Phil Biggs covers the automotive industry for NewsTalk 1340 WJRW
October 16, 2014 – 1:30 pm ET
DEARBORN, Michigan. – In the midst of our all-out industry recovery, one of the fastest-growing and most competitive vehicle markets is the F-segment or full-size luxury car. Today, as factors other than cost drive vehicle investments, nowhere have key program decisions been more critical than in support of the luxury segment. This segment itself has been split into mid-size, full-size and cross-over categories, confirming both the intense risk and reward potential as the industry moves ahead. And no automaker is going further to transform itself in this segment than venerable Lincoln.
Re-inventing its brand and image. Look no further than last decade when we saw Lincoln struggling with no new models and few compelling design ideas. They were stuck in a quagmire trying to define a way forward, seeing little or no progress in terms of awareness-building or ability to protect falling market share. The only certainty for Lincoln was a base of loyal, septuagenarian customers while most Echo Boomers couldn’t care less…if they even knew the brand existed. But today that dynamic is changing.
Enter Oscar-winning actor Matthew McConaughey who, as noted in Automotive News, “has transformed his own career from shirtless romantic comedies to serious dramatic roles.” Now he is the pitchman for Lincoln Motor as they experience their own transformation. “Authenticity is a word that kept coming up in our initial meetings. It was clear from the start they appreciated me as an individual first and foremost, and I would be able to be myself in this collaboration,” said McConaughey, who describes himself as a longtime admirer of Lincoln. “I had the chance to drive the new MKC around Texas and I think they’re doing a good job,” the actor said in a news release. One of the hottest actors anywhere, McConaughey has the rare ability to span the vast cultural divide between Echo Boomers and Baby Boomers, a critical bridge that Lincoln seeks to build as they aggressively work to boost luxury market share.
Of course compelling pricing, product and positioning are also relevant marketing factors in whatever new success may await Lincoln. And while spokesperson brand identification like this is not the only defining strategy, it is crucial given Lincoln’s fall from glory the past fifteen years.
Can Lincoln truly compete with its competitors? Making share gains let alone leading its category is a tall order for the Lincoln team. Ford CEO Mark Fields last month named Kumar Galhotra as the President of Lincoln Motor, replacing veteran Jim Farley, and the appointment brings new energy and hopes for sustainable momentum.
But make no mistake, Lincoln today faces more competition than nearly any segment in the industry. Overall, while Lincoln gets high marks on fit, finish, style, reliability and comfort, just keeping up with the three category leaders – BMW, Audi, Mercedes – will be a push.
Despite front-wheel drive, the Lincoln MKZ gets a lot right including an ambitious new exterior and excellent interior trim and features. Its small but efficient and peppy 2.0L engine performs very well, and the hybrid version even better, according to Motor Trend. Unlike BMW, Lincoln chose to be dramatic with its looks and there’s been a solid payoff as now more than just 60-something heads are turning. Meanwhile the new MKS should be a favorite with taller (and ever-widening) Baby Boomers given its greater headroom and legroom – offering significantly more space than the Mercedes C-Class. In his new role, Galhotra must leverage these advantages in order to truly compete and become a formidable presence on the world stage. Also, it’s imperative that he squelch the nagging perception that Lincoln is my grandfather’s car. Hiring “Matty-Mac” was a pretty good start…
However, the elephant in the room is that Lincoln has no presence at all in the high-horsepower, high performance sports car category. With no immediate plans to showcase alongside its direct competitors – let alone Ferrari or Lamborghini – Lincoln suffers lack of validation from the global sports car enthusiasts who heavily influence leading-edge development in this segment. Any plans for a new “hot rod Lincoln” can only help their cause as they seek a sales renaissance.
China is wide open and ready to embrace Lincoln. More potential good news on the horizon for Lincoln is its business decision to enter China markets. The timing couldn’t be better. By the end of 2014, customers in Beijing, Shanghai and Hangzhou will be able to purchase their very own locally-made Lincoln, as initially eight dealerships are slated to open in seven cities. Working to re-make customer service expectations, Lincoln hopes to transform how premium cars are sold in China. With a total of 60 dealerships in 50 cities projected in China by 2016, there’s a sense that Lincoln’s artful design to approach both exterior and interior will help them win traditional and new customers in the U.S. and China, the world’s two biggest car markets.
“Lincoln in China has our full attention in product development,” Matt VanDyke, Lincoln Director of Global Marketing, said recently. “We’re not developing products for the U.S. and seeing if they work there,” he said. “We are developing out of our global design studio products that we clinic and research in Huangzhou and Beijing and Shanghai and Pasadena, not the other way around.”
If the Lincoln Motor Company can successfully walk the tightrope of brand awareness, while building careful but daring elegance into their product plan, they may well attract who they’re targeting and more. McConaughey’s line from the television commercial fits perfectly in this case: “There are those who say you can’t go back…but yes you can. You just have to look in the right place.”
Phil Biggs is Executive Vice President for the Nashville, TN-based technology company, NeXovation.
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