"Halo Cars" - A Debate of Effectiveness
Discussion
Dear PH Massif,
One of the studies I'm undertaking at uni is the use of a "halo car" as a brand development tool within the automotive industry.
For those not in the know, a "halo car" makes use of what psychologists term the "halo effect" - that people associate positive values of one object to another similar object. In automotive terms - the manufacturer (or perhaps more appropriately, the marketer) wishes the association with a big fire-breathing super car sells more regular models.
I've always wondered how effective a tactic this is. I'd be interested in hearing the thoughts of PH users.
Here's some examples:
Lexus LFA - does it make you see the IS220 in a different light?
Ford GT - make you rush out and buy a Mondeo?
Alfa 8C - fantasising about that MiTo?
What's certainly clear is that from an enthusiast's point of view, the world would be a duller place without them.
One of the studies I'm undertaking at uni is the use of a "halo car" as a brand development tool within the automotive industry.
For those not in the know, a "halo car" makes use of what psychologists term the "halo effect" - that people associate positive values of one object to another similar object. In automotive terms - the manufacturer (or perhaps more appropriately, the marketer) wishes the association with a big fire-breathing super car sells more regular models.
I've always wondered how effective a tactic this is. I'd be interested in hearing the thoughts of PH users.
Here's some examples:
Lexus LFA - does it make you see the IS220 in a different light?
Ford GT - make you rush out and buy a Mondeo?
Alfa 8C - fantasising about that MiTo?
What's certainly clear is that from an enthusiast's point of view, the world would be a duller place without them.
Halo cars work as much for the manufacturer as the customer.
Look at VW and the Veyron.
Loads of kudos, loads of R&D, might even be a tax efficient form of R&D vs non-retail equivalents?
BMW's M cars make me think BMW will also make a nice non-M car.
However, in the case of the Ford GT, Ford UK at least don't make anything half interesting in their normal cars for the GT to act as a halo for.
So I think halo cars do work, but not when they are combined with a generally poor marketing/product strategy.
Dave
Look at VW and the Veyron.
Loads of kudos, loads of R&D, might even be a tax efficient form of R&D vs non-retail equivalents?
BMW's M cars make me think BMW will also make a nice non-M car.
However, in the case of the Ford GT, Ford UK at least don't make anything half interesting in their normal cars for the GT to act as a halo for.
So I think halo cars do work, but not when they are combined with a generally poor marketing/product strategy.
Dave
I think there have to be some shared design elements for there to be much (if any) chance of increased sales of lesser models.
Take the rear lights on the current Audi TT for example - clearly designed to ape those of the R8. Does that increase sales of the TT? Who knows. Taken too far, it makes the halo car appear ordinary too.
Take the rear lights on the current Audi TT for example - clearly designed to ape those of the R8. Does that increase sales of the TT? Who knows. Taken too far, it makes the halo car appear ordinary too.
It depends on the degree of separation from the halo car.
Examples of effective halos - Sierra Cosworth, Droop Snoot Firenza, BMW M3, M5 - that type of car have a positive effect on the bread and butter models.
It even works with "headline" models like the Mustang GT500 which may well persuade you to buy a V6 and with 305hp, that in itself is fairly "exotic".
I am not really persuaded by cars further into supercar territory. cars like the Ford GT remind me of Ford's racing heritage and might make me have a more positive view of the company but they have Mustangs to do that and the latest GT500 has rather more power than the Ford GT.
But Lexus - no, wouldn't even cross my radar as being linked in any way with their bread and butter range and I don't think the Honda NSX really had any great impact.
So for me, "halo" is only effective by proximity to the car in question. In the 90s, many people associated the Focus and Subarus with that rallying halo despite the relationship between the two being almost entirely visual.
Examples of effective halos - Sierra Cosworth, Droop Snoot Firenza, BMW M3, M5 - that type of car have a positive effect on the bread and butter models.
It even works with "headline" models like the Mustang GT500 which may well persuade you to buy a V6 and with 305hp, that in itself is fairly "exotic".
I am not really persuaded by cars further into supercar territory. cars like the Ford GT remind me of Ford's racing heritage and might make me have a more positive view of the company but they have Mustangs to do that and the latest GT500 has rather more power than the Ford GT.
But Lexus - no, wouldn't even cross my radar as being linked in any way with their bread and butter range and I don't think the Honda NSX really had any great impact.
So for me, "halo" is only effective by proximity to the car in question. In the 90s, many people associated the Focus and Subarus with that rallying halo despite the relationship between the two being almost entirely visual.
Edited by LuS1fer on Thursday 26th January 16:03
Ive always felt that the 'lesser' halo cars probably have more impact than the cars you mentioned.
A ford GT for example would hardly make me go out and buy a focus because its obvious to anyone that it will have nothing in common whatsoever.
Twenty years or so ago though im pretty sure that the introduction and fuss surrounding the escort cosworth almost certainly had an effect on the sale of 'regular' escorts as their was at least a slight resemblence.
Others such as the Mitsubishi evo and subaru imprezza turbo probably did wonders for the sale of regular models for both manufactures due to all the fuss which surrounded them at the time and their success in rallying.
There is no doubt though that if your local ford dealer had a GT in the showroom it would probably create some bussiness just from the people who went down to the showroom to have a nosey at it.
A ford GT for example would hardly make me go out and buy a focus because its obvious to anyone that it will have nothing in common whatsoever.
Twenty years or so ago though im pretty sure that the introduction and fuss surrounding the escort cosworth almost certainly had an effect on the sale of 'regular' escorts as their was at least a slight resemblence.
Others such as the Mitsubishi evo and subaru imprezza turbo probably did wonders for the sale of regular models for both manufactures due to all the fuss which surrounded them at the time and their success in rallying.
There is no doubt though that if your local ford dealer had a GT in the showroom it would probably create some bussiness just from the people who went down to the showroom to have a nosey at it.
Baked_bean said:
As others have said, the halo model for a particular model have more effect than the 'out there' cars.
A m3 or an rs4 will help to sell the 2.0d variants
but
A lexus lfa wont help sell a hybrid hatchback marketed by kylie minogue.
its a difficult one, the veyron defiantly helped up the brand awareness and technical abilities of the VAG groupA m3 or an rs4 will help to sell the 2.0d variants
but
A lexus lfa wont help sell a hybrid hatchback marketed by kylie minogue.
however the LFA has done nothing for me, its not extreme or expensive enough to have the desire of a hypercar like the veyron, its too expensive to be an aspirational car and there are far better looking and far more desirable supercars like the 458 or Zonda
it will never be attainable for me like a M or RS car is
so for me the LFA is a total fail and completely undesirable, its basically totally irrelevant to me.
I imagine examples with proven effectiveness would be cars like,
Mini Cooper
Ford Escort Mexico
Lotus Cortina
Lancia Delta Integrale
Audi Quattro
These were the same shape as the basic models yet carried the kudos of muscular styling and race success.
Golf GTi and Focus RS may well help sell the mundane family econoboxes.
Whether cars like Lexus LFA or Honda NSX achieve anything seems more debateable.
Mini Cooper
Ford Escort Mexico
Lotus Cortina
Lancia Delta Integrale
Audi Quattro
These were the same shape as the basic models yet carried the kudos of muscular styling and race success.
Golf GTi and Focus RS may well help sell the mundane family econoboxes.
Whether cars like Lexus LFA or Honda NSX achieve anything seems more debateable.
The Ford GT is a funny one, Ford is a resolutely budget brand but seems to create iconic models that almost become sub brands to themselves. The Ford badge in effect becomes invisible... either that or the GT is intended to have some sort of mental link to the Mustang and thus be a Halo model for that end of the business.
The Lexus is pretty inexplicable as a halo model. Almost no visual link to the existing range, a chasm in cost down to the next cheapest model, and most importantly no real sporting pretensions (IS-F excluded, but even that wasn't particularly widely marketed or popular). The only explanation is that they intend to expand into sports cars, and this is the stamp they want to put on the market as the source of their 'sporting DNA'. In which case, don't be surprised if the GT86 requires a Lexus badge and face before it's able to sprout a Turbo.
The Alfa 8C is a funny one too but more relevant. A stunning car, but few visual links to the current range (in fact ostensibly more links to its historic range) short of the Alfa grille... Although plenty of cues were robbed with mixed success on the MiTo. So clearly it's not just intended to shift Breras. How it is successful though is lifting the whole image of the brand. Using a low volume car to highlight the boutiquey nature they want convey so you think you're being individual and joining an exclusive club in choosing a 159 over an arguably dynamically superior 3-series BMW... despite the fact that the 159 is still a mass manufactured car.
ETA - On the 8C, looking at the Giulietta as well as the MiTo it was clearly signalling their intention to shift in design language as well as perhaps reinforcing the low volume image.
The Lexus is pretty inexplicable as a halo model. Almost no visual link to the existing range, a chasm in cost down to the next cheapest model, and most importantly no real sporting pretensions (IS-F excluded, but even that wasn't particularly widely marketed or popular). The only explanation is that they intend to expand into sports cars, and this is the stamp they want to put on the market as the source of their 'sporting DNA'. In which case, don't be surprised if the GT86 requires a Lexus badge and face before it's able to sprout a Turbo.
The Alfa 8C is a funny one too but more relevant. A stunning car, but few visual links to the current range (in fact ostensibly more links to its historic range) short of the Alfa grille... Although plenty of cues were robbed with mixed success on the MiTo. So clearly it's not just intended to shift Breras. How it is successful though is lifting the whole image of the brand. Using a low volume car to highlight the boutiquey nature they want convey so you think you're being individual and joining an exclusive club in choosing a 159 over an arguably dynamically superior 3-series BMW... despite the fact that the 159 is still a mass manufactured car.
ETA - On the 8C, looking at the Giulietta as well as the MiTo it was clearly signalling their intention to shift in design language as well as perhaps reinforcing the low volume image.
Edited by The Wookie on Thursday 26th January 16:16
I agree. I think these halo cars simply provide publicity and an awareness of the technical ability of the company. The Ford GT showed the world it could make a supercar the equal of Ferrari and it succeeded. It hasn't really needed it since the Mustang became so successful.
I think the 8C does rub off a little on the MiTo and Giulietta though the link actually escaped me until I read it here as I don't see much of a link and it was the 159 styling that really raised the mrque's awareness for me. A 4WD Q4 version would have done better though.
Other companies, like MINI and Porsche achieve the same by flooding the market with variants which either works or, like me, makes me bored by them.
Much depends on what you aspire to.
I think the 8C does rub off a little on the MiTo and Giulietta though the link actually escaped me until I read it here as I don't see much of a link and it was the 159 styling that really raised the mrque's awareness for me. A 4WD Q4 version would have done better though.
Other companies, like MINI and Porsche achieve the same by flooding the market with variants which either works or, like me, makes me bored by them.
Much depends on what you aspire to.
suppose so, without the original m3/m1, bmw might not be seen as highly.
Altho the halo effect is not just from top-of-the-range models, it can also come from racing heritage - think saab and audi rally cars, ford racing etc.
My personal view is the that they are applying the three prices model:
price 1 - cheap price
price 2 - slightly more expensive then 1 but not by too much
price 3 - halo model(s) that are massivly more expensive then 1 and 2
therefore most people think 'i can afford price 3, and price 1 seems too cheap, so i'll buy price 2.
Altho the halo effect is not just from top-of-the-range models, it can also come from racing heritage - think saab and audi rally cars, ford racing etc.
My personal view is the that they are applying the three prices model:
price 1 - cheap price
price 2 - slightly more expensive then 1 but not by too much
price 3 - halo model(s) that are massivly more expensive then 1 and 2
therefore most people think 'i can afford price 3, and price 1 seems too cheap, so i'll buy price 2.
I think there must be a certain effectiveness in the wider market, otherwise manufacturers simply wouldn't bother with them.
I guess, aside from anything else it's a case of:
"Wow - look at that Golf GTi! I'm off to the showroom!"
Goes to showroom.
"Oh, I can't afford a Golf GTi"
"Well, if sir would care to look over here - this is the Golf 1.4 LX and, if sir desires, for a small extra charge we can fit these alloy wheels and a leather interior so sir can pretend sir has a Golf GTi.'
It's also important to remember that halo cars aren't really aimed at 'people like us' in the sense that, you'd hope, people on here know enough about cars and care little enough about the fact that you could put nice wheels on a Civic Type S and people would think it's a Type-R that the intended effect of a halo car doesn't register with us. Image shouldn't really be a factor in the decision of a true petrolhead.
Aren't you glad they do though?!
I guess, aside from anything else it's a case of:
"Wow - look at that Golf GTi! I'm off to the showroom!"
Goes to showroom.
"Oh, I can't afford a Golf GTi"
"Well, if sir would care to look over here - this is the Golf 1.4 LX and, if sir desires, for a small extra charge we can fit these alloy wheels and a leather interior so sir can pretend sir has a Golf GTi.'
It's also important to remember that halo cars aren't really aimed at 'people like us' in the sense that, you'd hope, people on here know enough about cars and care little enough about the fact that you could put nice wheels on a Civic Type S and people would think it's a Type-R that the intended effect of a halo car doesn't register with us. Image shouldn't really be a factor in the decision of a true petrolhead.
Aren't you glad they do though?!
Edited by MrKipling43 on Thursday 26th January 16:37
Some brilliant responses so far, thanks.
Of course one could argue - do all halo cars have to have a role? But that's another debate for another day.
The Wookie said:
The Alfa 8C is a funny one too but more relevant. A stunning car, but few visual links to the current range (in fact ostensibly more links to its historic range) short of the Alfa grille... Although plenty of cues were robbed with mixed success on the MiTo. So clearly it's not just intended to shift Breras. How it is successful though is lifting the whole image of the brand. Using a low volume car to highlight the boutiquey nature they want convey so you think you're being individual and joining an exclusive club in choosing a 159 over an arguably dynamically superior 3-series BMW... despite the fact that the 159 is still a mass manufactured car.
That's an excellent description there, made me see the role of this particular halo car in a different light. Of course one could argue - do all halo cars have to have a role? But that's another debate for another day.
LuS1fer said:
To a PH-er, a halo car is counter-productive because nothing less will do. If you can't afford a Type r, you won't buy a lesser model, you'll buy used. So setting the bar too high (like £31k for a Golf...) may conspire to drive buyers away because they want the halo model.
But PH-ers love the GTi, don't we? We love the Type-Rs. But I guess - if we're buying used, does it make you think about - in this case - a used Honda or Volkswagen? Or put you off the brand entirely?
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