The Big 3 Auto Companies Branding Failure

Author: Jim Kukral Category: Branding, Online Marketing Tags: Branding

Sunday
Nov 23, 2008

Last night I was having a conversation with my very smart friend Zoran. We started to talk about the auto-makers asking for a bail-out, and about how the CEO’s of those corporations blew it by flying into the congressional hearing each on their own private jet.

Pretty dumb, we both agreed. The media ate it up, and every American did too. A horrible branding mistake that comes from super-rich dudes being so completely out of touch with the rest of the real world.

Anyway, Zoran then gave me a different scenario that those CEO’s should have followed. Here’s what he said as best as I can remember.

Here’s what those 3 CEO’s should have done Jim. They should have hopped into a hybrid car, all together, just them and a cameraman, and drove that thing to Washington over a 5-day or so span. With stops in Ohio and PA and where ever else they could stop on the way to DC.

They should have notified the press all along the way, including telling them when they would pull up in front of Congress so the press could be there to see their arrival. And here’s the best part, they should have not showered, and should have been in the same suits they were in when the left, except now their suits would be all wrinkled, and their faces unshaven and all of them looking like they just spent a week in a car.

They should have walked into Congress looking like this. Sat down and said essentially, “We get it. We just spent the last four days, all three of us, in a hybrid car together, traveling across the USA to Washington. We know this was the right thing to do. We know we need to save our companies, but we also know we need to help save the country. We’re ready to do it. Will you help us?”

So that’s it. I was blown away by Zoran’s idea. Not sure if he heard it somewhere else, but I couldn’t think of a better “pitch” than that.

But that’s not what happened, and, well, the country is going to pay for it, literally.

Branding is everything. Sometimes you need to think before you act. This would have been a good time to do that. Remember that next time you’re in a crisis.

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Comments

dailybragger

November 23rd, 2008 at 7:32 pm

They should have consulted their PR agencies before they flew into Washington. (Their pitch sucks.)
I really don't think government should bailout these guys. You can give these companies billions, but it's not going to make us buy their cars. They definitely need to rebrand.

CoolpapaC

November 23rd, 2008 at 8:21 pm

I think this has nothing to do with branding and everything to do with failed management. The leadership demonstrated by the big three has reflected the same arrogant, narrow minded and out of touch approach revealed as a market weakness decades ago. The writing was on the wall but they failed to respond with products to fit the changing market. Hopping in a hybrid and driving to DC would have a required sensitivity they are so blatantly lacking. Instead, they behave in a manner consistent with who they are… flying cross country in corporate jets, arriving hat in had without even a basic a plan to address the crisis.

No matter how good your PR, advertising, corporate message, Brooks Brothers suit or haircut… In the end, your brand is only as good as the product or service you deliver.

Jim Kukral TheBizWebCoach

November 23rd, 2008 at 8:24 pm

I agree with you. The “product” I was referring to in this example was them begging. In that instance, their brand, at that moment was a huge mistake.

Jim Kukral TheBizWebCoach

November 23rd, 2008 at 8:25 pm

I'm not an economist. I'm a marketer/brander. I don't know if we should bail them out. But I do know that they'd have an easier time getting the handout if they sold it better, that's all I'm saying.

Dave Starr

November 24th, 2008 at 8:25 pm

Amen on the branding and thinking before you act issues. Of course it is only a day's drive from detroit to Washington … they could have used the trip to show how much progress they have made on economy … but why stop there?

If they really wanted to show innovation (surprised no other bloggers have mentioned this … why didn't they meet via video teleconference? Hmm. Why wouldn't our Congress, supposedly trying to show leadership, have demanded it if the auto bigwigs themselevs didn't? Why didn't the news media mention using the Internet to meet?

The answer is, as Americans, we seem to be one of the most resistant countries to change in the whole world. Nobody seems to think there really _is_ any real crisis at hand.

Even well developed, easy to use, even free or almost means of holding virtualk meetings are not even considered … why? “Because this si the way we have always done it”. My poor country … still rich in monetary terms but absolutely bankrupt in the innovations department.

Geoff Karcher

November 25th, 2008 at 3:26 pm

I agree, no way should they be bailed out, we'll just be throwing good money after bad. Not to mention socializing the auto industry.

I also like the branding idea, to bad they missed that opportunity.

Anyone wonder why the Big 3 don't turn to SEO and Web Marketing rather than newspapers and TV time?

justinlevy

November 26th, 2008 at 12:51 pm

I agree that it is a bad marketing/PR move to go to Congress and the public begging to bailed out after flying 3 private jets into D.C. at an approximate cost of $20,000/flight. Furthermore, I'm sure they each came in separate limos, stayed in posh expensive hotels and ate very expensive meals. I agree with all of the talk of, from a marketing and public opinion standpoint, that this is very bad for the 3 companies.

They don't need all of those expensive amenities however, what everyone seems to be overlooking in this is that the Boards for all 3 of these companies (and most of the top Fortune companies) require certain security precautions be in place. For many top companies this includes having their CEO fly in private jets and accompanied by security personnel. I know a few people who oversee security at Fortune 50 companies and these are their requirements as well. There are risks of assaults, kidnappings, and other very serious security concerns. Some of the variables when flying commercial or all together in a single plane are uncontrollable and therefore certain precautions have to be taken.

Furthermore, why was an in-person meeting required. Why couldn't they use something like the Cisco Tele-Presence system to conduct the inquiry? I think that would have done much better for public opinion to say “Hey, we understand and that's why we've decided to using technology”. Of course, as I mentioned security concerns above, there are definite concerns with something like that but nothing that I think would impede its use.

Like I said, I'm not condoning it but think that we need to look at the other prospective before just hosing them for the decision.

HID Lights

December 17th, 2008 at 12:39 am

Rebranding is a good option I think.. I'm not in favor in giving bailout for these men.. They should come up with a more concrete plan in coping with the crisis..