Questions and Answers

Countdown to the Year 2000 and the New Millennium

Although the new millennium doesn't start officially until January 1, 2001, the year 2000 will be a major global anniversary. RV News was curious how industry companies were viewing this once in a lifetime event and whether or not companies were planning anything special for the model year 2000 in terms of products and/or events. If nothing else, it seemed as if the year 2000 would be a major marketing opportunity. After all, what right-minded RV owner wants to camp in an RV manufactured in the last century?

The question we posed to various industry companies was:

As we approach the year 2000, and then the new millennium, will these global anniversary events simply be the passing of another year or will these milestones be inherently unique opportunities for your organization in terms of product introductions or programs?

Tom Faludy, president, Carefree of Colorado

I don't look at the year 2000 or the new Millennium to be a direction-changing catalyst for our company. There are exciting opportunities every year.

That tree in your front yard doesn't know it's a new millennium. It will need the same things it needs any other year to survive - water, sunlight and nourishment. It's threats and opportunities are the same as any other year. Just because it's a new century, it cannot recreate itself and decide that it wants to be a flower this year.

If it takes a new millennium for companies to change the way they do business then those businesses are in trouble. And if you go all out for 2000 what do you do follow that up with in 2001?

No, we are not going to change our planning process just because it's a new century.

Is this a time of great opportunity for this company and the entire industry? Absolutely. The social, economic and demographic trends created this opportunity, not the calendar.

Randy Lemasters, national sales manager, Nu Wa Industries

We are going to be coming to the marketplace with a new product, but more because we think the market is ready for it. Other than that, I don't see us doing anything really revolutionary. Who knows what will happen, but at this point in time we don't plan anything specific because it is the year 2000. We are probably going to be focusing more on 2002. That's our 40th anniversary and we are planning for that.

In the towable side of the business, 60 percent of the buying decision is based on floor plans whether you call it the Millennium Edition or anything else. Floor plans are still going to be the deciding factor in the buying process. So we are going to continue to come up with more and more interesting floor plans.

Mel Adams, president

and CEO, Airxcel

As far as any special programs for the year 2000, I don't see that in our cards. It's a little early. Typically for us, planning for next year's programs will start in April or May.

We have some unique ideas, but whether any of them pan out for the year 2000, I don't really know. Some of these are pretty spectacular and I imagine will surprise a few people when we do introduce them. Whether or not we release any of these products currently on the drawing board or in prototyping will be decided in June.

Norm Jacobson, marketing director, Lance Camper

No question about it. We look at this as an opportunity. We don't have our plans in place yet, but, yes, we see this as a marketing opportunity for us in terms of making some kind of quantum leap in the product. Whatever that might be, I think it is going to be a significant opportunity to rename product something relative to this new millennium. We are really only collecting data right now from our dealers and customers, putting together a matrix of thoughts.

I think it is going to be a great retail opportunity for everyone that's on the ball. I think people are going to be excited about it and will participate with those companies that are making an issue of it.

Why would anyone want to drive an RV made in the last century? That hits the nail on the head. We are going to be very prudent about helping our dealers deplete their inventory of 1999 merchandise.

Ron Buckmeier, vice president product development, Winnebago Industries

Our perspective, at least at this point, as far as playing up the millennium thing, we don't anticipate that we are going to have any kind of special unit with millennium plastered all over it. We have not directed our product development in that direction.

Coincidently, the model year 2000 is a culmination of our product redirection in the last couple of years. Seventy-five percent of the product that we will develop in 1999 has been redesigned since 1997. We will have some exciting new product introductions which will be the culmination of refocusing on our core business and redevelopment process. We've spent a lot of time and energy on market and product research and it's all coming together in the year 2000. What we are doing is more of a progression, so model year 2000 will be spectacular but it is driven by these last two years of redirection and research rather than because it's year 2000.

Jay Hesse, president, Automatic Equipment Manufacturing Co.

We're not planning anything special for the year 2000; although we haven't really started focusing on next year. We usually don't do that planning until later in the year. However, we do have some very interesting new towing products that may be ready this year, It's too soon to say. And we are also developing another major product line that will be a diversion from our current towing products, but it will still be for the RV industry. We have been planning for some time to bring to the market products other than our Duncan and Blue Ox towing products and it looks as if we may be ready with this introduction in the not too distant future.

Bill Prinz, national sales manager, Jayco

Right now, we are looking at it as just another model year. We'll introduce the normal number of new models or floor plans that we believe the market needs. That's what we are going to address, so we are not doing anything special for the year 2000.

We've had some discussions both at the sales level and the executive level and decided to keep on marching the way we are going.

If the market was a little slow or down a little bit, we might have used it as an excuse to hype or generate something new or different, we might have looked at it differently. But with the market as strong as it is, I don't think there is a reason to do it.

If our small survey is accurate, it would appear that most RV industry companies do not see any advantages of planning any special products or celebrations. Part of the reason, of course, is the industry is doing extremely well right now, so the market is already there and companies believe that special products or programs will not necessarily create new business.

That's not to say, however, some companies haven't targeted the year 2000 as a special marketing opportunity. Coachmen RV, for example, introduced the Futura 2000 for the 1999 model year, an obvious tie to the year 2000. Likewise, Kit manufacturing has introduced a new line called the Millennium.

That's not to say, however, that companies may not change their minds if other industries seem to be targeting these events as a special opportunity. But for now, it's a continuation of meeting the current market demands and developing new products to better meet the needs of the potential RV buyer.

RVN


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