Automotive IntelligenceTM Weekly automotive insights from Compete
CHRYSLER CONSIDERS SELLING VIPER. IS THAT A GOOD IDEA?
By:
September 19, 2008
Recently, Chrysler announced it was reviewing its Dodge Viper business in an effort to determine if the sports car brand should be sold. From its inception, the Viper brought immediate cachet to the Chrysler and the Dodge brands, an image of power and muscle that represented the best of what Chrysler had to offer. So what’s the deal about selling it? Does it make sense? Does Viper continue to add cachet to the franchise?
Compete decided to take a deeper dive into the types of people
who shop for a Viper to try to determine if the franchise is attracting
prospects who otherwise wouldn’t consider a Dodge. For that
exercise, we tapped into our database of online new vehicle prospects
to build a profile of the people who shop Viper compared to those who
shop Dodge cars and trucks. We also took a look at what other vehicles
these prospects have on their shopping list to try to determine the
extent to which Viper competes with other Chrysler products.
Viper does not attract a significantly different type of prospect than
that already attracted to Dodge. For example, Viper prospects tend to
be, not surprisingly, Auto Enthusiasts, Nascar Enthusiasts, Tech Savvy
and Male. That means you can most likely find them at auto buff book
sites and owner sites, sites related to Nascar and auto racing, and
sites focused on technology. But you can find Dodge owners in the same
places. And while Viper owners may be more Premium Brand Driven (visit
brand name sites such as Chanel, Coach and Tiffany) than their Dodge
counterparts, there isn’t a huge difference between the two.
At the same time, Viper shoppers have begun to shop around
more. Fewer
are shopping only a Viper. In fact, only 13% shopped only a Viper in
July 2008. That’s down more than 50% from a year ago and
down almost 70% from its December peak. That means more are
comparing it to
other models instead of focusing their shopping activities solely on
the Viper.
So if they’re shopping around more, what are they shopping
for? Well, they’re still looking at high end luxury cars like
the Mercedes SL-Class and the Audi R8. But they’re also
shopping within the Dodge family, specifically the Challenger and
Charger. In fact, cross-shopping of Challenger hit an all time high in
July while Charger cross-shopping has been at an all time high since
May.
The growth in compact car shopping coincident with gas price hikes
signals a change in consumer behavior has taken place. Further, Prius
has demonstrated that the right fuel-efficient message at the right
time, which is now, works. Better fuel economy messaging works when gas
prices peak for compact cars.
A Viper sale may make good business sense. It's not attracting an appreciably different shopper to Dodge than who is already attracted to the brand. And while it’s attractive to other super luxury shoppers it's competing more with other Dodge models. And those other models – Challenger and Charge - are closer to the core of what Dodge is all about. Sure, it would be sad to see it go, but it’s not like the Dodge cupboard is bare. The Challenger and Charger are more than capable of soldiering on and perhaps representing the Dodge brand even better.


