Wednesday 1 August 2007

The New WRX

Have you seen the new, 2008, WRX?

It's hard to believe that this was once a car that took the world by storm and started a cult and defined an entire generation and segment of the automotive market. Simple interiors and basic specification meant that buyers were seen to be after the car, not the aesthetics. Functional and simple as a result. Big scoops? That'll be for the intercooler. Wide arches? That'll be for the wider track over the standard saloon. It was a simple case of engineering leading, and marketing following. Function and a resulting form. Engineering driven.

What's happened?

It seems that Subaru is after a bigger slice of the cake. Who can blame them? I'm sure there is someone somewhere in Subaru that wishes they had the balance sheet driven by the 3 series range. Higher levels of profit and revenue, and arguably greater brand recognition. The 3 series is a desirable commodity - a common prestige brand. Perhaps an oxymoron, but as good as it gets in the marketing and sales stakes.

It seems this is where the new Impreza is heading: a piece of the small executive market. And who can blame them? Well, if the buyers are anything to go by they could be in for a bit of a rough ride.

As much as Subaru can try, the brand will never have the same equity as BMW and their 3, or Mercedes and their C. Historically chasing the 3 and C has meant the Japanese have had to start up an entirely new division, with heavy investments as a result. Take the Luxury Export to the US (LEXUS) company that Toyota started, and the Infiniti brand, soon to take a foot hold in Europe headed out of Switzerland. Arguably these companies have had their share of success, but I'm not sure Mercedes or BMW is that worried, especially at the lower end of the market where a small executive car has to be seen to be European (and preferably, expensive). A sign of the times and an oxymoron perhaps; successful is undebatable.

So sometimes simple is best. Let's get the WRX back to what it was designed for: homologating rally cars to fulfil a technicality, not a marketer's trophy cabinet.

Sometimes less really is more, and simple, functional products hold their own. You only need to ask Lotus to know that gaining a larger share of the mass market (Europa taking share from Z4/Boxster) is a dangerous game to play, and you're best when you create your own niche (Elise).

Parting words? Automotive makers need to be engineering (product) led and marketing supported. Having your engineering department support marketing is always going to be a dangerous game to play. The rewards can be there in exceptional circumstances (new Mini, mark 1), but more often than not, they're not.

Get your niche right and only then can you create great brand equity while minimising overall investment. Second mover advantages can work, but it gets tricky when you're bottom (4th or more) in the chain.

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The new MY08 WRX (above) and an original WRX (below)