Case 8-2
Winnebago Wants RV Owners to Get on the Road
Will high gasoline prices and uncertain economic conditions keep consumers from buying
recreational vehicles and motor homes to enjoy the romance of the open road with all the
comforts of home? The profits of Winnebago Industries
[http://bi.galegroup.com/essentials/company/309442?u=tlearn_trl] of Forest City, Iowa, are
riding on the answer to this question. Winnebago has been making and selling RVs and motor
homes since 1958 under the Winnebago and Itasca brands. Its annual sales are approaching $1
billion, and its brands account for a sizable share of the 350,000 RVs and motor homes bought
by U.S. consumers every year.
Winnebago’s marketing experts recognize that choosing a motor home with a price tag as
high as $300,000 (or as low as $60,000) is not an easy decision. Many potential customers
consider traveling in motor homes an affordable way to see the country by driving through
scenic spots and parking at campgrounds along the way rather than paying to stay in motels and
eat in restaurants. When gasoline prices are low, consumers are less concerned about fuel
efficiency because of the money they were saving by camping. As gasoline prices increase,
however, the has demand for RVs that get better mileage and help customers achieve their
dreams of traveling without breaking their budgets.
In response, Winnebago has developed more fuel-efficient models and offered a number of
financial incentives to sweeten the deal, including a choice of either a rebate or cash toward
filling the gas tank on certain models. It also maintains a list of dealers who will rent Winnebago
models. Although some consumers will choose to rent to avoid the expense of ownership, this
option also gives would-be customers a chance to try the vehicle and to experience Winnebago
traveling before they make their final choice of which brand and model to buy.
Today’s buyers often want a Winnebago or Itasca for more than camping. The CEO says the
company’s typical customer “is someone 55 to 70 years of age who has been in retirement mode
or who is looking for an RV for leisure travel or wants one to help with pursuing another
hobby—like following the NASCAR circuit or tailgating at a favorite football team’s [games] on
weekends.” Knowing how buyers plan to use their RVs enables Winnebago to include
appropriate features on various models. Some models are basic while others are fully outfitted
with kitchen and laundry appliances, computer networks, sound systems, and other amenities
suitable for what may become a second home on wheels. “We make sure that nobody’s roughing
it too much,” notes Winnebago’s CEO.
Consumers researching Winnebago’s offerings can go to the company’s website to learn how
to choose an RV or motor home, click for 360-degree virtual tours of various Winnebago and
Itasca vehicles, and compare detailed specifications of each model. They can also watch a slide
show to see the craftsmanship involved in manufacturing a Winnebago product or request a
video version of the factory tour. And they can buy all kinds of caps, shirts, jackets, accessories,
and other items emblazoned with the Winnebago brand logo to make a statement about their
lifestyle.
Finally, the company encourages a sense of community by inviting buyers to become
members of the Winnebago-Itasca Travelers Club. More than 19,000 customers have joined to
enjoy benefits such as receiving a monthly newsletter; gathering with other Winnebago
customers at local club meetings; attending national and statewide events such as the annual
Grand National Rally in Forest City; and taking advantage of member discounts on vehicle
insurance, roadside assistance, campgrounds, and more. Through special-interest groups within
the travelers’ club, members can find like-minded individuals who share their interests in
golfing, singing, bowling, or extended RV trips.
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Case Questions
1. In what ways does Winnebago help consumers imagine themselves inside one of its motor
homes or RVs and enjoying the lifestyle that comes with such a product?
2. Why would Winnebago offer a slide show and video of its factory tour?
3. Explain, in terms of thought-based decisions, why Winnebago should promote the improved
gas mileage of its fuel-efficient models.
4. Are there any emotional aspects related to the Winnebago decision process? If so, how does
Winnebago influence these emotions?
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