Lawrence Gee | Marketing, Internet, Creativity, Strategy

Know Who You Are

I came across an article today on Saturn’s woes in car sales even though its latest offerings were critically a success.  The article claimed that the manufacturer pulled ads promoting Saturn’s performance and handling since it didn’t seem to resonate with its buyers. 

Much like other struggling car manufacturers, Saturn is having difficulty reinventing itself.  This should not be surprising.  It’s quite difficult to change an imagery so ingrained in the consumer mindset.  Cars, especially, have such a heritage and devotion that you immediately invoke specific meaning when you mention a brand.  BMW = Performance, German Engineering; Toyota = Reliability; Kia = Cheap.

Think about another failed automaker, Volkswagen, who has had its own share of problems reinventing themselves.  They were seen as young, funky,and affordable.  Basically a low-cost European alternative to the Japanese sedans that was more affordable than a BMW or Audi.  VW tried to reach an older, more affluent, audience over the past several years, offering higher quality cars.  The problem was that they also moved up the price point where they alienated their core consumers.  If you notice their advertising today, they too have gone back to basics emphasizing the youth, fun, and affordability of their cars.  Probably a better bet to regain their core customers and play on the strengths of the brand.   

Bottom line is that Saturn also has to figure out who they really are.  They are better served building on their core essense rather than doing a 180.  Yes it’s ok to shift towards a different demographic or segment but it can’t be as drastic as Saturn has done over the past year.  Building a better product was a first step and Saturn did get into my consideration set, but I would never have purchased one no matter how great the product was.  Saturn would be better off being more like VW and being an alternative to the traditional sedan.  In the past, they were known as the car that used plastic side panels instead of metal.  Why not build on the alternative materials branding and become the eco-friendly option for both materials and fuels? Just a thought, but something that sounds more viable than becoming the next BMW.

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The “American” Way

The American way of life is an expression often used to explain the freedoms we experience and our country’s principles of “life, liberty, and the pursuit of happiness.”  It is often used to describe all that we hold sacred and perserving this way of life often quoted as a reason for the actions of our leaders and government.

Last Friday, American Airlines announced that it was seeking damages from Google for selling search terms that use or were related to its name.  Capitalism is definitely part of the American way and so is greed.  While I agree to a certain extent that companies shouldn’t be able to make money from the direct use of someone else’s trademark name, I do question whether companies should be allowed to hold (or trademark) names that are as generic as American Airlines.  Apparently there has been contradicting rulings in the past to buying search terms of trademark names.  There really needs to be some standard for generic company names and genericized brand names like Kleenex, Xerox, and Band-Aids. Until there is clarity and a landmark ruling on this topic, I guess its the “American Way” to keep fighting for a share of the profits.

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Wal-Mart, Kroger, and CVS will be Running on Dunkin’

Yes!  A Northeast favorite is finally going to be available on the west side.  In a distribution deal with P&G, Dunkin’ Donuts packaged coffee will begin this month selling in Wal-Marts, Krogers, and CVS around the country.  This looks like a smart move for Dunkin’ Donuts who can create more brand awareness to the rest of the country as they begin to expand westward. 

Dunkin’ Donuts has great word-of mouth potential for the rest of the country.  If you are from the Northeast (like myself) you probably have heard and enjoyed a Dunkin’ Donuts coffee and doughnut.  In fact, each time I go back home I make sure to visit a store and buy some packaged coffee to bring back with me.  It’s becomes a distinctly East Coast/West Coast conversation starter and can spur debates on which is better Dunkin Donuts or Krispy Kreme. 

I look forward to buying up the packaged coffee in my local store and hope that the donuts are not too far behind…mmm strawberry frosted with sprinkles.

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