Posts tagged ‘marketing’


Replacing a social network near you: real life

19.07.2010

As news emerges that teenagers have spent less time on Facebook, and there are more profiles getting closed on the social network, Sony has released its newest trailer for The Social Network.

After 9-11, it’s time to tell the “other” story of the ’noughties. And if Facebook is the topic of a Hollywood ïŹlm, then this could mean it has jumped the shark.
   What’s next? A new social network where privacy is respected? Or, something more radical?
   Modern kids in the first and second world might want that newfangled “real life” next, because to them, the internet is ubiquitous, not special. So why not balance what was once a novelty to us with what we once found to be normal? As we once said: try it now, do it more, things you’ve never done before. The mainstreaming of extreme sports, if you will, simplified to basic exercise and enjoying the outdoors. It almost seems new.
   Simplicity seems to be “in” in so many facets of life, whether it’s a netbook without bells and whistles, or the old-shape Audi A4 with SEAT Exeo badging. Somewhere along the line, practicality finally found its place ahead of wank. It can happen in some economic recessions.
   Real life: more valuable to the teenagers of the 2010s than we thought. It’s back in vogue.

PS.: Thanks to Stefan Engeseth for inspiring part of this post.—JY

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Posted in USA, business, cars, culture, internet, marketing, technology | No Comments »


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 »


Metro gives thumbs-up to Stefan Engeseth’s Unplugged Speeches

21.03.2010

This is rather heartening to see, from the Metro freebie in Stockholm (the below is copied from the online edition):

Metro

   What’s in: Stefan Engeseth’s Unplugged Speeches series at the Regina Stockholms Operamathus (where yours truly gave the first edition).
   What’s out: the growing mounds of paper (rather appropriate in an eco-conscious nation).
   I hear his second edition, with Dr Farida Rasulzada, was a huge success as well. My wholehearted congratulations to Stefan for an excellent concept.

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Posted in Sweden, business, culture, leadership, marketing, media | 1 Comment »


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 »


Toyota’s recent “30-degree” scandal in China

16.03.2010

Sam Flemming in Advertising Age mentioned the scandal that Toyota has been embroiled in inside China, before a lot of the bad press it received in the occident over “unintended acceleration”.
   This involved a netizen, an owner of a Toyota Highlander Sport, filming that his SUV was unable to get up a 30-degree incline, something which “lesser” models such as the Korean-built Renault Koleos, and even the subcompact Chery QQ—one of the cheapest cars around in China—could manage.
   The following news item reveals more. It’s in Mandarin and dates from December 22, 2009.

   The news investigators show that even a Daewoo Lacetti (Buick Excelle in China) and a Chery van could manage the same slope, and confirm that the Highlander could not do it.
   They are not alone. Jitendra Patel filmed this with his 2009 Highlander earlier last year:

   As Sam says, this issue has brewed thanks to the Chinese internet which, while not as free as it is in most countries, still seems to create active consumers’ groups. People will rally as individuals if the cause is right—and consumers seem to be rediscovering their power, online.

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Posted in China, TV, business, cars, culture, internet, media | No Comments »


Did I mention I dislike junk faxes?

08.03.2010

I received yet another junk fax today, which I believe are not permitted under the Telecommunications Act. My enquiries to Telecom suggest that this is the case.
   This time, it’s a well known business based in town and in the Hutt. And you know what? I’ve now made a mental note not to go there. Unless they and these other junk faxers want to pay for the film and paper they use up. Because my giving them even more money is now an offensive idea.
   A couple of years back, I outed a company that turned out to be an old friend’s. We patched up our differences (I would be happy to frequent his business given that his really quick response to show he gave a damn, and he has ceased this practice), though in the process we discovered that these fax lists date back to the early 1990s.
   That’s right: they are as old as surgically enhanced parts of Demi Moore.
   The usual defence is that anti-spam legislation in New Zealand does not extend to junk faxes, but what that paragraph does not tell you is that unsolicited, nuisance faxes fall under another law. From what I understand, faxes, too, have to be solicited.
   When you are using someone else’s resources, beyond their time, to get your message to them, the balance feels wrong. By all means, send me stuff in the post, and pay for your own paper. Asking me for money when you are already wasting it with a junk fax is more arrogant than any form of top–down marketing—and separates buyer and seller more firmly into “us” and “them”.

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Posted in New Zealand, business, marketing | No Comments »


Funny how the war keeps coming up

05.03.2010

I could guess the entire storyline but my goodness, I still think this is hilarious. (Courtesy Chris Young at C7 Design in New Plymouth.)

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Posted in TV, UK, humour, marketing | 2 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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Posted in New Zealand, USA, branding, business, cars, culture, leadership, marketing, media, technology | 4 Comments »


On the subject of copying

03.02.2010

Saw this old Mikado commercial a few days back:

and, after searching on YouTube, it appears that it was repurposed in Germany for a completely different product. Either that, or this came first:

   The top one seems to work better, probably because of the idea we have about conservative Japanese management.
   Any idea which is the earlier?

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Posted in TV, humour, marketing | No Comments »