Ad Age asked several Marketing Experts "How Would Marketing Insiders Pitch The GM Account?" and I thought the responses were very interesting in light of the Bankruptcy filing today...
"What sort of strategy would you pitch?
Coleman: Introduce a promotion that would transform General Motors into America's first truly owner-owned company: The government issues anyone who purchases a new GM vehicle in the next 12 months 1,000 shares in General Motors stock. Then GM shareholders become people who are motivated to make both better products and a better company.
Farbo: GM faces a credibility issue over the next few years no matter what happens with their financial situation. As such, there has to be an overall branding strategy implemented that speaks to who they are planning to become. For example, if their intent is to be a leaner company and yet hold quality at a high level while giving a fair price to the customer, the challenge will be to show innovation in driving down cost while improving quality. Pricing campaigns are short term programs geared toward immediate sales, but they cannot be the foundation of how we view the product. In the end, cheap means cheap.
Benett: Cars in the U.S. are still built and sold the way tractors and sewing machines were sold in the 1930s -- in the old Detroit parlance, "stack 'em deep and sell 'em cheap."
Make a new promise to the American people: "We are reinventing ourselves. Every car we build will be made to order -- the color and features you want." The entire infrastructure could be rebuilt to radically reduce the number of dealerships. GM could switch to selling cars out of malls and Main Street storefronts, with deep ties to the internet. Products could be configured online and, after a showroom consultation, built to that spec. Using lean, [just-in-time] manufacturing practices, only cars that have been sold would be built.
Johnson: They can regain their iconic stature if they are willing to stand alone without excuses and rationalization. No riding the coattails of patriotism or trying to convince the public that we're all in this together. Step one is to show the courage to acknowledge failure. Step two will be to take on some form of Herculean task that will serve the public good. This could be the most massive job program ever instituted by the private sector, or redefining the safety of the automobile. To be credible, it will have to surpass all of our expectations for ambition and audacity. The brand strategy will be to make the public believe in the transformative power of American industry.
Cone: I would ask the government to buy 300,000 to 500,000 GM cars and trucks over the next 12 months in lieu of an outright loan. These vehicles would be given free to the first 500,000 college graduates who have loans to repay beginning right now. The net effect of this program would be huge press coverage, outrage from competitors (who cares?), a great help for recent grads facing a daunting job market, an incentive for others to graduate and jobs for thousands of auto workers.
From an overall pricing standpoint I would go all out with several efforts at the same time -- one effort is buy your next GM car or truck within the next 3 months for what you last paid within the last ten years. Show brand loyalty counts for something.
Wolfrom: GM will win by focusing on its heritage, strategic assets and vision for future energy consumption/efficiency. They need to recapture the old GM magic so an overall branding campaign is easiest and most efficient given the state of their business. Finally, the way out of bankruptcy is not through pricing discounts.
Martin: The good news is that you can fix this. You can rebound and even come back stronger. The bad news: You can't advertise your way out of this and it won't be a quick process. This isn't about taglines and concepts. It's about a lost connection with your consumer. What's happening to you requires a fundamental change in your business model. You have to change everything. Be willing to be fired. Tell your unions to pull their collective heads out of their asses and join with you to save their jobs. Then be fair with them. Then, and only then, do you bother with taglines and concepts. Once you've done that, commit like failure isn't an option, because it isn't, and don't waver the first time investors bitch.
Cleveland: The product brand takes precedent over the corporate brand. The heritage of Chevy, Cadillac and Buick are the best weapons GM has to become relevant again. I would pitch a strategy of brutal honesty. It would tell consumers, "We have a new attitude. We have to earn your trust and your loyalty again. We are committing to doing just that."
The bigger question is... How are you going to pitch your local GM dealership?