In his new vehicle review author Dan Neil claims that the Juke, positioned by Nissan as a “bold urban sport cross” was deliberately brought to market imperfect to test if automakers can profit from building models that target very narrow segments.
The most noticeable aspect of the car is the design, with three sets of forward facing lights, curious fender flares, and a sloping roofline Neil claims it is positioned too close for comfort to the Pontiac Aztek.
Turning from the design the drivetrain is impressive: Juke has a direct injected turbocharged four cylinder across all trimlines, a continuously variable or 6 speed transmission, front or all- wheel drive, and eco / normal / sport driving modes. Neil states “The Juke is a little riot to drive.”
Neil also claims the pricing is also quite low for the “riot” that the vehicle offers, with three trim levels starting at $19k, $20k, and $22,500.
In bundling the performance features, questionable exterior, and low price point Neil surmises that Nissan allowed product planners to step outside the normal approach to vehicle design and bring a concept-like car to market to feel out how large the “bold urban sport cross” segment could be.
This product targets on all three aspects of customer value: Functional, monetary, and psychological. Functionally it delivers the “riot” that driving a performance car is supposed to be. Monetarily it is positioned approximately $5000 less than the Subaru Impreza WRX 5 door, the closest comparative I could find. The psychological value is where Nissan appears to be taking a chance. Many consumers view their vehicle as self expression, and Nissan hopes the Juke resonates with enough consumers who are fed up with the “bland sameness” of small car design. The Juke appears to be a test of “boundedly rational” car design to see if people’s tastes have been poorly predicted or if their preferences are malleable based on the other aspects of customer value.
1. Is Juke’s value proposition of performance, price, and design a winning combination?
2. Is your current vehicle utilitarian or a form of self expression?
3. Is Nissan’s apparent “test vehicle” strategy one that other automakers will adopt?
Great article choice. It was an entertaining read. That vehicle sure is...interesting.
ReplyDelete1. The value proposition seems to be the combination of performance, price, and utility. Although the designers have seemed to eliminate aesthetic appeal as a relevant decision point in their target market. If this question was "Does the Juke have a value proposition that will resonate with buyers?", my answer would be much different.
2. My vehicle is both utilitarian and expression. I purchased my Grand Cherokee because it can tow, off-road, and haul a muddy dog and myself back from a fall duck hunt. The utility of the vehicle is not improved by adding the upgraded package that put bigger wheels, leather, and navigation in the vehicle. In fact, I would argue that for several of the specific utilities I intend to use it for, the "self-expression" actually hurts the utlity of the vehicle.
3. Given their scale and global-platform ambitions, I find it highly unlikely that a major OEM will adopt this type of test strategy.
1. I think the design will be polarizing. For customers that are attracted to the design, the vehicle probably represents a pretty good value proposition. For those that don't, or are looking for a little more refined fit and finish (I wonder what the wind noise and squeak and rattle are like in this car!) they'll probably look elsewhere.
ReplyDelete2. I would say that my 6 year old vehicle is mainly a utalitarian vehicle these days. I bought it (a Mazda 6) because it was sporty and fun to drive. Its still pretty fun to drive, but mainly just takes me to work and back.
3. No, I don't think other automakers will adopt a production "test vehicle" strategy. Being a bean counter in an OEM... I shudder to think how much this vehicle cost Nissan just to build the tools necessary to make this vehicle. The article makes it sound (to me) like they brought the car to market without a defined market and given the huge amounts of investment it takes to turn out a new vehicle, makes me wonder if they will ever recoup their costs. Also, every flop that an automaker brings to market could haunt the company years down the road. I can't tell you how many times I've heard people tell me some variation of "My Uncle's friend's brother's wife had a 'INSERT AMERICAN OEM HERE' in the 1970s and it was a piece of crap. I'll never buy a 'INSERT AMERICAN OEM HERE' again!"
3.
David, I think from the very definition of value proposition, it`s the ability of the product (in this case Juke) to provide the cluster of benefits (performance, price and design) which is getting successfully transferred to the consumer here. The flowing curves on the fenders, fit for four interior are few of the catchy features that will attract the trendy middle to upper class buyers. And this is what Prof. Berna referred during our first class as “Key to success” while trying to please the core segment than to please everybody.
ReplyDeleteThanks for all your comments. The Juke is certainly a polarizing vehicle. The vehicle is extremely polarizing, hopefully Nissan can capture the strong advocates with their design. It will be interesting to see if the recoup their initial investment (let alone turn a profit) on this car.
ReplyDeleteInteresting article. I was in the market for a new vehicle in late 2010 and did extensive research on available vehicles. There were very few vehicles that stood out. I was surprised by how much value I placed in the psychological aspects of my car choice. Personally, I think the Juke is unattractive, but I can absolutely see those that value their distinctiveness choosing it for the psychological value alone.
ReplyDeleteI ended up purchasing a Toyota Prius, but only after I'd seen one in person and decided that the newer models didn't look as dorky as previous designs. I did factor in the fact that some of the "hippie tree hugger" stigma has been removed from Prius ownership as hybrids are continuing to become more mainstream. For me, my car is self-expression and it's practical. It can fly on the highway if necessary, haul everything I need, and make it through the snow, all while saving me 300 gallons of gas per year.