brandchannel.com world's biggest branding resource
  home debate features books careers directory papers about Interbrand


browse archives
register here



Smart Car - brainy wheels


  Smart
brainy wheels
by Barry Silverstein
June 30, 2008 issue

In the automobile business, timing is everything. It takes so long to develop and build a car line that a manufacturer has to be years ahead of the curve.

When Toyota introduced the Prius hybrid, it caught the rest of the automakers with their gears locked. While Toyota was already reading the signs of US $4-a-gallon gasoline, the other guys were furiously trying to get their own hybrid models off the assembly line.

 
 

Prius has become the top-selling car brand. And now there may be a brand that’s smart enough to beat it.

It’s a brand called Smart or, officially, “Smart Fortwo.” Over 900,000 people in 36 countries have purchased this two-person “micro-car,” introduced ten years ago in Europe. In the United States, the only place you could see one before 2008 was on display at the Museum of Modern Art in New York City. But now Smart has entered the American market—and it appears to have hit the road at just the right time.

The Smart brand was created in the early 1990s in an unlikely collaboration between Mercedes-Benz and Swatch, the hip watchmakers. According to Smart USA, marketers of the Smart car in the United States, Swatch inventor Nicolas Hayek had an idea for an “ultra-urban” car and Mercedes-Benz engineered it. Smart Fortwo was introduced at the Frankfurt Motor Show in 1997 to rave reviews. Mercedes-Benz knew it had a winner and began full-fledged production in 1998.

Ten years later, Smart has been recognized as the ultimate urban car in the cities of Europe, Mexico, the Middle East, and Canada. Romans in particular are enamored with it. Toy-like in appearance, Smart seems as if it should have a wind-up key. But the latest tests by the Insurance Institute for Highway Safety belie Smart’s size—in May 2008, the American version of the car earned the highest rating in front-end and side-impact testing.

So how did Mercedes-Benz successfully introduce a new car brand into the most notoriously competitive brand category in the United States? Unconventionally, of course.

The company started by re-engineering the car for the American market. At less than 9 feet long, it’s larger than the European model, but still smaller than its already-small competitor, the Mini Cooper. The car was designed to exceed safety standards and to achieve about 33 miles to the gallon in city traffic, and 41 mpg on the highway.

Innovation is a hallmark of the Smart brand. Smart has removable, scratch-proof plastic panels that can be switched out fairly easily to change the color of the car. The car itself is a “safety cell”—a wraparound steel frame protects the driver and passenger in a crash. The interior feels surprisingly large because of such tricks as staggered seats, a slender dashboard, a large windshield, and a transparent roof.

The American model offers more choices. Consumers can choose the basic model, retailing for under US $12,000. They can also buy an upgraded Smart Fortwo “Passion Coupe,” which includes a panorama roof, air conditioning, leather steering wheel, and other features, or a “Passion Cabriolet,” the convertible version, which currently retails for $16,590.

Then there is the Smart promotional plan. Instead of investing in advertising, Smart USA used buzz to create awareness, interest, and demand. There was plenty of press coverage, accompanied by a road show. But perhaps the most unusual brand promotion is the manner in which the car is being sold—by reservation only. If a consumer wants to purchase a Smart Fortwo, he or she has to reserve one by making a deposit of US $99 via the Internet. Apparently, more than 30,000 Americans think this is a smart idea.

Also unconventional is the distribution strategy. Smart USA is actually part of a major automotive dealer, Penske Automotive Group, which is the exclusive distributor of the car. Smart USA will have a limited number of dealerships throughout the country, where consumers can look at the car and drive a test model, but not actually buy one off the floor. Only those with a reservation will be able to purchase the Smart, and it is taking six to nine months to keep up with demand. In fact, the car is reportedly sold out for 2008. Smart is so popular that it is showing up on eBay at prices 30 to 40 percent higher than retail.

At a time when gasoline prices are front page news, the Smart car is positioned to obtain plenty of media coverage. With its recent high crash test ratings, Smart is getting even more notice. And now that some 7,000 Smart cars are on the road in the United States, the brand will surely cause a stir. The Web is ablaze with Smart car news as well. An independent website, SmartCarofAmerica, has been created to channel information, and eBay sales continue to soar.

All of this buzz proves that the right kind of car brand can get people excited about cars again—especially if that car brand is smart.

 
     
  

Barry Silverstein is a 25-year advertising and marketing veteran and co-author of The Breakaway Brand (McGraw Hill, 2005).

Other articles by this author
  
 post comment Add Social Bookmark bookmark  print
 suggest topic  recommend ( 22 )  email

Smart - brainy wheels
 
 The smart brand already had its ups and downs in Germany. However it seems that it just was ahead of its time ten years ago. I drove some of them the last years and always felt agile and safe in the city, while small and vulnerable on highways, so I'm still wondering if the design is a good fit to the long distances so common to US commuters. Anyway, I hope it'll establish as the antagonist to the "bigger, better" mentality. 
Henning Fritzenwalder, User Experience Architect, hfux - June 30, 2008
post your comment
  brandchannel profile archive   2008  |  2007  |  2006  |  2005  |  2004  |  2003  |  2002  |  2001
 
 
Jun 23, 2008 Muzak - coda? -- Barry Silverstein
  Elevator music gets down with the times.
   
 
Jun 16, 2008 Zapp! - maturing -- Preeti Khicha
  Clothes that kid around with fashion
   
 
Jun 9, 2008 South Beach Diet - gains -- Barry Silverstein
  South Beach brands lifestyle, not diet
   
 
Jun 2, 2008 Nexxus - growing out -- Barry Silverstein
  Split ends just the beginning for Nexxus
   
 
May 26, 2008 Sephora - flawless -- Jenn Gidman
  Branding is more than skin deep
   
 
May 19, 2008 Vizio - picture perfect -- Barry Silverstein
  Vizio has big plans for flat screens
   
 
May 12, 2008 Volcanic Ass - spicy enough? -- Renée Alexander
  Will Volcanic Ass get fired up?
   
 
May 5, 2008 Riedel - clink -- Anthony Zumpano
  Riedel can hold its wine.
   
 
Apr 28, 2008 Tchibo - coffee breaks -- Ian Cocoran
  Wake up and smell the brand.
   
 
Apr 21, 2008 Mr. Clean - multi-tasks -- Barry Silverstein
  The bald man cleans up
   
 
Apr 14, 2008 SILKSTREET - knock it off -- Abram Sauer
  SILKSTREET brands rough material.
   
 
Apr 7, 2008 Wonderbra - uplifting -- Jenn Gidman
  Bra brand straps it on.
   
 
Mar 31, 2008 Camper Shoes - sole survivor -- Barry Silverstein
  Camper Shoes enjoy an international foothold
   
 
Mar 24, 2008 Kurkure - crunch time -- Preeti Khicha
  Kurkure's flavors spice up Indian taste buds.
   
 
Mar 17, 2008 Frito Lay - chip detox -- Renée Alexander
  Frito Lay gets hip to healthy the chip.
   
 
Mar 10, 2008 ESPN - good sport -- Barry Silverstein
  ESPN dominates sports coverage competition.
   
 
Mar 3, 2008 Anheuser-Busch - on tap -- Jenn Gidman
  The King of Beers brands its domain
   
 
Feb 25, 2008 Cofanifunebri - dying for attention -- Abram Sauer
  Italian coffin maker gets a leg up on death
   
 
Feb 18, 2008 Toto - porcelain gods -- Patrick Williamson
  Toto toilets are flush with opportunity.
   
 
Feb 11, 2008 Dabbawala - fast food -- Preeti Chaturvedi
  Dabbawalas: the tiffin carriers of Mumbai, India.
   
 
Feb 4, 2008 Guinness World Records - feat fetish -- Kimberly Maul
  Guinness World Records plays by the book—and more.
   
 
Jan 28, 2008 Colt 45 - takes aim -- Abram Sauer
  Can Colt 45 take aim on its target audience?
   
 
Jan 21, 2008 Big Johnson - no mojo? -- Abram Sauer
  Can Big Johnson score with today's marketplace?
   
 
Jan 14, 2008 Fevicol - strong bonds -- Preeti Khicha
  Carpenters stick with Fevicol's branding paradigm
   
 
Jan 7, 2008 The North Face - into the brand -- Barry Silverstein
  Has The North Face brand reached its peak?
   

 


your chance!
your chance!
coming soon!
Also of interest...
brandjunkie