Filed under: Products and services, Industry, Marketing and advertising, Recession

I wrote a few weeks ago about Chrysler’s new sales gimmick: purchase a new Chrysler and pay no more than $2.99 a gallon for gas for three years.

Well it seems that the sales promotion is working, at least in the short run. Chrysler is reporting that sales in Might are up 15% compared to April. Vice Chairman Bill Press has announced that the offer will be extended until after the July 4 holiday.

But the real question is whether this is enough to turn Chrysler around. I was skeptical when I first heard about the plan, and I remain so. The cheap gas promotion is no doubt increasing foot traffic at Chrysler dealers and even moving some sheet metal, but the overall picture for Chrysler remains pretty bleak. Chrysler sales are down 18% for the year, and sales in May 2008 will be weaker than in Might 2007 even with the promotion. So the cheap gas offer is probably just filling a few holes in a sinking ship.

Current projections call for fewer vehicle sales in 2008 than in 2007, with the American automobile market shrinking by something like one million cars, down to 15 million. Given the poor mileage of most Chrysler products, I suspect that even with the $2.99 gas sales promotion, a disproportionate number of those unsold automobiles will be Chryslers. Even guaranteed cheap gas can’t disguise the fact that Chrysler isn’t selling the well-designed, fuel efficient vehicles that Americans are increasingly demanding.

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Filed under: Products and services, Industry, Marketing and advertising, Recession

I wrote a few weeks ago about Chrysler’s new sales gimmick: buy a new Chrysler and pay no more than $2.99 a gallon for gas for three years.

Well it seems that the sales promotion is working, at least in the short run. Chrysler is reporting that sales in Might are up 15% compared to April. Vice Chairman Bill Press has announced that the offer will be extended until after the July 4 holiday.

But the real question is whether this is enough to turn Chrysler around. I was skeptical when I first heard about the plan, and I remain so. The cheap gas promotion is no doubt increasing foot traffic at Chrysler dealers and even moving some sheet metal, but the overall picture for Chrysler remains pretty bleak. Chrysler sales are down 18% for the year, and sales in May 2008 will be weaker than in May 2007 even with the promotion. So the cheap gas offer is probably just filling a few holes in a sinking ship.

Current projections call for fewer car sales in 2008 than in 2007, with the American car market shrinking by something like one million vehicles, down to 15 million. Given the poor mileage of most Chrysler products, I suspect that even with the $2.99 gas sales promotion, a disproportionate number of those unsold vehicles will be Chryslers. Even guaranteed cheap gas can’t disguise the fact that Chrysler isn’t selling the well-designed, fuel efficient vehicles that Americans are increasingly demanding.

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Filed under: Good news, Products and services, Apple Inc (AAPL), Marketing and advertising

Apple, Inc. (NASDAQ: AAPL) just can’t stop taking market share in one area or another. The iPod and iPhone maker was found in a current study by research home NPD Group to have about 66% of the Personal computer market for machines costing more than $1,000. Although the majority of Computers don’t sell for over $1,000, Apple’s still kickin’ it when it comes to those nicer Personal computers.

Apple’s current share of the U.S. Computer market stands at 14% which is impressive considering it’s grown that figure in each quarter since 2007. The company’s retail store presence has been a success, and the brand euphoria from the iPhone’s debut almost a year ago has helped Mac sales continue to grow.

This isn’t some overnight success story, though. Personal computer competitors such as Hewlett-Packard Corp. (NYSE: HPQ) and Dell, Inc. (NASDAQ: DELL) ship millions of sub-$1,000 Personal computers each quarter, but Apple only has one Personal computer below that price point, the diminutive Mac Mini, which does not even come with a keyboard, mouse or monitor.

A customer can purchase a fully-equipped desktop of laptop Computer (non-Apple) for that price — so why doesn’t Apple compete superior in the sub-$1,000 space? Because it doesn’t have to. Its brand and product designs command premium prices and customers seem eager as anything to pay those prices. That’s the power Apple has — one that any manufacturer in any industry would love to have.

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Filed under: General Electric (GE), Marketing and advertising, News Corp’B’ (NWS), Media World, Politics

The feud between Fox News’ Bill O’Reilly and MSNBC’s Keith Olbermann has morphed from a sometimes amusing spat between cable news hosts to a clash of corporate titans.

As Howard Kurtz of the Washington Post notes, O’Reilly has attacked General Electric Co. (NWS: GE) Chief Executive Jeffrey Immelt for being “responsible” for the deaths of soldiers in Iraq because the MSNBC parent does a tiny amount of business with Iran which, apparently, is coming to an end. O’Reilly even sent a crew from “The O’Reilly Factor” to GE’s annual meeting in Erie, Penn., to buttonhole Immelt and GE shareholders about the issue. One fund manager even called Immelt a “Benedict Arnold CEO” on the Fox program.

On his show, Olbermann often awards O’Reilly the title of “Worst Person in the World,” a bit of shtick that’s getting tiresome. Everything that O’Reilly says and does irritates Olbermann. The again, so does Britney Spears.

But that’s not the whole story. Fox News chief Roger Ailes warned NBC Universal head Jeff Zucker that “if Olbermann didn’t stop such attacks against Fox, he would unleash O’Reilly against NBC and would use the New York Post as well,” according to the Washington Post. This underscores the arguments of liberals and progressives that Fox and The Post are the winged monkeys of their corporate masters at News Corp. (NYSE: NWS). Fox, of course, denies Ailes threatened NBC.

The back and forth between the two media conglomerates shows that nerves are starting to get frayed and that life — sigh — is a lot like high school.

NBC argues that O’Reilly stepped over the line when he began attacking NBC correspondent Richard Engle for taking “an anti-war” position in his reporting from Baghdad and for not giving the military credit for the “success” of the surge. Fox is furious that Olbermann claimed that Fox News chief Roger Ailes was advising the presidential campaign of his former clients ex-New York City Mayor Rudy Giuliani. Fox denies the charge, which would be a major breach of journalistic ethics. A Fox spokesman put it this way: “If he was offering Rudy advice, you think Rudy would have done as badly as he did? No way Roger was giving him advice.”

Of course, the real reason why O’Reilly has taken an interest in GE’s Iran dealings is Olbermann. O’Reilly had a petition drive to get Olbermann fired, which only emboldened his more liberal rival. O’Reilly considers Olbermann and his other main liberal nemesis comedian turned wannabe politician Al Franken to be a cross between Satan and Superman super villain Lex Luther. Such evil must be destroyed even if you continually beat them in the Television ratings.

One more thing: If you read the Post story, expect to do a lot of clicking. It seems that the paper needs the page views.

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