MBS REport: New Chrysler Group Sales Chief Joe Eberhardt Emphasizes 'Flexible Marketing' as a Key to Success

* "Effective marketing as essential as design, solid engineering and state-of-the-art manufacturing" * "Chrysler Group's greatest equity found in three words - Chrysler, Jeep(R) and Dodge"

TRAVERSE CITY, Mich., Aug. 6 -- Chrysler Group Executive Vice President for Global Sales, Marketing and Service, Joe Eberhardt, cited today the fundamentals needed to quickly create and implement marketing strategies to "cut through the clutter and speak directly to the customer." At the 2003 Management Briefing Seminars, Eberhardt emphasized the need to be flexible in tailoring product and retail messages at every level as market conditions change.

"While our friends in manufacturing speak of model flexibility, volume flexibility, platform flexibility and plant-to-plant flexibility, I would argue that flexibility applies to all aspects of the business -- including marketing, especially the ability to refocus entire campaigns or minute details on short notice," Eberhardt said.

"Another good application for flexibility is in the fervid 'sell at all costs' atmosphere of the current U.S. automotive market," Eberhardt added. "While we may never outspend our competitors in the incentive game, we will create flexible ways to lead the market in creative sales concepts."

"If you're a fast follower, you still end up behind the leaders in today's market. A better approach might be described as fast and flexible. And that will be our strategy at Chrysler."

The 'chicken or the egg'

One of Eberhardt's primary objectives is to continue building brand identity through outstanding products. "It's a classic 'chicken or the egg' question," he said. "If you can't define the brand, you'll never be able to define the product. Our company's greatest equity is found in just three words -- Chrysler, Jeep(R) and Dodge -- because those well-known words represent well-respected brands. And, in our line of work, nothing is more important."

Beyond the recent launches of the Chrysler Pacifica and Chrysler Crossfire, the all-new Dodge Durango will arrive in dealer showrooms later this year. In 2004, Chrysler Group will introduce an additional nine new products -- each one of which will have gone through the company's vigorous 'quality gates' development process.

The right people and the right processes

"Implementation will be a point of particular focus for me," he added. "I expect our team to create and implement marketing strategies that cut through the clutter and speak directly to the customer. I also expect us to communicate and execute launches flawlessly, and to measure and adjust each step in the process in a well-planned, consistent team effort."

Eberhardt considers effective marketing to be as vital to an automotive manufacturer as world-class design, engineering and manufacturing.

"You can't expect to sell many cars or trucks if your potential customers don't understand what your brands mean, why your products offer good value and how they can acquire those vehicles at a fair price through a professional dealer organization," he said.

Eberhardt also stressed the importance of dealers in bringing those messages home, and emphasized Chrysler Group's Five Star dealership certification program, which has become the industry's most benchmarked program of its type. While Five Star dealers make up 58 percent of the Chrysler Group dealer organization, they account for 75 percent of its total sales.