Tag Archives: product positioning

Consumer Report’s Annual Car Reliability Rankings

cars

Other than homes (and education), probably the most expensive purchase the average household makes is for a car. Since it is so large a part of our lives, automotive reliability is a key issue for Americans. Cars that are not reliable cost consumers’ time and money, and most notably, affects overall satisfaction and willingness to buy the brand again.

Research company Consumer Reports publishes an annual reliability survey based on data gathered from its subscribers. The report is based on those who have owned or leased more than a half a million vehicles, from years 2000 to 2016, covering more than 300 models of automobiles. This year’s survey includes the ranking of 29 brands, with eight brands listed as “more reliable,” 10 brands ranked as “reliable,” and 11 brands ranked as “less reliable.”

In the top eight more reliable brands were Lexus, Toyota, Buick, Audi, Kia, Mazda, Hyundai, and Infiniti. The next 10 reliable brands included BMW, Honda, Subaru, Acura, Nissan, Mini, Chevrolet, Porsche, Mercedes-Benz, and Ford. Among the less reliable brands were Volvo, Lincoln, Cadillac, Volkswagen, Jeep, GMC, Tesla, Dodge, Chrysler, Fiat, and Ram

Did your vehicle make the reliable list?

Group Activities and Discussion Questions:

  1. Show Consumer Reports’ report on car reliability: http://www.consumerreports.org/car-reliability/car-brands-reliability-how-they-stack-up/
  2. Show the video of car rankings: http://youtu.be/g_RkhbF2CVg
  3. An FAQ on the research methodology can be found at: http://www.consumerreports.org/cro/2011/10/consumer-reports-car-reliability-faq/index.htm
  4. Discuss how companies can use the report in their marketing.
  5. What should companies that didn’t make the top list do to promote their vehicles?
  6. Review key aspects of developing a product positioning map, including determining the axis labels for positioning.
  7. Divide students into teams and have each team develop a positioning map for a category of automobiles.

Source:  Consumer Reports

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Farewell to the VCR!

vcr

We know the latest and greatest technologies – new product announcements are trumpeted from the hill tops. But what about old stalwarts? Do we even realize when a faithful product line is put out to pasture?

We can now add the loyal video cassette recorder (VCR) to the list of gone, but not-forgotten products. This fall, Funai Corp. of Japan announced that it would stop production of VCRs due to difficultly acquiring needed parts. Funai was the world’s last remaining manufacturer of the VCR. According to the company, only 750,000 units were sold worldwide in 2015, making it uneconomical to continue to source and produce the product.

VCRs were first introduced in the 1950s. The technology wowed the scientific and technology communities, even though it took decades for VCRs to make it into consumer households. The product was so stunning that when it was first launched in the late 1950s, units sold for $50,000 each, and more than 100 orders were placed the week the VCR debuted! Just think of that in today’s dollars, and without any Internet to hype the product!

VCRs started making it to into homes in the 1960, and in the 1970s competition from Sony and JVC propelled it to wide availability. In the 1980s, VCRs cost between $600 and $1,200. By 1982, there were five million units in homes, and that number tripled to 15 million by 1984.

Alas, all products eventually must eventually come to an end. The killer product taking out VCRs was the DVD player. DVD players were released in 1997 and by 2002 DVD sales surpassed video cassettes.

R.I.P. to the VCR. Gone, but not forgotten.

Group Activities and Discussion Questions:

  1. Discuss the stages in the product life cycle. What are the marketing objectives in each stage?
  2. Divide students into teams. Have each team draw a product life cycle and place various products and services into each stage.
  3. Next, discuss the VCR and show the video of the first public tape recorder demonstration: https://youtu.be/uNgLs6xjVIs
  4. Another video showing a TV advertisement for the VCR: https://youtu.be/MkzA9mCtJz8 (note to students – no remote control yet!)
  5. Next, have students brainstorm on how to reposition or revise products/services to that they can move into an earlier stage of the life cycle.

Source:  New York Times

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Top Car Brands in 2016

Cars

The automotive industry is notoriously tough. Each manufacturer competes for not only sales, but also for rankings by organizations such as J.D. Powers, Car & Driver, and Edmund. Among the most popular ranking report on vehicles is the one done by independent testing organization, Consumer Reports.

To compile the report, the team at Consumer Reports test drives and evaluates multiple attributes of 270 different vehicles. To be a top tier pick, the cars must score well in road tests, crash tests, and have better predicted reliability.

The top brands this year, in order, are: Audi, Subaru, Lexus, Porsche and BMW (tied), Mazda, and Buick.

This year’s winners by category include:

  • Compact car: Subaru Impreza
  • Midsize car: Toyota Camry
  • Large car: Chevrolet Impala
  • Subcompact car: Honda Fit
  • Sport car: Mazda MX-5 Miata
  • Small SUV: Subaru Forester
  • Midsize SUV: Kia Sorento
  • Luxury SUV: Lexus RX
  • Minivan: Toyota Sienna
  • Pickup truck: Ford F-150Did your vehicle make the list?

Group Activities and Discussion Questions:

  1. Show Consumer Reports’ rankings: http://pressroom.consumerreports.org/pressroom/2016/02/consumer-reports-2016-annual-top-picks-kia-sorento-lexus-rx-are-best-suvs.html
  2. Show the video of car rankings: https://youtu.be/ihiJcQBvX74
  3. Discuss how companies can use the report in their marketing.
  4. What should companies that didn’t make the top list do to promote their vehicles?
  5. Review key aspects of developing a product positioning map, including determining the axis labels for positioning.
  6. Divide students into teams and have each team develop a positioning map for a category of automobiles.

Source: Consumer Reports, Manufacturing Business Technology

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