Tuesday, September 05, 2006

Chrysler suspends Dr. Z ads; return in works

Daimler Chrysler photo
In the Dr. Z ads, Dieter Zetsche promoted Chrysler cars and trucks
as having the best of American and German design and engineering.
The company's new ads are on a zero percent financing offer.

Company will debut ten new vehicles as it braces for a $600 million third-quarter loss.

Josee Valcourt | The Detroit News - - The mustachioed German pitchman that graced television screens as part of a two-month, $100 million Chrysler advertising campaign has been muted -- for now.

The Chrysler Group on Thursday suspended its Ask Dr. Z television and radio spots starring DaimlerChrysler AG Chairman Dieter Zetsche as it prepares to roll out new zero-percent financing offers for 72 months today.

The automaker is examining phase two of the brand-building Dr. Z campaign.

Well known in Detroit, Zetsche was introduced to the nation this summer in ads to tout to buyers that its cars and trucks have the best of American and German design and engineering.

The ads, which started airing July 1, generated plenty of discussion, both from those who liked the quirky commercials and critics who said they were ineffective or ill-conceived.

"It definitely raised interest and awareness of our product, which was the underline of our goal," said Chrysler spokeswoman Carrie McElwee.

On the automaker's Ask Dr. Z interactive Web site, nearly 6 million consumer questions have been answered and traffic on the Chrysler, Dodge and Jeep brands Web sites is up 15 percent, McElwee said.

Chrysler sales, however, fell sharply this summer.

Some ad critics said the commercials' intended brand message was blurred because Chrysler also included a summer employee promotion that also ended Thursday in the commercials.

Chrysler said more Dr. Z commercials will be aired down the road and the Ask Dr. Z Web site will remain online.

For now, though, the company is turning its marketing attention toward promoting a raft of new cars and trucks beginning to arrive at dealerships.

By year end, Chrysler will have launched a record 10 new vehicles.

"With all the products we're launching in the third and fourth quarter, that shift might change for a little bit on the campaign but longer term we're reviewing what will be the next phase of the broadcast component," she said.

Chrysler is bracing for a $600 million loss in the third quarter as it cuts production of trucks and SUVs for the remainder of the year.

And as market conditions continue to intensify including stiff competition and soaring gas prices moving consumers into more fuel-efficient vehicles, Chrysler needs to reallocate its marketing funds toward promoting key vehicles in an effort to rebound.

Among the new cars and trucks on the way are the redesigned 2007 Chrysler Sebring midsize sedan and Jeep Wrangler SUV.

"It's important for us to support these new models," McElwee said.

John Henke, a marketing professor at Oakland University in Rochester, called the ads unsuccessful.

"When an ad happens to luck out by picking a successful theme, then you can play it literally for years," Henke said.

"That was not the case here."

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