Posts tagged ‘perceived quality’


MG SUV soon a reality: good

06.02.2014

I have to admit I get a bit bored of those crying foul now that MG will launch an SUV, one which seems to have some parallels with the Ssangyong Korando C (left).
   They say that MG should have made sports cars as part of its revival, and that the brand should not adorn a bunch of Chinese-made saloons and an upcoming SUV.
   Let’s look at a few hard facts.
   MG did make a sports car when NAC, and later SAIC, took over. It was the British TF design. And they sold fewer than 100 cars per year in the 2007–11 period, despite it being the cheapest roadster on the market in China. It wasn’t just Chinese buyers who ignored them: the TF was the first model revived at Longbridge, with very keen pricing, and hardly any Britons touched them, either.
   So if you were a business and you were confronted with decent sales of your saloon cars and dismal sales of your sports car (after building a whole new factory for them), where do you place your efforts?
   You give the people what they want.
   What’s surprising is that this is hardly unprecedented in MG history. There have been MG saloons for a good part of its existence, but right now, there are parallels with the 1980s. Then, the MGB had died in 1980, and Austin Rover decided it would launch a range of sporting saloons based on the humble Metro, Maestro and Montego. That’s no different to today’s MG range of the 3, 5 and 6—there’s even a 7, based on the old MG ZT.
   And globally, but more importantly, in MG’s domestic and key export markets, SUVs are selling strongly.
   Again: you give the people what they want.
   I was one of the very few people who wrote that I believed the Porsche Cayenne would be a huge hit at the turn of the century, and that the Porsche brand could survive such an extension. I was right.
   MG’s brand can easily be extended, given that it has had a less focused history than Porsche. At two points during its British ownership, it sold estates, for goodness’ sake—once in New Zealand, with the Montego-based MG 2·0 SL, and toward the end of the Phoenix Four era, with the MG ZT-T.
   A good deal of estate buyers now eye up SUVs, and that is simply a trend that SAIC is following.
   A sports car may follow in time. There will be a fastback based on the Auris-like MG 5, and not a moment too soon. A “proper” sports car could come if the rest of the range does well. SAIC isn’t run by mugs, and they know the heritage of the MG brand.
   MG sister brand Roewe has been voted the best in service and customer satisfaction among car dealerships, beating even the foreign-branded competition in China, while the Roewe 350 topped its class for customer satisfaction, according to the China Quality Association. The MG 3 came second in its segment.
   We’re talking about the most competitive car market on earth, and the Chinese equivalent (as far as I can make out) of the J. D. Power survey.
   Those accolades are things that BMC, BL, Austin Rover, Rover Group and MG Rover could only dream about, especially through the 1970s.
   I’d rather people give SAIC the acclaim it deserves for giving MG a decent go where the British and the Germans had failed—and for putting money where its mouth is.

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Posted in branding, business, cars, China, UK | No Comments »


Where do the Mac evangelists hide when Apples go, ‘Boom’?

05.03.2011

Once again, I posted a Tweet (which went on to my Facebook) about Apple messing up (this time, about Mail with disappearing attachments). There were no replies.
   Interestingly, whenever I post about a Windows bug, the Mac evangelists all swarm on to it, usually with the sentiment, ‘Get a Mac.’
   They all disappear whenever I post a problem about the Macintosh.
   Yet, the Windows users don’t swarm all over and say, ‘Get Windows.’
   While through most of the 1990s, I would agree with the Mac sentiment, since around 1998, I’ve been able to crash Apples as regularly as Windows-based machines. (I do not have enough Linux experience to make a judgement of that platform.)
   I’m not sure where this supposed superiority complex comes from any more, other than the Mac buyer being financially better off and paying more.
   But paying more, as a 1990s Rolls-Royce owner might attest, does not get you something better.
   However, as Rolls-Royce knows, perceived quality plays an awfully big part in brand equity.
   The reality is I’ve had everything from font embedding errors and missing icons to corrupted file transfers and programs crashing on opening on the Macintosh.
   They are every bit as serious as what I experience on various Windows platforms.
   And while I get fewer Mac viruses, the ability for an average Joe like me to troubleshoot is severely diminished because of the smaller user base—and, consequently, the dearth of support pages out there.
   Or, the conspiracy theorist must ask: is it due to the brand being so hallowed that users don’t post information about their supposedly perfect computers?
   It’s all the same to me: computers are computers, and they all crash at some point.

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Posted in branding, internet, technology | 7 Comments »


Toyota’s troubles stem from forgetting its principles

06.02.2010

I was surprised to learn that Toyota still has not issued a worldwide recall of its troublesome Prius NHW30 model, even though one had gone out in New Zealand.
   In layman’s terms, the brakes allegedly don’t work when you want them to. In more complex terms, the software has trouble distinguishing between different types of braking, and drivers may experience a delay in ‘pedal feel’.
   I was always a bit sceptical about the recalls over the unintended acceleration, given that the last time I heard those words, they were in relation to a falsified report from CBS’s 60 Minutes, a show known to me for making up stories (Killian memoranda, anyone?). Hearing them again, I thought it was just another excuse for the clumsy driving of a few individuals who couldn’t figure out where the accelerator was (which was what happened with Audi in the US). But it seems this matter has been around for a long time, and recalls were being done even last year.
   But the Prius matter, something that has not come under a global recall, appears more serious than carpets getting in the way, which is the problem behind the unintended acceleration complaints. AFP reports:

The Transport Ministry has received some 80 complaints in February about malfunctions in the brake system of the latest model of the flagship Prius, the Tokyo Shimbun reported without quoting sources.
   Five of them were actual crashes in which the drivers claimed the brakes did not work properly, the daily said, adding that the ministry would urge the company to launch an investigation.
   It was not possible to immediately confirm the report.

   Already Toyota has been berated by top management for going too far from its core principles by its honorary chairman, Shoichiro Toyoda. The company had been trying to sell big cars in China during the financial crisis, and spent a good part of the 2000s developing large pick-up trucks for the US market. Bloomberg reported last June that a meeting was called:

Shoichiro scolded the president [Katsuaki Watanabe] for being so anxious to boost sales and profits that he’d let Toyota emulate now bankrupt General Motors Corp. and Chrysler LLC. Toyota had become addicted to big, expensive cars and trucks and had forgotten the customers’ need to save money, Shoichiro said, according to the person’s account.

   In other words, Toyota’s culture has been suffering, and we all know what happens when sales’ volume and profit are pursued at the expense of quality or engineering. (Ask Mercedes-Benz.)
   Toyota may be an example where too many niches were created, simply to get consumers in the showrooms—and now that’s coming to bite it on the rear end. Having too many niches has one immediate drawback: consumers no longer understand the structure of the range. Is the small car the iQ, Ist, Vitz, Porte, Belta or Passo? Do I move from that to a Corolla, Auris, Blade, Corolla Rumion, Probox, Raum, RAV4 or wotsis?
   The mistakes are understandable in some ways. Toyota had to create more new models as attention spans shortened. While a car might be able to be presented as “new” for two years in the Japanese market 10 years ago, consumers expect something else within half a year. To fund this appetite, the company looked for ways to maximize profits in every market—with the US one fuelled by bigger and bigger vehicles. It had to take costs out of cars, especially with electronics (by combining as many functions on to one system as possible) and architecture—and it may be these areas where the Prius suffered.
   But no company can really afford to pursue too many niches—Mazda overextended itself in the late 1980s and early 1990s, as did Nissan in the early 1990s—when times are tough. Toyota should have forecast a downturn, as many business experts did. The question that the company needs to ask itself is: what made it so blind in the 2000s?
   Even ignoring the idea of unintended acceleration for now, Toyota ends the lunar year on a low. It will always have its diehard followers—there are many models not affected by these issues—but the company must refocus its brand for the New Year toward its traditional principles. There is every sign the company knows that, with Akio Toyoda, the founder’s grandson, now at the helm, and doing spot checks down on the production floor. (I’d rather Toyota have someone like that than a “celebrity CEO” who gives good press. The era of the celebrity boss is over for now.) It is simply a pity that the company did not get on to its mounting problems—there are claims that unintended acceleration reports began surfacing with Toyota’s Lexus ES model as early as 2004—sooner.
   Few buy a Toyota because the cars make one’s heart beat faster. They are a default choice for many people who want the simplest conveyance from A to B. Akio’s job has been reminding his own team of that, and reinstituting the ‘Toyota Way’ and kaizen, terms that many of us who went to business school during a certain era recall.

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Posted in branding, business, cars, culture, leadership, marketing, media, New Zealand, technology, USA | 4 Comments »