The Lincoln MKC is the most recent Lincoln on the market, and Lincoln has put a lot of its eggs in the MKC basket. I thought that I'd write a bit to connect the dots between a few different aspects of the MKC's production and marketing.
The small premium utility vehicle segment is the fastest growing segment in North America. You can check out the graph below to see how its comparing with other segments. Analysts say that the segment should see an increase of 300 percent between now and the year 2018. Given that the MKC is in this segment, it seems that Lincoln has come out with the right car at the right time.
Lincoln knows that this segment is heating up and that is why it has invested heavily in MKC production at its Louisville Assembly Plant. Lincoln has hired 300 new employees and invested $129m in the plant, all to support MKC production. The upgrades make the plant more flexible so that it can build multiple models at the same time, and be more reactive to changes in demand. Even before that investment, Ford had invested an additional $600m in the same plant for the same purpose.
LIncoln thinks that it has a winner on its hands, but the brand still faces the challenge of getting the word out. Joe Phillippi, president of Auto Trends Consulting, says that "getting people to pay attention to Lincoln -- which has always been associated with grandpa's car -- is going to take a lot of clever advertising... They're going to have to spend a lot of marketing money to impress upon people that this is different." Indeed, Lincoln has laid down an impressive advertising campaign.
Matthew McConaughey has signed a multi-year endorsement deal that will begin in September. The first ads will focus on the 2015 MKC. This ad campaign should help Lincoln to sell MKCs to its target demographic, which includes younger people, 1st time buyers, young couples, small families, and empty nesters.
So that's me connecting the dots. It's all connected.