Sunday, September 27, 2009

GM- The Anti Brand

“Buy a new General Motors car. Don't like it? Return it and get your money back”. By applying the familiar “money back guarantee”, to something as expensive as an automobile, GM’s new “May the best car win” campaign takes this proven concept to a completely new level. In addition to the high price for handling returned vehicles, GM risks tremendous loss as their vehicles decrease approximately 30% when leaving the showroom. To be safe, GM has purchased insurance in case there are too many returns.
As part of the campaign, GM is releasing advertisements comparing its vehicles to German and Japanese models. Ads also highlight GM’s 5 year, 100,000 mile power train warranties. GM’s “chairman”, former AT&T CEO Ed Whitacre stars in the initial commercials. He explains to the audience that like you, he was originally skeptical about GM but "I liked what I found, and I think you will too." The ads end with a “may the best car win” signature.
According to GM vice chairman Bob Lutz, the new campaign “is a way to try to break through and get over some of the negative perceptions of General Motors and actually get people more comfortable about coming in to a GM dealership, trying a car, comparing it to competition. And, of course, the 60-day satisfaction guarantee is also combined with our five-year 100,000-mile power train warranty”
The new campaign has been criticized as being a poor imitation of Lee Iacocca’s famous “If you find a better car, buy it." ads. Experts question the campaigns focus on GM, instead of emphasizing the individual brands like Chevrolet, GMC, Buick and Cadillac more. Laura Ries, partner of the branding firm Ries & Ries wrote on her blog that the campaign is guilty of “implication of the opposite”, explaining that “GM thinks the money-back guarantee says it believes so strongly in its cars that it is willing to give you your money back if you’re not satisfied. But it is the opposite message that gets delivered. We are so unsure of our products, we’ll give you your money back.” She goes on to explain “The biggest problem with GM is that they don’t lead in any category. Ford is the leading truck brand. Toyota is the leading car brand. Lexus is the leading luxury car brand. BMW is the leading driving car brand. Mercedes is the leading prestigious car brand. What is a Cadillac? What is a Chevrolet? What is a Buick? What is a GMC? None of these brands lead in anything nor do they stand for anything.”
The truth is this ad campaign is complex, well researched and being micro executed. Here are the facts: There’s a long negative history that’s been hurting GM for years and that’s that people feel their cars are poorly built. Additionally, as Ms. Ries put it “GM does not stand for anything”. It can't, because the brand is too broad and unexciting. If Aveo, Suburban and Corvette are all under the Chevrolet brand, what can Chevrolet possibly stand for? To further complicate matters, GM was just bailed out by the government with your tax dollars and its Chaiman Ed Whitacre is Government appointed. It’s no wonder Americans have deeply negative emotions about it.
With this ad campaign, rather than glossing over the issues, GM chose to own up to 2 out of 3 of them. Using the government appointed chairman in its ads, messages that this company is going to run as a capitalistic, opportunistic business rather than like the Post Office. The chairman, although government appointed, is taking an vested interest in its success, to the point that he is willing to expose himself by starring in the advertising. The fact that it’s a poor imitation of Lee Iacocca tells everyone that although this man is no actor, he will do whatever he can to turn it around. Note that GM only plans to feature him in their initial ads. Their money back guarantee and car comparisons do a fairly decent job at tackling the issue of poor quality head on. They are not avoiding the subject but rather delving right into it. It emphasizes how they are aware you are skeptical about GM and you have a right to be, but give us a chance “I likes what I found and you will too”.
Brand wise however, they are doing nothing. That’s because a brand is not created through an ad campaign. A brand is intrinsic. It is the sum total of all customer touch points. An ad campaign can’t do it, so at this point they aren’t even trying. Rather than appealing to consumer’s emotional side, which is accomplished through branding, they are appealing to people’s logical side or rather to the minority of car buyers that make logical purchasing decisions. Logical car buyers are likely to read “Consumers Report” and do comparison shopping. Nuts and bolts type advertising appeals well to this segment. Comparisons to Japanese and German cars work well since GM vehicles can stand up to their foreign counterparts, item for item. “Money back guaranteed” gives GM an additional 1-up in comparison shopping. It also helps the logical decision maker feel secure in their decision to drive a GM vehicle. “May the best car win” is GM's final request to you: Judge GM on its quality rather than its brand appeal.

Yaacov Weiss is a brand strategist and founder of Tug branding and marketing, in Lakewood, NJ. If you’d like Yaacov to position your business, call 732-276-6432. You may also email Yaacov at yaacov@tugbranding.com.