Archive for the ‘Communications’ Category

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Looking for a new agency partner? 8 critical things auto manufacturers should consider.

Tuesday, September 15th, 2009

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The following article first appeared in BusinessWeek’s “Brand New Day” blog on September 7, 2009

Volkswagen has announced that it is looking for a new advertising/communications partner.  Chrysler has just announced that they are considering non-roster agencies for projects.  Bob Lutz at GM has said that the agencies for the remaining GM brands have six months to demonstrate that they have the chops to remain part of GM’s stable of agencies.  A rash of car companies re-evaluating their agency partners.

So what should these companies, or for that matter any automotive manufacturer, look for in an agency?

The next five years are going to be the most competitive in a generation.  The “new normal” annual sales volume for the US will be 14-16MM units, nowhere near the 18MM the market achieved a few years ago, let alone the 20MM+ some forecasters anticipated.   The “new normal” is a mature market where the fight for share will be intense, the risk of commoditization ever present and the winners will be those companies who recognize that the only thing standing between them and commodity status is terrific product and a carefully crafted brand reputation.

The “winners” will be those companies with clearly differentiated brands.  Those companies that make establishing and/or nurturing their brands a priority will see their share of market grow, those who focus only on retail will be treated like commodities.  Automobile manufacturers do need agencies that can manage the retail side of the business but more than ever they need to take brand building seriously.

So here are some suggestions on what to look for in an agency:

1. An agency must demonstrate the ability to build a brand over the long term. Look for relationships and case histories that span years not months.  Look for strategic consistency that is grounded in a deep understanding of the client and its customers.  Make sure that knowledge turns into core values that form the bedrock of the brand’s communications.  Look for the “red thread” that holds all the work together.  Ask 2nd and 3rd level questions about the company and its brand.

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Posted in Branding, Communications, The Agency Business | 1 Comment »

VW & Crispin. It was only a matter of time.

Monday, August 17th, 2009

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VW of America just announced that it is reviewing its advertising business currently with Crispin.

VW is truly one of the world’s most loved automotive brands. While there have been a number of clever and in some cases intrusive commercials from Crispin there has been little that has built or even sustained the VW brand.

Crispin is without question one of the most talented creative agencies in the country but while they did a wonderful job helping to create the Mini brand, they never succeeded in bringing that power to Volkswagen.

At times the work was startling, stopping you in your tracks:

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Posted in Branding, Communications, Strategy, The Agency Business | 2 Comments »

“GM must change perception to halt decline”

Wednesday, July 8th, 2009

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This bit of understatement came from Steven Rattner and was quoted in a July 6th article in Automotive News.  He went on to say that “There’s often a lag between perception and reality.”  He was referring to the “fact” that GM’s products  and product quality would surprise many people.  Based on JD Power’s most recent IQS study where both Cadillac (#3) and Chevy (#9) were well above industry average, he seems to have point.  GMC and Buick were just a couple of notches below average.  By the way, the GM brands are ahead of many well respected marques like Audi, Volvo, Subaru, Jeep and Mini.

So, as the new GM comes out of its speedy bankruptcy there seems to be general acknowledgement that it needs to deal with this “perception problem” which means that the marketers are going to get their chance to help change the fortunes of GM.

Another Automotive News article declared:  “The New GM needs marketing blitz, experts say.”  The question that comes to mind is what is the “marketing blitz” going to consist of.  There’s a body of opinion that says that GM should lower its prices to get people in the showroom where they will see the quality of the products and be compelled to buy.  Some folks are suggesting that the message should be “Come give us a chance and see what we’ve got, because we’re going to grow.”  Others are saying that GM needs to take advantage of a growing “new nationalism” and Americans’ willingness to buy American.

This sounds to me like Detroit pulling pages from its traditional playbook.  What happened to “re-invention.”

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Posted in Auto manufacturers, Communications, Strategy | No Comments »

Kudos to Audi of America for taking on Americans’ perception of diesel.

Thursday, July 2nd, 2009

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Audi of America has stepped up and taken on America’s negative perception of diesel technology.

Take a look at this video:

Then the commercial:

Changing American’s perception of diesel is a monumental task but one that will yield remarkable benefits.  Diesel offers the opportunity to immediately reduce our consumption of oil, reduce emission of CO2 and get better mileage.  Diesel can help manufacturers satisfy the new CAFE standards.  All this from a proven technology that is well understood and available today.

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Posted in Auto manufacturers, Branding, Communications, Strategy, Technology/Product | No Comments »

re-invention

Thursday, June 4th, 2009

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Let me start by pointing out that I am not a GM basher.  I think the government was right to help and I want the company to succeed.

Having said that, the new GM advertising and website  (http://www.gmreinvention.com/) which seeks to convince us that there is a new company called GM and that it is re-inventing itself is lame at best and insulting to our intelligence at worst.  Here’s the new commercial/video:

If you go to the website, there are quite a number of interesting videos and lots of information designed to make the reader feel confident that this is a company that is changing and that it has a bright future.

Here’s what bothers me, the same GM team using the same agencies have cranked out another big production anthemic commercial and a bunch of videos…where’s the “re-invention” in that?

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Posted in Auto manufacturers, Branding, Communications | No Comments »

Why aren’t we talking about diesel?

Wednesday, May 13th, 2009

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Amid all the blather from Washington about hybrids, plug-in electrics and other green technologies is an engine technology that is clean, fully developed and ready to make a difference…clean diesel.  For the life of me, I can’t understand why we are not having a more meaningful conversation in our country about the advantages of clean diesel.

Actually, I do understand.  Diesel is a much misunderstood technology in America.  We all remember those diesel Rabbits with black stuff all over the hatchback and a steady stream of vile smoke out the back.  Mercedes Benz has been marketing diesels in this country for decades and there are still many smoky, noisy 300D’s on our roads today.  Unfortunately this image is the impression most Americans have of diesel technology.  Diesels are dirty, slow, noisy pollution machines.

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Posted in Communications, Strategy, Technology/Product | 1 Comment »

Will the BMW brand lose its focus too?

Thursday, May 7th, 2009

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This article in today’s New York Times got me thinking about BMW and its brand:

http://www.nytimes.com/2009/05/07/business/global/07iht-bmw.html?pagewanted=2&partner=rss&emc=rss

I think that just about anyone could argue pretty convincingly that of all the imported luxury marques, BMW has done the best job of sticking to its positioning over the long term.  Encapsulated by “The Ultimate Driving Machine,”  BMW has year after year developed and sold products that live up to this brand standard.  The marketing has also been remarkably consistent in supporting the brand positioning.

So it was encouraging to read in the NY Times that BMW is serious about maintaining its independence and at some level is rejecting the industry’s argument that “scale” is critical to success.  What a crime it would be if BMW ended up married to someone else, sharing parts and technologies and the products became less distinct.  I hope the same applies to their view of their brand positioning and marketing.

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Posted in Auto manufacturers, Branding, Communications, Strategy | 3 Comments »

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