Help me understand corporate auto marketing mind

[Ghoste]

Because I still don't understand the rationale behind splitting Dodge trucks off into a separate brand.  Is there really a sales improvement to be gained by creating the Ram Division?

[bull]

I'll tell you how I understand it. I think of a normal, logical man's thought process and then I take away reason and accountability.

[stripedelete]

When they split it, they claimed accurate accountability for the brand.  In other words there own balance sheet (P&L).  Reality is, it makes the RAM brand manufacurer independent.  Like Jeep.   Anyone can own it.   Hyndai RAM, Tata RAM, Honda RAM, wouldn't be as easy.   

[1969chargerrtse]

Could it be like Chevy and GMC, where GMC would push to be " Proffesional grade " ?

[Ghoste]

I think the difference there is that there is still the identical truck in the Chevy line being promoted as regular line.  Stripedelete has likely nailed it.  It makes it much easier to break the company up into little pieces.

[elacruze]

Corporate spin-offs are quite often nothing more than an accounting ruse to make shareholders think they have some added value. Or, somebody wants to be a CEO instead of VP.

[68X426]

I would add that, from my experiences in the corporate world, the executives cannot make a decision on their own. They have to have a consensus, a committee, a group think. It is in the very deepest parts of their DNA.

There are no free thinkers, risk takers, or entrepeneurs in any corporate culture. (Fact Jack, don't nobody start about how independent thinking corporate folks are).

So the marketability of RAM vs. Dodge was "focused grouped" to death, and RAM won. It is actually the least risky path (path of least resistance) because a corporate committee agreed, the groups agreed, the executives agreed.

The risk wasn't in the name Dodge, the risk was in anyone making a business decision that didn't get a consensus and group approval. No one loses a career on RAM, but some exec sure could by sticking with Dodge.

Plus, easy to sell a "fresh" product instead of a "legacy" nameplate to the Chinese or Arabs.

[Mike DC]

"Chrysler" and "Ram" are probably both better names in the public's mind than "Dodge" these days. 

[chargerjy9]

hopefully, the brand separation will get rid of the crosshair grille on the cars that everyone is so obsessed about hating.

[Ghoste]

"Chrysler" and "Ram" are probably both better names in the public's mind than "Dodge" these days. 

That might be a regional thing.  I don't think I would agree with it around here at all. 

[stripedelete]

From a branding strategy standpoint, I think this has been in the works for a while.  When you look back, the execution of the strategy probably started when they began, fully and consistantly, referring to a Dodge Truck as a Dodge RAM. (could be wrong but it may have gone back to Daimler)

If I had to guess, the original strategy (pre FIAT) was to pull from its history (first production 4x4, etc.) to build a manufacturer independent, iconic brand.  Like Jeep or Harley-Davidson.  Remember, it was Chrysler that made Jeep a true iconic brand.   With the current financial situation this strategy also "dovetails" nicely into making it an independent operating unit (separating the books). 
 
Overall IMO, it's a good thing, especially for Dodge Truck fans.  While RAM might be owned by Asians or Europeans  someday, RAM (and Jeep) could also be owned by International Harvester, Catipillar, Harley, etc.  Thus pairing american icons with more american icons and wrapping them in the flag. (I have heard, but can't confirm,  IH was kicking the tires on Jeep pre-bailout.)

Another scenario.  Chrysler doesn't make it and falls into Fiat's lap (again).  Fiat then partners with a cash rich Asian company to pull off some sort of buyout.  With a dealer network in place, and two iconic brands, what would change?  Dodge and Chrysler might go away or look a hell of a lot different.  But, RAM and Jeep would most likely remain on the same street corners in the US, while going international (or pan Asian) in a very large way.

Sorry to digress, but, I have to add that any of these, still positive, scenarios, or the 50 others we could come up with, would have been just as likely had we not circumvented capitalism and the free market with a government bailout.            

 

[Khyron]

I'll tell you how I understand it. I think of a normal, logical man's thought process and then I take away reason and accountability.

"As good as it gets!"

[68X426]

it was Chrysler that made Jeep a true iconic brand.    

Give credit where it's due, it was Willys and Kaiser who made it iconic. Then AMC and finally Chrysler sold the hell out of them, but credit lies further back in the past.  

[stripedelete]

it was Chrysler that made Jeep a true iconic brand.    

Give credit where it's due, it was Willys and Kaiser who made it iconic. Then AMC and finally Chrysler sold the hell out of them, but credit lies further back in the past.  

Agreed.  Maybe I should have wrote "Chrysler did a great job packaging that great heritage". 

[68X426]

"Chrysler did a great job packaging that great heritage". 

Well said.