Why No One Believes GM, Ford and Chrysler Deserved Bailouts

Months ago, I published a post on another blog I write for about the fate of GM, Ford and Chrysler.  I received a lot of negative comments on that post from people who disagreed with my assertion that mismanagement brought about the failure of the Big 3 U.S. auto manufacturers — specifically, focusing on short term gains rather than long term strategy. It’s a trap that executives and managers everywhere fell victim to as stockholders demanded double-digit growth year after year.

There’s a reason why GM, Ford and Chrysler found themselves circling the drain.  I think this chart says it all.  The only surprising thing is that GM, Ford and Chrysler survived as long as they did before they tanked.

The lesson for marketers to learn is this — don’t be the blue lines in this chart.  It shouldn’t take a decade to make the necessary changes to reverse those market share trends.

Create Loyal Brand Advocates – 7 Steps to Advertising Success

My latest article on Entrepreneur.com is called Create Loyal Brand Advocates – 7 Steps to Advertising Success.

In the article, I discuss the seven steps that businesses need to understand and follow in order to develop a long term, successful brand building strategy supported by effective marketing communications.  Follow the link above to read the complete article.

Read more marketing and branding articles by Susan Gunelius.

The Gap Between Chrysler, GM and Toyota

Why are Chrysler and General Motors struggling to stay afloat while Toyota, which has not been immune to the economic downturn, survives?  In case you’re unsure of why such a huge performance gap exists between U.S. auto manufacturers and their Japanese competition, check out these headlines from the Associated Press and Reuters today, which explain it very well.

Chrysler Rolls Out SUV After Government Scolding – Chrysler’s big reveal at the International Auto Show was a new Jeep Grand Cherokee.  Not what the government wants the company to be spending time and bailout money on.

Chrysler President - 30 Days Enough for Fiat Deal – Is Chrysler’s rushed attempt to partner with Fiat to provide smaller cars to U.S. consumers a case of too little, too late?

Three Bidders Left in Hummer Auction - GM finally caught on last summer that they needed to unload the gas-guzzling, environment-hater Hummer brand.  10-months later, three bidders are interested, one has been turned down, and the clock is ticking on GM’s fate.

Toyota Banks on Tiny, Green but Pricier IQ Model – Toyota’s hot pick at the International Auto Show was the super small, 56-miler per gallon Toyota IQ.  In the words of Toyota Senior Managing Director Yoichiro Ichimaru (from the AP article), “Only cars that contribute to economic growth and the betterment of society can hope to succeed.”

Is it any wonder Chrysler and GM have fallen so far behind?  The disparity is mind boggling, and they still don’t seem to get it. 

Image: Flickr

Brand Transparency – A Conversation with Alan Siegel of Siegel & Gale

Last week, I received a copy of Siegel & Gale’s report, “Siegel & Gale Simplicity Survey: A Clarion Call for Transparency.”  If you know anything about me, then you know that I am a big advocate of simple, clear and straightforward marketing messages and using common sense in marketing.  I’m anti-shock advertising and hard sales messages.  Consumers don’t have time to translate corporate rhetoric to try to figure out what you’re telling them.  If you don’t get your message across quickly, you’ve wasted your time and money.  Never has the need to be transparent been more crucial than it is during an economic downturn when consumers are actively searching for honest companies to do business with. 

Reading the report by Siegel & Gale put hard numbers around much of what I always preach to clients.  In short, consumers want simple language, honesty and clarity from brands.  After reading the report, I was lucky enough to secure a few minutes of Alan Siegel’s, Chairman and CEO of Siegel & Gale, time to talk about his position on simple and transparent marketing. 

I asked Alan what steps companies should take first to reposition themselves as transparent.  His response was to focus on the inside first.  In other words, policies must be set for developing clarity.  He indicated that much of the information companies provide to employees (and customers, for that matter) is self-serving with little personality. [Read more]

PETA Rebrands Fish as Sea Kittens

In another disasterous marketing move, PETA further uses its non-inclusive brand strategy to alienate people who eat fish.  Although those people might very well support other causes PETA fights for, they’re not welcome.  You can check out this post to learn more about that issue, but today, let’s talk about PETA’s idea to rebrand fish as “sea kittens” with the hope that a cute name for a species lower on the food chain will cause fewer people to eat it.  

Why not?  Tuna is already known as Chicken of the Sea.

I couldn’t help but think of that line from Seinfeld when I heard about this one, “It’s gold, Jerry. Gold.” 

Of course, you know I’m being sarcastic.

I do wonder though why PETA stopped with sea kittens.  Why not sea gerbil for shrimp or sea bunny for lobster?

Your thoughts?  Oh, and if you want to read about PETA’s reasoning and defense of its rebranding attempt, and read some really amusing comments from children and members of the fish and wildlife industry, you can follow the link to read the full article on NPR.org.  It’s worth a laugh, but I don’t think it’s going to help PETA very much, and I say that as a person who doesn’t eat fish.

By the way, do you think if the bird and snake in the above pictures knew they were eating sea kittens they’d still eat those fish in their respective claws and mouth?

Images: Flickr 1, 2

2009 Cadillac Escalade Hybrid – No Wonder U.S. Auto Companies Need a Bailout

If you had any question in your minds that U.S. auto manufacturers are completely clueless, the 2009 Cadillac Escalade Hybrid from General Motors will certainly make it clear that these companies do not deserve a bailout.

At $72,000, the 2009 Cadillac Escalade Hybrid is probably meant to say, “Look at me!  I’m rich and I care about the environment.  Aren’t I wonderful?”  However, when I see this car, I think, “Look at me!  I leased the heck out of this car and now the bank is foreclosing on my house, and I hate the environment but this car makes me feel a little bit better about it.”

The new 2009 Cadillac Escalade Hybrid improves fuel efficiency by 50%.  That means the Cadillac Escalade Hybrid gets a huge 21 miles per gallon!  What do you think?  Does GM deserve a bailout?

There is simply no doubt that U.S. automakers still don’t get it.  There’s a reason why the Toyota Prius is growing more popular everyday and large SUVs are being traded in for smaller cars.  Why can’t U.S. auto companies figure it out?

Update: The 2009 Cadillac Escalade Hybrid has been named to the Yahoo! Finance Best and Worst of 2008 list as the worst car of 2008.

Image: General Motors

11 Phrases that Destroy Brand and Marketing Innovation

I wrote a post for Corporate Eye today that I want to share with my readers on KeySplash Creative Conversations as well.  It’s called 11 Phrases that Destroy Brand Innovation. 

In the post, I share 11 of those phrases that anyone who has ever sat through a corporate marketing meeting is sure to have heard before – probably too many times to count. 

Here are a few of my favorites:

• Nobody wants that.
• We’ve already tried that.
• Who’s going to take the blame if it doesn’t work?

Take a look at my post on Corporate Eye and share your additions to the list of phrases that destroy brand or marketing innovation.  Or leave a comment here on KeySplash Creative Conversations with your brand and marketing innovation killers. 

Come on.  You know you have some to share!

Image: Flickr

Time for a PETA Marketing Strategy Shift

I was reading Branding Strategy Insider today, when I saw a post by Mark RItson about the need for PETA to re-invent its brand strategy.  I found the post to be incredibly timely as I had the opportunity a couple of weeks ago to provide my opinion to PETA about how I thought their marketing strategy has to change for the brand to remain relevant and the organization to make a difference in the future.  Here is what I wrote to PETA:

As a marketing and branding professional, I am not a proponent of shock advertising, which I think PETA has a history of relying on.  I believe there are far more effective methods of communicating messages and shock advertising provides short-lived bursts of awareness but little for long-term ROI.  Additionally, I think the celebrities who endorse PETA aren’t always the best for the PETA brand [e.g., Pamela Anderson].  PETA has a reputation as an all or nothing brand.  In other words, people view PETA as a bit of a cult, “either you agree with us 100% or you’re out.”  I think with a more inclusive approach and message, more people would be supportive of PETA and animal rights would become a less trendy cause (sort of how supporting the environment was in the late 1980s/early 1990s) and more mainstream.  [Read more]

HP on the Right Digital Marketing Track if CMO Has His Way

I found a snippet of a presentation by HP CMO Mike Mendenhall on AdAge.com today that I have to share.  If you haven’t seen it yet, follow the link above and check it out.  Mendenhall took the words right out of my mouth.  If you ever read my old branding blog, Brandcurve.com, then you know I’m a big proponent of integrating digital media fully into your marketing plan and leveraging consumers to grow your brand through digital media.  Those are exactly the points that Mike eloquently makes in his presentation at the recent ANA conference.

In his speech, Mike redefines brand strategy as something that has to be nurtured among consumers rather than an image or message companies can dish out to them.  He also notes that ad agencies still don’t get it when it comes to integrating digital media completely into marketing strategy.  Take a look at the 3-minute snippet from his speech then leave a comment and share your opinions on branding, marketing and digital media.

Image: Adage.com