General Motors: Reinventing a Brand

By now, it shouldn’t be news to anyone that two of the “Big Three” American car manufacturers are experiencing some pretty tough times. Both General Motors and Chrysler have had to finally succumb to bankruptcy. Chrysler has managed to quickly get through the bankruptcy procedures and come out the other side (hopefully) toward profit with the new Fiat Group partnership/owner. General Motors on the other hand is just getting things rolling. Now there are plenty of articles out there that cover the issues and suggest ways that General Motors can either revive itself, or sail peacefully off into the sunset of American industrial history. But what about the brand? It’s been known that GM is finally getting cars into production that can live up to consumers ever-increasing expectations… but what about the image?

Let’s rewind a few years… well, decades. In the 1960s, all three American brands were riding strong. Their muscle cars were fast, cheap, and easy to work on. The sedans were big, flashy, and seemed to last forever. Everything was right in the world. Commercials like the famous “Baseball, Hot Dogs, Apple Pie and Chevrolet” (that they tried to bring back in 2006) helped brands like Chevrolet ride on the Americana wave by fusing their cars into our day to day culture – and it worked. But those days seem to be behind us, and the traditional Americana view is waning. This has left Chevrolet, and other American brands, in a tight spot. What used to be their biggest marketing advantage has become their biggest hurdle to jump. Resting on their laurels, these brands have relied on the assumptions that Americans will always buy American – regardless of key purchasing qualifications like quality, innovation, design, etc. American cars have not moved forward in these categories like their foreign brethren. Both European and Asian companies have progressed in many of these areas in order to continue to gobble up market share that the ‘Big Three’ continue to leave behind in their self destructive complacency.

In a small bit of irony, the failures of GM and Chrysler have put Ford in the spotlight. Relatively recently, Ford refinanced all of its assets and – as a result – is in a much better financial situation. Ford has been able to capitalize on this new attention by showcasing their newest automotive offerings along with upcoming models to an audience that is likely much more attentive than it would be without the other two automakers falling.

So we’ve established that General Motors has some brand image issues – no surprise there. But what can they do to turn it around?

Step one: Build cars people want to buy. No brainer, right? It’s taken GM 25 years to realize that what makes a good car is constantly changing and adapting to what is happening in the world around it. Big clumsy cars are not what most consumers are looking for. Being five years late to the fuel economy game means more than just lost sales… it means lost brand equity.

Step two: Differentiate. GM is pushing this idea of ‘reinvention’ …well, what does that mean to us as consumers? New cars isn’t reinvention. New management isn’t reinvention. New design isn’t reinvention. Even new technology alone isn’t reinvention. This is where GM needs to take a cue from one of Marty Neumeier’s books and find its ‘zag.’ The idea is pretty straightforward… what makes General Motors different? What sets them apart? GM needs a dramatically new approach to its way of making cars in order to effectively emerge from bankruptcy as a New GM in the public’s eyes. Granted, drastically shifting GM’s approach leading up to the bankruptcy is like trying to steer the Titanic away from an iceberg – too little, too late; but that is what this bankruptcy is meant to help. This bankruptcy allows GM to shed a lot of weight with little pain, so why not take advantage of it?

Step three: Establish an effective advertising system. GM is in an undeniably tough spot right now… advertise too much and people accuse you of wasting money. Don’t advertise enough and people forget you’re there. Big flashy ad campaigns are not going to win consumers over this time. Ford’s Fiesta Movement is a prime example of effective marketing in this culture. Have a car you think is a hit? Put it in the hands of consumers and let them advertise for you. Social media sites like Twitter, YouTube, Facebook and the like can be effective ways to directly engage potential consumers without breaking the bank. Micro sites like the one for the new Taurus are also good platforms for showcasing new products. These sites also present an opportunity for the Taurus nameplate to reestablish a brand of its own.

This brings up a potential forth step: a new logo. As controversial and polarizing as this may be, it may be what GM needs as a catalyst for change. A true reinvention of the brand – a new logo for a new GM. On the up side, this provides GM a true fresh start. A new look would resonate the changes that are occurring throughout the company. The casual consumer would likely be quick to adopt the new look while potentially giving the company a second chance. On the down side, a new logo could potentially sever some of the positive history that the brand has established. Additionally, a rebrand of a company as large as GM could be a costly endeavor which could again alienate people when it comes to big spending after the arrival of government bailout money.

Chevrolet has some good cars coming down the pipeline, management is changing, and there is some technology – like the Voltec Platform – that shows promise, but will all of this be enough? A company this large in this much trouble needs a drastic change to help propel itself into the black. GM needs to find its identity and its ‘zag’ to be successful again. How far do you think General Motors needs to go to be a better company when it comes out the other side of this bankruptcy ordeal? What about a new logo – yay or nay? Let’s hear it.