The theory of KISS (Keep it Simple Stupid) has gained popularity in the recent years. It suggests that things will work out better if kept simple rather than complicated which only makes it difficult to understand, manage, and deploy. The automobile industry could use with some of the benefits of the KISS principle.
Where do you stand?
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Some vehicles are trying ridiculously hard to break into more than one or two segments making it difficult to place it in the right category. Result? Less sales and more confusion. Subaru is out to change all this and more. They firmly believe that less is more and with that thought process in mind; they have launched the Impreza hatchback.
The Impreza was launched around 25 years ago with more than 16 different trim levels available in the market. Needless to say, the decision making process only got harder. Now, with only one trim level available in the market, it has come a long way in these last three decades.
It has been modestly priced at $29,990 only, but comes with a 2 liter engine with AWD (All Wheel Drive) and the award winning eyesight technology. It's the perfect example of KISS, of the philosophy of "less is more."
Strategy
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Subaru has been testing these new pricing and trim level strategies in New Zealand for some time now, and it seems that the strategy will carry over to other markets as well. Subaru has cleverly solved the problem of discounting.
The price is low and sharp which means that there is virtually no room for discounts and related negotiations. This makes things easier for the dealers and the sales team. The dealers are out of stock until late September with over 300 units sold out.
Wally Dumper, the managing director of the company overseeing the sales, is confident that the trend will continue. He says that Impreza is a "dead right product at a dead right price" and he is not wrong. He says that right from the beginning, they knew they would need close to 500 units, but due to staggering demand in other parts of the world, they were left shorthanded with 300 units only. He is confident that this time, they will receive more units.
They are selling like hotdogs at a baseball game or popcorn at a movie theater!
New Launch
Meanwhile, the Japanese giant is preparing to launch another flagship in the region called XV, a compact SUV that is based on the Impreza framework. It was available on display at the Geneva Motor Show where it received rave reviews, and will hit the showrooms in the month of June.
It may not be able to pull your boat but it can get you around the city smoothly and safely no matter the conditions while still offering you some decent ground clearance and toughness.
The current version of the XV, which is extremely popular with the fans, begins at $37,990 which can be a little high for some people. Dealers, impressed with the pricing strategy of the Impreza (remember, some Imprezas start at $29,990), are trying to convince the team at Subaru to follow a similar or near-similar strategy for the inbound XV as well. A lower price point with fewer trim levels making it easier for the buyers to make the buying decision.
Fuji Heavy Industries, the manufacturer of Subaru automobiles in Japan, has gone ahead and changed its name to Subaru Corporation. This will help the company keep things simpler and create a more powerful brand.
The CEO of the newly formed Subaru Corporation, Yasuyuki Yoshinaga, says that Subaru is not only focused on manufacturing quality products, but also at delivering value to its customers and will continue to do so.
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