Much Ado About Chrysler - George Murphey interview examines Chrysler Group marketing strategies and plans - Company Profile - Statistical Data Included

Brandweek, April 9, 2001 by Karl Greenberg

Meanwhile, the loyal customers who you didn't have to spend the discount [see that it's] out there anyway. Your loyal customers say, "What the hell are you doing?" So you've done nothing for the brand value for this person. It's really a vicious cycle.

BW: And import buyers? What's the strongest vehicle coming out this year to attract them?

Murphy: The home run for us is going to be the [Jeep] Liberty. We never had a vehicle so contemporary going after the subcompact segment to attract a younger, more upscale--probably import--buyer. You'd never get an import customer into a Cherokee, quite frankly, but now you've got something where you can [convert] a Honda Accord or CR-V buyer. The Liberty will be targeted to 25- to 35-year-olds, mostly females. Frankly, at $19,000 to $22,000 we will be targeting young families and import buyers.

Our problem--a problem for the Big Three--is that we haven't been cross-shopped a lot by import buyers. Now we have a product that is a category leader ...so I think we finally can go after the import buyer with a little more emotion and capability. You'll see a push on the West Coast, media-wise, as we go after the traditional import markets.

BW: You're positioning Chrysler Group as "aspirational." What does that mean for young or first-time buyers?

Murphy: One of the highest aspirational brands for college kids is Jeep. Pre-owned Cherokees are extremely popular among that segment. Between ages 18 to 25, what people buy first is pre-owned.

So, we are going to work aggressively to get kids into a Jeep at a price they can afford. We are working with credit companies and insurance companies to offer a solid financial services package wrapped around a Jeep.

BW: Do you have plans to increase PT Cruiser inventory?

Murphy: Cruiser continues to be sold out. We'll get a plug of capacity this year because a plant in Germany is coming on line. We used to ship 40,000 [PT Cruisers] to Europe. With that plant, there will be more available.

BW: How might you use PT Cruiser to enhance Chrysler's overall image?

Murphy: PT Cruiser is one of the most tricked-up vehicles in the marketplace. So we probably need to introduce our own versions on a regular cycle--with bigger engines, horsepower, ground effect--to keep the buzz effect up. Two or three times a year we should introduce a limited version with a unique color, a different look and new power train, and do it in a region so you can get some marketing behind it. That's how you get buzz. You have a [giveaway] contest. Then it gets viral. You can't come over the top with what's happening. [Consumers] have to discover it for themselves. They like genuine. You can't sell them the sizzle.

BW: Chrysler has been plagued by a reputation problem with product quality. To a degree that's been ameliorated, but how do you advertise that without digging up the issue?

BW: We're talking about perception and reality. The perception is that quality hasn't improved at Chrysler. Part of the solution is fairly simple. You can't hit consumers over the head [because] they won't believe it. You need third-party endorsements.