Talk Morgan Forums Community The Malvern Arms Marketing a Morgan Car

Lorne, there is no doubt that you know much much more about the company's history than I do, and without sounding flippant or sarcastic, and I'm serious, I would like to know what plant/equipment they invested and then sold again...unless I've misunderstood your post

That would be great news for existing Morgan owners. However the company would be in danger of pricing itself out of the market, IMO I don't think Morgan cars have the same desireability factor of say...Aston, Porsche,and dare I say over 90% of the motoring public would lust after one?

Yes the idea of marketing is trying to find more buyers, but I didn't say the factory has to produce any more cars...as waiting list increase, the residual would improve, a simple case of demand exceeds supply

TBH my idea of marketing is more towards Aeros( underated car)and it could do with a bit of marketing to let potential buyers know this is the car they've been looking for all along

Sure...np. From 2000, the MMC refurbished and re-arranged the then existing structures, built new buildings, new entrance, new offices, new warehousing, constructed the new paint shop, new lighting, new signs (which will have to be changed now) etc. Then in late 2005, they sold it all to a property developer.



That is what people said about the Aeromax when it was presented too. As well, right now 4-seater trads cost as much as the Aeros did in 2004 and they have a 2.5 year waiting list. Additionally, in the UK, where all the competition's car prices fell for years, Morgan's kept rising with no effect on sales.

In the light of this, do you have anything more solid to support the argument that higher prices must out-price Morgans? (Don't worry, I am not trying to put you on the spot.)



I don't agree. The goal of marketing is to make more profits.


Well, that may be your take and I agree with it but the FACT is that the company is presently planning to produce many more cars. Take that as a given, at least on intention. As well, Boshly has a point. There is a time duration where a waiting list becomes too long and lost sales result. At worst, it is far better to reduce the waiting list with higher prices than lost sales.


I sympathize with your feelings. However, can we not agree that everything has been tried to do just that for many years? Despite immense Factory pressure, the dealers still complain they have a hard time selling those they have. Yet there are other models whose waiting lists are growing dangerously long because the company hopes to produce harder-to-sell models. Should they be spending more money to sell more Aeros or simply increase 4-seater production to meet a greater part of its unfulfilled demand?

BTW, have you considered that Aeros may become successful if they are HARDER to get. The Aeromax is a case on point. 120 plush buyers eagerly waiting for 2 years to pay a 55% premium on a stock Aero. (Bless each and every one of them!)

Lorne

Sorwdfish actually - terrible film but it had the a-listers in it (Halle Berry IIRC?) and it did raise the TVR profile in the USA. Given that TVR didn't ahve type approval there it rather hamstrung their ability to make an sales margin out of it though.

The games angle is a huige one - if the Aero isn't featured in Gran Turismo then to 99% of those of us brought up on ths kind of thing, the car cannot be a serious contenter for anything.

Agreed. At the Classic Show in 2006 we had Keith Ahlers British GT race Aero. All the kids were photographing it and when queried why - it is one of the cars you can drive on TOCA Race Driver.

On a separate thread Simon you recently quoted that favourite of business schools, The Harley Experience, and there is much that Morgan can learn from this, particularly as it relates to their interaction with their customers. MMC should immediately enact a CRM programme with their customers, getting the information from their Dealers (or the DVLA in the UK) for all new cars being sold.

In view of the relatively small numbers of cars being sold (less than 1,000)this would be very simple to operate and there are many off-the-shelf programmes available, such as Sugar CRM and this one is FOC in its most basic versions.

This would enable them to have an interactive relationship with their customers and start building a database, and it can be used to advise of recalls, new models and all the other information, that customers need to be informed about.

I think that the Marketing Department need to become much more pro-active and this is part of that strategy. The other thing they can learn from the Harley experience is to have a much closer relationship with the owners community. Through the MSCC, and its affiliated clubs, it is possible to talk to the Morgan community pretty effectively, and the Net, and TalkMorgan in particular, should not be ignored.

Despite the many naysayers on some sites, MMC should advise people of the good news coming out of Malvern and that much of the perceived wisdom, e.g. "the Roadster V6 will never sell in Germany, as they only buy V8 Morgan Trads" is being proved wrong; well done Rod.

It is also important to vist Morgan events with well-specced demonstrators and even visit Noggin's etc in the UK and allow people to drive the cars, especially the Aero 8.

Here is a post from another discussion group from a Morgan stalwart who previously was not the most well-known enthusiast of the car (to say the least!). He has just driven one for the first time and this is his response on the DG:

"Gentlefolk, let me assure the doubters:

1. It IS a REAL Morgan.
2. The build quality is better than any other Morgan I've ever seen.
3. It goes like stink in any gear, even 6th.
4. It's genuinely comfortable and the ride quality and roadholding are spectacular !!!!!!!
5. Not only is it comfortable, I actually fit in it and can get in and out quite easily (although it was a bit difficult holding the Nikon at the same time).
6. It looks terrific. The Mini headlights have made a huge difference.
7. I want one!

Anyone who disagrees should be banned (from the DG). Moderators please note."

MMC need to get bums on seats, and most Dealers need to be given a rocket in this regard as they are quite complacent from the days of allocating cars.

What we don't want them to learn from Harley are the boots, the questionable branded apparel, the chrome with everything culture, Morgan is a British marque and should continue to reflect our own cultural values. Any regalia or clothing should reflect the British brand values and should be of this standard The Bentley Collection rather than Harley'ish or even going down the Ferrari route, where it seems every chav in the shopping centre is wearing a Ferrari branded item of clothing.



If the above steps are taken it will begin to answer the issues raised in your post, but the question of active PR with the motoring magazines and the motoring press in total is also key. Look at the very beneficial effect the exposure in Evo, partly organised by a member of this site, has had o the Aero's perception in this country, and I had request for copies of the article from several other countries, including Australia.



Many so-called Morgan enthusiasts forget that MMC is first and foremost a business enterprise, and whilst they would like the factory wrapped up and kept as some historical icon, like a Hovis ad, they forget that the main object of the business is to make a profit for its shareholders, and a return for its other stakeholders; including its customers.

If this means embracing modern business methods, and I happen to think it does, and also coming to terms with modern manufacturing methods whilst retaining as much heritage as is possible, then we should be realistic and applaud a very small motor manufacturer, when so many British manufacturers have either gone to the wall or been taken over.

Lastly, a couple of other points that I think are relevant. Kin talks about the use of Morgan's in computer games, and I am sure that with the Japanese enthusiasm for cars and the looks of the Morgan marque and the Aero now being raced in GT3, this must be possible to organise without too much expense being involved. Also, I noted that it was said that the premises have been sold, which I believe is incorrect. I understood that it was a sale and lease-back with a major European bank involved.

Cheers
Brian

P.S. In view of Harley's current travails I have emailed a Marketing Professor in the USA to see if there are any up-to-date case studies on Harley.

Right! I thought you meant MMC literaly sold all the equipments to some scrap metal dealers, so they modernised the factory and sold the land to developers to realised some more funds, but I guess there will a clause in the contract that they might have the option to buy back the in 15-20yrs time?

I guess there might be a number of speculators who bought the Aeromax for investment knowing only 100 or 120? to be made. But it did took them awhile to have them all sold tho
As for 4seater trads costing as much as 04Aeros, you must be comparing top of the range V6 4seater with every conceivable extras on it, I don't think the basic 4seater cost anywhere as much...
Also I was at the factory a few weeks ago, and spoke to one of the staffs at MMC, think he only mentioned a year waiting list on 4seater and slightly less for +4...

I agree, but are you implying that MMC selling their cars with no profit

Well ...in that case, then its even more of the reason to market its product to attract more buyers, rather than having its cars sitting in a compound unsold.

Upto 2 years ago, I regularly buy mags to keep myself updated, but never heard anything of Morgan, so I'm wondering what have they been doing during the last few years?

The factory might give dealers special incentive to sell Aero, but if no one is marketing Aero, it might as well be a picture on the wall, like if someone were selling Rolex watches for half price, but joe public does not get to know about it, those watches would still be worthless...

I will only consider it successful only due to plenty of buyers and massive waiting list, not harder to get because its price is in Ferrari territories However, if MMC could sell every Aero at Ferrari money, that will of course be very very successful
Aeromax was very limited production model..

Lorne, its fair to say that we have different marketing strategy and approach, both of us could only speculate, if I have a definitive answer to MMC's problem, think I'll be working for them now

No.

In business parlance here this type of transaction is referred to as a sale-lease-back, the very ultimate form of financing. You sell your asset base and lease it back at a very high return for the buyer. Often, a large part of the sold value is withheld until the premises are vacated...as an incentive for the seller to leave. I imagine that Management at that time did not plan to stay there any length of time.



Correct. It took 9 months to get to the 100 mark. Annualized, that works out to about double the regular Aero annual sales. This suggests that if you publicly indicate that production will be restricted (and STICK TO IT), you can add 80% to the unit price and sell more units at a far higher profit. That is called good marketing.

As to speculators, the length of time to garner the Aeromax orders and the size of the Aeromax deposit (25,000 GBP) precludes them. For that matter, a speculator's money is a good as anyone else's. We should not be prejudiced.


EVERYONE buys their trads with extras. I don't think a "basic version" has EVER been sold. In the old days, wheels were an extra! It is a long-held Morgan tradition to have low base prices and let it build up with the order. Aeros come more complete. Try the BHM site calculator for trad pricing.


Really? How high up? My information comes from the higher-ups and, as I have noted before, current information can depend on who informs you. Mine can be bad and yours good. I can recheck with other sources if you'd like.



Yes. I thought that was clear..only kindly put. The MMC has made no secret that its losses since 2002 have been enormous. (I believe they will eke out a profit for 2007, but they are certainly not satisfied with its size considering the big increase in units sold.)



That won't happen. With the new allocation system, UK dealers must order their whole year's cars by the first of the year and secure their purchase in advance. The system has proven to be very hard on the network and residuals but the company is hopefully protected against excess cars sitting in their own compound.


When exactly? Until 2002 they made phenomenal profits with the same output they had since the 1930s and built up a legendary capital base. Since then it's largely gone. We're trying to figure a way to reverse that.



Not happening. Quite the contrary, as I mentioned earlier the MMC have indicated they are going to cancel the Dealer Demonstrator incentive. Commissions have been decreased across the board over the last few years.


Yet, as you said above, for years you regularly read magazines and never saw anything about Morgans. Yet Morgan was making seven figure profits those same years.


Of course.

Lorne

Hi Aeroman,

Don't forget that thing called product mix. It can help or hurt both company and dealers.

I love the Roadster and I was a big promoter before it appeared and I remain one still. But one must look closer to see what the ultimate effect in the trad line-up has been. If you speak with a German dealer, you will find that, pre-Roadster, they used to sell a certain number of units and they still sell the same number now. That is the number that is counted on new German Morgan registrations.

However, if you inquire more deeply, you will also be told that 90% of sales used to be Plus 8s. Plus 8s cost more than other trads and were more profitable. Plus 8 buyers spent more on them for high-profit margin MMC and dealer extras.

Now the same dealer will tell you that the trad mix is 40% Roadster and the rest split between Plus 4s and 4/4s. Much lower per unit revenue. The dealer loss is not insignificant and in the aggregate, the MMC revenue loss was substantial (though I believe it is now offset by more units.) But you can see why the MMC is complaining about per unit profit.

The dealers feel a V8 trad will cure the mix, but that is not in the cards. If it were up to them, they would make the Plus 4 the 4/4, the Roadster the middle of the line and add a V8 trad again. Who knows? but that was the plan under Garnett.


Actually, Aeroman, that might be a big difference between us. I have always thought my first loyalty is to my fellow owners. I have most in common with them. I am not in trade with the Company. Do you feel that the first priority of the MMC should be to owners or itself?

Of course, after my Morgan brethren, my wishes go to the Company and members of the Morgan trade side that help us. Each year, I assist in the selling of more Morgans, new and used, than any dealer I know..for no recompense beyond the pleasure in finding another Morgan a home and creating another Morgan enthusiast. Many here can confirm that for you if you wish.

Simon, as to the rest, we have watched the MMC follow just the programs suggested here again now. They have spent the millions, embraced the new products, new methods, new model changes (often monthly. They have engaged new marketing consultants and embarked on so many advertising and publicity efforts. Sadly, thus far, that route has brought the company to the very edge of extinction on a number of occasions in the last few years. I don't like that one bit.

You feel they should try more of the same. I am trying to be more open minded and creative. I am deeply saddened by your implications as to why I do not agree with you. I find the comment of;

unworthy of a response. Of course, maybe I misunderstood you.

You can always rely on a given. My opinions are only formed by what I know, my business training and my experience. If your suggestions had worked in the last few years, I would be all for them and cheering for you like a banshee. But they haven't worked and there is less room for major mistakes now.

Happily, the same period has taught great lessons for the future if anyone wants to learn them.

Lorne

Lorne, if you are going to quote me, please ensure it is my quote and not someone else’s!

You quoted Aeroman and yet attribute the quote to myself, then follow it up with, what I consider to be, a very unworthy comment:

"Actually, Simon, that might be a big difference between us. I have always thought my first loyalty is to my fellow owners."

...so not only have you quoted someone else and stated that they are my words but you are also inferring that my primary loyalty isn't to Morgan enthusiasts? Have I made a mistake here as I believe Talk Morgan is a benefit first and foremost to the owners of Morgan cars?

If you explain where you believe there is malice in this statement, I will clarify any point I believe you have incorrect.