State Farm, “second-biggest ad spender among insurance marketers, no. 3 if Geico is included” is the ‘integrated’ sponsor of A&E’s new Thursday night reality series, “Jacked: Auto Theft Task Force” says AdAge. A State Farm agent will provide auto theft-prevention tips during “integrated” commercials that “seamlessly blend into the show.”

QSRWeb reports the release of the annual BusinessWeek and Interbrand list of Best Global Brands 2008. World-wide beverage giant, Coca-Cola, perches atop the list at number 1, Microsoft ranks at #3, and its nemesis, Google is at #10. Also in the top ten: McDonald’s (8) and Disney (9).

Folgers is unveiling a new roasting method the company calls “the biggest innovation since the launch of decaf,” says the New York Times. To tout the improved flavor and “cup-to-cup consistency,” the company will launch the most expensive ad campaign in the history of the brand to win customers among those who brew coffee at home.

Even a tough economy can’t keep a good truck down; according to the Free Press, Ford has announced that their industry leading (for 31 years) F-Series trucks will offer an optional SFE (superior fuel economy package "while still providing 7,500 pounds of towing capability.” Meanwhile, Chevrolet announced they would offer a similar package on their Silverado XFE truck last month, 7,000 pounds of towing capacity. Let the SFE truck wars begin.

The eighty-year old Springmaid brand has been rejuvenated with a new logo, brand positioning, designs and packaging. Parent and home furnishings supplier  Springs Global US, Inc.,  says the relaunched brand delivers on the brand promise that “consumers will experience Surprise and Delight™ throughout their brand experience in impactful retail presentation, smart solutions that simplify her life and designs that enhance her desire to decorate.”

Brand Debuts

In October, Sears will launch the All American Army Brand’s First Infantry Division collection, inspired by the oldest and “most illustrious” division of the U.S. Army, the First Infantry Division. It is the first time the U.S. Army has officially licensed the use of its marks and insignias. The collection will be sold in Sears stores and at Sears.com. Source: Sears, Roebuck and Co.

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According to the New York Times, consumers used to buy small cars because the were cheap, eschewing air conditioning, power windows, compact players, etc., to keep the price low. But as the cost of gas rises, consumers of all income levels are buying small cars to save fuel costs but adding hundreds or thousands of dollars on options.  Hot sellers? The Toyota Prius hybrid and the Honda Civic.

Source: Car Buyers Downsize, but Spend Big on Options, New York Times, 7/17/08
Photo: Toyota.com

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Offering multiple brands in the same market, but to different target segments, can help a company maximize share. That's been GM’s strategy for years, but the Wall Street Journal reports the company may discontinue some of its brands, in spite of the belief that more brands equals broader market share.  And helps them fight Toyota Motor Corp.

Source:
GM Weighs More Layoffs, Sale of Brands, Wall Street Journal - 7/7/08

Image Credit:
Chevrolet.com

Two trends that illustrate how consumers are trying to cope with higher gas prices.

Hypermiling
The notion of “Hypermiling” isn’t new; but it’s a term you’re likely to hear a lot more of these days. Hypermiling describes “drivers of both hybrid cars and regular vehicles, who go to extraordinary lengths to get as much as they can from each gallon of gasoline, trying to surpass the EPA’s estimated fuel economy ratings,’ says hypermiling.com. The site credits the online communities of Clean MPG, a site devoted to raising fuel economy and lowering emissions, with originating the term.

So---Are Changes in Driving Patterns Permanent?
Peters says that past trends indicate that high gas prices won’t keep Americans from driving; they’ll just drive more fuel efficient vehicles. But an energy consulting firm quoted by WSJ is predicting that fuel consumption patterns could become permanent because consumers believe high gas prices are here to stay. Cambridge Energy Research Associates, an energy-consulting group says “2007 probably will represent the peak year of gasoline consumption in the
U.S. ”

What Marketers Should Do
Americans have a love affair with their cars unsurpassed by any other nation. If what the Department of Transportation and energy consultants say is true, long-term changes in fuel consumption patterns will impact everything from decisions about where to live, what job to take, shopping and recreation habits as well as discretionary spending. 

As marketers, now is the time to do some brainstorming about how these trends could potentially affect your brand and help you plan for long-term changes in consumer attitudes and spending.  

Midsize SUV sales were down a whopping 38% in May 2008 over May 2007, while car sales rose from less than 50% to 57% says the US Department of Transportation.

That’s bad news for big car brands GM, Chrysler and Ford. GM’s Hummer is experiencing a 36% national decline in sales and the automaker is shelving redesigns for its full-size pickup trucks and large SUVs including the Chevrolet Silverado, Cadillac Escalade and GMC Yukon. Ford has just pushed back the debut of their redesigned 2009 Ford F-150. The company is also cutting production of 90,000 vehicles, mostly trucks and SUVs. Source: AutoObserver.com.

A survey by Autodata confirms that higher gas prices are affecting all income levels. Sales of $40,000K+ vehicles are falling faster than the rest of the market: a 14 percent decline in 2008 ytd versus the same period in 2007. Monthly sales of the Mercedes S Class and Acura RL are dropping more quickly than lower-priced, similarly-sized vehicles such as the Chevy Impala.

So how are automakers coping? Chrysler is offering three years of subsidized gas to purchasers of new Chrysler jeep or Dodge vehicles. The program guarantees that customers won’t pay more than $2.99 per gallon for the first 12,000 miles they drive each year for three years.

The deal applies to most, but not all, of the company's vehicles and ends July 7. Whether the promotion is successful remains to be seen. Sales in May, the promotion's first month, were 25 percent lower than in May 2007.

tips, trends & tidbits from the week of march 10th

Pepsi skewers the stereotype that digital advertising is just for young consumers.  A NYT article reports Pepsi is forsaking mainstream media for an online launch of Tava, their new, no-calorie carbonated beverage. Pepsi hopes to reach consumers 35-49 who spend significant amounts of time online checking email or searching for travel, music and food info. Lots more brands would benefit if marketers abandoned stereotypes of these older (and moneyed) online users.

According to TechCrunch, tiny start-up ManagedQ was using images that belonged to Snap without Snap’s permission. So Snap disabled ManagedQ’s access to the visuals, which essentially shut ManagedQ down.

This is reminiscent of the trademark skirmishes that occasionally occur between mega brands and tiny companies who play off the mega brand to create a clever name/tagline/logo of their own. The big brand’s legal eagles swoop in, handling the situation with such ferocity that onlookers see the infringer as the victim. The reality is that failure to protect one’s trademark weakens one’s ownership rights so trademark owners must be vigilant.

Comscore reports that during 2007 consumers submitted online requests for 32 million auto insurance quotes and purchased a record 2 million policies. That’s a 15% increase in the number of requests and a whopping 32% increase in the number of purchases from 2006.

Have a great weekend.

Jumpstart Automotive Media is an advertising network exclusively focused on the automotive industry.