FOR MARKETING PERSPECTIVE -- TUESDAY, NOV. 4<\/p>\n
done<\/p>\n
Luxury car market continues to show healthy growth<\/p>\n
Hybrida Sakina
\nContributor
\nJakarta<\/p>\n
The economic crisis that hit the country in 1997 badly hurt
\nalmost every type of business here for several years. Part of the
\ndamage is still lingering in many sectors.<\/p>\n
The automotive industry is no exception. However, the luxury
\ncar segment, to a certain degree, managed to escape relatively
\nunharmed. Some observers attributed the survival of this segment
\nto the unaffected and immense purchasing power of its limited
\nnumber of customers, the super-rich and VVIPs.<\/p>\n
Gunadi Sindhuwinata, president director of PT Indomobil Sukses
\nInternational Tbk., whose premium brands are Audi and Volvo, said
\nthat the luxury car segment, apart from being a prestigious and
\nsmall niche, mostly comprised familiar names and faces. \"With a
\ncouple of new buyers entering this elite circle from time to
\ntime, most of them remain the same year in, year out,\" he added.<\/p>\n
Although understandably this segment, which buys cars worth
\nmore than one billion rupiah, comprises only a fraction of the
\npopulation, in comparison to the between Rp 150 million and Rp
\n200 million segment, it remains lucrative for both authorized
\ndistributors and importers.<\/p>\n
Currently, almost every major car maker is \"well represented\"
\nin the luxury car segment, such as BMW, DaimlerChrysler, Volvo,
\nAudi, Volkswagen, Jaguar, Porsche and Ferrari as well as a number
\nof renowned Japanese brands.<\/p>\n
Sales figures in this segment, to the delight of the
\ncompanies' marketers, are rising. PT BMW Indonesia, for example,
\nis also optimistic that this year's figure will exceed last
\nyear's, which was 2,276 units. \"Until September this year we have
\nsold more than 1,700 cars. We feel confident that sales of BMW
\ncars will go up as the economy is improving,\" said Helena Abidin,
\nhead of public relations at the company.<\/p>\n
According to her, the political situation as general elections
\nloom will not greatly affect the luxury car market in Indonesia,
\nincluding the sales of BMWs. The largest portion -- some 80
\npercent -- of the company's sales here is contributed by the BMW
\nseries 3, while the BMW series 5 is about 12 percent. The balance
\nis in sales of the BMW Z4, series 7 and the BMW X5 SUV.<\/p>\n
In the Sports Utility Vehicle (SUV) segment, the competition
\nis getting stiffer with the entry of leading brands and variants,
\nlike the Porsche Cayenne, Volkswagen Touareq and the latest
\nversion of SUV from Mercedes Benz.<\/p>\n
Helena also said that recently the luxury car market had
\nsignificantly expanded further as customers now also include
\nCEOs, entrepreneurs, senior executives and professionals from a
\nwide range of vocations.<\/p>\n
Meanwhile, Trifena, marketing communications manager of PT
\nPrima Auto Grupindo, the authorized dealer of Jaguar cars in
\nIndonesia, said that the company was optimistic it would hit 170
\nin sales. Last year 159 Jaguars were sold here. \"We are quite
\nupbeat about the excellent growth of this segment in Indonesia.
\nThis year's first semester saw the sales of 59 Jaguars, which is
\nhigher than the number in the same period last year, which was 52
\nunits,\" he said.<\/p>\n
To date, the company is marketing the Jaguar S, X and the
\nlatest XJ series.<\/p>\n
The car exhibition organized by the Indonesian Automotive
\nIndustry Association (Gaikindo) in July, 2003 has, to some
\nextent, contributed to better sales. Another event, the Dream
\nCars Contest, held in October, is expected to boost sales
\nfurther. Most players in the automotive industry, manufacturers
\nas well as importers, are optimistic that such events not only
\ncreate a kind of festive atmosphere, but actually produce sales,
\nincluding those of completely built up (CBU) and premium brands.
\nCBU is the automotive industry term for completely manufactured
\ncars -- not to be reassembled here -- imported into the country.<\/p>\n
Association of Car Importers of Indonesia (AIKI) chairman
\nBudhiman Sirodj was also enthusiastic about the current positive
\nsales trend of imported cars. He said the increase in sales of
\nCBU cars, brought to the country by importers, was one clear
\nindication that the luxury car segment was improving fast. \"The
\ncar exhibitions, including Dream Cars Show, have contributed a
\nlot,\" he commented.<\/p>\n
The exhibition, held at Jakarta Convention Center, presented a
\nwide range of CBU brands, totaling more than 120 cars. The price
\ntag was between Rp 130 million and five billion rupiah. Even such
\nworld famous brands, like Lamborghini Murcielago, Ferrari 575 M
\nMaranello Fi and Hummer H2, could be found at the venue.<\/p>\n
Next to other types of marketing communications, the event
\nhelped car importers erase the negative or misleading image that
\nthey do not provide the expensive cars with the required after-
\nsales service.<\/p>\n
\"We abide by all regulations made the Trade and Industrial
\nMinistry. Plus, we make the necessary technical adjustments for
\nthis market and, of course, we provide superior after-sales
\nservice and all the relevant warranties,\" said one importer at
\nthe event.<\/p>\n
Different from the aggressive, big-budget campaigns of lower
\npriced cars, due to its exclusive character, marketers of luxury
\nbrands prefer to use a more personalized direct selling method.<\/p>\n
Like what Deputy director of PT DaimlerChrysler Indonesia Anto
\nNurdiyanto said: \"We are very selective in our marketing
\ncommunications and the use of advertising. Knowing that our
\ntarget market are the kind with very little time, we opt for the
\ndirect selling method, in the broadest sense of the phrase, that
\nis. For example, our marketing executives actively and regularly
\ninform them of the latest developments and information. We also
\ninvite them to certain events and gatherings, such as new product
\nlaunches and so forth.\" Their superior products and brand equity,
\nhe added, are valuable assets in marketing.<\/p>\n
Indeed, to market these extraordinary, extremely expensive
\nitems to the special few, an out-of-the-world method is called
\nfor. And it is certainly not the noisy clamor or humdrum of
\nimpersonal communication messages.<\/p>",
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