February 22, 2012
Brand Perception: Who’s hot and who’s not.
By Peter M. De Lorenzo
(Posted 2/21, 8:30 a.m.) Detroit. It’s no big secret that the business of making automobiles is product intensive. In fact it has long been established that this business has been and always will be about the product, and there’s just no getting around that fact.
At times this hasn’t always been the case, of course, especially as practiced here in the Motor City. There were The Dark Years (approximately the late 70s to the early 2000s), when the Detroit-based automakers collectively lost sight of that and operated in a lethal Twilight Zone made up of two parts “we’ve always done it this way” and “if we haven’t thought of it then it doesn’t exist” (aka the dreaded Not Invented Here syndrome) and one part pathological arrogance, and the resulting train wreck was inevitable because of that myopia.
Even then the domestic automakers still tried to dance around the painful reality – at least for a while, at any rate – that they weren’t really competing with the onslaught of foreign competition by resorting to “Smoke and Mirrors” marketing and all the ugliness associated with that.
Fortunately, after all of the hand-wringing and collective sturm und drang that culminated in the painfully humiliating bankruptcies for two of the three domestic-sourced car companies, the stark realization that “Smoke and Mirrors” marketing can only take a car company so far before the wheels come off and consumers figure out that there’s really no “there” there – at least not to the degree that was promised – has finally hit home. (Although there are still some recent instances of “Smoke and Mirrors” marketing going on even today. For instance, see anything to do with the Fiat 500, especially the JLo Fiatsco.)
But for now, every single automaker of note is singing happily from the same Product Religion hymnal for the most part. And I say halle-frickin-luja to that.
Which is as it should be, because if you can’t deliver great products you are indeed nowhere in this business, right? But even with that said a fundamental shift has taken place in the last five years that has roiled the industry and pushed the whole “Product is King” adage into an entirely new dimension, and that is the fact that the democratization of technology and content has turned this business on its ear.
What it means is that there’s a relentless push of advanced technology and content down into what heretofore have been considered to be “affordable” price points. Let’s take Direct Fuel-injection as one example of that. Five years ago it was reserved for the most advanced high-performance production cars, now its use is pretty much everywhere. The same can be said for advanced transmissions, multiple airbags and other safety gear, advanced electronics and connectivity, and even heated rear seat availability, as evidenced in the Hyundai Elantra.
And with content and advanced technology being pushed into more affordable segments, the raison d’etre for brands is being pushed to the limit as well, leading to the ultimate question for the consumer, which goes something like this:
“If I can get that much at this price point, why should I spend more?”
And that’s where Brand Perception comes in. If a car company manages the perception of its brand (or brands) well, then they don’t have to worry about the consumer asking that question, because consumers will want that brand because they perceive it to be worth the money and special enough to pay a premium for.
Sounds simple, right? Not really. Because as sophisticated as these car companies allegedly are there are still many that find it difficult to manage their brand perception, or fail miserably at it. Which means that the companies that do have it down pat reap the benefits of having a glowing brand perception that much more.
So which brands are really good at it, and which brands well and truly suck at it?
Let’s take a look.
Acura: To paraphrase a great Beatles song, “It’s a real Nowhere Brand, sitting in its Nowhere Land, making all its nowhere plans for nobody.” Acura is stuck in a Dead Brand Zone of its own making. It is supposed to represent the ultimate in Honda thinking and expertise; instead it comes across as a non-essential combatant. What is Acura’s reason for being? Exactly. Brand Perception? It barely even registers. Even with the much-touted NSX three years away. Not good.
Aston Martin: For those in the know, a still on-target car company that lives up to its brand image quite nicely. (Except for the Cygnet, which should be removed from view and buried immediately.) Brand Perception? Aston is still Aston. At least for now.
Audi: From the “Brand Perception: How It’s Done” File, Audi steadfastly charted a course going on thirteen years ago with the goal of becoming known for building some of the most technically advanced, visually sophisticated cars in the world. They have met that goal and continue to stay relentlessly focused on it. Brand perception? Impeccably precise.
Bentley: After succumbing to the trap of churning out too many vehicles, which did some serious damage to its brand identity, Bentley has now gotten back to basics while concentrating on what makes Bentley a Bentley. Brand Perception: Extremely well crafted and defined. Outlook? As long as people still say things like, “That’s a Bentley!” it’s all good.
BMW: Despite occasional missteps, when you talk BMW you’re talking the absolute top shelf in Brand Perception. Still soaring off of its brilliantly conceived “Ultimate Driving Machine” persona, BMW can hardly do anything wrong. Even when they do screw-up it doesn’t seem to do any permanent injury. Brand Perception? Extraordinarily flawless.
Buick: Resurrected and rejuvenated through its pivotal role in China, the Buick brand is suffering from deep schizophrenia in its advertising, public relations, and product cadence. Is Buick the land of Encores, Enclaves, and LaCrosses, or is it Pontiac reborn in a Regal GS Turbo? Brand perception? Classy, design-driven cars that should be allowed to be exactly that.
Cadillac: Came back from the brink as the American alternative to the German performance-luxury road stars, with a brash attitude led by arresting design. That worked, for a while, but now what? Toe-to-toe against BMW? Good luck with that. Brand Perception? There are two Cadillacs. One for the enthusiast minority and the other for those who can't wait for the fuller-sized XTS.
Chevrolet: Still the quintessential American automotive brand? No. “Chevy Runs Deep” doesn’t help either, because it still sounds like they’re talking to themselves. But good products can and do transcend marketing inaccuracies and insecurities. Brand Perception? On an upward trajectory and worth a look, but a long, long way from being “America’s car company.”
Chrysler: Feisty spear-carrier for Detroit or Sergio’s Fiat test bed? It’s not clear. Brand Perception? Vague and annoyingly incomplete.
Corvette: No longer the stereotypical “not quite ready for prime time” high-performance sports car player, Corvette has benefitted mightily from its heroic Corvette Racing program. And its Brand Perception has benefitted mightily from it too. Seriously rendered, sophisticatedly engineered, technologically contemporary and blindingly quick. Brand Perception? The American sports car that can go toe-to-toe with anybody. Screw the apologies.
Dodge: Nostalgia-rod car company, purveyor of badass looking police cars, or Fiat-Chrysler corporate afterthought? No one has a clue. Brand Perception? Despite Reid Bigland’s protestations to the contrary – and except for the hard-core Moparistas who just gotta have a Dodge – it’s perpetually in flux. Dart, or no Dart.
Ferrari: As long as Ferrari doesn’t start chasing niches they don’t belong in – just to be clear, the FF is dangerously close to that – and start cranking out too much product in emerging markets, they’ll be fine. But I’m not so sure the company can resist that temptation. As a matter of fact, all indications suggest that they can’t. Brand Perception? What passionate motoring is all about. At least for now.
Fiat: No rhyme or reason for being in this market and nothing but a “cute” 500 to put its stake in the ground with. Brand Perception? Inconsequential sideshow.
Ford: The quintessential American car company loads up on design sophistication and advanced technology for everyone while staying focused on its mission. Brand Perception? The mainstream American car company that competes on equal footing with some of the best car companies in the world.
GMC: Still operating between the corresponding top-line Chevrolet models and Cadillac’s myriad offerings, GMC exists in a marketing vacuum perpetuated by indecision or fundamentally flawed decisions emanating from GM’s upper management. Dealers and headquarters love the profits generated. Customers who buy into the “difference” of GMC love them too. Brand Perception? Better than a Chevy but not quite a Cadillac. Not exactly stellar.
Honda: Creatively bankrupt, the car company that squandered its legacy is still floundering in a fog of indecision and a infuriating lack of vision. Brand Perception? “I used to be into Hondas back when they were good, now I drive a Hyundai.”
Hyundai: The car company that upsets and then reinvents the status quo with every new model. Confident, relentless and on an upward trajectory in the market that shows no signs of abating, Hyundai is the industry’s Irresistible Force. Brand Perception? Sophisticated engineering, contemporary design and exceptional value.
Infiniti: See Acura (above). Brand Perception? For people who think they like cars. Or something like that.
Jaguar: Still breathing and still trying. A brand coming into its own and ready to scale new heights? Or just a brand that’s present and accounted for? Brand Perception? Interesting alternative, if you can talk yourself into it.
Jeep: Survived a serious challenge from Hummer, survived "input" from Sergio's know-it-all Italian Posse and now lives on as a singular conveyance, thriving like never before. Brand Perception? Unequaled.
Kia: The edgy Korean alternative with real visual attitude and burgeoning performance credibility. Brand Perception? There’s something going on over there that just may merit a serious look.
Lamborghini: The Volkswagen Group’s Italian play toy. Brand Perception? Refreshing irreverence with a bad attitude, especially when a Ferrari is just too common.
Lexus: The lap of numbingly tedious luxury or The Pursuit of Blandtastic Perfection, take your pick. Brand Perception? For people who hate cars and who find German luxury-performance machines to be too intimidating. And who also find the act of driving to be a chore. The Trifecta of Not Good.
Lincoln: Lost in the wilderness for too long but now infused with big-time cash and product vision. Will it be enough to jump start this American legacy luxury brand? We'll see. Brand Perception? Invisible.
Lotus: Living off of some vague notions of authenticity originally created by Colin Chapman – the company’s brilliantly gifted founding father – Lotus continues to struggle for credibility every step of the way. Why? It has always been a sliver of a niche player and it always will be a sliver of a niche player. And it’s teetering close to delivering a driving experience that just isn’t all that special or distinctive enough to justify its existence. Brand Perception? For enthusiasts who march to a different drummer, or something like that.
Mazda: Hot new ad campaign attempts to refocus Mazda as the Japanese driving machine. The right direction, but there are way too many equally impressive competitors out there now. Brand Perception? Good, even excellent at times. But that’s not enough. And it’s a brand that ultimately gets lost in the shuffle.
Mercedes-Benz: Despite numerous product missteps and egregious marketing mistakes, this brand still enthralls some first-timers into the luxury arena and delivers what’s promised enough to keep a modicum of the faithful happy. But the competition is way too intense and Mercedes’ fail-safe mode is to rest on its laurels. Brand perception? Intermittently excellent, but maddeningly inconsistent.
Mini: Fun, funky early days have transitioned to rampant model proliferation. Where does it go from here? It's anyone's guess. But being all things to all people is never the answer. Brand Perception? Still somewhat hip but on the verge of being over.
Nissan: The old perception of Nissan was as a second-tier player to Toyota and Honda. But quietly and steadfastly Nissan keeps plugging along and making serious inroads. Brand Perception? The mainstream Japanese player with much more than a pulse.
Porsche: Arrogant and cocky but with an uncanny knack for delivering what’s promised. This company has a resolute belief in its legacy and in the fact that they can build outstanding machines that represent the essence of Porsche in any segment they choose to compete in. Brand perception? The most desirable sports cars in the world.
Ram Truck: A marketing bad idea brought to you by people who should have known better. Brand Perception? For the people who can’t stand the thought of driving a Chevy or Ford pickup truck, because only a Dodge truck will do.
Range Rover: Old perception? Staid, hoary, huge snob appeal, but with service issues galore. With the cutting-edge Evoque most of that has changed, because the new-to-Range Rover buyers never looked at the old product lineup seriously before now. Brand Perception? Edgy, contemporary and cool.
Rolls-Royce: The Roller still rules. No, they’re not for everyone, thank goodness, but they still represent an unyielding commitment to relentless luxury like no other car in the world. Brand Perception? Rolls-Royce is still every bit Rolls-Royce, and the auto world is better off for it. (Oh, and it’s still the rolling definition of “f--- you money” until further notice.)
Scion: Lost and forgettable, Scion is a mere shadow of its former (albeit briefly) hot self. The FR-S might change some of that residual product boredom, at least for the enthusiasts willing to seek the car out, but other than that they got nothin’ worth mentioning. Brand perception? What was the question again?
Subaru: The car for resolutely non-car people (except for the residual enthusiast following from the WRC program), Subaru just is what it is. Brand Perception? The go-to utility vehicle for Shiny Happy People.
Toyota: America’s former car company is battered and bruised, but with enough energy and drive to come back swinging. Brand Perception? We’re still here, we still have what you want, we’re still the Safe Choice. (Not exactly uplifting admittedly but that’s exactly what Toyota is.)
Volvo: Flailing away with a dizzying lineup that allegedly is going to go all upscale luxury overnight, Volvo is still a player. But for how long? Brand Perception? The alternative choice for people who aren’t really sure what they’re doing.
VW: Roaring back in the U.S. with multiple attractively competitive product offerings but still plagued by annoying service-related issues. Brand Perception? Enough residual “affordable Germanic” cred to be worthy of consideration.
At the end of last week’s column I said the following: “It’s about creating, shaping and managing your brand’s aura. It’s about a manufacturer making every instance of communication consistent with what it believes, what it wants to be, and where it wants to go.”
In short it’s about creating a fundamental desire for a brand that handily transcends all other issues.
The outstanding players above know who they are and know exactly what they need to do in order to continue on their winning path.
The rest? They’ll continue to flail about for the foreseeable future while permanently ensconced on the Clueless Train.
Next stop? Brand Oblivion.
And that’s the High-Octane Truth for this week.
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