Volvo has, since the ’70s all but owned “safety” in the automotive segment. Not a bad place to be…do you know anyone who’d prefer an unsafe car?
Brilliant work by Scali, McCabe, Sloves took Volvo from the choice of professors in tweed jackets to the boomer choice for family hauling. The Volvo wagon was a staple in the suburbs on both coasts. Volvo was even featured in the movie “Crazy People” where Dudley Moore played an ad man who decided that being honest was a good idea and suggested that Volvos were “Boxy but good:
While the brand became part of popular culture and owned safety, it has struggled with that one-dimensional view for years. Volvo has its loyalists who love the brand and it’s products but it also has more than its share of detractors for whom the truth of “boxy but good” was a real barrier to purchase. The challenge has always been how do you retain and nurture the safety reputation while also convincing a broader swath of the car buying population that the brand is cool and emotionally appealing. (more…)
The D-segment of the luxury market is tough. The best luxury manufacturers in the world bring their best technology, design and engineering to the table and the result is the world’s best 4-door sedans: BMW 7-Series, Mercedes-Benz S-Class, Lexus LS, are perennial best sellers. It’s tough to break-in, Audi has struggled for years to build volume in the segment with its A8 despite having what many would say is the best product.
So what makes Hyundai think they can introduce the Equus into this rarefied air and succeed?
Let’s get one thing out of the way. From a product perspective, the Hyundai Equus will be a very able competitor to the best luxury sedans in the business. Hyundai has demonstrated that they build exceptional quality cars at multiple price points, the most recent being the Genesis, a near to mid luxury entry. The Equus is already getting good reviews and at $55,000 will offer D-class luxury at a very reasonable price.
The issue for Hyundai is not the product or the price. (more…)
The last twenty-four hours has been full of articles, blogs, tweets, surveys, all questioning the wisdom of the folks at Chevrolet who were apparently seeking to remove “Chevy” from the brand’s lexicon (NYTs 6/10/10). Predictably, people were shocked and the Chevrolet folks accused of varying levels of insanity, some even questioning their patriotism.
Thankfully, as the day wore on, Chevrolet made an effort to explain that it had been mis-understood (see the press release) and that the memo leaked to the New York Times had been “poorly worded.” Unfortunately for the folks at GM, this whole incident has just added fuel to the fire for those folks who want to find fault with every thing the company tries to do. If you take the GM folks at their word, what they were trying to do really isn’t crazy.
At the heart of this dust-up is a real issue. How to most effectively manage a global automotive brand.
Here’s a video of Alan Batey explaining that indeed “Chevy” is just fine but that “Chevrolet” is the global brand:
Put aside Mr. Batey’s understandable defensiveness and his desire to assure us that “Chevy” is OK. (more…)
Yesterday’s Automotive News had a brief piece about Infiniti marketing that struck me as interesting. In it, they reported that “Infiniti has told its dealer advisory group that it is committing to a five-year run for the new ‘Way of Infiniti’ campaign–a long-term pledge intended to reassure retailers that the brand will have a consistent message.”
I immediately thought to myself “Good for them.”
Infiniti from the very beginning has had a difficult time establishing a brand identity and finding a way to execute it in communications. Introduced in 1989, Infiniti was Nissan’s response to the introductions of the other Japanese luxury marques, Acura and Lexus. The original Q45 was a sporty performance alternative to the Lexus. Unfortunately, Infiniti got off to a rough start when it introduced the car and brand with the infamous “rocks and trees” campaign created by its agency Hill, Holliday, Connors, Cosmopulos.
The “rocks and trees” campaign sought to present Infiniti as the result of the unique Japanese culture and sensibility. The campaign attempted to make its Japanese origin an asset, similar to the way that the German brands have used their ‘German-ness.’ The Infiniti ads were very different than any automotive company had ever done (they didn’t even show the car initially). (more…)
What a difference a year makes. It’s 2010 and the auto industry is beginning to recover.
After an incredibly tough 2009, consumers seem to be coming back. For the first time in recent memory, Americans’ perception of domestic automobiles seems to be on the mend (Business Week 4/23). Ford’s bet that Americans will buy smaller, fully featured automobiles looks like it may pay off. GM’s product plan created by soon-to-retire Bob Lutz is leading a resurgence for the General. Hyundai and Kia, supported my excellent product quality, have taken advantage of recessionary sensibilities and grown share of market. Audi , Subaru and Mini have come out of the recession on a tear.
On the other side of the ledger, Toyota continues to struggle with recalls and concerns about quality. This has led to unprecedented incentives by Toyota and the predictable response by competitors to match them. So a good number of consumers who had been sitting on sidelines during the recession have come back to dealerships looking to for a good deal. After 2009, it’s a relief to see traffic in the stores but at the same time if the incentives continue that will not be good for the industry long term. In 2009, some progress had been made at reducing the use of incentives, but the moment Toyota jumped in to defend its franchise, that opened the floodgates again.
So the good news is that customers are returning to the stores, but are they coming back for the right reasons?
Curvin O’Rielly has been kind enough to allow us to publish this article on McNaughton Automotive Perspectives. For those of you who don’t know Curvin, he is one of the most respected copywriters in the advertising business. Among his automotive accomplishments was the creation of the Saturn brand with his colleagues at Hal Riney and Partners. As you will see, Curvin’s perspective on automobile advertising is both timely and timeless.
Everything “Old” Is “New” Again
By Curvin O’Rielly
In 1982, when I was a young creative director at BBDO in New York, I was asked to write an article about the automobile business for Magazine Age.
The article was well received. I even won an American Business Press award for it. The question is, has it stood the test of time?
Well, some of the details I included in the article are as dated as the wide ties we used to wear (the ones you’re saving, hoping they come back into style again), or the disco music we used to listen to (admit it; you boogeyed to disco), or the haul-ass iron we used to drive, the cars with more horsepower than their suspension systems and brakes could reasonably handle (unless they were well-engineered vehicles from Europe).
What’s still true about my article, unfortunately, is that the automobile industry is once again in deep trouble. This time, it’s poised at the abyss, owing in part to the economic tremors that came close to causing a complete meltdown. At the abyss, too, because it was smart (or so it prided itself) but then not smart enough. I mean, surely those at the wheel had to have seen all the danger signs on the road they were heading down, just as they had to have known they were racing toward a disaster of epic proportions.
That said, here are the observations I made 28 years ago, with some minor rewrites here and there.
An article in the April 2nd edition of the New York Times was headlined: “Despite Expansion, Mini Says It’s Still a Niche” and confirmed something that had occurred to me at the New York Auto Show.
In New York last week I saw the new Mini crossover, the Countryman, for the first time in person. All the Mini design cues are present in the Countryman and I think you’d be hard pressed to say that it wasn’t part of the Mini family. But I was struck by how “big” it seemed, it didn’t seem small and taut the way all the other models do. Part of the difference was that the Countryman’s ground clearance is higher, so its stance is really quite different than the other Minis.
This got me thinking, at what point does a marque go too far and begin to lose its essential character? Has Mini gone too far with the Countryman?
I suspect this is a little like losing your hair. Little by little your hair recedes, almost imperceptibly, you make little adjustments as you go, thinking no one will notice, until one day you end up with comb-over and people are snickering behind your back. Little by little automotive brands seem to lose their way. (more…)
Amid all the drama surrounding GM, every so often I see something that strikes me a smart. In Geneva, Cadillac announced it’s aspirations for Europe (WSJ 3/8/10 Sub required, NYT 3/2/10).
After a number of high profile failures to enter the European market in a big way, the folks at Cadillac want to be a niche player and are willing to accept the lower volumes that go along with such a strategy. By keeping volumes low, and presumably margins high, they expect that they can be profitable from year 1.
I think this strategy is sound and will succeed. Cadillac’s current design language is unique and appealing. There has always been a segment of the automotive market that is interested in something different and Europe is no different than the United States in this regard. In Europe where Mercedes-Benzes, Audis and BMWs are common and cover a multitude of uses including taxis, rental cars, executive cars and the vehicles of choice for captains of industry, there is an opportunity for something “different.”
My last post regarding BMW’s new campaign resulted in a few conversations with colleagues that were interesting and got me thinking about the challenges associated with marketing a global automotive brand and the concept of a global campaign.
Virtually every automotive brand is global. Not every brand is marketed in every country but I can’t think of any that are sold only in their country of origin. That means that every manufacturer must be concerned with what their respective brands stand for in each country in which they are distributed. Obviously, it is in the manufacturers’ interest to have their brands positioned in the same way from country to country. Customers and prospects should recognize the brands no matter where in the world they come into contact with them.
Of course the real world is not quite this neat and tidy. Brands have developed in different ways in different countries, so for some manufacturers it’s a challenge just to get their colleagues around the world on the same page regarding the brand’s core values. In my experience we do pretty well when we concern ourselves with the strategic underpinnings of the brand, where things fall apart is when execution of the strategy is considered.
There seem to be two basic approaches to execution, each with its own set of plusses and minuses:
It has a feeling of inevitability attached to it, but still, I can’t help but feel let down. For years many of us have held up BMW as the example of a car company that understands its brand and sticks to it. That all just changed. BMW is no longer the manufacturer of The Ultimate Driving Machine, according to this commercial “at BMW, we don’t just make cars, we make joy.”:
The longest running and probably best known automotive industry positioning line has been thrown in the bin in favor of “Joy.” I’m conflicted. On one hand, I’m shocked and I really believe that BMW has made a horrific mistake, but on the other hand, there are aspects of this new campaign that I like.
“The new “Joy” campaign ‘is a big departure for us,’ said Jack Pitney, vice president of marketing for BMW North America. ‘We hope to really add some humanity to our brand’ and show the diversity of its buyers,” — Wall Street Journal 2/15/10
In fact, what I like about the commercial is the humanity. It’s fun to watch people enjoying life in and around their BMWs. To see enthusiast communities enjoying their passions together. To see all kinds of people, some even like me, joined together by a common bond created by a car. It is truly what makes great automotive brands great, that sense of being part of something bigger than you are.
