Peugeot's 205 super-mini had as big an industry impact in the late-80s as the Volkswagen Golf had had in the late-70s, its design influencing competitors from the Ford Fiesta and Vauxhall Corsa to VW's Polo.
The model represented a high-point for the marque, which two decades earlier had emerged as a mass-market manufacturer, after starting out as a specialist, upmarket brand.
It has since lost its way. According to the Society of Motor Manufacturers and Traders, Peugeot's UK market share dwindled from 8.2% in 2002 to 5.9% last year.
While competitors' strategies, consumer tastes and the market itself have changed since the 205 launched, Peugeot has struggled to adapt.
Its most recent setback was the failed launch of the 1007, a premium-price small minivan, whose USP was electric sliding doors. Suffering from a poor reception, the French car maker was forced to scale back production.
The company is in desperate need of further innovation, as some of its more successful models have long passed their sell-by. The French car industry, which includes Renault as well as Peugeot and its sister brand Citroen, has a reputation for producing stylish, practical and innovative models. But design alone is not enough - and what they are not associated with is premium pricing.
This is a particular problem because of the emergence of the value-led Asian marques Daihatsu, Kia and Hyundai. The unreliability associated with these companies is largely behind them, and consumers are now confident they will not be let down.
Meanwhile, the premium German marques, such as BMW and Mercedes-Benz, have started to encroach on Peugeot's territory by producing the small cars that were once the domain of mass manufacturers. This means consumers now have far more opportunity to trade up in terms of brand, while still buying a small car.
Squeezed at both ends, Peugeot is attempting to fight back with the launch of its 407 saloon and the upcoming introduction of the 207, the successor to the popular 206.
Will they be enough to lure back drivers to the marque? We asked Jorian Murray, managing director of DDB London, which handles the Volkswagen account, and Richard Gillingwater, director of strategy at automotive brand experience specialist Marketplace.
DIAGNOSIS 1 - JORIAN MURRAY MANAGING DIRECTOR, DDB LONDON
In the 90s, Peugeot was a force to be reckoned with. The 405 was a huge hit in the executive saloon sector, offering French style and panache.
Supported by iconic ad campaigns such as 'Fields of fire' showing a cornfield bursting into flame accompanied by Berlin's song Take My Breath Away, this truly was the sexiest car a sales rep could have. The media strategy was equally ballsy, investing entire annual ad budgets behind single high-profile campaigns for iconic models. Peugeot was bold, sexy and stylish.
However, Peugeot is now squeezed from above and below. On one hand, premium brands such as BMW and Audi have extended their model range into the midmarket with the 1 Series and A3, while on the other, Peugeot's design credentials are being undermined by the mass-market brands; the Corsa, Focus and Megane have upped the style stakes across the entire market. Add to this the more attractive Japanese models and low-profile and fragmented communication campaigns, and the reasons behind Peugeot's poor sales become clear.
REMEDY
- Reclaim the excitement and passion of Peugeot in the 90s and seize the sexy, stylish French high-ground.
- Use bold, ballsy, high-profile campaigns, focusing on single, iconic models.
- Return to the flattering campaigns that made Peugeot drivers feel special.
- The 206 has been struggling to compete with the Clio, Yaris and Polo, but the new 207 gives Peugeot a chance to reclaim its traditional young female market.
DIAGNOSIS 2 - RICHARD GILLINGWATER DIRECTOR OF STRATEGY, MARKETPLACE
Why buy a Peugeot? A tricky question. It's not the cheapest, nor the most reliable, nor the most stylish car around - in fact, Peugeot is hampered by a failure to carve any niche for itself in the market over the past decade. As a result, its sales results for the six months ending in June 2005 show that its UK market shrunk by almost 5%, mostly due to a 16% fall in sales to private buyers.
With its traditional reputation for small, stylish cars increasingly eclipsed by Japanese competition, and a history tainted by poor-quality engineering, Peugeot can't rely on the strength of its product alone to attract new customers.
Although its brand values - style, innovation, performance and reliability - are essential, they're not unique. Peugeot needs to establish a USP to reconnect with customers.
The cars are priced from 拢6000 to 拢26,000, and with individual communication strategies focused on the different models, Peugeot needs to create a clear and relevant brand position for its marque to mend its fragmented image.
REMEDY
- Peugeot's corporate language is based around manufacturing. Shift this focus to a brand- and customer-centric internal communication.
- Connect the brand to people's lives. 'The drive of your life' - is it really? The strapline needs to make an emotional connection with potential customers.
- Build consistency of campaigns.
- Deliver a unique brand experience that reflects the brand's core promise.