Piston Slap: Idolizing the Buzz, Forgetting Competitive Advantage

TTAC Commentator celebrity208 writes:

Can we get a critique of the Ford Fiesta ad blitz that was going on during the American Idol finale? (are they effective? Are they unique? Etc.) One of those commercials showed the SYNC system in the Fiesta.

TTAC has discussed Ford’s SYNC and GM’s tie up with Google. A follow up question is: Might the domestics be positioning themselves to be in the lead regarding vehicle telematics? BMW has iDrive and Audi has something similar but do any of them have cooperation with leaders in the tech industry like Microsoft, Google, and (yet still single) Apple? This is assuming that these types of pair-ups produce lasting developments that can net both companies increased sales and or competitive advantage?

Sajeev Answers:

Remember that anything posted on an automotive message board (that’s even remotely car related) is fair game on Piston Slap. With that in mind, what a cool query!

Regarding Fiesta: marketing for barely available vehicles is somewhat impossible to judge. I know there’s a measurement for “buzz” on the Internet, and the Fiesta’s social media strategy is pretty impressive. It’ll be the case study for social media’s impact on marketing. But this question is about Ford’s TV time on American Idol. Sure, this show is the right place for a car in this price point. Effective? Maybe.

Unique? The Fiesta’s promotional style is a skim milk, indie rock version of Scion’s once successful heavy metal marketing strategy. And like Scion’s current woes, the Fiesta has an uphill battle when the next Euro-Focus hits our shores. Either of the new Fords shall feel the “Mercury” pinch: too many players in the same price point, fighting each other’s incentives/rebates. In the same showroom, most importantly. But Jack Baruth’s time with the Ford Aspire is the proper precedent: even if it doesn’t blow like the Aspire, the Fiesta won’t make it past a few years of Foci mass consumption by retail and fleet buyers alike.

Regarding telematics: Short term exclusivity contracts aside, I doubt Detroit has the lock on it, just look at BMW and Google hopping in bed together. If there’s money to be made, tech providers will spread their goodness across all platforms. There’s no (sustainable or otherwise) competitive advantage if your tech partner isn’t 100% owned by…you. Just look at Delphi selling it’s Magnaride goodness to the likes of Ferrari!

Send your queries to mehta@ttac.com