Video Games - What Auto Companies Can Learn

Tuesday, December 22, 2009 by Lonnie Miller

For years, auto companies have worked hard to be relevant to their customers. For example, OEM marketers chase the "youth market." Why? It plants the seed for future buyers; it gives auto designers insight into cool and popular trends. Plus, youth are very mobile and socially connected, which helps spread word-of-mouth about products they endorse to each other, to name just a few reasons. I suppose this is why some of the auto brands you and I read about hook up with popular video games - to connect the same audience to two product sets: autos and entertainment. Both business categories have the same basic goal: sell more stuff.

So this got me thinking about what auto companies could learn from the video game moguls of the planet. Certainly something can be learned from companies like Activision, which sold half a billion units of their Modern Warfare 2 game in its first week when it was released this October. While $60 a unit for this game is a big price gap compared to the price of a new vehicle, both the video game and auto sectors would like to build hype, interest, enthusiasm, heck, simply raw adrenaline, when their new product hits the stores.

Some tips to consider:

Make the Purchase INSTANTLY Gratifying
Here's reality:  If I buy a game, I'm back on my couch in less than an hour flying, driving, shooting, whatever with my new fantasy. Can OEMs and dealers make something similar happen more often? Volkswagen's "Sign Then Drive" event is a nice attempt at this. Their ads depict wanna-be owners of a new VW simply signing a sheet of paper and zipping off to a fun, new experience. There's something to be said for a speedy delivery.

Nostalgia is a Powerful Pill
One trick to being relevant is playing on the psychology of nostalgia. How many 40+ year olds are out there who melt when they are able to fly a Star Wars Tie Fighter on their 42" television? These are the same folks who saw the first Star Wars when it released in 1977. The lion "roar" of that speedy ship flying across the big screen is now in their own living room blasting away rebels. I'm sure Dodge, Ford and Chevrolet brand folks play on this same tenet when they strive to get grown-ups jazzed about the Charger, Mustang and Camaro. But these iconic cars are an exception and most models you and I can buy don't do much to connect a past experience to the new one. They should.

Tease, Tease, Tease...and Don't Let the Competition Make You Hide
Video game companies promote forthcoming titles very effectively. And they don't worry if the competition sees their stuff. There are entire sites dedicated to showcasing upcoming game releases. But auto companies pay top dollar to mask their product, so most people don't see their new release in live form (which puts several freelance photographers in business to catch a peek at a new model when it's buzzing around for a test drive). The end-buyers should see and feel more of what's coming in the product. And I don't believe car review magazines do the job compared to what we can see online.

Note: While they are not a gaming company, Apple's strategy of being morgue-like quiet with any new releases plays to their benefit. But their cult-like following wants to be surprised at the last minute because most of what Apple puts out there tends to get rave reviews for design, simplicity and integration, so it's a satisfying result. Yet even so, Apple does play off the tech-rumor mill which builds hype leading up to the unveiling of the iWhatever. Most auto companies don't have that intense of a rabid fan-base. Perhaps more for another discussion.

So if you had the reins to promote and deliver cars and trucks, what would you do? "Game on!"

Posted by Lonnie Miller, Director of Industry Analysis, Polk (12.22.2009)

Comments for Video Games - What Auto Companies Can Learn

Tuesday, December 22, 2009 by Yves Francois:
Strategically the auto manufactures (in particular the domestic brands) have taken a position that prolonged "teasing" would deter immediate purchasing. If you show the consumer what is to come down the road they won't buy today. A particularly bad short-term strategy of companies that need sales NOW; get people in cars NOW 'cause we may not be around for the next car. Passionate, but likely not realizing it was the strategy itself that helped get them in the mess they are in today. Gaming companies have made a fortune on re-inventing the wheel using high quality products that engage us creatively, emotionally, and physically. They take a concept and create an addict who buys what is out NOW and then can't wait for the next version, sequel or pre-quel to be released. Gamers will likely continue to play a current game even more up to the point of a new release. Fuel to the fire. It is a long term strategy of filling the sales pipeline by focusing on customer retention and product innovation. Mind you, it is not retention from guilt like, "Buy American", "My dad worked for Ford(s)", or "Union label". This type of loyalty leads to dissappointment from the consumer and manufactures leveraging this false loyalty to streamline and reduce quality instead of creating ADDICTION loyalty. Loyalty through making the BEST product for each market segment served. Challenging the competition to do it better. How do you get car buyers to buy today and ponder and begin to get them excited about the next vehicle they are going to buy from you? I think you have hit on something here...
Wednesday, December 30, 2009 by David White:
Mr. Miller, Thank you for your insightful look at video gaming and the Auto Industry. To take it a step further reviewing the video games that cater to the auto enthusiast, namely Grid, Dirt 2, NASCAR 09, and the ultimate Gran Trismo series, that builds brand excitement. The full version of GT5 is due this March and personally I have been waiting for this release ever since the GT5 Prologue gave me a taste of what the full version will be like. The GT makers work with the auto makers to get their cars "just right" and accurately represent their vehicles (probably to keep them from being misrepresented) and build the brand image. GT 5 even has a Gran Trismo online TV programs to keep its followers (who are car nuts) informed. Wondering what your thoughts are (perhaps in a future blog) if the Detroit 3 are doing enough to get their brand image out there thru video games like GT5? Game on....

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