Should You Launch a Fighter Brand?†

Customers are suddenly hyperconscious of value, and new low-price competitors are nipping at your heels.

Harvard Business Review, October 1, 2009 — Managers contemplating a new product launch during the prosperous early years of the twenty-first century typically looked only in one direction: up. Thanks to consumers’ rising incomes and apparently insatiable desire for superior quality, the era began with a focus on “premiumization,” “trading up,” and “luxury for the masses.”

But times change. Economic strains are now causing consumers to trade down, and many midtier and premium brands are losing share to low-price rivals. Their managers face a classic strategic conundrum: Should they tackle the threat head-on by reducing prices, knowing that will destroy profits in the short term and brand equity in the long term? Or should they hold the line, hope for better times to return, and in... continue reading

After Talks to Sell Fall Through, GM Says Goodbye to Saturn†

Penske Automotive Terminates Deal Due to Concerns About Securing New-Product Source

Advertising Age, September 30, 2009 — It's the end of the road for Saturn, as General Motors Co. pulls the plug on the iconic car brand following an11th-hour breakdown in talks with would-be buyer Roger Penske.

Circle of Saturn

Hub, March 2, 2009 — Jill Lajdziak says it’s the retail experience that makes the Saturn difference.

Between the time we spoke with Jill Lajdziak and the publication of this interview, General Motors announced plans to close Saturn. Well, here’s another news flash: This doesn’t necessarily mean the end for Saturn. And it certainly does not change the enlightened view Saturn brings to automotive retailing.

With Saturn, G.M. Failed a Makeover

New York Times, December 4, 2008 — General At least G.M. knows how difficult the challenge will be.

A quarter-century ago, G.M. started Project Saturn with the same goals. And it worked, for a time. Saturn owners, including many who traded in their Hondas and Toyotas to own the first models in 1990, became cheerleaders for the division’s customer-friendly approach, while the United Automobile Workers union gave up many of its traditional restrictions to help Saturn succeed.

Motors has promised Congress that it can recreate itself as a different kind of car company — smaller, with a more cooperative relationship with its union, and a lineup of fuel-efficient cars to compete with the best of the foreign brands

Big Three May Need to Trim Number of Brands

New York Times, December 2, 2008 — For the Big Three automakers to win over Washington lawmakers in their bid for federal aid, they will have to address a critical question in the business plans they give to Congress on Tuesday. Just how serious are they about shrinking their vast lineups of different brands and models to match the current harsh reality of the market?

If GM Has a Brand, It's General Misery†

Company Has Eight Brands, but No Brand Messaging

Advertising Age, December 2, 2008 — "How Detroit drove into a ditch" is the headline of an article in the Oct. 25 issue of The Wall Street Journal.

When the most respected business publication in the world writes a 2,000-word article on the problems of the U.S. automobile industry, you have to assume it knows what it's writing about. Especially since the author of the article is the Journal's former Detroit bureau chief and a man who is writing a book about America's car culture.

Survey: Wal-Mart Among Best 'Value' Brands†

YouGovPolimetrix places AIG at bottom of insurance heap

Adweek, November 4, 2008 — A recent survey by YouGovPolimetrix revealed that the slumping economy is having a significant impact on how consumers perceive brand value. Budget brands like Wal-Mart and Old Navy were ranked highest by consumers, while more upscale brands and financial services firms ranked lowest, reflecting a loss of consumer confidence.

Design Is More Than Packaging

New York Times, October 5, 2008 — THE word “design” tends to conjure up images of crisp graphics, nicely arranged interiors or pleasing packaging. But a growing cadre of advocates say the world of design has much more to offer corporate America.

They are proponents of “design thinking,” which focuses on people’s actual needs rather than trying to persuade them to buy into what businesses are selling.

Properly used, design thinking can weave together elements of demographics, research, environmental factors, psychology, anthropology and sociology to generate novel solutions to some of the most puzzling problems in business.

Saturn Brand Expands Orbit With Its Own Social Network†

Online Community Pulls in 1,200 Members in Its First Three Weeks

Advertising Age, April 28, 2008 — The General Motors Corp.'s Saturn brand has always been built on the concept of community. Now it's creating one on the web.

The auto brand has begun a social-networking site, ImSaturn, which has pulled in 1,200 members in its first three weeks. Saturn originally expected to attract 1,000 people in six months. "Our estimate," said a spokesman, "was a little off."

Losing Its Brand Soul: How Saturn Blew Its Advantage†

Why Automaker Is Moving $190 Million Ad Account to Deutsch

Advertising Age, February 5, 2007 — In November, Ad Age's Bob Garfield hooted down Goodby, Silverstein & Partners' campaign for the Saturn Aura, saying "there hardly seems to be another explanation, other than maybe absolute surrender to the client's worst instincts, to shed light on why an agency of this caliber would have produced a generic TV commercial." He couldn't have been more right.