Quote:
Originally Posted by samurai
There is one big thing that people always forget to look at, when they talk about advertisement. Advertisement is not cheap!
And I don't talk TV ads, I mean place your car in movies, do big press events (incl. flying in the press and pay their hotel and catering), hand out press cars to all the big magazines and youtubers, pay a videoteam to create all the great footage of your car, etc.
Let's just do some really basic math. Let's assume the average profit of a Mustang and Camaro is $1k.
If Ford is spending $10M more on advertising the Mustang they Chevy spend for the Camaro, then Ford has to sell 10,000 more Mustangs just the get back the cost of the advertisements.
Of course this is just a fake calculatin based on assumed numbers. But advertisement is quite expensive. So with Chevy running low on marketing, maybe the profit is not as bad as comparing overall sales numbers make it look like.
7k sold cars in nevertheless a bad numbers, but Lethals video about the GM strike made a lot of sense
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But the promotion of the Camaro/Mustang back in the "old days" wasn't just about those two cars specifically. They generated interest for people to go to their Chevy and Ford dealers to buy other cars. People with no intention of buying a car might go just because they want to see the Camaro, then inevitably drive out with another car more fitting their lifestyle. They presented the image of Chevy and Ford as youthful, exciting, energetic, and just simply cool!
Today all we have is "real people" gushing about the Apple Car Play in a Traverse. Oy vay.
