Building an SUV society

The sport utility vehicle (SUV) category is the victim of its own success in that it has become jam-packed with new models – so much so that it is tricky for each automaker to stand out in all the traffic. Plus special-interest groups are more vocal in their criticism of gas-guzzling SUVs, and automakers are beginning to address this backlash, as well as safety concerns, through their marketing messages.

According to AutoPacific, a California-based automotive analyst, there will be 63 SUV models on lots in the U.S. by mid-year, nearly double the number from six years earlier. Here in Canada, there have been steady improvements in the segment annually, according to Toronto-based Maritz research. In 2002, for instance, SUV sales powered up 17% over 1999, and the trendy wheels are also gobbling up larger percentages of total vehicle sales – in 2002, they made up 15.8% of cars snapped up by consumers, compared to 14.6% in 2001.

The momentum is expected to continue, says Enio Longo, an industry analyst with Maritz, who suggests growth will come from so-called crossovers and compact utility vehicles.

Answering the critics

South of the border, special interest organizations have recently taken to bashing SUVs through advertising. Earlier this month, a commercial from the Detroit Project informed Americans that all that fuel needed to fill their SUV tanks was likely supplied by countries that also happen to be havens for terrorists. It followed a Christian group’s spot from last fall that claimed Jesus wouldn’t drive an SUV because of its environmental implications. While the majority of viewers might dismiss these ads as too radical, a recent report from The National Highway Traffic Safety Administration in the U.S, stating more rollovers involve SUVs than any other vehicles, probably carries more weight.

Hence, Suzuki Canada’s message for its entry-level SUV, the XL-7, revolves around safety. A spot from Toronto-based Grey Worldwide educates consumers about the model’s ‘outstanding crash-test safety designation from the Insurance Institute of Highway Safety,’ according to Mike Kurnik, national manager of advertising and PR for Suzuki Canada in Richmond Hill, Ont. The commercial is part of an overall campaign dubbed ‘It’s true,’ which outlines ‘surprising facts about Suzuki vehicles.’

Volvo is also ‘answering the critics’ with its XC90, a model it has tagged ‘the next generation.’ According to Doug Mepham, a spoksesperson at Toronto-based Volvo Canada, a ‘great deal of effort’ was invested in the safety of the one-year-old vehicle. For instance, the XC90 has a lower sub-frame, which is positioned to intersect with safety systems of smaller vehicles, instead of overpowering them. It also has an anti-roll device, and it has already met California fuel emission standards that don’t come into effect until 2004.

Magazine advertising from Toronto-based Sharpe Blackmore Euro RSCG, which popped up in the February editions of high-end magazines such as Cottage Life, Azure, and Luxury Vehicle, positions the XC90 as being ‘guided by conscience,’ according to Volvo’s national marketing manager Larry Futurs. This month, TV from New York-based ad shop Euro RSCG MVBMS – the AOR for Volvo globally – will continue to preach this theme, as did a Toronto transit station campaign aimed at commuter Go Train riders and visitors to the Toronto Auto Show earlier this month.

Tony Miller, CD at Sharpe Blackmore, says SUV advertising has to work harder nowadays, even within the traditional ‘rugged’ brand positioning. In other words, the typical ads depicting monster vehicles powering over rocky terrain are no longer as effective. ‘It seems too easy to just take a picture of a mud-splattered SUV,’ he says. ‘That worked in the early days, but like all ad categories, the work evolves, and what may have been award-winning 10 years ago seems clichéd when seen through today’s lens.’

Unlike SUVs geared at rough-and-tumble guys, the XC90 is also intended to appeal to women because of its spaciousness and ‘drivability.’ Focus-group research indicated female consumers wanted enough room for groceries and kids, but didn’t want the SUV to feel too large from behind the wheel. In general, the target is upscale, high-income consumers in their early 40s.

A new breed

The hottest breed of SUV appears to be crossovers, meaning those based on a car-versus-truck platform. This is also the area where there is potential to move sedan purchasers into SUVs, says Maritz Research’s Longo, who adds that when it comes to ‘mini SUVs,’ 20.6% of buyers were former compact-car drivers. ‘They conquest a lot of the sales from the sedan marketplace, by getting consumers into smaller SUVs, and then moving them up the ladder. There is a very high loyalty to the [SUV] vehicle segment.’

Nissan’s first crossover, the Murano, was unveiled at the 2002 New York International Auto Show. It has the ride of a sedan, but the functional aspects of an SUV, according to Mississauga, Ont.-based advertising specialist Mary Borg.

Canadians were initially introduced to the sport-ute through an online ad campaign that ran in the fall and drove traffic to the Murano micro-site. As of mid-November, results from the banner and skyscraper ads, which appeared on the likes of MSN, Yahoo and Globeandmail.com, resulted in more than 137,000 clickthroughs and 22 million impressions.

Murano is geared at those looking for paved road adventures – like golf games and winery tours. TV advertising launched last month and its objective is to get across this urban lifestyle. ‘Antique,’ for instance, portrays a couple discovering a Louis XV cabinet at a shop, while ‘Show’ has people trekking to bookstores in search of special editions by writer Kurt Vonnegut, who appears in the ad. It’s too early to monitor ROI, but the first month of sales for Murano exceeded objectives, according to Borg.

In contrast to the seriously toned, drive-up-Mount-Everest tactics of other automakers, Nissan prefers to be clever and cheeky in order to make its mark, even when it comes to its ‘authentic’ SUV, the Xterra. For instance, a recent ad from Toronto-based agency TBWAChiatDay shows a man kayaking in the fog. He can’t find his SUV, so eventually he uses his remote keyless device to honk its horn and flash its headlights, giving him an instant lighthouse. Meanwhile, advertising for Pathfinder, which sits between Murano and Xterra in terms of its size, stars a bear who plays a trick on a couple by placing a turtle in the middle of the road. When the man ventures out of his cozy vehicle to move the turtle, he finds out it is attached to a string, and the bear is pulling it.

‘We think if you can give people a smile, it’s something they may remember,’ says Ian Forsyth, director of marketing for Nissan Canada. ‘It’s a category that’s very busy and a lot of new vehicles have come into it in the last three or four years. We try to give three things to the consumer – a practical sense of what the vehicle can do; some emotional feeling of what it’s like to [drive] the vehicle; and clear branding.’

DaimlerChrysler will also introduce a crossover to its lineup, which already consists of the Dodge Durango and three Jeep brands. The marketing for Chrysler Pacifica, which launches this month, will revolve around the fact that it’s easy to manage, says Ron Smith, VP marketing for the Windsor, Ont.-based firm. This spring, a U.S.-produced ad will star Celine Dion. The teeny chanteuse will show how easy it is – even for a stick-thin woman like her – to get in and out of the Pacifica, which was actually designed to appeal to females.

Similarly, Jeep Liberty is skewed to women. The strategy is to indicate that it’s a great choice for both on- and off-roading. A recent spot shows a driver getting out of his car and approaching a seal pup. He appears ready to club, but instead knocks a hole in the ice, allowing the pup to reunite with its friend.

The allure of the compact SUV segment is obvious to DaimlerChrysler – sales of the Liberty are up 127% at retail, while the Grand Cherokee and the Dodge Durango, obviously more traditional, male-targeted SUVs, are down about 10%. Meanwhile, the Jeep TJ, which is geared to the college crowd, is also performing well, with sales up 12%.

Under one roof

While some firms distinctly market each SUV model to its intended demographic through TV ads, others huddle all their models under one branding campaign. One such example is Ford, which has six vehicles in the sport-ute arena. ‘When you have as broad a lineup as we do, it’s impossible to support them all with a specific communications message, so you need a strategy to promote the entire primary brand,’ explains Torrey Galida, Ford Canada’s VP of general marketing. Hence, Ford’s SUV advertising will fall under its wider ‘Built for Life in Canada’ theme. A new spot that broke during the Superbowl shows various Ford vehicles, as well as wilderness scenes in Canada.

But Ford also pushes the heritage, leadership and ‘real SUV’ qualities of its Explorer and smaller Escape models, a strategy that seems to have worked – for the sixth consecutive year, Explorer is the best selling SUV in Canada.

Similarly, for Mitsubishi, the objective is to promote the brand first and then the vehicle, concedes Greg O’Neill, Mitsubishi Motor Sales of America’s EVP and GM. ‘Our positioning overall is spirited cars for spirited people, and we articulate it with music and sex appeal in our commercials,’ he says. ‘When we started in the U.S. five years ago we knew we couldn’t go toe-to-toe and try to out-shout everyone. We needed to break through.’ So far, this promise has paid off, as the Japanese auto firm has enjoyed an 81% hike in sales south of the border since its debut.

A commercial for Mitsubishi’s Outlander SUV – aimed at people who are ready to leave the sports car category because they have ‘more stuff’ – depicts a guy going through his lifestages, only instead of showing him shopping for groceries, the ad from L.A.-based agency Deutsch, portrays him in much more outgoing scenarios, such as a Halloween party with his pals. ‘We’re trying to connect with the individual – the daring person within a group of friends,’ says O’Neill. ‘We’re [saying that] we’ll deliver a cooler and sexier car – no matter what the category.’