For automotive brands, tires aren’t the only thing requiring alignment.

via your classmate Mayusanth:

When you hear the word “Lamborghini,” you may think of a brand known to build fast, exotic, luxury cars. The Italian car maker has always differentiated itself with its sleek design and performance, as illustrated by the Hurcan, Aventador and Gallardo models.  Recently, however, the company announced that it will be entering a new market with a Hybrid SUV with a 4.0 twin turbo V8 producing over 600 hp.

This is surprising given that the target demographic for SUVs might be family-oriented individuals who might take their kids to hockey practice or a soccer game. For me, ‘SUV’ and ‘sports car’ do not go in the same sentence. Producing a 4.0 Twin turbo V8 SUV, is like injecting Redbull into a 5 year child. There is no need for that much power! Besides, it’s illegal to go upwards of 120km/h on most North American roads. Possibly most importantly, customers probably do not buy the “Lamborghini brand” for sustainability, but for style and performance.

Therefore, a hybrid version of a Lamborghini might damage its overall brand equity and brand loyalty. Customers love Lamborghini’s brand elements: the roar of the engine, the speed and the luxury. With A sustainable hybrid powertrain, you cannot get the same feel and experience. Furthermore, Lamborghini competes in the super luxury sport cars market with low volume and high exclusivity. By introducing a Hybrid SUV, the brand seems to be deviating from a successful business model into a high volume market. As a result, I believe this will tarnish their existing brand perception and customer loyalty.

According to the article below, Lamborghini’s CEO believes that this SUV model will double overall sales without compromising the existing brand. I have to disagree; I believe customers will see this as a “profit generation” strategy and will call their bluff by ignoring the new vehicle. One thing is very clear to me: Lamborghini is desperate and looking for new avenues for growth. However, I would argue that spinning off a hybrid SUV from an established luxury brand isn’t sporty, it’s stupid.

http://www.businessinsider.com/lamborghini-urus-hybrid-2016-12

Advertisements

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s