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.

This challenge is not exclusive to Volvo.  Mercedes-Benz and BMW have also worked hard to get “beyond” their reputations for engineering and performance respectively.  The fact is that all these brands represent safety, engineering, performance, quality and luxury at very high levels.  That said, when you’re lucky enough to “own” a reputation for one of the category’s real drivers, then it’s an asset you need to protect.

But it’s difficult.  In Volvo’s case they have wanted to be respected for more than safety and conservative styling because they needed to appeal more broadly to sell more cars.  Over the years they have improved the styling, offered a number of performance variants, expanded beyond sedans and wagons to include crossovers and convertibles.  Yet, consumers, their perception of the brand and sales have not responded in kind.  Part of the problem is that its safety position is so strong and so rational.  Safety is critical and incredibly important to consumers but it is also not cool or sexy.

I believe that when you “own” a positioning, particularly a primary driver, you must “speak” through that lens about other topics or you risk creating dissonance with consumers.  I think this is why Volvo’s efforts to convince us that they have performance credentials have seemed to fall on deaf ears.  Performance conflicts with our expectation of safety.

Recently, Volvo has been running a campaign that I think has found an appropriate “voice” that allows the safety brand to get into more emotional areas without confusing us. The idea that there is something called a “Naughty Volvo” allows the brand to go a little beyond safety without asking us to re-jigger our entire perception of the brand.  I think we all like and accept that people can be a little “naughty” from time to time without losing their essential character.  I think the same holds true for Volvo:

While I like the “naughty” commercials, particularly the ascending levels of naughtiness, I must admit that Volvo’s recent effort to isolate Europe’s “naughtiest” city really got me thinking about the brand a bit differently:

What a nice way to communicate that there’s something unexpected about Volvo. Throw a party in multiple cities with the car at the heart of it, invite all the right people, give them an opportunity to be a little naughty and see what happens.  A good combination of young, cool, contemporary, fun, a few good natured national stereotypes, and just a bit of naughty results in Paris being crowned the “Naughtiest City” in Europe.

What’s the point?  Everybody has a naughty side.  Including Volvo.

Got it.

If you haven’t had a chance to see the documentary “Art & Copy,” you must.  Last night I saw it for the second time and enjoyed every minute.  If you have worked in the advertising business or are responsible for advertising on the client side it is well worth seeing.

It’s a chance to see some of the most talented people in the agency business talk about what makes great communications.  Hal Riney, Mary Lawrence, Jim Durfee, Lee Clow, George Lois, Jeff Goodby, Rich Silverstein, Dan Wieden and others talk about what they think represents great work and what inspires it.  They talk about great ideas: Braniff’s End of the plain plane, Apple’s 1984 and Think Different, Got Milk, Reagan’s re-election campaign, Nike’s Just Do It and VW’s Think Small among others.

At the end, these people and the work leave you inspired.  You’re reminded that at its best, advertising can change opinion, entertain, move people emotionally and to action.  Great work respects people and treats them decently.  Great work can build brands, companies and value.  Great work is really hard to create, get approved and execute, but when it all comes together, it can move mountains.

Here’s why we should be embarrassed.  The automotive industry was hardly represented.  Bernbach’s original work for Volkswagen was deservedly featured.  Other than that, a few Volvo print ads, a Rebel spot from the 60′s and Honda’s “Hate Something/Change Something” from the UK gets referenced.

As an industry we have interesting, exciting, cool, emotional and sometimes wonderful products. The industry has been the largest advertising spender for decades.  Virtually every American needs at least one vehicle.  Buying a car or truck is the second largest expenditure the average American will make in his or her lifetime so they pay attention. Automobiles and trucks inspire songs, traveling by car has inspired books and movies.  The auto industry has shaped America, literally.

So, with all this said, when advertising industry luminaries are asked to talk about great work that has made a difference, the only automotive work mentioned is an almost 50 year old campaign for a little German car and a couple of print ads that are 40 years old.  As an industry, we should be embarrassed.  Where are the great automotive campaigns that changed not only the fortunes of brands and companies but also inspired people?  There have been some, but they’re old.

With a few exceptions, the automotive industry’s work in the last twenty years has been dismal.  A few ads and maybe one campaign have been great. Honda’s Cog and Hate Something/Change Something commercials from Wieden & Kennedy London come to mind. VW’s Drivers Wanted campaign (Arnold) will probably stand the test of time.

At a time when the US auto industry is recovering from a cataclysmic shift.  After a year when sales dropped more than 30%, we are now entering a “new normal.”  Sales will be 12-14MM units per year for the foreseeable future and competition will be extraordinary.  At a time when manufacturers need differentiated brands more than ever, most are weak.

Now is the time for the manufacturers and their agencies to do the kind of work that builds and differentiates brands, engages people emotionally and builds value not only for the companies but also for their customers.

Let’s do it now, so that people are inspired to buy our products.  We’ll all benefit, the manufacturers, the agencies, the economy and the customers.

That way when “Art & Copy II” is in theatres near us, the auto industry will not only be featured, but also held up as an example of greatness.

Please let me know what you think….

There has already been plenty written about the impact of this on Toyota’s brand reputation.  It certainly is going to set them back, some pundits say it’s a “speed bump” for Toyota, others say the situation will effectively “kill” the Toyota brand.  I suspect that the “truth” will be somewhere in the middle, the Toyota brand has been damaged, it will take a good deal of time and effort to recover, but it will recover.

Rather than debating the current health of the Toyota brand, I’ve been thinking about the discipline of branding in the automotive category and what its practitioners can learn from Toyota’s experience. Certainly the need to manage the media and to do so in a transparent way is critical.  Time is of the essence, the internet can take your reputation and spin it out of control in a heartbeat.  Beyond the crisis management learnings, I think that we are seeing the danger of having a brand that is based solely on rational underpinnings.

Toyota’s reputation for bulletproof quality and reliability is a completely rational positioning.  Combine that with bland design and you have automobiles that many in the industry deride as “appliances.”  Consider your refrigerator.  It sits there, does its job remarkably well, demands no attention at all…unless it breaks and then it’s a disaster.  Sounds like a Toyota.  As long as nothing goes wrong with your refrigerator, you will probably remain likely to purchase the same brand again, if you have problems you will defect to another brand.  Ultimately, this is how Toyota will measure the strength of its brand…how many customers defect.

Unfortunately for Toyota, it is very easy for customers to defect from a brand that makes a very rational promise that is subsequently broken.  Bullet proof quality and reliability is a wonderful promise until you break it and you have nothing else to act as a backstop while you solve the product problem.

The backstop for some brands is an emotional connection and promise that is made along with a rational promise.  Volvo’s safety positioning is a classic example of both rational and emotional components working together.  Volvo certainly has all the engineering and technologies (rational) that support the promise of a safe car but it also promises us the peace of mind (emotional) of knowing that we’re keeping our loved ones safe:

Volvo is certainly not immune to product quality problems but their customers don’t immediately defect at the first sign of trouble.  Volvo customers will give their brand a break because they believe in their hearts that their Volvo keeps their family safe. Talk to anyone who has owned more than one Volvo and you will feel their commitment to the brand first hand.

Subaru is another example of an automotive brand that is built on both emotional and rational promises.  Nothing could be more rational than the benefits of all wheel drive but that’s not all that is at the core of Subaru.  Subaru promises to help people live their lives the way they want to and in return they “love” their Subies:

How about this for carrying the emotional promise of the Subaru brand to the retail level:

Subaru has certainly gone though a few rough patches from a product point of view but their loyalists have signed on for something bigger than dependable all wheel drive, they share an emotional bond with the Subaru brand and its community.

There are other automotive brands that have connected emotionally with customers. Mini, and Audi are good contemporary examples.

I think it’s interesting that three of the brands with strong emotional connections mentioned so far (Subaru, Mini, Audi) came through this last recession with strong sales and share gains.

Historically Mercedes-Benz, BMW, Chevy, SAAB, Saturn, Honda, Cadillac and others have had strong emotional components to their positionings.  Unfortunately, for these brands it seems less true today.

Toyota has never been a brand that people connected to in an emotional way. Toyota customers aren’t passionate about the brand, they have always been rational about purchasing Toyota quality and reliability.  When quality is lacking and reliability questionable, there is nothing left, there is no overriding reason to stay with Toyota.  In a category where quality and reliability have become virtually a given, consumers were well aware that they had options and they quickly helped VW, Ford and GM have an excellent January.

Toyota has proven something that many of us responsible for marketing automobile brands have always known…the most powerful and durable automotive brands are those that are clearly positioned with both rational and emotional underpinnings.  The brands that stand for something and connect with their owners emotionally create enthusiasts and tribes of loyalists around them.  These brands’ customers give them a break when things don’t go quite as planned.

Admittedly, no amount of emotional connection is going to overcome Toyota’s serious product issues, but I do think that it buys you time and gives you a chance to make “good” on your brand promise.  It also creates the possibility of your loyalists defending your brand, there seem to be precious few actually defending Toyota.

In the “new normal” US auto industry with sales in the 11MM-13MM range, the successful brands will be those that create an emotional connection with their customers.  The lack of this emotional connection has left mighty Toyota vulnerable and opened the door to its competitors, including Volkswagen which has unabashedly stated its goal of being #1.

It will be interesting to watch Volkswagen.  In Ad Age on August 24th, as their agency review was getting started, Tim Ellis (VW CMO) said:

“Our goal of rapidly increasing our volume in a mature market requires the Volkswagen brand to evolve into a more relevant mainstream choice,”

I hope that becoming a “more relevant mainstream choice” doesn’t result in VW making more mainstream (sic boring) products and losing the emotional power that the brand has historically leveraged.

After all, no one loves their refrigerator.

He posits that one of the issues with “branding” as a marketing discipline is that we lack an agreed-to definition, which subjects it to interpretation based on circumstances or agendas.  He closes by saying that agencies and marketing services firms need to more tightly define branding:

“If we don’t address this, we could be perceived as an industry made up of people who don’t know how to define what it is they’re not supposed to do.  As Grouch Marx would have told us, ‘These are my principles; if you don’t like them, I have others.”

Leaving aside the issue of agency credibility, the automotive industry needs to dedicate itself to building or re-building its brands. Manufacturers who do will succeed in the hyper-competitive “new normal” automotive marketplace, while those who don’t will languish.

The automobile business has traditionally had a shaky relationship with the idea of “branding.”  Programs designed to define or position the “brand” are often perceived as the “soft” part of automotive marketing.  This perception is in contrast to the marketing specifically designed to drive traffic to the stores or in industry parlance “make the doors swing.”  Often manufacturers feel that they have to choose between “branding” and “retail” and more than often than not they choose retail.

I think that part of the problem with the discussion of “branding” in the automobile business is that it most often devolves into a discussion of advertising, as in “this is a brand ad, that is a retail ad.” Brand ads are the ones that attempt to speak to a company’s “values” whereas retail ads feature “product, place and price.”  This either/or conversation is specious and has led the industry to it’s current situation, products that are perceived more like commodities and customers who focus on pricing.

Let’s be clear, in the “new normal” automotive market the traditional brand vs. retail discussion is a path to commodity status, decreased sales, decreased profitability and the loss of already weak brand equities.  The truth is, every successful automotive competitor will do both jobs, build brand leverage and make the doors swing.

The marketing conversation needs to start in a different place and I agree that it needs to start with a definition of what we mean by “brand.” While I’m sure there are more complicated answers to the brand definition question, I would like to suggest that the automobile industry would be well served by a simple approach.  A great automotive brand is a promise made and kept.

Nothing new here, right?  The idea that a brand is a promise made and kept is as old as the hills.  Defining what we mean by brand is pretty straightforward, the hard part is figuring out what a particular brand’s promise(s) is/could be and then making sure that it is “kept” at every consumer touch point consitently over many years.

Certainly the execution of a brand promise is more complex than ever, there are literally thousands of consumer touch points (ranging from the internet all the way through to the dealer salesperson). That’s why it is so critical to make a commitment to a promise(s) and not waver from it.  Our industry has several notable brands that lost sight of their promise and have been forever weakened (Volvo is a great example, even mighty Mercedes-Benz is not as well defined as it once was).

Toyota is currently battling a product quality issue that has resulted in recalls and the extraordinary step of stopping production and sales of eight models.   This is an assault on Toyota’s promise of quality and reliability.  How Toyota handles these recalls will define their brand going forward, will they handle their customers in a high quality, trustworthy (reliable) fashion?  If they do, they will build their brand, if they don’t they will break their promise to their customers and the brand will be weakened.

The brand promise should drive everyones’ behavior, from the dealer’s Service Tech all the way to the CEO (including agencies and other vendors).  Everyone is responsible for representing the promise and keeping it.  Of course, marketing must be charged with making the promise clear and demonstrating that it is kept.  All of this is easy to say and very difficult to implement given the overwhelmingly complex marketing environment we all operate in.

But it is impossible to implement if the brand’s promise changes or is subject to revision based on short term needs.  The automotive industry is guilty of thinking that its brand promises are adjustable. This is like saying to your angry significant other whom you told that you would be home at 7pm and you’re 45 minutes late: “I didn’t really mean 7pm, I meant around 7pm so I’m really not late.”

Promises consistently made and kept build trust, promises broken destroy cedibility.  Automobile manufacturers need to get clear about the promises their brands are making and then create alignment with all constituents responsible for keeping the promise.

The companies that dedicate themselves to making a brand promise and keeping it will be the long-term winners in the “new normal” automotive marketplace.  Those that don’t will be destined to commodity status with pricing as the only differentiator.

No one expects that the automotive industry will achieve the heady sales levels of the early part of this decade.

“By 2013, car and truck sales in North America will rebound to the new normal rate of 15 million to 16 million units”  Automotive News 8/5/09

At best, we will attain a “new normal” of 15-16MM units in 2013.

That means that competition for customers is going to be tougher than ever and no one’s business is going to grow just hanging on to the industry coattails.  Historically the manufacturers have reacted to these types of circumstances by using incentives.  These tactics artificially inflated sales earlier in the decade, pulling sales forward and contributed to the most recent “correction” that has pummeled the industry.  Using short-term incentives to steal share is not the answer to long-term prosperity, it’s merely a tactic that gives a franchise a quick shot in the arm.  Establishing a brand’s immutable points of difference and creating consumer affinity for it, is what creates value over the long term.

Last week, BusinessWeek published a piece by Ed Wallace about GM making the same mistakes; in it he made the case for branding:

“True, people want a “deal” when they buy a new car. But more important, they want to buy something exceptional….The automotive selling process, done right, has little to do with negotiation: It has everything to do with building value in the vehicle.”

It’s about time the industry took “branding” seriously.

You only need to look as far back as the last eighteen months to see the power of an automotive brand.  Subaru and Mini have survived the recession and some would argue have flourished under incredibly difficult circumstances while virtually every other manufacturer suffered.

The automobile industry has not made building and nurturing its brands a priority.  There are some exceptions like Subaru, Mini, Porsche, BMW, Mercedes Benz and Jeep.  But generally speaking investing in the brand has been the first thing cut by automotive marketers when things get tough.  The brand investment gets cut in favor of marketing efforts that will “make the doors swing.”  Frankly some of the above-mentioned brands have weakened in recent years, but clearly the marketers in charge of them have historically recognized the leverage created by a well-understood brand.

The first step toward having a well-understood brand is being able to clearly articulate it.  This is not a tagline or even a series of “core values,” both these approaches seek to summarize a brand.  The first step is a complete and full articulation of the brand, several pages perhaps, that explain its history, beliefs, behaviors, accomplishments, failures and contributions.  This document seeks not to summarize a brand’s essence but rather to capture it in detail; it describes the brand’s character, what makes it authentic.

The process of writing it down is critical.  A consultant friend used to say that: “nothing exists until it is spoken.”  In this case, if you can’t write this document about your brand, then you don’t have a brand.  Often it can help to have an “outsider” write this document, if you allow that person full access to your company and your people.  Either way, you need to articulate your brand in depth and in full, as it should form the underpinnings of all that you do.  It should drive communications, your use of social media, dealer experience and everything in between.

With this document in hand, you are ready to leverage your brand and give your customers the experience that will differentiate you from the competition.  Without it, you’re grasping at straws, hoping that somehow everything comes together.

In the hyper competitive “new normal” market of 12-16 million units, “guessing and getting lucky” will not carry the day.