

If you try to sneak in a Sebring or whatever else (any sedan/coupe car) they sell, it will besmirch the Jeep name, heritage, and brand perception.

I think he's saying that the Chrysler cars would all be dropped, not brought under the Jeep name.

 

[bigwalton]

I forgot about the Charger and Challenger... lump muscle cars in there with the trucks and sprinter at dodge.

I want a Challenger SRT-8 so badly it's physically painful, they can't drop that one!!

 

[donaghy]

two interesting points

Lets all face it, we might be a little biased but Jeep is probably one of the major if only reason Chrysler still exist today. Even though Daimler didn't take Jeep with them during the split, its probably the ONLY reason they had an interest in it to begin with in the prior merger/takeover whatever. Having said that, I think Jeep brand is one of the only reasons ANY investor or other big 3 would even consider trying to purchase the Chrysler today. having said that, I think I have to agree. Tank the Chrysler brand, exploit the strengths of the Jeep brand (but not dilute). And strengthen the DODGE brand somehow.

Two interesting points from your list..


1. "Jeep" has a higher acceptance among the youth market, mid-age and
the boomer markets than "Chrysler"

2. Product quality perceptions are third higher for Jeep than
Chrysler and rival Honda

Perceptions is the key word here I believe. In reality the quality (measured in recalls, key manufacturing problems etc) is probably still not there compared to other brands. At least thats what I keep seeing in the current 3rd party surveys.

 

[admin]

Perceptions is the key word here I believe. In reality the quality (measured in recalls, key manufacturing problems etc) is probably still not there compared to other brands. At least thats what I keep seeing in the current 3rd party surveys.

Ah, young (snicker) grasshopper, perception IS reality in marketing

No matter how great your product is, if it's seen as crap, it's useless.

If you have a crap product and it's seen as great, it's valuable.

 

[Truck]

I think BigWalton is on to something. This would play to all their strengths.

Dodge name still runs strong, especially in the truck world. The sports cars could also remain under that name.

If you water down Jeep folks won't like it either. They could build a full size Jeep truck again to expand the line.

Pulling the Caravan name up to a brand is a great idea. Then market the minivan and any other vehicles they want to keep on the line in this catagory.

However, I'm still not that opposed to merger with GM if it would get us even greater trucks (Cummins and Allison combo) and put some GM motors in the Jeeps.

Truck

 

[scrambler81]

Perceptions is the key word here I believe. In reality the quality (measured in recalls, key manufacturing problems etc) is probably still not there compared to other brands. At least thats what I keep seeing in the current 3rd party surveys.

I don't know about the other models, but I've had two Wrangler Unlimiteds, and I put over 60,000 on each. Between them I've had one warranty repair, so I'd say the quality has been exceptional.

I'd kinda hate to live in a world without Chrysler, even though I'm more of a Ford guy, it just wouldn't feel right. However, if it has to go, I guess it has to go. I'm not sure I'd rush to introduce bigger Jeeps based on the truck platforms, because it's safe bet gas is going to go wild again, so they would just be more dead weight.

As for BW's statement about the Liberty/Nitro - There is no way I would drop the Jeep Liberty name. No, it may not appeal to a bunch of guys that drive around in old CJ's, but it does appeal to normal people. They've sold the heck out of that little trucklet, I would never give up that name recognition.

 

[bigwalton]

I don't know about the other models, but I've had two Wrangler Unlimiteds, and I put over 60,000 on each. Between them I've had one warranty repair, so I'd say the quality has been exceptional.

My LJ had a recall on the distributor gear and camshaft with less than 2k miles on it, a sensor in the block started leaking oil with less than 35k and the passenger seat flip latch mechanism broke, leaving the seat locked in place until repaired. Other than having the engine cracked open that soon, small things and WAY better than our POS Exploder and Malibu (both bought new). Our JK has had some quality issues with bad sealant on the windshield frame gasket, recalled door latch, leaks in the hard top, bad EGR valve that (I hope) was the cause of a high-speed knock, bad seatbet and various rattles

I'm not sure I'd rush to introduce bigger Jeeps based on the truck platforms, because it's safe bet gas is going to go wild again, so they would just be more dead weight.

I do love the idea of throwing the Gladiator and Rescue in there, but I agree with you. I wonder if there's some "sane" production numbers at which those two would still be able to be profitable anyway?

As for BW's statement about the Liberty/Nitro - There is no way I would drop the Jeep Liberty name. No, it may not appeal to a bunch of guys that drive around in old CJ's, but it does appeal to normal people. They've sold the heck out of that little trucklet, I would never give up that name recognition.

That's probably more wishful thinking on my part, I hate the Liberty. As long as they got down to one of the two and brought it under Jeep, it's fine with me

 

[twmattox]

Chrysler seems to be in a better position than the other american manufacturers. The design is fabulous (viper, prowler, challenger, charger, crossfire, 300, JK Unlimited, etc). Like it or leave it, the sebring, PT cruiser, Caravan, and Ram trucks are very well received and liked.

If there is anything missing, it is historic names: Wagonner, Comanche, Cherokee, Honcho, Power Wagon, Dart, Eagle, etc... These were all cars/trucks that had good followings and a well established reputation that are no longer present.

All of this and there is not as much bloat as the others. Fewer base models and more options allows for easier manufacturing and more customization (no-one wants to buy a cookie cutter car).

What they need to do is improve their marketing and overall reputation. Watching TV in the evening and paying attention to what is playing, I notice tons of Honda, Toyota, and Nissan commercials and very few from anyone else.

 

[Cincyjeeprs]

I say we all take up a collection, buy the thing, rename it SCRAMBLER CORPORATION. Then we can do anything that we want!!

On a side note, I am preparing to declare myself a Bank. I was going to apply for a 1 Million Dollar loan, but my good friend Austin Powers reminded me that just doesn't buy much anymore, so I think I'll go for $10 Billion. That should let them know that I am serious.

 

[bigwalton]

I actually have been seeing a lot of Ford commercials, particularly for the new F-150 and then the Flex.

Chevy has really been all for the Traverse, which I find silly because they're seilling it as fuel efficient at 24 MPG highway, which is what my JK gets. I think that thing will be a big failure.

Unfortunately there's a common (but completely flawed) thought that the first/best/easiest thing to cut costs when times are tough is to cut marketing spends. The opposite is generally true and you need to work harder to make sure people see/want your products. Our customers that keep their marketing going during the tough times have always came out of them ahead.

 

[Randyzzz]

Matt- I think it's a mostly great Idea. Actually, Eric's version had some good points too. My take-

I think among the Dodge folks there is some extreme brand loyalty, akin to what we have for our Jeeps. Every Rodeo we attend is sponsored by Dodge, and the parking lots are full of them. I think a Dodge owner would be as happy about renaming Dodge to Jeep as we would be if we lost the Jeep brand to Dodge. Dodge has spent $$$ trying to get the Tough Truck image, and it has worked. If you want refined, you go GM. If you want big, you go Ford. But if you want a tough, heavy duty, butt kicking truck, you go Dodge. The Dodge name is too valuable to go away.

The Caravan can be marketed under Dodge, as would the Challenger/Charger. Inclusion of these 3 vehicles under the Jeep name would dilute the Jeep brand, not to mention probably kill the popularity of the two cars. The Nitro needs to be moved over to Jeep only, if sales merit keeping it alive.

Jeep needs to SERIOUSLY focus on powertrain options. I have networked with many new Wrangler owners, and the number one complaint is POWER. The interesting thing is, the turning point for many first time Jeep buyers in deciding to buy these vehicles is the Lifetime powertrain warranty, so most owners will simply live with a product they're not 100% happy with, or sell it and move to a different segment. Jeep's restyling brought in a whole new segment of owners, but the lack of power is driving them away. The 3.8 should be a base engine, with the Nitro's 4.0 as a step up, and a small Hemi as the premium option.
(Number two complaint? Water leaks.)

I don't think anyone will miss Chrysler, it would be dust in the wind, like Plymouth or Oldsmobile.

Nothing's easy, is it?

 

[bigwalton]

I agree with you for the most part Randy, that's a great point about Dodge owners take on it becoming Jeep. That said, these two things don't jive in my book:

If you want big, you go Ford. But if you want a tough, heavy duty, butt kicking truck, you go Dodge.

The Caravan can be marketed under Dodge

I don't think that Caravan can stay under Dodge if you go through all this trouble to reorganize it and if you really want to be serious about keeping/building Dodge as anything tough. There's not a single aspect of the Caravan that fits that brand image and all it does is weaken the brand.

 

[Randyzzz]

I don't think that Caravan can stay under Dodge if you go through all this trouble to reorganize it and if you really want to be serious about keeping/building Dodge as anything tough. There's not a single aspect of the Caravan that fits that brand image and all it does is weaken the brand.

I agree somewhat. I was initially placing the Caravan under Dodge as a "default", however I think with good marketing it could be a positive. The guy has his tough Dodge Ram, what does he get for his wife/kids, being brand loyal? There's the place for the Caravan. I seem to remember the old "We're a 2 Jeep family" ads, there could be a "We're a Dodge family" marketing program.

My train of thought was that a Jeep/Dodge/Caravan branding doesn't accomplish minimizing brand names, but a Jeep/Dodge branding does.

 

[bigwalton]

Gotcha. If the idea is to minimize brands exclusively, ok. I was coming at it looking at the very best thing they could do to rationalize the brands in my imaginary "ideal world".

 

[Manhattan]

While I agree that the Chrysler line-up needs a lot of work, pushing the Jeep brand up to the parent level would likely backfire. To keep the brand in tact, it has to remain (okay get back to being) focused on the core positioning - an off-road, outdoors, rugged brand. Muscle cars, mini vans, trucks... would water down the brand.

Moving the Chrysler cars and vans under the Dodge brand would have the same impact on Dodge.

In the end, I think the current set up is probably the best architecture... it just needs work, e.g killing brands such as the Patriot, Compass, etc.