The Relevance of Motown

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Not the record company. The Motor City. That's the question Detroit and the Big Three General Motors, Ford and Chrysler need to ask. What's the relevance of Motown? Obviously, their ridgid adherence to styling queues didn't do enough to set Oldsmobile apart. Oldsmobile's now extinct. So why'd they stick to portholes at Buick? Same reason. Dogma. Which is why portholes are still potholes at Buick. And when you see those portholes glued to the front quarter panels of some old import car you know they've given your brand equity the kiss of death. So what is the relevancy of brands such as Buick? Hopefully, the news of the auto maker's brands demise is premature. But the answer isn't in price. Once you trade on price your brand equity sinks so low you have to climb up a ladder to get to the bottom. And the US auto industry habitually throws promotions all the time - further decreasing their value. Now we can't get the credit even if we wanted to make a purchase. Quality, dependability, design and styling, J.D. Power Customer Satisfaction Surveys, Road & Track, Car & Driver and other media recognition, annual auto shows, all hype. And the only junkie who's hooked is our own US auto industry who continue to believe they can make what they want and use advertising to continue to convince us it's what we need.

Detroit's real salvation is in the identification of a Product Potential so relevant and meaningful to consumers that we'd mortgage our homes to buy their products. It's merely not sufficient to trot the "buy American" motto back out of mothballs. We've been there and done that. But as Procter & Gamble learned through Folgers it is possible to kick the habit. As all food and beverage manufacturers believe, we buy their products for taste, or flavor and aroma. Sometimes convenience. But that bar's too low. Of course you taste good. Otherwise I'll become a trier/rejector. But what is more relevant to heavy ground roast coffee consumers is "control." The best part of waking up is that stimulant in their cup. It helps them think earlier. They take flavor for granted.

And that's what Detroit needs to do. Realize that everything it says and does is taken for granted. Now give us a selling dimension that's more relevant to the US car buyer. It's all a matter of seeking out and finding that answer through the process of Perceptual Innovation. How you change the way we all think. Another "halo" new product just won't cut the mustard. We take 'em for granted.

And if they can't do it maybe they should hire Motown Record's founder Barry Gordy. At least he can identify a hit. He didn't make black music. As he said the other night, he makes music for everyone.

Memo from General Motors

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I received a note the other day from Maria at General Motors asking me to go visit GM Dealer showrooms and see if that doesn't cause me to reassess my position on the troubled car company, at present, living solely on borrowed time. Here is Maria's letter:

I work for GM, and wonder if you've visited a GM dealership recently? If not, I encourage you to test-drive award-winning vehicles like the Chevy Malibu, Buick Enclave and Cadillac CTS. Take a look at the photos of the upcoming Buick LaCrosse, Chevy Equinox, Cadillac SRX and the Cadillac Converj concept shown at the Detroit auto show last week. Vehicles like these have been extremely well received by the media and consumers, and are created for people who care deeply about beautiful design, reliable performance and fuel efficiency.Your reasoning suggests that if you're not number one, why bother. So should Pepsi slink away into oblivion because it hasn't caught up to Coke? By the way, GM led the U.S. auto industry by 750,000 vehicles in 2008, and is No. 1 in China, the world’s fastest growing market. But, eh, who’s counting, right?

So Maria, it sounds like you are another one of those corporate "younglings" (isn't that what George Lucas dubbed young Jedi in training in Star Wars - heads down, eyes covered, weilding light sabers blindly?). Maria, save yourself and don't deliver the same line I've heard from every generation of management at GM, and many other companies, for each of the last 40 years. The cars are no different and the ads all sound the same - perfect evidence that nothing's changing at GM, Ford or Chrysler. Yesterday I heard an ad about how I should buy a Cadillac because it's the product President Barak Obama is driven in.

Maria, do you have one of those coffee cups on your desk with the handle inside the mug? If you do, you will find the words "bass ackwards" imprinted on the inside bottom when you finish your coffee or tea. GM (and Ford and Chrysler) you've got it all (as Sean Connery would say in the Hunt for Red October) all wrong. You don't make what YOU want then use dealers, PR and advertising to tell us it's what we want. It's bass ackwards and all wrong.

How easy it is to turn potentially bright minds to the dark side and away from the force (known as Common Sense)

Thanks Maria. But I did visit GM dealerships yesterday anyway, and what I found did nothing to change my mind. I am what you now call a trier rejector. All I found was this year's version of last year's news - which for example is why portholes remain potholes at Buick and why Pontiac's positioning continues to suffer from pubescent development lag disease. (Pontiac is still making cars for adult teenagers who never matured mentally. In terms of age they may be adults but in terms of what appeals to them, they are old tweens. The experience? Completely uneventful. And no wonder. It takes about 5 years to get a car from concept to production/3 years on the fast track. Since GM was on the skids, a position well hidden back then, what's on the floor now and for the next couple of years will be, well, ho hum. Guaranteeing that the government bailout money will run out well before GM effects a turnaround - making it even dumber for ex-President Bush to give them some pocket change in the first place. I'd start sending out my resume Maria.

What's GM's best option? Stop manufacturing cars. License the names Toyota wants to Toyota. Let Toyota manufacture and market the cars and GM can collect a fee. This way, GM can cancel all the union contracts and the workers can earn a decent $48 an hour working for Toyota rather than the $78 at GM. Let GM and Mr. Goodwrench snap up hundreds of Jiffy Lube locations across the country and provide maintenance services. Like the name says, General Motors products are well, just too general, but I think they can do repairs on commodity vehicles very well. I've always liked their service and parts people anyway. GM hasn't done much to devastate my perception of them.

What's my solution for the US auto industry Ford, GM and Chrysler? Lump the three companies together in one company, get rid of the CEOs and Boards, bring in Costco's Jim Sinegal to manage the companies and make certain that the products offered meet Kirkland's brand standards. Sell the cars through Costco as well. No one likes dealerships anymore. By the way, Sinegal isn't a payroll hog either. He's quite humble and effective. And no, I'm not Jim Sinegal's talent agent.

Let The US Auto Industry Fail

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Failure. It's the price General Motors, Ford and Chrysler will have to pay for decades of making what they wanted then trying to make us believe it was what we needed. Don't bail them out. Like children, they got what they wanted every time they asked and they never learned to fend for themselves. There is a book on this called Cornucopia Kids. It's about why so many college graduates end up living back at home.

Many times I presented what domestic and import car buyers said they wanted only to watch the Big 3 go in completely the opposite direction with their ad agencies as strategic partners. Before many a c-suite presentation the head of strategy would whisper in my ear how many friends I had in the room, but that no one was going to save these companies single-handedly. Now there's the death knell of an arrogant corporate culture.

Through many product launch failures these companies had plenty of opportunities to begin again more intelligently...isn't that what Henry Ford said? Instead, they just kept letting history repeat itself and loosing became a habit.

Chrysler's $2.99 Gas Guarantee

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People want to buy products that say smart things about them - but how can American car manufacturers address that need when the price of a company's stock, like General Motors, sells for less than $10 a share? That's not smart - and I don't care how many sharp looking "strivers" and "achievers" you throw into those Cadillac ads and positioning statements under the heading "brand character." Do you want proof that a company's management jumps to conclusions before they jump to the facts? Do you want proof that a company's management does no homework before engaging their mouth? Just look at Chrysler's $2.99 Gas Guarantee promotion. Not only does Chrysler find it difficult to sell cars. Now they're selling gas instead. And once you've sold price your brand equity sinks so low you have to climb up a ladder to get to the bottom. But wait. That's where Chrysler already is. Where is the dramatic turnaround shift? Talking about Chrsler's wonderkind CMO let's quote Casey Stengel who once asked, "Is this all there is, or is this all you got?" Why doesn't each product line have a unique selling proposition instead of generic segmentation? Is it not true that doing the same things the same way and expecting different results is the definition of insanity? Do basics, adventurers and other socio-economic classes of consumers actually see themselves in Wranglers and Cherokees when the stock of American car companies like GM sell for less than $10 a share? The purchase just says, "You're dumb." Years ago my research for GM found people want "to buy products that say smart things about me." Sure, the economy and the housing/mortgage/credit crunch are excuses in combination with the high price of gas - but it's only an excuse - and excuses have to be corrected. I am certain that everything management knows about how to market its vehicles and leverage its brands comes from fine market research processes that gather and measure data. But the trouble with quantifying yesterday is that it does not tell you anything a company needs to know today - at present. As Captain Kirk did in the Kobiashi Maru simulation at Starfleet Academy - Chrysler needs to create new knowledge that does not yet exist to be measured to alter consumer habits and practices and to change the rules of the simulation to win. Except slow moving inventories are not a simulation. Look at this lot. Everyday, we drive past auto malls jam packed with slow moving inventories. Banners proclaim fantastic deals, yet day after day we see the same lots. Why doesn't a dealer get smart and one night after closing remove 80% of his inventory from sight. The next day most of us would think, "Wow! Something's going on. Either there is a blow out clearance sale or the dealer's going bankrupt." The sharks would swim in looking for the deals smelling blood in the water. What a perfect environment and buyer mindset to close the sale. That's what sales people call Jonesing people.

Chrysler Ready To 'Listen' On New Site

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Like they hadn't been listening? As reported in Advertising Age Magazine (http://www.adage.com/) The Automaker is to Recruit an Online Consumer Advisory Panel.

It's not that the online sessions won't be that informative, or that Chrysler won't be doing anything with the information. It's just that all the other auto manufacturers collect exactly the same bits of infomation - promoting a parity situation in which Chrysler will be unable to budge it's distant 3rd position in the market. Typically, this type of consumer input substantively fails to move the sales or market share needle - let alone consumer interest and involvement.

So why does Bob Nardelli keep signing the checks for VP - CMO Deborah Wahl Meyer who is very busy learning all of this for the first time? Does she not know that:

To get ahead, you have to learn things no one else knows. To CREATE THAT KNOWLEDGE you must follow the following recipe to stimulate consumer minds to say things they'd never otherwise think to say.

To invigorate a brand and find out what people want we first sit down and list out over 500 dimensions concerning that product that in every way shape or form impact and influence consumer perception and purchase behavior regarding that brand or product. (Otherwise they just talk about cup holders and places to put their Garmin or Tom Tom.) Once done, the real work begins. Under each dimension; sensory, form, function, usage, image, attitude, price, packaging, delivery system, state changes, reward, escape, heritage, trust, tradition, quality, awards, rewards and many other dimensions only we know of, we bullet point another 500 short phrases per dimension that in every way shape and form impact and influence consumer perception and purchase behavior. When done we will have amassed about 250,000 phrases - many times the number of ideas an advertising agency or company brings to the table in the lifetime of a brand. From this list we hand-select 500 to 1,000 phrases that we put in front of consumers so that consumers can select the phrases they like best and that would compel them to try a product once, and if they tried it and liked it to buy it again. We employ this Consumer-Creativity® as the foundation for the highly-differentiating and salable concepts that result for companies from General Mills to General Motors, Procter & Gamble to Pizza Hut.

Chrysler's Marketing Con Job

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WHAT KIND OF STRATEGY AND ADVERTISING DO YOU GET WHEN THE MINDS OF THE FEW TRY TO COMMUNICATE WITH THE MINDS OF THE MANY?

I was feeling kind of bored by blogging so I hadn't posted much recently. You know, you get tired of watching marketers do the same things at the same companies different ways year after year. But Sunday, I sat next to an interesting gentleman at my daughter's National Junior League Basketball Championship game (yes, we won). Turns out he's the head of finance for Toyota and has to sign off on all this stuff. So he asked me what I did for a living and I told him I could make every $35 marketing dollars work like a $100. We started talking about what was wrong with car ads and decided to pick on Chysler's rebirth led by Deborah Wahl Meyer, VP-CMO.

Her new direction latches on to lifetime powertrain warranties? What's wrong with that? Well, no one really cares. With nearly 70% of all vehicles leased these days i'm going to turn my new car in in 3 to 5 years anyway - not to mention the fact that bread and butter cars like the Accord and Camry are made so well that they don't even break into a sweat by the fifth year. So who would care about a lifetime Chrysler powertrain warranty? Only the very feeble minded. But then again, that's the kind of strategy and advertising you get when the minds of the few try to communicate to the minds of the many. Conclusion: Another case of a marketer failing to do proper consumer marketing homework. That's the kind of stuff that gets me excited again!

Chrysler Chief Sees Link of Housing to Car Sales

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Excuses are all too easy for Bob. Blaming car quality is all to easy for us. In reality, Chrysler's problem is that they are trying to sell today and tomorrow's cars with yesterday's positioning strategies. Bob's position just lets everyone, including execs at the company and their ad agencies off the hook all too easily. Bob talks about "right-sizing" the business. BS. That just gives him an out and lets him set the high water mark wherever he wants to. The guys in the picture don't seem to be buying it either. In Detroit, or any category, speed is expensive, positioning is the highest octane fuel, how fast do you want to go? In all of these years Chrysler has never done the qualitative homework to look at abstract dimensions to find out what really motivates people about its products. Here's what the New York Times had to say.

DETROIT, Sept. 7 — Only a month after taking charge of Chrysler, Robert L. Nardelli is concerned that problems in the housing market and the broader economy are hurting car and truck sales, and he wants his company to draft a plan to respond. Click on the post title to follow the link to the article.

CMO Strategy: Companies Must Lift the Velvet Curtain

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Management Can't Function Independent of Marketing

Wow! This bashing marketers for not having good positioning strategies is becoming a theme!

Face it. Chrysler, like many other manufacturer's, have yet to figure out what truly motivates consumers about its products. If they had, they wouldn't have yo-yo sales trends, and they wouldn't jettison brands, managements and advertising agencies. In the last 50 years, all I've seen is a proliferation of integrated marketing support devices employed which obfuscate the fact that they still have not figured out how to position products to consumers. So these guys are going to continue to sell tomorrow's cars with yesterday's positioning strategies. When are all these guys going to get tired of being the chum for the churn?

If marketing can ever figure out how to get them, let Chrysler manufacturing figure out how to keep them. THAT'S INTEGRATED THINKING THAT BINDS MANAGEMENT AND MARKETING.

Chrysler Appoints Its First CMO

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Lexus Marketing VP Deborah Meyer Gets Nod as Carmaker's New CEO May Slash Ad Budget

She'll be selling today and tomorrow's vehicles with yesterday's positioning strategies. The silent killer of more CMOs every year than any other cause of death. They never even see it coming. Those who want her business will pat her on the back. Those who know will tell her the truth.