make it pay

[Pottree@domain.elided]

In a message dated 01/05/2002 1:26:40 AM Pacific Standard Time, 
owner-alfa-digest@domain.elided writes:


> Alfa to really reach out at the GTA end of the product line and build cars
> that have both Alfa style and can beat everyone's butt while building
> something reliable and desirable in enough numbers to support our fun. 
> Anyone
> have an idea as to how many run of the mill Bimmers get built for every hot
> one?
> 

Two points: first, I'll bet the enthusiast cars, which are prestige markers 
for certain classes, are only in the thousandths or ten-thousandths of 
production or USA unit sales, with the most conventional, mid-sized, 4 door 
sedans representing the bulk of volume: the most leaseable wins!  Second, 
please recall the background of the ongoing discussion here: BMWs are pretty 
expensive cars and the pull has been for Alfas to try to win (ha ha ha) by 
being cheaper to buy!  BMW can afford to do LOTS of things Alfa couldn't' 
consider because they have a healthier profit margin to work with, it is a 
raw material like chromium or vinyl.  For all we love them for it, Alfa could 
probably be accused of dumping (selling the product at or below manufacturing 
and marketing cost).

As I see it, there are only a couple of strategies that could possibly bode 
for USA marketing success for our favorite marque: one scenario has it as a 
prestige leader to attract floor traffic to the showrooms of Saab or Cadillac 
(or brand X) dealerships, and have marketing budget that is subsidized by 
profits form the sales of other products, such as Cadillac hearses or New 
Holland tractors.  The other way is to charge more for the product, position 
it as the Armani suits of the automotive world for the discriminating and 
solvent buyer, and let its marketing program compete on an equal footing with 
the people who are selling the cars people actually WANT to buy.

Charlie
LA, CA, USA

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