25
Oct

EXEO. BORN TO FAIL?

Escrito el 25 octubre 2009 por Jesus Guerro en General

seat-exeoIt is six months since the launch of the SEAT Exeo last April. With this model, the Spanish brand positioned returned with a new model to the medium segment. Its predecessor, the last version of Seat Toledo, had not achieved expectations in its new configuration as a monovolume, partially cannibalized by its smaller brother, the SEAT Altea, maybe a more balanced model in the compact segment.
The truth is that things are not as the VWgroup might expect. After this period of settlement in the market, the Exeo has failed get within the Top 10 best-selling sedans, barely reaching 300 units a month as average.
It is corious that the segment is leaded by its groupmates, Audi A4 and Passat WV, with considerable relationships of 4 / 1 and 3 / 1 respectively, even though these models exceed in price, by more than 20% and 10% Exeo comparing similar engine variants and equipment.
The Seat Exeo is a model built on the platform of the previous version of the Audi A4. In fact, it’s more than that. The VW group decided to move piece by piece the A4 assembly line from Germany to the Martorell factory.
Seat has made no secret on that strategy, perhaps because it is difficult to do so or maybe because they thought the market would interpret it as a guarantee of quality and solvency of the new model.
It seems however that this strategy has not proved successful to date. At least the sales figures do not comply even with the most pessimistic estimations of the group.
There is no doubt that the strategy will enable the achievement of economies of scale, that significantly it reduces investment requirements at all levels,that permits to take advantage of proven experience curve and it allow the amortization of parts for replacement inventories in the channel.
The question is whether the new Exeo sales are bbeing collapsed by the perception of the buyer about the model of being a product “old” “from last season,” or an”outlet offer”.
On this hypothesis we could consider whether a strategy of operational benchmarking can have a negative impact as lethal limiter of product marketing strategy and market development.

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