Posts tagged ‘brand loyalty’


What’s on the door can count more than who runs the shop

06.02.2013

I walked into the National Bank yesterday to sort out something for Dad—years ago, we gave each other signing authority on our accounts. They had misplaced that authority—a bit worrying if a bank doesn’t hold on to things over 10 years old—but, with the transition of the National Bank branding to ANZ, it reminded me of an interesting phenomenon.
   Most folks know that ANZ has owned the National Bank since the early 2000s. There were always rumours that the Lloyds horse would be retired as the licence would expire, and that eventually, everything would bear the ANZ brand collateral. ANZ had sent out letters in the past talking about the acquisition, but that everything would stay the same—until last year, when it said that it would finally take the best of both organizations and combine them under a single ANZ brand.
   Fair enough. It might mean the closure of branches where both banks existed, for cost savings, but it was inevitable.
   The surprise was this: the announcement of the rebranding of the National Bank brought mass defections to other banks. Westpac, Kiwibank and TSB mounted campaigns to attract departing National customers. My friends at TSB, where I have banked happily since the late 2000s, said potential customers came in, with at least one commenting (ironically to the Australian-born staff member there), ‘I hate Australians.’
   But to those Aussie-hating National Bank customers: you have been banking with Australians for the good part of the past decade, and the only thing that will be changing is the logo on the façade.
   There was no ownership change, no change on the board of directors, nothing.
   It brings home that people can be loyal to an organization simply of how it looks to them outwardly, even if, inwardly, it’s owned or run by people they might “hate”.
   There’s nothing wrong with this behaviour, but it’s something for branding consultants and advisers to bear in mind: never underestimate the effect of brand loyalty even in an age where we advocate transparency. There are some that opt not to peer behind the corporate veil.
   This is the reason that certain publications are still seen as locally owned even when their share holding in the Companies’ Register says differently, or that no one seems to mind that the vast majority of our New Zealand fruit juice brands are in the hands of Japanese and American companies. Just Juice and Fresh-up aren’t really competitors, just as ANZ and the National Bank have not been for years.
   At the end of the day, does any of this matter? A little, if “Aussie-hating” stems from an opposition to profits heading offshore rather than, say, TSB’s community trust. It’s not very ANZAC of anyone to hate our neighbours, but if folks truly think this way, it’s worth understanding just whom owns what, and do your business or shopping accordingly.
   The same rule, I might add, applies to political parties: does “your party” actually stand for the values you think it does? Or, for that matter, does your preferred political candidate?

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Posted in business, marketing, New Zealand | 3 Comments »


How will Chevrolet go down in Korea?

25.01.2011

Last week, GM announced it would drop the Daewoo marque, as it has done through Europe, in its native Korea, in favour of Chevrolet.
   The company will also be renamed GM Korea, a name it once had nearly four decades ago.
   While most will think this makes sense, so GM can concentrate on unifying its Chevrolet brand globally, I have to play devil’s advocate.
   We know that GM opted to use Buick as its ïŹrst brand in China in the Communist era because it had generated a lot of goodwill prewar. And it worked: Chinese people, somehow, knew that Buick was a quality brand, even though there were very few cars in China in the 1930s. In the 1990s, 60 years on, Buick sold pretty much everything it made through its joint ventures in China.
   This might be due to Chinese people valuing history and a sense of brand loyalty in an era where foreign brands were still fairly new in the People’s Republic.
   What about Korea? Of course, South Korea is no stranger to brands and consumerism, but where does Chevrolet ïŹt? Is it as well placed as Daewoo, which has seen years of ïŹnancial disgrace as a car company?
   If we took the Chinese experience, then we might look at the last car GM sold as a Chevy in the Korean market:

Image:Chevrolet_1700_Wagon.jpgChevrolet 1700. 1972–8 (prod. 8,105). 4-door sedan, 5-door wagon. F/R, 1698 cm³ (4 cyl. CIH). Holden Torana (LJ), made by Saehan of Korea. Essentially a facsimile of the Australian original, but for an unusual station wagon model that looked more like an Opel at the back. Robust, but a failure on the Korean market, thanks to a perception that it was thirsty (the oil crisis did not help; Korean engines were generally smaller at this point). In theory replaced by facelifted Camina in 1976, though it ran alongside it.

   Not exactly a success. The supposed successor, the Camina, sold even fewer, despite having a smaller engine.
   If Koreans had the same conditions as the Chinese, then this one model sold as a Chevrolet in Korea will instil negative brand associations in the Korean market.
   Daewoo hasn’t exactly had the history of Buick. It emerged as a car marque only in the 1980s, taking over from Saehan, so it may well be disposable. It’s also not like Datsun of Japan, which had plenty of years established worldwide. Nor is it like other storied GM brands such as Vauxhall and Holden, which are restricted to one country or one region.
   Koreans have also seen major brands such as Goldstar, or Lucky–Goldstar, become the much simpler LG. Walk around Seoul and you see plenty of KFCs and Pizza Huts.
   But there’s still a part of me that says a nation that has very few expatriates might just prefer their locally made cars to have local brands.
   Koreans have a perception that foreign brands invite the tax authorities to investigate you, which is why so few people buy non-Korean cars there. So how will Korean-made and Korean-developed, but foreign-badged, cars go down there?
   It hasn’t been done with rival brands Hyundai, Kia, Ssangyong or Samsung, the latter two having foreign owners.
   GM will have to be careful how Chevrolet is marketed, to ensure that it’s perceived, at least in Korea, as a Korean brand that just happens to have an American home and a French pronunciation. Because if there’s one thing branding can do, it’s to make people overlook the actual country of origin in favour of the perceived one. This is why Japanese giants such as Suntory sell fruit juices in New Zealand as Just Juice, Fresh-Up or Bay Harvest—brands with histories in New Zealand—and we do not see Bill Murray on our airwaves getting lost in translation in a commercial.
   Sure, Daewoo has been owned by GM for years, so every car buff in Korea knows that the name change means nothing. Some of the range—the Alpheon and the Veritas, for instance—hail from China and Australia. But the everyday person in the street might be a bit more comfortable buying a Daewoo Alpheon than a Chevrolet Alpheon—because no one really wants the revenuers sending a letter saying they’re going to be audited.

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Posted in branding, business, cars, China, culture, marketing, New Zealand, USA | 3 Comments »


An ideal surfing camera, and why we love the Saab 9-4X more

20.11.2010

My friend Gareth Rowson is now review editor for WideWorldMag.com (alongside his design practice). Here is his test of the waterproof Oregon Scientific ATC9K Action Camera, filmed while surfing at Vazon in Guernsey. I thought this was very nicely shot.

   Less well shot, but significant, is the official video from Saab USA about its new 9-4X crossover SUV, from the LA Auto Show. I spotted this on YouTube when I went to get Gareth’s video. So nice to see Saab confident and launching new models again—showing that it doesn’t always pay to be part of a larger corporation such as GM. Now part of the Netherlands’ Spyker, Saab seems to rediscovered some of its mojo—and despite the 9-4X not being built in Europe, the public seems to accept it more readily than the Subaru Impreza-based 9-2X and the GMT350-based 9-7X.
   Part of that is down to the 9-4X looking like a Saab and not a facelifted Subaru or Oldsmobile, but there’s probably more than that.

   The 9-4X is still based around a GM architecture—as is the large 9-5—so to call these signs of an Saab free from GM is not terribly fair. It’s even built at a GM plant in MĂ©xico—as the 9-7X was built at a GM plant in the US. You might even say that Saab’s products were beginning to come right under GM, even if it took them long enough—and “getting it right” was probably spurred on by crises, too.
   Our more ready acceptance of the 9-4X probably stems from three things: (a) the loyalty shown by Saab owners around the world when the brand was on its last legs under GM—demonstrating that there was far more life in the brand than the general public was prepared to admit; (b) a company with its back to the wall that was more ready to embrace decent marketing operations; and (c) its readiness to speak to its audiences through web videos and other media, something that it did not do well when it was part of GM. Being free of the negativity of GM doesn’t do the brand any harm, either.

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