Tagged 'cars'

Insurance startup in South Africa promises premiums that keep reducing

King Price Insurance

Owning a car is practically a necessity in South Africa, although the government is trying in many ways to build a more accessible and reliable public transport system. Now with fuel prices at a record high and the introduction of electronic tolling of the highways around Johannesburg, owning a car is becoming more and more expensive. One of the first things people tend to sacrifice, and at great risk, is their vehicle insurance, whether by shopping around for cheaper insurance, jumping around from one insurer to the other or simply defaulting on their payments completely.

A new startup short-term insurer, King Price insurance, has found a way of differentiating itself: insurance premiums that are not only competitive but also decrease every month. They argue, “Why should your insurance premium stay the same when the value of your car is continuously decreasing?” Their latest campaign centers around the question “How do they do it?” and features a company “employee” who comes up with various absurd explanations as he tries to figure out how this insurer is able to offer low premiums that also get cheaper over time.

Photo Credit: King Price Insurance

Hyundai, Subaru pitch safety to protective parents

We’ve seen a spate of car commercials that target dads anxious about keeping their kids safe. A sentimental 2012 Volkswagen spot from the U.K. shows a dad caring for his daughter over the years until finally buying her a Polo as she goes off to college. (In the U.S., Volkswagen has also pitched its Jetta to safety-conscious young parents.) In a 2013 Subaru ad, a dad with a young daughter admits, “I’m overprotective”—and that’s why he chooses the brand.

Now, we have Subaru’s “Flat Tire,” in which a teen girl works to change a tire in the rain—a task assigned by her dad, as we learn when he comes over to say, “Told you you could do it,” as she finishes up. In voiceover he adds, “I want her to be safe, so I taught her what I could, and got her a Subaru.” And then there’s “Dad’s Sixth Sense,” one of two Super Bowl spots from Hyundai, in which a dad saves his son from myriad physical mishaps as the kid grows up, whether it’s nearly getting kicked by a kid on the swings or whacked by a bat meant for a piñata. Ultimately, however, it’s Hyundai’s auto emergency braking that saves the kid, now a teen driver who’s distracted by a pretty girl as he steers a Genesis down the block.

This type of pitch will connect with today’s worrywart parents (and stereotypically it’s the dad in charge of all things car-related), and the emotional component behind these messages layers a sweet tone onto the sell.

Fiat, Tesla and other EV makers confront range anxiety

Price cuts, in conjunction with federal, state and local government incentives in the U.S., have made some electric vehicles very cost effective, and so perhaps more enticing. But range anxiety, the fear of being stranded without enough power to reach one’s destination, a long-documented concern, remains a barrier to wider EV penetration. The obvious solution is to ensure that, as with traditional vehicles, there are sufficient stops along all routes to guarantee that drivers will be able to refuel, or in this case recharge. Indeed, Tesla, Nissan and Chevy have all opted to roll out new charging solutions, including faster chargers and expanded charging networks. In addition, a number of other innovative strategies have emerged.

To quell consumer concerns, Fiat, in a partnership with Enterprise Rent-A-Car, is including 12-days-per-year access to gasoline-powered vehicles that buyers of its 500e can use for long-distance trips. According to the rules of the program, drivers can redeem up to $504 per year at Enterprise’s companies for three years. And Tesla Motors, which has seen its stock soar, recently debuted a battery-swapping system that will allow customers to have their battery switched out for a fully charged one at Tesla charging stations, rather than wait 30 minutes for a free recharge. The process takes only 90 seconds, which the company emphasizes is faster than a fill-up at a gas station.

Ford EcoSport targets China’s Post-80s by addressing their anxieties

Ford Eco Commercial

The “Post-80s” (people born between 1980-1989) are a frequently targeted consumer group in China. They are often described as more Westernized, individualistic, independent and even rebellious. However, along with these glittering badges, Post-80s are under great social and economic pressures and experiencing a high level of anxiety due to high housing prices, a stagnant job market and their single-child identity. Ford EcoSport, a small SUV targeting Post-80s, adopted a straightforward approach to openly address this anxiety.

In this online video, a young man with a realistic, down-to-earth manner talks honestly about his pressure from family and work, and his anxiety about being “short of money.” He mocks the idealistic “pursue your dream” attitude that most youth brands romanticize in their communications and says his “dream” car is one that balances the expectations from his parents, girlfriend and boss. Rather than an aspirational approach, the campaign takes the practical stance that the EcoSport is an affordable vehicle that meets the needs of the different people and occasions in your life. This is the first time in China’s car market that a brand has acknowledged this imperfect reality and addressed consumer anxiety in a direct and pragmatic way, rather than just promising a far-fetched dream.

To view the commercial, click here.

Kia positions Sorento as a tool to help solve everyday family issues

Educating kids is a task that can create many moments of anxiety for parents. Not all parents know how to cope with the curiosity of their children, and some are afraid they won’t give the right answer to ongoing questions. One of the most feared and inevitable questions, of course, is “Where do babies come from?” In this amusing Kia Sorento commercial, which debuted on the Super Bowl, a father copes with this awkward question by telling his son about Babylandia, a planet filled with all kinds of babies. When it’s time for the tots to leave, they carry out an epic space journey by rocket and touch down on Earth.

The skeptical son starts to offer an alternative theory conveyed by a friend—which is when the father interrupts and orders the car’s voice-controlled music system to play “Wheels on the Bus.” In the end, the Sorento has succeeded in extricating the father from an anxiety-provoking situation. As more cars gain advanced technologies, brands will need to focus less on the technical specs and more on how the tech meets everyday needs. Here, the family car brand shows that its technology provides the tools to deal with a familiar family issue, giving parents confidence that “It has an answer for everything,” as onscreen copy promises at the close.

Volkswagen targets new families in sweet safety-themed spot

The Volkswagen Jetta has long been a go-to vehicle for singles, but now the brand is also targeting young married couples. A safety-centric spot addresses head-on the anxiety and apprehension new parents feel about protecting their vulnerable new baby. New parents leaving the hospital carefully place the baby in a car seat and pull the car out, only to be cut off by a van. Scared, the baby sees his brief life flash before his eyes—the gentle humor here lies in how short and basic his flashback is. “If your life flashes before your eyes, make sure it’s in an IIHS top safety pick,” says the voiceover.

By focusing on the emotional experience rather than the product feature, the message of safety resonates and takes on more meaning.

With a toast to farmers, Chrysler builds on Americana theme for Super Bowl

Chrysler has been responding to consumer anxiety by playing up tried-and-true American values and the country’s pioneer spirit in its advertising. Last spring we wrote about a campaign that showed everyday Americans overcoming the odds, and Chrysler’s epic “Halftime in America” spot was one of the 2012 Super Bowl’s most popular ads. For this year’s Big Game, a spot for Chrysler’s Ram truck focused on traditional components of the American Dream such as hard work, dedication, family and community building—things that many Americans fear are being replaced by aspirations for fame and fortune, something we outline in our report “American Dream in the Balance.”

The spot quotes from a 1978 speech by radio broadcaster Paul Harvey that celebrated the virtues of the American farmer. “And on the eighth day,” booms Harvey’s voice, “God looked down on his planned paradise and said, ‘I need a caretaker.’ So God made a farmer.” As intimate portraits of present-day farmers appear onscreen, we hear Harvey saying that God needed someone who was resourceful, family oriented and admirable. The spot concludes with a toast “to the farmer in all of us,” reminding Americans that the nation was once a land of farmers. Ram has declared 2013 as “The Year of the Farmer” and outlines how it’s “celebrating … the lifestyle that keep[s] America growing” on a microsite. Its CSR component involves support for the Future Farmers of America.

This spot reminds viewers that the deep-seated values of the American Dream endure, even if many feel the Dream is becoming harder to achieve. The Dream continues to “revolve around a gritty, keep-on-keeping-on spirit,” with characteristics like determination, discipline and self-belief integral to the concept, as we note in our American Dream report.

Dodge promotes Dart purchases via the crowd

With continued economic uncertainty, many shoppers remain hesitant or unable to make big-ticket purchases, especially the un- or underemployed Millennials. In response, some brands have been creating crowdfunded registries for consumers. We wrote about Best Buy’s Pitch In card back in 2010, which we described as “bridal registry meets microfinancing meets layaway”: Friend or family contributions to the card tally up to help customers secure the costlier items on their wish lists.

Now an automaker is embracing this concept. Consumers looking to buy a Dodge Dart—a compact sedan that Chrysler introduced last year—can log onto DodgeDartRegistry.com, customize the features and then seek funding for specific car parts, using social media to promote their cause. As a TV commercial outlines, “Dad sponsors the engine for your birthday. Grandma sponsors the rims for graduation.” Car seekers can ask for enough dough to fund a down payment, the car in full or anything in between. As with a Kickstarter campaign, there’s a time limit: Fundraising can run for a maximum of 90 days. At completion, buyers receive a check, with which they in theory purchase their new Dart. Since the launch earlier this month, around 1,200 people have created registries, but donations have thus far been minimal.

It’s likely the campaign will resonate with Millennials, the target audience here, who firmly believe in the collective ethos—that every bit counts in addressing today’s challenges.

TrueCar pledges to help remove anxiety from car-buying

One of the most important and expensive purchases consumers make is a car, and the process is often fraught with confusion and fear. TrueCar aims to eliminate that by gathering market data and showing buyers what they can expect to spend on average for vehicles in their area, based on what others have paid; it also has a network of certified dealers who “offer a hassle-free car-buying experience.” The model is somewhat different from other price-comparison sites for car buyers, as The Economist outlined earlier this year.

A new TV ad opens by saying “Let’s talk truth,” noting that “Buying a car can be overwhelming” and is “a process filled with anxiety.” TrueCar emphasizes that it’s committed to openness, fairness and a better car-buying spirit, delivering the message that all deals and transactions are transparent. It induces confidence in the consumer, especially the promise to eliminate the fear of haggling. As Scott Painter, TrueCar’s CEO, said in a release, “Nobody wants to be a sucker and overpay.”

Jiffy Lube tells car owners to ‘Leave worry behind’

When people think about car care, they don’t often get the warm and fuzzies. Auto maintenance is often a stressful process, leaving drivers feeling like they’ve been up-sold or inconveniencing them to the point of deep frustration. While drivers understand the importance of routine maintenance—particularly as more of them try to hold on to their cars longer—many put it off for as long as possible, not eager to be stranded at the dealership for hours while wondering if that mechanic is trying to find something to fix.

Jiffy Lube recently launched a campaign via JWT Atlanta with the tagline “Leave worry behind,” centered on relieving anxiety around automotive maintenance. The message is that Jiffy Lube’s expert preventive maintenance services mean you don’t have to worry about being hoodwinked by those “other guys.” While the TV commercial focuses on differentiating Jiffy Lube from other maintenance providers, the service centers further support the mission of combating customer anxiety, with improved appearances, free coffee, additional transparency through windows overlooking the service bays and the use of a database loaded with manufacturer recommendations. In addition, the OCS program, introduced last year, enables customers to pick their own oil change intervals, giving them a sense of input and control in the process, whereas before they felt little to none.

Jiffy Lube is rethinking how we think about car care, taking steps to make the process more pleasant for drivers. How can other categories that also create anxiety similarly help to alleviate undue stress?