Airstream Competition
Now Viewing Airstream's competition in: Recreational Vehicle Manufacture (primary)
Call Preparation Questions
Customers, Marketing, Pricing, Competition
How many dealers does the company sell to? - The big manufacturers sell to hundreds of dealers.
Does the company operate a retail operation? -
Do dealers sell the company’s products exclusively? - Most dealers sell products from several manufacturers.
Does the company sell nationally or regionally? - Small manufacturers typically distribute regionally.
Does the company offer products for specific demographic groups? - Many RV owners are in their 50s; renters often have children who travel with them.
What sort of marketing does the company find most effective? - Advertising in RV magazines is common, as is cooperative media advertising with dealers.
What are typical retail prices for the company’s products? - Class A motor homes $150,000; Class C motor homes $70,000; travel trailers under $30,000; and folding trailers under $10,000.
What types of market research does the company do? - Manufacturers rely heavily on their dealers for customer feedback and product suggestions.
Competitive Landscape
Demand is driven by consumer income and demographics, as RV buyers are mainly older. The profitability of individual companies depends on the ability to design desirable products. Large companies have economies of scale in production and distribution. Small companies can compete successfully by concentrating on a product line or by specializing in components.
Business Challenges
CRITICAL ISSUES
Revenue Sensitive to Economic Conditions - RV demand is difficult to forecast from year to year. Because they're considered a luxury, RVs are in lower demand during periods of economic difficulty. Consumers are less likely to buy RVs when the stock market is down, gas prices are high, employment low, or personal disposable income tight. During the early 2000s recession, RV shipments fell by about 20 percent.
Dealers, Consumers Depend on Financing - Because they need to carry substantial inventories, RV dealers are sensitive to lending conditions. Few manufacturers supply financing for dealers, although many cooperate with lenders via repurchase agreements. Consumers also require financing, especially for more expensive motor homes. Sales suffer when interest rates are high or credit is tight.
Industries Where Airstream Competes
- Automotive & Transport
- Recreational Vehicle Manufacturing(primary)
