When in Rome...don't walk like an Egyptian

A buddy of mine asked me if I ghost-wrote Mark Rechtin's AutoNews article "Acura finds sales, still seeks luxury identity" http://www.autonews.com/apps/pbcs.dll/article?AID=/20101220/RETAIL03/312209984/1274 as it reminded him of our three-part series written earlier this year, in which I discuss Acura's identity problem:

• Audi & Segmentation (May 13);

• Segmentation Part 2 - Acura needs a true flagship (May 13), and

• Segmentation 3 - Cleaning up Acura (August 8).

The frustration with Acura is that, while on one hand it continues to say that it's happy with the intelligent value shopper, articles like Mr. Rechtin's yet belie a keen sense of misgiving at Acura that it apparently actually wants to measure up to "real" luxury brands where it matters most - in the perception of the consumer. This is where I scratch my head.

Segmentation 3: Cleaning up Acura

Too many models muddling up the middle. That's a problem with Acura.

• In the space of the 3-series, Acura offers CSX and TSX and TL.
• In the space of the 5-series, Acura offers TL and RL.
• In the space of the 7-series, Acura offers...um...nothing. We've already firmly established that this is not good.

Blend the best of the CSX and TSX into one and run it against the BMW 1. Leave the TL to run in the 3-series space. Any sport mod to the TL can use the X as a "type".

In the 5-series space, run the RL.

Introduce the Acura SL into the flagship space, upwards of $100,000.

Segmentation Part 2 - Acura needs a true flagship

Our first installment in this series introducing luxury branding and segmentation, presented the A8 flagship as a key component in Audi's turnaround, as well as a critical piece of the segmentation puzzle. I'd like to look at the Acura brand through the lens of segmentation to reveal the not-so-hidden fundamentals that provide a constructive answer to the question "why isn't Acura - with all its technical and engineering quality - more recognized as a luxury brand?" I'm not even going to entertain discussion of "near luxury" as a segment (does Honda really need an entirely new brand to compete with a Chrysler 300 or a Buick or a Nissan Maxima? I don't think so either).

Audi & Segmentation

Audi recently announced that its 2011 A8 would be 130mm longer than it already is, ensuring that its flagship remains the quintessential expression of Audi luxury. It reminded me of an article I drafted some time ago but never got around to sharing, and prompted me to finally share it, so here it is.

Audi had been a premium brand with its popular 4000 and 5000 series sedans in the 80s, but went through some tough times in the late 80s/early 90s. Down for the count, the turnaround is a nearly peerless business success story. Audi's revitalization can't be simplified as though it happened overnight, and I certainly had no seat on their board by which I can reveal any secrets, but one prong of their attack can be readily identified - a clearly defined segmentation strategy.