Product life cycles aren't taken into context in the traditional comparison of camaro vs mustang sales from 2009-present.
One product was at its life cycle end, that being the 05-09 mustang. The REFRESH was good in 2010 for ford but not edgy enough to offset the transformers trend and relative NEWNESS of the gen 5 camaro which was only 1 year into its product life cycle.
Look now in 2012 and likely through 2013. Camaro sales are hovering steady and mustang sales are booming. It's mid life cycle for the camaro and sales are turning tide to fords side. New innovations, better incentives, and a great product are driving a lot of attention. That coupled with the halo factor of the '13 gt500 makes people want a mustang again irregardless of which level (v6, gt, boss, gt500) they can afford. It's cool to be in a mustang again. Not 1965 levels of cool, but enough to bump sales 20+%.
Also, we were I a recession in 2009 an the camaro was brand new then where as the 05-09 was at the end of its cycle. People bought the Camaro's in droves because you could get much more performance for about the same cash. 305hp v6, 426hp v8, all while the stang had 215, 315, and for big bucks, 540.
Bottom line is the sales assessment and argument that has been held over the stang isn't a balanced or valid one.
Let's compare pretty much any 2 product that launch at different intervals and see how they're product life cycles measure up without considering each ones full span. Every time, the newer unit is almost a star on paper.
Now try to justify spending and advertising budgets on that false info and 3 years in, the life cycle begins its decline and even though development costs are met leaving simpler unit variable costs, profits may fall if spending is too high.
Gm has done it right though, little advertising an investments more so in the new generation. One could argue that light advertising could greatly help Chevy generate profits off the camaro at this unit variable cost period but Chevy is smartly applying the money towards a new product.
It will be interesting to see the sales and product life cycles of the 2014 camaro and mustang since they are both getting huge make overs. I believe those life cycles will be much more telling of true buyer habits. I don't believe comparing a product at the end of its cycle to a new product as was done until the 2011 mustang came out is applicable to anything but chest pumping.
One product was at its life cycle end, that being the 05-09 mustang. The REFRESH was good in 2010 for ford but not edgy enough to offset the transformers trend and relative NEWNESS of the gen 5 camaro which was only 1 year into its product life cycle.
Look now in 2012 and likely through 2013. Camaro sales are hovering steady and mustang sales are booming. It's mid life cycle for the camaro and sales are turning tide to fords side. New innovations, better incentives, and a great product are driving a lot of attention. That coupled with the halo factor of the '13 gt500 makes people want a mustang again irregardless of which level (v6, gt, boss, gt500) they can afford. It's cool to be in a mustang again. Not 1965 levels of cool, but enough to bump sales 20+%.
Also, we were I a recession in 2009 an the camaro was brand new then where as the 05-09 was at the end of its cycle. People bought the Camaro's in droves because you could get much more performance for about the same cash. 305hp v6, 426hp v8, all while the stang had 215, 315, and for big bucks, 540.
Bottom line is the sales assessment and argument that has been held over the stang isn't a balanced or valid one.
Let's compare pretty much any 2 product that launch at different intervals and see how they're product life cycles measure up without considering each ones full span. Every time, the newer unit is almost a star on paper.
Now try to justify spending and advertising budgets on that false info and 3 years in, the life cycle begins its decline and even though development costs are met leaving simpler unit variable costs, profits may fall if spending is too high.
Gm has done it right though, little advertising an investments more so in the new generation. One could argue that light advertising could greatly help Chevy generate profits off the camaro at this unit variable cost period but Chevy is smartly applying the money towards a new product.
It will be interesting to see the sales and product life cycles of the 2014 camaro and mustang since they are both getting huge make overs. I believe those life cycles will be much more telling of true buyer habits. I don't believe comparing a product at the end of its cycle to a new product as was done until the 2011 mustang came out is applicable to anything but chest pumping.
