Archive for the ‘branding’ category


It’s ‘Chevy’—even President Obama says so

19.07.2010

Dear Chevrolet: even your own nation’s president calls the brand ‘Chevy’:

You might want to rethink that memo.

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Posted in TV, USA, branding, cars, culture, media | No Comments »


What we need from leaders in the new decade: creativity leads the list

22.06.2010

My friend and colleague at the Medinge Group, Ava Hakim, passed on a few papers from her day job at IBM. The first is the latest edition of a biennial global CEO survey, while the second asks the next generation of leaders—Generation Y. The aim: to find out what these groups think about the challenges and goals for CEOs.
   Unsurprisingly, both studies (involving thousands of respondents) had commonalities, though Generation Y placed global awareness and sustainability more highly on their list.
   Creativity, however, is ranked as the most valuable leadership trait. What society doesn’t need, they tell us, is the same-again thinking if we are to make progress in the 2010s. The old top values of ‘operational excellence’ or ‘engineering big deals’ no longer come up top in this new decade.
   Or, as I heard from one gentleman yesterday, we can’t afford to have the sort of ‘experience’ certain people tout, for they do not have 25 years’ experience—they just have one year’s experience, over and over again, 25 times.
   You know I’m going to say it, so I might as well: this sounds like the sort of ‘experience’ some of my political opponents have had, day in, day out. Groundhog Day comes to mind.
   Indeed, the studies indicate that we have a far more complex world, and same-again thinking isn’t going to cut it.
   In the first study (emphasis in original):

Creativity is the most important leadership quality, according to CEOs. Standouts practice and encourage experimentation and innovation throughout their organizations. Creative leaders expect to make deeper business model changes to realize their strategies. To succeed, they take more calculated risks, find new ideas, and keep innovating in how they lead and communicate.

The most successful organizations co-create products and services with customers, and integrate customers into core processes. They are adopting new channels to engage and stay in tune with customers. By drawing more insight from the available data, successful CEOs make customer intimacy their number-one priority.

Later:

Facing a world becoming dramatically more complex, it is interesting that CEOs selected creativity as the most important leadership attribute. Creative leaders invite disruptive innovation, encourage others to drop outdated approaches and take balanced risks. They are open-minded and inventive in expanding their management and communication styles, particularly to engage with a new generation of employees, partners and customers.

And:

Creative leaders consider previously unheard-of ways to drastically change the enterprise for the better, setting the stage for innovation that helps them engage more effectively with today’s customers, partners and employees.

The study also highlights an increase in globalization, especially in developing markets, leading to greater complexity. It also says the most successful leaders are prepared to change the business models under which they operate.
   In fact, the world we now live in demands that our leaders are globally aware, and see the need to compete in a global market-place.
   The implications for this city are that Wellington can no longer afford to see itself as merely the capital of New Zealand or the geographic centre. It is one of many cities that must compete for attention and resources at a global level—which means creating world-class centres of excellence for our industries. Creating such clusters can even help them stay domestically owned.
   The study indicates that the style of leadership is going to be, necessarily, internationalist—which means we can’t afford to have leaders who are monocultural, and fake multiculturalism. This, like any aspect of a brand, must be embodied for real. It doesn’t mean giving up what ‘being a New Zealander’ is; it does, however, mean that we have to be able to communicate with other nations and cultures, seeking advantages for ourselves.
   Innovation is a driver both in terms of internal processes and as a core competence—so leaders had better be prepared to do this. And being closer and more transparent with customers—or in the case of a city, citizens—is something practised by the most successful leaders, says the study. It reminds me of the topics in the first book I contributed to, Beyond Branding—where integrity and transparency were at the core.
   When it comes to the Generation Y study, the results were similar. This table summarizes the two quite well, and notes how the two groups differ:

   I don’t want to be giving the impression that the second study is less important, but realize that some of you are sorely tempted to see me wrap up this post.
   I will say, quickly, that the lessons are clear: the next generation expects leaders to be globally minded and sustainable.
   Chinese respondents in the second study, in fact, valued global thinking ahead of creativity. This perhaps highlights where the People’s Republic, above the other Chinese territories, is heading: looking outwardly first and delivering what customers in export markets want.
   As creativity is naturally a trait among Wellington businesses, it’s nice to know that many are already prepared for the challenges of the 2010s. And some of our most successful names would not have got to where they are without global thinking, even if some have been acquired by overseas companies: 42 Below, Weta, and Silverstripe come to mind.
   However, I can’t see these traits being reflected in politics—and that’s something I hope we can change in the local body elections, for starters.

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Posted in China, New Zealand, Wellington, branding, business, culture, leadership, marketing, media, politics, social responsibility | 1 Comment »


Chevrolet doesn’t understand branding

11.06.2010

After the chaps at Autocar began following me on Twitter yesterday—after all, I had been reading the magazine since it was part of the Ministry of Magazines, in the post-Iliffe days—I noticed a Tweet about Chevrolet asking its dealers to not refer to the brand as Chevy.
   What?
   According to Autocar:

A leaked GM memo revealed: “We’d ask that whether you’re talking to a dealer, reviewing dealer advertising, or speaking with friends and family, that you communicate our brand as Chevrolet moving forward.
   â€œWhen you look at the most recognised brands throughout the world, such as Coke or Apple for instance, one of the things they all focus on is the consistency of their branding. Why is this consistency so important? The more consistent a brand becomes, the more prominent and recognizable it is with the consumer.”
   The document was signed by Alan Batey, vice president for Chevrolet sales and service, and Jim Campbell, the GM division’s vice president for marketing.

Bad example there, Alan and Jim.
   Coke is to Chevy as Coca-Cola is to Chevrolet.
   And no one ever complains of Coke being inconsistent.
   This is the sort of daft thinking that makes any of us brand professional shudder: total amateurs talking about branding—out of their rear ends.
   It’s this lack of awareness of what branding is, inter alia, that started GM down its slippery path—with only a brief reprieve when Bob Lutz, aware of what GM’s brands stood for, was around.
   By demanding that Chevrolet people not refer to the brand as Chevy does the exact opposite to what brand experts and marketers recommend today: to be one with the consumer.
   I can understand if Chevy was a very negative word, but it isn’t. It’s an endearing word and it does not create inconsistency with the full Chevrolet word. It complements it, connects the brand to the audience, and, perhaps most importantly for GM, builds on the brand’s heritage.
   After all, Chevrolet itself has encouraged the use of the Chevy name for decades in its own advertising—including during its heyday. Omitting the use of Chevy instantly cuts many Chevrolet connections to its stronger past. And that’s a past that can be used for internal brand-building and loyalty.
   There was even, formally, a Chevy model in the 1960s—the line that later became the Nova. The Chevy II nameplate even continued in GM in Argentina in the 1970s.
   The Chevy diminutive is used in many countries where the brand is sold, including South Africa, where it was once as local as braaivleis, rugby and sunny skies.
   Maybe GM can’t afford the same branding advice it used to—in which case it might be better to shut up than issue memoranda that can be ridiculed so easily.
   Or get Bob Lutz back again. One month after retirement, and the natives have lost direction again, Bob.

PS.: From Robin Capper on Twitter, who sums this blog post up in 140 characters or fewer: ‘Poor Don McLean: “Drove my Chevrolet to the levee, but the levee was dry” just doesn’t work’.—JY

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Posted in USA, branding, business, cars, culture, marketing | 1 Comment »


Volvo Cars, a unit of Zhejiang Geely Holding Group Co.

31.03.2010

I haven’t missed the sale of Volvo to Geely, but it wasn’t as momentous as the rebirth of Saab. We knew the deal was coming and the rest were formalities.
   The company has said there will be no Geelys badged as Volvos and vice versa. It recognizes the Volvo brand is too valuable to tinker with—something Ford did, too, even if it starved the company of smaller models that could have helped kept its market share strong in Sweden.
   Important for Geely is the innovative technology that Volvo possesses that could make the younger company a world-class player. It’s common knowledge that Volvo provided Ford with some of its better present platforms, and that as a centre of excellence, it worked on safety systems for all Ford units.
   Geely gets access to the lot, which improves its own product—while arguably helping Volvo realize economies of scale in the Red Chinese market. It only sells a seventh of what Audi does in the growing market, and Geely could instantly help improve that.
   The deal makes sense. One only needs to take a look at how quickly Geely has grown in China—without pirating others’ designs—to know that it’s not in the business of asset-stripping or ripping off its Swedish unit. Of the Chinese firms, it’s operated far more ethically than, say, BYD, with its too-close-to-Toyota designs.
   And will we see Geely outside China? You bet we will—but only when the cars are up to snuff. If Ford can build a Taurus on a Volvo S80 platform, then look out for world-class small- to mid-sized Geelys hitting international markets on future Volvo ones.

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Posted in China, Sweden, USA, branding, business, cars, design, marketing | No Comments »


The rise of the city brand

17.03.2010

I don’t have the other writers’ permission to show their side of this Facebook dialogue, but we had been chatting about growing the creative clusters here in Wellington as one of my mayoral policies.
   I wrote:

Mostly by focusing on growing creative clusters and taking a bigger slice of the cake. So it is not from technocratic ideas or the notion that we are liberating more of the economy, but by growing entrepreneurship. The city will take the most socially responsible, entrepreneurial start-ups and act as an agent to grow them (with an agreement that they remain in Wellington, of course) and create the capital flows to get them funded. I realize there is Grow Wellington already, but their ambit will be shifted.
   So, it’s economic growth from the bottom–up.

Then (italics added for this post):

The clusters have naturally formed but they can get so much stronger. If the city is being them, then there is no reason Wellington cannot become internationally known for them. I think in this last week I have shown that borders mean very little to me, and anyone who wants to be mayor in the 2010s needs to have a similar mindset. We are not competing just for national resources, but global ones; and by being part of the global community, we might start bridging more communities and getting some greater global understanding. The nation–state as it was understood in the 20th century is dying as a concept, and governments have only themselves to blame. Things are shifting to the individual–community level, and you are right, real things happen when it is people acting at the coal face. Those who distance themselves will not be equipped for this century.

   I wish I could claim I had some vision of the death of the nation–state years ago, but I hadn’t. It was something that dawned on me fairly recently, given the scepticism many people (not just in New Zealand) are having toward their national governments. There are many factors, from governmental misbehaviour to the simple fact of a very divergent population, but very importantly we have the rise of technologies that give rise to people power. We want to know that political leaders are one with the public, prepared to do their bidding.
   People are reclaiming their voices, prepared to tell those in authority what they think. Even without the authority, a few of you have told me what you think—good and bad. That’s the way it should be in a democracy—and if we truly believe people are equal. Finally, we are organizing ourselves into active groups more rapidly than before.
   Nation brands are harder to pull off because some marketers are failing to grasp the overall philosophy underlying their people. In New Zealand, we might accept the “100 per cent pure” ideal of our destination-branding campaign, but surely being a New Zealander is something far less clear—is the Kiwi spirit not in independence, innovation, team spirit and, once that team is formed, taking a punt? Very seldom do we see such unified efforts as the successful ‘Incredible India’, which must have changed perceptions of that Asian country more effectively than any nation branding campaign from the continent. It is, however, easier to understand the concept behind a city, and to gain agreement on its meaning.
   The other thing that is emerging in the 2010s is the rise of one-to-one communications across the planet. We might argue we have had this since the internet first dawned, and we can even trace this back to the first satellite TV links, but this is the decade that these ideas are mainstreaming and available to more people than ever before. Twitter is a wonderful example of the awareness of individuals and the death of national borders (which is why it is feared by certain dictatorial rĂ©gimes): suddenly we are in a community together, fighting everything from copyright law to commemorating the death of a woman during the Iranian election’s bloody aftermath.
   I am reminded of a seminal moment on the Phil Donahue show, where he linked his 1980s, Cold War-era audience via satellite with a similar group in the USSR, hosted by Vladimir Posner. There was a tense, icy moment till one of the Russians stated that if he could reach out across the airwaves and give his American counterpart a hug, he would. Humanity came through.
   Anti-Americanism is a very interesting concept, because the American national image has leaned regularly toward the negative. No more so than during the Cold War, in the USSR. Certain American corporations and lobby groups have a lot to answer for, so you don’t even need to travel back in time to find that hatred. How many times have we heard during the 2000–8 period, outside the United States, ‘I don’t mind the Americans, but I hate Bush’?
   I get plenty of strange looks for my preferring the -ize ending, being told that it was ‘American’ and, therefore, inferior and unsuitable for consumption in New Zealand. I simply point them to the authority I trained with in my work: the Concise Oxford Dictionary. For as long as I can remember, -ize is English and the first variant in that publication. My father’s 1950s’ edition and my 1989 one agree on this point. The use of -ise is French, and it only began coming in to English as a knee-jerk reaction against ‘American English’. But the “wisdom” prevails: if the Yanks (a term that some of my American friends find humorous, since in the US it only applies to a certain part of the population) use it, it must be bad. Look at the Ford Taurus.
   It is a trivial thing to argue about, but it is an example of how silly things get. I get dissed while half the population believe their Microsoft Word default spellcheck and write jewelry. By all means, oppose the technocratic abuse of workers wherever it comes from; oppose those lobby groups trying to wreak havoc on our private lives. If they happen to be in the US, direct your wrath at those groups via email or whatever means you have. On those areas the nation–state is not dead yet—not when we need central governments to safeguard our rights. Or when we need someone to root for in a football match. But for everyday matters, being against any one nation—and I have been accused of Japan-bashing (which, incidentally, I deny)—is futile, because we are now so much more aware of how much individuals in other countries are like us, thanks to all these social media.
   Once we start reducing the arguments down to individuals and groups, we begin taking the nation brand out of it. We begin liaising as a global community. For all the hard times I give Facebook, it has probably done more to give us a glimpse in to foreign countries as “just another place my friend lives in” than any travel show on TV. We begin understanding theirs are lives just like our own. We realize that not all Japanese eat whale meat or even care about it. We realize that many Iranians do not believe that their government has a mandate to govern. We realize some Sri Lankans believe their recent election was unfair. (It is, for instance, hard to imagine things getting more personal than when an arrested opposition leader’s daughter starts blogging.) When we reach out, we reach out to people, not to countries.
   Where is, then, our pride about where we live? I argue—as this whole ‘Wellywood’ sign dĂ©bĂącle has shown—that it resides at the city level. We have a far more homogeneous idea of what our cities stand for, and as we come together and choose to live in any one place, we take into our regard what we believe that city’s assets and image to be. Over time, it becomes a self-fulfilling prophecy. New Wellingtonians choose to make this their home because they see it either as the most creative city in the nation or they are fed up with the excesses of a more northern location. It is, as two of my friends who have left their Auckland home this year put it, ‘more cerebral’. While there have been city campaigns that have been botched—‘I Am Dunedin’ was met by plenty of criticism by Dunedinites—there is at least some understanding among citizens, who feel they need no slogan to unite them. (In Wellington, who has uttered ‘Absolutely positively’ in recent years?)
   So the 2010s are the time of city brands. At Medinge, my friend and colleague Philippe Mihailovich stressed that while ‘Made in China’ was naff, ‘Made in Shanghai’ had cachet. Over the weekend, I joked with one friend over poor French workmanship on the CitroĂ«n SM—though ‘Made in Paris’ would probably do quite well for fashion and fragrance (Philippe has more on this, too). Wellington deserves to be alongside the great cities of this world if we can show technological and creative leadership—and we get willing leadership prepared to understand just how we compare and compete at a global level. We already have the unity as we all understand who we are; we now need the voice.

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Posted in India, New Zealand, USA, Wellington, branding, business, culture, internet, leadership, marketing, politics, technology | 4 Comments »


Trading identities in the personal branding space

05.03.2010

The day the current mayor, Kerry Prendergast, announced her intention to stand for a fourth term, I was asked by a few media colleagues what I thought. The wittiest reply I gave to Salient, as it was an email interview, and I seem to be cheekier in writing than I am in speaking. I won’t spoil it yet, but let’s just say one learns an awful lot from television.
   This morning was a very good start to the day, giving a guest lecture at my Alma Mater, Victoria University, thanks to my friend Helen Baxter, who has begun teaching there. In fact, I taught out of the same building in 2000 when the campus was shared with Massey University, and the A on the front was not mounted backwards (typography students must have taken note by now).
   One thing I hit upon, and I don’t think I have shared with readers, is the concept of personal branding taking on corporate behaviours. We know that corporations and countries have been swapping roles a bit in the 1990s (Wally Olins wrote a book on it, called Trading Identities), but I don’t think it has been properly addressed at the personal sphere (corrections welcome).
   We have corporations trying to look mean and responsive, and speak with a personal voice—the One principles that Stefan Engeseth has talked about, and the idea of one-to-one from Christian Grönroos. They are trying to look like individuals, so the person in charge of the Tweetstream is the “voice” of the organization.
   Meanwhile, people are becoming aware of branding themselves, of differentiating who they are, and finding the right things to align with in order to make themselves employable. Of course, such efforts must still remain authentic, as we can see through the spin, but it would not surprise me if the nascent ideas of personal branding in the 1990s become formalized in to whole courses on personal brand management.
   I refer not just to styling, of course, but making sure embarrassing stuff is taken off Facebook (I believe my words were along the lines of, ‘By all means, party and show you’re human. But photos of you doing a powerchuck: maybe not’), of figuring out what your vision is from a very early stage, of engaging with your audiences, and, if I may be so bold, living your brand as part of living your life.
   The cynic in me recognizes that last phrase sounds dodgy because it cheapens the whole experience of life into a brand event, which is not precisely what I mean. But it is important to have some idea of a personal direction in mind and doing things that are compatible with that. This is, in some respects, no different to some of the self-help claptrap out there, explained in corporate branding language as opposed to spiritual fulfilment.
   However, it’s not altogether a bad way to think. I’m willing to bet some of us have done exactly this, perhaps unconsciously or informally. We all have some purpose, some raison d’ĂȘtre, and whether we like thinking about it in branding terms or some other method is up to us. Brand, at least, provides a framework and some boxes to tick, and if they help people get a personal advantage and get the job of their dreams, then why not?
   Note to self: Keeley Hawes jokes work a lot better with heaps of Brits or Anglophiles in the room.

PS.: I got one post-lecture question, to which the answer is: yes, I am the guy opposing the liquor ban.—JY

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Posted in New Zealand, Sweden, UK, Wellington, branding, business, humour, marketing, politics | No Comments »


Saab promises new generation of cars will have original DNA

26.02.2010

Rumour has it that the new Saab—a small car (finally)—will resemble the ur-Saab, the 92. In fact, inside Saab, it has the codename 92.
   Where have I heard this one before? I know. Stefan Engeseth’s Detective Marketing, 2001 edition. And from what I understand, since in 1999 I could not read much Swedish, it featured in the original Swedish edition, too.
   While I am no fan of retro design, a modern one that has strong inspiration from Saab’s roots could go down well with the market—especially if the new 9-1 model had some advanced, non-fossil-fuel powertrains.
   A car tied to Saab’s roots as an airplane manufacturer could reinvigorate passion for the brand in the same way as the Jaguar mascot unveiling under John Egan in the 1980s. And new boss Victor Muller, CEO of Spyker, has wasted no time getting Saab loyalists excited about the brand again. He has not set his sights on brand-new customers: he wants the old Saab buyers back.
   While it might have Opel underpinnings, it at least gets Saab into the European premium compact car game, one which GM denied it, probably due to overlap with its mainstream brands. It was an opportunity missed as BMW, Audi and others broke in to the compact and supermini game.
   I know at least one Swede who finds Muller’s promises exciting, and I sincerely hope to be proven wrong when I expressed doubts about bringing a 40,000-sales-per-year company back from the brink. Below is the announcement of Spyker finalizing its purchase (via Detective Marketing).

   When he talks about ‘DNA’, Muller really means brand: it will rediscover and redefine that brand and its entrepreneurial spirit, using it to fuel the corporate culture, and having that drive product quality, R&D and other functions. If he succeeds in reaching his 100,000-per-year goal, then we can say that brand loyalty was a huge driver.
   His first announcement alone has been praised, Saab’s 100-day plan gives distributors and loyalists some certainty, and the folks in this video actually look enthused—already this is not like a tired, Rover-style attempt at getting the company back on its feet, even if the annual sales’ figures are far worse than what the English company had prior to its collapse.

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Posted in Sweden, branding, business, cars, culture, design, leadership, marketing | No Comments »


Beyond Branding Blog removed from Blogger today

23.02.2010

As of tonight, the Beyond Branding Blog, where I first cut my teeth blogging, is no more.
   The posts are still there, but no further comments can be entered on to the site. The nearly four years of posts remain as an archive of some of our branding thought of that period.
   The blog had a huge number of fans in its day, but as each one of us went to our own blogs, there seemed little need to keep it going. Chris Macrae and I were the last two holding the fort in late 2005. Since January 2006, no new posts have been entered on to the site. No new comments have come in a year.
   Google’s announcement that it would end FTP support for blogs in May spurred me into action, and I advised the Medinge Group’s membership this morning that I would take it off the Blogger service.
   I altered the opening message to reflect the latest change.
   I was very proud of the blog, because it was the first one I was involved in. It was also the first I customized to match the look and feel of the rest of the Beyond Branding site, which I designed in 2003. While the design is one from the early 2000s, it has not dated as much as I had expected.
   Beyond Branding’s core message of transparency and integrity remains valid, so while the blog is no longer updated, I think the book remains relevant to the 2010s.

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Posted in branding, business, design, marketing | No Comments »


Wellington wants free wifi

17.02.2010

While I’ve been a LinkedIn member for many years—my LinkedIn ID has six digits, which gives you an idea of how long ago—I have to confess that I did not browse the brilliant Wellington, New Zealand group till quite recently.
   And free wifi is being talked up there, too, as something Wellingtonians genuinely want.
   We hear from expats who feel Wellington needs this as a major city, from Wellingtonians who believe this would be great for growing business, and from some concerned citizens who wonder where the money comes from.
   Fortunately, two of the posters there have experience in the wifi space, and can attest to the fact that the infrastructure already exists. As mentioned on my mayoral campaign site, we can make this profitable for the city. Secondly, it will provide an additional avenue for Wellington businesses to be found.
   Indeed, one of these experts notes that it was exceedingly rare for anyone to go mental over downloading things; in any case, I propose there will be a daily data cap on the service.
   When I made wifi one of my core issues last year, I knew instinctively it would be right for Wellington.
   I don’t live in a bubble, and I’m not part of the political Ă©lite. Which means I haven’t learned how to distance myself from the needs of Wellingtonians. I’ve been engaging with people for a long time with an eye on this campaign. Anyone with one’s pulse on the city knows that free wifi and new jobs are things that a world-class city needs—and I firmly believe Wellington is potentially world-class. I would hate for us to miss the opportunities that are before us right now, which can catapult us into the big league to become one of the world’s great cities.
   As those of you who came out to the two Asian Events’ Trust shows at TSB Arena in Wellington over the weekend know, I have returned to our shores after a wonderful trip to Europe. The warmest it got, I should note, was 2°C, which makes even a foggy, overcast day like today seem dreamy. (The coldest was –15°C.)
   Some of the conversations I had in Sweden still can’t be revealed yet (this isn’t about transparency—this is about legality), but I was there studying some benchmarks for transportation and the environment. I want Wellingtonians to know I travel on my money and I use the opportunity to benefit my city. I don’t miss these opportunities. (And yes, I was in KĂžbenhavn, too.)
   As some of you who have followed my career know, I am not talking about incremental improvements.
   After all, as early as 2001 I was talking about Fair Trade and social responsibility. By 2003, I had talked to the United Nations Environment Programme and convinced them that the best way of making environmental issues cool was to mainstream them through the world of fashion and celebrity—and Lucire’s partnership with them was born. The same year, we at the Medinge Group decided that Beyond Branding should be a Carbon Neutral book. The previous decade I was doing everything from web publishing (1993) to launching the country’s longest running online fashion title (1997).
   So when I talk about these ideas in Sweden, I am talking about game-changers that can benefit Wellington.
   You have to be a few years ahead of your time, given what politics is like. No one who seeks public office can afford to be reactive or behind the times. And I hope that in the last 23 years, I’ve managed to demonstrate a fairly good record of identifying the next big thing.
   And I owe a debt of gratitude to my good friend (and one of Sweden’s outside-the-box marketing thinkers) Stefan Engeseth for arranging my speeches and meetings. Thank you for entrusting me, Stefan, for being your first speaker in your Unplugged Speeches session—it was an extremely good, interactive morning. It’s not every day I get to interact with someone who works for NASA. (If you thought I was good, you should see speaker number two, who has a Ph.D. and is very easy on the eyes.) But mostly, thank you for inspiring me even more, because you, too, always seem to be a few years ahead of the game.
   As to France, the other country I spent heaps of time in on this trip, it was an honour to talk at the Sorbonne–CELSA campus with my colleagues at Medinge.
   While part of the Paris trip was occupied by a board meeting and with the 2010 Brands with a Conscience awards, I had the opportunity to discuss my mayoral campaign with the world’s leading brand thinkers in a meaningful, collegial presentation. Medinge, too, is filled with those forward-thinking from people who are nearly always right about their predictions of how the world would look in three to ten years’ time.
   And the session at La Sorbonne was, in my mind, a true highlight—where, again, Wellington got plenty of promotion, and I was able to share some thoughts with a smart, young audience.
   I’ll be letting voters know ahead of time what else was discussed with the Swedish companies, so you can be even better armed when you fill out your ballot forms for the local elections later this year.
   In the meantime, let me give my Facebook campaign page another little plug: click here for more. My heartfelt thanks to all those who have joined and have given me amazing encouragement for this campaign.

At the Sorbonne–CELSA
Cat Soubbotnik

Above At La Sorbonne–CELSA in Levallois. Below Presenting to my Medinge Group colleagues at MIP.

At Medinge Paris
Sergei E. Mitrofanov, copyright

StockholmRight I wasn’t kidding about Stockholm hitting –15°C. It was around –9°C when this pic was taken.

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Posted in New Zealand, Sweden, Wellington, branding, business, internet, leadership, politics, social responsibility, technology | 4 Comments »


Toyota’s troubles stem from forgetting its principles

06.02.2010

I was surprised to learn that Toyota still has not issued a worldwide recall of its troublesome Prius NHW30 model, even though one had gone out in New Zealand.
   In layman’s terms, the brakes allegedly don’t work when you want them to. In more complex terms, the software has trouble distinguishing between different types of braking, and drivers may experience a delay in ‘pedal feel’.
   I was always a bit sceptical about the recalls over the unintended acceleration, given that the last time I heard those words, they were in relation to a falsified report from CBS’s 60 Minutes, a show known to me for making up stories (Killian memoranda, anyone?). Hearing them again, I thought it was just another excuse for the clumsy driving of a few individuals who couldn’t figure out where the accelerator was (which was what happened with Audi in the US). But it seems this matter has been around for a long time, and recalls were being done even last year.
   But the Prius matter, something that has not come under a global recall, appears more serious than carpets getting in the way, which is the problem behind the unintended acceleration complaints. AFP reports:

The Transport Ministry has received some 80 complaints in February about malfunctions in the brake system of the latest model of the flagship Prius, the Tokyo Shimbun reported without quoting sources.
   Five of them were actual crashes in which the drivers claimed the brakes did not work properly, the daily said, adding that the ministry would urge the company to launch an investigation.
   It was not possible to immediately confirm the report.

   Already Toyota has been berated by top management for going too far from its core principles by its honorary chairman, Shoichiro Toyoda. The company had been trying to sell big cars in China during the financial crisis, and spent a good part of the 2000s developing large pick-up trucks for the US market. Bloomberg reported last June that a meeting was called:

Shoichiro scolded the president [Katsuaki Watanabe] for being so anxious to boost sales and profits that he’d let Toyota emulate now bankrupt General Motors Corp. and Chrysler LLC. Toyota had become addicted to big, expensive cars and trucks and had forgotten the customers’ need to save money, Shoichiro said, according to the person’s account.

   In other words, Toyota’s culture has been suffering, and we all know what happens when sales’ volume and profit are pursued at the expense of quality or engineering. (Ask Mercedes-Benz.)
   Toyota may be an example where too many niches were created, simply to get consumers in the showrooms—and now that’s coming to bite it on the rear end. Having too many niches has one immediate drawback: consumers no longer understand the structure of the range. Is the small car the iQ, Ist, Vitz, Porte, Belta or Passo? Do I move from that to a Corolla, Auris, Blade, Corolla Rumion, Probox, Raum, RAV4 or wotsis?
   The mistakes are understandable in some ways. Toyota had to create more new models as attention spans shortened. While a car might be able to be presented as “new” for two years in the Japanese market 10 years ago, consumers expect something else within half a year. To fund this appetite, the company looked for ways to maximize profits in every market—with the US one fuelled by bigger and bigger vehicles. It had to take costs out of cars, especially with electronics (by combining as many functions on to one system as possible) and architecture—and it may be these areas where the Prius suffered.
   But no company can really afford to pursue too many niches—Mazda overextended itself in the late 1980s and early 1990s, as did Nissan in the early 1990s—when times are tough. Toyota should have forecast a downturn, as many business experts did. The question that the company needs to ask itself is: what made it so blind in the 2000s?
   Even ignoring the idea of unintended acceleration for now, Toyota ends the lunar year on a low. It will always have its diehard followers—there are many models not affected by these issues—but the company must refocus its brand for the New Year toward its traditional principles. There is every sign the company knows that, with Akio Toyoda, the founder’s grandson, now at the helm, and doing spot checks down on the production floor. (I’d rather Toyota have someone like that than a “celebrity CEO” who gives good press. The era of the celebrity boss is over for now.) It is simply a pity that the company did not get on to its mounting problems—there are claims that unintended acceleration reports began surfacing with Toyota’s Lexus ES model as early as 2004—sooner.
   Few buy a Toyota because the cars make one’s heart beat faster. They are a default choice for many people who want the simplest conveyance from A to B. Akio’s job has been reminding his own team of that, and reinstituting the ‘Toyota Way’ and kaizen, terms that many of us who went to business school during a certain era recall.

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