sign in sign up
<<
Home , Jeep

CREATIVE BRIEF By Kailey Tennant, Erin Brock and Kelsey WIlson

1 (Untitled photo of a red Wrangler.) 2016 “Jeep Logo”, n.d. Executive Summary

Our group’s mission was to research the Jeep brand and, more specifically, the .

We also looked at , which owns Jeep, and the car and manufacturing industry.

Throughout our research we gained a better understanding of Jeep’s mission, brand image and the automo- tive industry as a whole. We also looked at Jeep’s advertising in depth and conducted our own research.

Finally, we looked at Jeep’s future and what it needs to do to strengthen its brand.

2 (Untitled photo of a red Jeep Wrangler). n.d. (Untitled photo of a black Jeep Wrangler). n.d. Table of Contents industry overview...... 4 Company overview...... 5 Product information...... 6 product features and benefits...... 7 Direct competitors...... 8 indirect competitors...... 9 Product advertising...... 10 product brand image...... 12 The future of jeep wrangler...... 13 references...... 15

(Untitled photo of a black Jeep Wrangler). n.d. 3 Industry Overview

Fiat Chrysler is a part of the Car and Automobile Manufacturing industry. This industry is formed of 96 com- panies that brought in over $126.9 billion last fiscal year. (“Industry at a Glance”, n.d.) The company with the largest market share in this industry is Corporation. The best-selling product in the car and automobile manufacturing agency is midsize sedans with 41.8 percent of the segmentation (“Industry at a Glance”, n.d.).

In the past five years the Car and Automobile Manufacturing industry has experienced significant growth. After the recession in 2009, demand from households and international buyers drove up sales of all types of vehicles. Many domestic manufacturers have recorded the strongest growth in their SUV and light divisions (“Industry Performance”, n.d.). However, car sales have also been major sources of revenue. This is largely due to economic factors such as consumer confidence and low interest rates, which encouraged many households to make the financial commitment to a new vehicle. (“Industry Performance”, n.d.)

Low oil prices have also benefited industry operators, reducing the cost of vehicle ownership. Coupled with continued sales around the globe, industry revenue is expected to climb at an average annual rate of 6.8 per- cent over the five years to 2016, to reach $127 billion (“Industry Performance”, n.d.).

The outlook for the Car and Automobile Manufacturing industry isn’t as promising, because changing eco- nomic factors will lead to slower growth.(“Industry Outlook”, n.d.) The Consumer Confidence Index, which measures households’ confidence in their employment and financial situations, is expected to rise at a low annualized rate of 0.5 percent. (“Industry Outlook”, n.d.). This means fewer consumers are likely to make big purchases of vehicles.

Credit availability is also expected to decline as interest rates rise. This makes it more expensive to finance vehicle purchases and will cause consumers to keep their current cars or purchase used vehicles. (“Industry Outlook”, n.d.).

Fuel prices are also expected to climb, pushing more buyers toward fuel-efficient midsize and compact vehi- cles rather than SUVs and light . Overall, industry revenue is forecast to increase at an average annual rate of 1.1 percent over the five years to 2021 to total $134.1 billion.(“Industry Outlook”, n.d.).

4 (Untitled photo of a black Jeep Wrangler). n.d. Company overview

Jeep is a company owned by Fiat Chrysler Automobiles NV, an automotive group that designs, engineers, manufactures, distributes, and sells vehicles and components (“Fiat Chrysler Automobiles NV” n.d.). It also offers passenger cars, small trucks, and small commercial vehicles under the , , Chrysler, , Fiat, , Jeep, and Ram brand names.

Additionally, Fiat Chrysler offers luxury sports cars under the Ferrari and brands (“Fiat Chrysler Automobiles NV” n.d.). Also, Fiat Chrysler manufactures many products associated with automobiles, such as engine control units, suspensions, shock absorbers, lighting components, etc. (“Fiat Chrysler Automobiles NV” n.d.)

Fiat Chrysler Automobiles was founded in 1899 in the United Kingdom. It is a public company with stock traded on the New York Stock Exchange (FCAU) and the Borsa Italiana (FCA) (“Fiat Chrysler Automobiles NV” n.d.) In its 2015 fiscal year, Fiat Chrysler had a net revenue of over $120 billion employing 238,162 people. The average dollar amount in sales per employee was about $504,607 (“Fiat Chrysler Automobiles NV” n.d.). Fiat Chrysler is one of the top automakers worldwide. In 2013, it made 5 percent of all cars worldwide. In sales, the Asia-Pa- cific region claimed 48 percent, North America claimed 24 percent, Europe 21 percent, Latin America 7 percent, and Afri- ca and the Middle East 1 percent (Lazich 2016).

Jeep itself recorded sales of more than 1.2 million units worldwide in 2015. 2015 was the 75th anniversary of the Jeep brand, making this the highest sales in its 75-year history. This also set a global sales record for Jeep for the fourth consecutive year (“Jeep Brand Enters One of the World’s Largest Automobile Markets,” 2016).

Jeep’s sales have been consistently rising. The Jeep brand has set a sales record in every month since No- vember 2013. (“FCA US LLC Reports March 2016 U.S. Sales Increased 8 Percent” 2016). In February 2016, the , Jeep Wrangler, and had their best February sales month in the history of the brand. “FCA US LLC Reports March 2016 U.S. Sales Increased 8 Percent” 2016).

For the second consecutive year, the Jeep Wrangler Unlimited earned the February lowest “5 Year Cost to Own Award” for mid-size SUV/ vehicles from Kelley Blue Book, a company where many people choose to turn to when deciding which vehicles to purchase, (“FCA US LLC” 2016).

(Untitled photo of a black Jeep Wrangler). n.d. 5 (Untitled photo of a dark green Jeep Wrangler). n.d. Product information

The Jeep Wrangler has evolved over 75 years and 18 different models. It was developed to replace the “CJ series.” The vehicles were originally designed for the military in World War II as a “light reconnaissance vehicle to replace the Army’s motorcycle” (“A lifetime of Adventure,” n.d.).

The military desired a “lightweight, off-road, utility vehicle” and Willy-Overland, the manufacturing compa- ny, met the Army’s desires with the creation of “the Quad” in 1941. In 1945, the Civilian Jeep series, or CJ, was released to the general public (“The Jeep Story,” n.d.).

From 1941 to 1985, American Motors Corp. owned the Jeep brand and the CJ series reigned over the military and the automobile market. In 1987, Chrysler bought out American Motors Corp. and the CJ series was of- ficially retired (“The Jeep Story,” n.d.). The Jeep Wrangler was released as its replacement. Chrysler kept the basic design of the original Jeep but 80 percent of the parts were newly designed (“The Jeep Story,” n.d.).

Today, the basic Jeep Wrangler Sport starts at $23,895 and the most expensive model of the Jeep Wrangler is the Rubicon Hard Rock, which starts at $37,895. There are nine models and prices that are in between (“Build and Price,” n.d.). This vehicle is available in the North America, Asia, Europe, the Middle East and Africa (“Find Your Country,” n.d.).

The Jeep vehicle lineup consists of the Cherokee, Compass, Grand Cherokee, Patriot, Renegade, Wrangler and Wrangler Unlimited. To meet consumer demand around the world, all Jeep models sold outside North America are available in both left and right-hand drive configurations and with gasoline and diesel powertrain options (“Find Your Country,” n.d.).

6 (Untitled photo of a black Jeep Wrangler). n.d. Product features and benefits

JEEP BRAND NAME The Jeep Brand has been around for over 75 years in multiple countries throughout the world

DIFFERENT COLORS The Jeep Wrangler comes in eight different colors.

FEATURES AN ELECTRONIC VEHICLE INFORMATION CENTER AND UCONNECT® Allows the customer to communicate virtually hands-free with a voice-activated system using your Blue- tooth®-compatible phone.

POWER AND CONVENIENCE Adds power locks, power front windows, power heated exterior mirrors, remote keyless entry, an auto-dim- ming rearview mirror with reading lamp and a security alarm.

ATTENTION TO DETAIL Seats are leather-trimmed with a resilient black Sedoso seat fabric. The leather-wrapped steering wheel, door pulls and center console lid get matching stitch treatments. Quicksilver painted accents can be found on the door grab handle, instrument panel and vent rings.

ALL WEATHER SLUSH MATS Helps keep interior clean and safe from permanent weather damage.

COMMAND-TRAC 4X4 SYSTEM Allows consumers the option of four wheel drive.

3.6L PENTASTAR V6 ENGINE This engine features upgrades to the variable valve timing system, an increased compression ratio (11.3:1), lower internal friction and lower weight. These improvements help to increase power as well as efficiency.

BUILD AND PRICING OPTION Ability to create a Jeep Wrangler that fits individual needs and individual budgets.

“Jeep History”, n.d. “2016 Wrangler”, n.d. (Untitled photo of a black Jeep Wrangler). n.d. 7 Direct Competitors

Fiat Chrysler’s main competition comes from General Motors, which has 12.3 percent of the market share, Ford (11.1 percent), and Toyota (9.4 percent).

Chrysler, which has 8.7 percent of the market share, not only competes with those with a greater market share than them but it also competes with Honda, which has 6.3 percent of the market share (“Major Compa- nies”, n.d.).

(Untitled photo of a black Jeep Wrangler). n.d. “General Motors Logo”, n.d. “Transparent Ford Logo”, n.d. 8 (Toyota Logo). n.d. (Honda Logo). n.d. Indirect competitors

Three indirect competitors of Jeep Wrangler are the Honda Recon, public bus systems and recreational vehi- cles (RVs).

Honda Recon is a utility ATV that is compact and powerful to help maneuver through tight trails (“Sized Right for Versatility” n.d.). Public transportation systems are available for everyone to get to where they are going and is cheaper annu- ally than owning a vehicle. A household can save more than $10,000 by taking public transportation (“Public Transportation Save Money” n.d.).

The Coachman Pursuit makes home to be wherever the journey takes a family (“Home” n.d.).

(Untitled photo of a black Jeep Wrangler). n.d. (Untitled photo of a red Honda Recon). n.d. “Coachmen Pursuit”, n.d. 9 (Untitled photo of a public bus), n.d. Product Advertising

Fiat Chrysler and its subsequent brands spent nearly $2 million on advertising in 2014, the most being spent on television (Lazich 2016). More specifically, Jeep alone spent just over $302 million in advertising in 2014, which is 25 percent of its total spending (“Annual Measured U.S. Media Spend” n.d.). In accordance with Fiat Chrysler, the most money was also spent on spot TV (“Annual Measured U.S. Media Spend” n.d.). While Jeep also advertises in network TV, cable TV, US internet display, national spot radio, US online video, magazines and national newspapers (in order of most to least money spent), spot TV is its most heavily funded sector of advertising (“Annual Measured U.S. Media Spend” n.d.).

Jeep heavily draws from North America, but also European countries, as Fiat was founded in the UK and has stock in the Borsa Italiana (“Fiat Chrysler Automobiles NV” n.d.).

Both men and women are likely to see ads by Jeep because Jeep draws relatively equally from each gender. According to an online survey of 1,135 Internet users, 29 percent of women would purchase an SUV (like Jeep) and 28 percent of men would purchase one (“Car Purchasing Process US April 2015,” 2015).

The researchers chose to analyze ads from 2012, 2013, 2014, and two ads from 2016. Despite the varying years, the ads all carried the same consistent message(“Official 2016 Super Bowl Commercial - 4x4ever,” February 7, 2016; “Jeep Wrangler “Avalanche” Official Commercial,” January 30, 2016; “2016 X Games - Mr. Ten Below,” January 12, 2016; “2013 Jeep Wrangler Power Within,” July 11, 2013; “2014 Jeep Wrangler Limita- tions,” April 2, 2014). In the 2016 ads, Jeep seems to have upped its focus on including more representation of its capabilities and spending more money on advertisements that show multiple settings instead of just one.

Most of the actors in these commercials were white. A few commercials had diversity in them; however, oth- er non white races were not well represented. (“Official 2016 Super Bowl Commercial - 4x4ever,” February 7, 2016; “Jeep Wrangler “Avalanche” Official Commercial,” January 30, 2016; “2016 X Games - Mr. Ten Below,” January 12, 2016; “2013 Jeep Wrangler Power Within,” July 11, 2013; “2014 Jeep Wrangler Limitations,” April 2, 2014) Two of the commercials contained no actors and one contained no women or non white actors.

10 (Untitled photo of a black Jeep Wrangler). n.d. Product Advertising

There are both pros and cons of having no actors in a commercial. Having no actors in a commercial really puts the focus on the Jeep and what it can do. A con of having no actors is that it can be harder for people to imagine themselves owning a Jeep. When the audience sees actors they imagine themselves in that role; however, if there are no actors they may have a harder time seeing themselves in the car. Actors also help create a brand image.

Jeep designed its ads to exemplify the actions and opportunities that are possible because of driving the Wrangler. For example, the message from the commercial “The Strength Within” promotes “capability find- ing versatility,” suggesting the Wrangler is capable of functioning in any variety of environments. The message Jeep communicates to the viewer is that adventure is within reach and to go outside of the boundaries. “Limitations” says, “Whoever said a man needs to know his limitations never drove one of these.” All of the supposed limitations are pushed through with the strength and control of a Jeep Wrangler. demographics

Jeep is an interesting brand because it draws from both men and women relatively equally. Of 1,135 internet users ages 18+ who plan to buy a vehicle in the next three years, 29 percent of women would purchase an SUV (like Jeep) and 28 percent of men would purchase one (“Car Purchasing Process US April 2015,” 2015).

People of color are more likely to purchase an SUV like Jeep than white people and generally, purchasers of SUVs hold a household income of at least $50,000 (“Car Purchasing Process US April 2015,” 2015).

Additionally, the presence of children under 18 in the household increases the chance from 21 percent to 37 percent in regards to purchasing an SUV (“Car Purchasing Process US April 2015,” 2015).

SUVs are popular due to their utility and rugged image. Compact crossover SUVs are growing even more so in popularity as they combine the adventurous image of an SUV with the fuel economy of a typical midsize vehicle (“Car Purchasing Process US April 2015,” 2015).

(Untitled photo of a black Jeep Wrangler). n.d. (x2) 11 Product Brand Image

Jeep builds its company around its image. A survey of 2,000 internet users aged 18+ showed 29 percent and 44 percent would categorize Jeep as “sporty” and “rugged” respectively. (“SUVs and CUVs US April 2012 Brand Perception,” 2012).

(Untitled photo of a black Jeep Wrangler). n.d. “Jeep Ad”, 2010. 12 “Jeep Wrangler Advertising Campaign”, 2012. The future of Jeep Wrangler and advertising

Jeep’s main message is that its cars are tough and can help you go on any adventure you want, no matter the weather conditions or the terrain.

The company’s commercials focus on showing the audience how they can achieve this message.(“Official 2016 Super Bowl Commercial - 4x4ever,” February 7, 2016; “Jeep Wrangler “Avalanche” Official - cial,” January 30, 2016; “2016 X Games - Mr. Ten Below,” January 12, 2016; “2013 Jeep Wrangler Power With- in,” July 11, 2013; “2014 Jeep Wrangler Limitations,” April 2, 2014)

One change that Jeep could make is to show how adventure can be fun and affordable. Jeep targets younger people in their 20s and 30s. These people often are focused on saving money. Jeep could adjust its message to show that while Jeep is a tough, well-built vehicle, it is still affordable. It could also show that the adven- tures that Jeep takes you on don’t have to be too extravagant and expensive. The rugged adventures that Jeep promotes don’t have to be expensive. If it adjusts its message slightly to promote this it would help its brand.

Jeep could benefit from adding diversity to its commercials and catering its message to this audience seg- ment. Jeep’s main message is helping its audience seek adventure. People love adventure no matter what their race is. By having a majority of its actors be white, Jeep is missing out on appealing to its diverse audi- ence. Since they aren’t represented as much in the commercials, nonwhites may think that a Jeep isn’t for them because they can’t see themselves in that role.

(Untitled photo of a black Jeep Wrangler). n.d. 13 The future of Jeep Wrangler

Despite its claim to safety and security, Fiat Chrysler Automotives has recently faced negative attention from the National Highway Traffic Safety Administration (Vlasic, July 2015). The administration claims Fiat Chrysler Automotives has “failed to complete 23 safety recalls covering more than 11 million vehicles.” Fiat Chrysler Automotives was fined $105 million for failure to adhere to the safety regulations. Additionally, FCA has been underreporting the number of death and injury claims (Vlasic, July 2015).

Fiat Chrysler has admitted to violating the Safety Act in three areas: timely recall remedies, notification to vehicle owners and dealers and notifications to NHTSA (“US DOT Announces Fiat Enforcement,” 2015). In re- sponse to the legal hearings in July 2015, FCA has started implementing recalls of defective cars. These recalls include 1.4 million vehicles vulnerable to computer hackers and 1.59 million equipped with rear-mount- ed gas tanks, which can catch fire in high-speed collisions (Vlasic, July 2015).

Sales dropped 3 percent in the second quarter following the claims by the NHTSA (Vlasic, August 2015). Fiat Chrysler signed a consent order with the NHTSA to resolve the government’s wide-ranging investigation of 23 types of vehicle recalls. The company has also committed to overhaul its current safety practices and recall procedures to comply with the new consent order. (Vlasic, August 2015).

14 (Untitled photo of a black Jeep Wrangler). n.d. References

A Lifetime of Adventure. (n.d.). Jeep. Available from www.jeep.com/history Business Insights: Essentials. (n.d.) Fiat Chrysler Automobiles NV. Available from www.galegroup.com/essentials Coachmen Pursuit. (n.d.). Coachmen RVs. Available from http://www.coachmenrv.com/brochures/2017/2017pursuitbrochure.pdf Find the Right Jeep. (n.d.). Jeep. Available from www.jeep.com FCA US LLC Reports March 2016 U.S. Sales Increased 8 Percent. (2016). PR Newswire. Available from www. galegroup.com/essentials Fiat Chrysler Automobiles. (n.d.). Find Your Country. Available from www.jeep.com/crossbrand IBIS World. (n.d.). Car and Automobile Manufacturing: Industry Outlook. Available from www.clients1.ibisworld.com/reports IBIS World. (n.d.).Car and Automobile Manufacturing: Industry Performance. Available from www.clients1.ibisworld.com/reports IBIS World. (n.d.). Car and Automobile Manufacturing: Major Companies. Available from www.clients1.ibisworld.com/reports Jeep Brand Enters One of the World’s Largest Automobile Markets. (2016). PR Newswire. Available from www.galegroup.com/essentials Jeep: Build and Price. (n.d.). Jeep. Available from www.jeep.com Jeep. (2016, February 7). Official 2016 Super Bowl Commercial - 4x4ever. Available from https://www.youtube.com/watch?v=pOiiPxb-Gbw Jeep. (2012, January 30). Jeep Wrangler “Avalanche” Official Commercial. Available from https://www.youtube.com/watch?v=Il8DDRiXjTo TCMotorsLatvia. (2013, July 11). Jeep Wrangler Power Within Official Commercial. Available from https://www.youtube.com/watch?v=30s7nh5K5bs Jeep. (2016, January 12). 2016 X Games - Mr. Ten Below. Available from https://www.youtube.com/watch?v=eXvy5nG9SFE Lazich, R. (2016). Top Auto Makers Worldwide, 2013. Market Share Reporter. Available from www.galegroup.com/essentials. Lazich, R. (2016). Top Advertisers, 2013. Market Share Reporter. Available fromwww.galegroup.com/essentials. Mintel. (2015). Car Purchasing Process US April 2015. Available fromwww.mintel.com Mintel. (2012) SUVs and CUVs US April 2012 - Brand Perception. Available from www.mintel.com Mintel. (2012). SUVs and CUVs US April 2012. Available from www.mintel.com

(Untitled photo of a black Jeep Wrangler). n.d. 15 references

National Highway Traffic Safety Administration. (July 26, 2015). US DOT Announces Fiat Chrysler Enforce- ment Action. Available from www.nhtsa.gov RedBooks. (n.d.) Annual Measured U.S. Media Spend. Available from www.redbooks.com Public Transportation Save Money. (n.d.). Public Transportation. Available from http://www.publictransportation.org/news/facts/Pages/default.aspx Sized Right for Versatility. (n.d.). Honda Power Sports. The Jeep Story 1940-1970. (n.d.). Jeep. Available from www.jeep.com/history Vlasic, B. (August 5, 2015). Chrysler Posts a 3% Drop In Profit After Fine. Available From www.nytimes.com Vlasic, B. (July 26, 2015). Fiat Chrysler Gets Record $105 Million Fine for Safety Issues. Available from www.nytimes.com 7HorseTheBand. (2014, April 2). 7Horse - Jeep Wrangler Limitations Commercial. Available from https://www.youtube.com/watch?v=hVpBGj4hiCM 2016 Jeep Wrangler (n.d.). Jeep. Available from Jeep.com image references

Coachmen Pursuit. (n.d.). Coachmen RVs. Available from http://www.coachmenrv.com/brochures/2017/2017pursuitbrochure.pdf (Ford Logo). Retrieved from http://www.userlogos.org/files/logos/veinedstorm/ford.png (General Motors Logo). Retrieved from http://mcguirelocksmith.com/wp-content/uploads/2013/12/General-Motors-Logo. jpg (Jeep logo). Retrieved from http://www.chryslergroup360.com/wp-content/uploads/2016/01/Jeep_3D_logo q17kf4idqailbb6pcsqt2hgud4__mid.jpg (Jeep Wrangler logo). Retrieved from http://cdn.pinthiscars.com/images/jeep-wrangler-logo-wallpaper-8.jpg

16 (Untitled photo of a black Jeep Wrangler). n.d. image references

(Photo of “The Adventurer’s Best Friend”). Retrieved from http://s3images.coroflot.com/user_files/individual_files/475197_dMpwp5jS dT6zwvhEY6zuhtBfG.png (Photo of “The Toughest Vehicle in the World”). Retrieved from https://s-media-cache-ak0.pinimg.com/236x/8a/af/ae/8aafaedb99e95c45361b 1ba78ad4fd7e.jpg Public Transportation Save Money. (n.d.). Public Transportation. Available from http://www.publictransportation.org/news/facts/Pages/default.aspx Sized Right for Versatility. (n.d.). Honda Power Sports. Available from http://powersports.honda.com/2016/fourtrax-recon.aspx (Transparent Honda Logo). Retrieved from http://dreamaticl.com/images/honda-logo-transparent-background-4.jpg (Transparent Toyota Logo). Retrieved from http://www.pngall.com/wp-content/uploads/2016/04/Toyota-Logo-Free-Down load-PNG.png (Untitled photo of a black Jeep Wrangler). Retrieved from http://www.jeep.com/assets/images/vehicles/2016/shared/wranglers/exterior/ mod-copy-media/recognizable/wrangler-u-headshot.png (Untitled photo of Coachmen Pursuit). Retrieved from http://www.mhsrv.com/themes/mhsrv/images/rv/model/4861-lg.png (Untitled photo of a dark green Jeep Wrangler). Retrieved from http://shop.universitychryslerdodgeramjeepofrome.com/wp-content/uploads/ sites/16/2016/02/10912_st1280_116-e1454971816225-1024x606.png (Untitled photo of public transportation bus). Retrieved from http://www.mtabus.org/wp-content/uploads/2012/01/bus11.png (Untitled photo of a red Jeep Wrangler). Retrieved from http://www.jeep.com/en/wrangler/#model=sport&color=black&category=standard (Untitled photo of a red Jeep Wrangler). Retrieved from http://1.cdn.quirkchryslerdodgejeepram.inspirelightning.com/wp-content/uploads/ Saharaflipped.png (Untitled photo of red Honda Recon). Retrieved from http://powersports.honda.com/Assets/Models/Category/FourTraxRecon_380x372 png

(Untitled photo of a black Jeep Wrangler). n.d. 17