Move Over Peoria, Puerto Rico is the New Test Market
Have you ever been asked, "does it play well in Peoria?" Well, after actually living in Peoria for four years, you get used to this saying which has evolved from Peoria's reputation for being a "safe" test market. Basically, if something plays well in Peoria, it should do well everywhere else. But after this weekthe saying might be changing to, "does it play well in Puerto Rico?"
Among other media, USA TODAY reported that Chinese car manufacturer Geely (jee-lee) will use Puerto Rico as a test market for its first below $10,000 market-ready vehicle. John Harmer, COO of Geely-USA, has said that the first 2,000 Geely vehicles will be sold in Puerto Rico. Harmer said: "we'll give these buyers free oil changes, and give them a warranty that says we'll fix anything that can possibly go wrong outside of hitting a brick wall. In return, owners will come in once a month for interviews about their cars, tell us what they like and, more important to us, what they don't like." Geely hopes that this exercise will uncover any problems in time to make changes before the cars hit the USA.
In the eighties, Daihatsu released several models in Puerto Rico with the same intent – to use the island as a test market. They actually released several models including the Nubira, Llanos and Charade. Puerto Rico is an appealing market because of several factors. First off, Puerto Ricans love cars. The average household in Puerto Rico houses four cars. This is largely due to the fact that public transportation on the island is very unreliable. Second, the Puerto Rican road infrastructure is a high maintenance one. A tropical climate, almost daily rain showers, and severe overpopulation cause hardcore wear and tear on the island's streets. As a result, many Puerto Ricans won't spend a lot on a vehicle, because the drivetrain and suspension are put under daily and rigorous stress. The vehicles of choice tend to be economical small sedans and hatchbacks or rugged lower-priced SUVs.
It's a smart move for Geely to release their vehicles in Puerto Rico. Not so smart to name the car Geely. It just evokes memories of a panned film featuring the so-called "Bennifer" phenomenon. Since its introduction, Daihatsu learned the U.S. market was not for them and has since released other models in different parts of the world. Perhaps the strategy will work for Geely. Although I would rethink the name – Geely won't score any points with the Puerto Rican crowd.
