27 Years After Lexus - Can Hyundai's Genesis Challenge the Leaders?

27 years ago, Toyota successfully introduced the Lexus luxury brand to a new generation of American consumers. In it's 'relentless pursuit of perfection', it built great product at a great price. And, perhaps most importantly, it created a dedicated network of dealers who were committed to offering class leading customer service and experiences.  Lexus and its dealers pledge to excellence, the 'Lexus Covenant', drove the organization to always put the customer first. Today, Lexus consistently ranks within the top 3 luxury brands in the US.

Recently, Hyundai announced that they will be launching a new luxury franchise, Genesis in 2016. It will be the first time in over 25 years that a mainstream automotive brand will attempt a move up market. Unlike Toyota, Hyundai will not require dealers to build a stand alone facility, but rather, Genesis will use a 'store within a store' concept. 

Can Genesis establish credibility in the luxury space when their buyers are sharing physical space with Hyundai buyers? Can it credibly compete with established luxury brands like Mercedes, BMW and Lexus? 

Assuming Hyundai takes advantage of all that has changed since Lexus was introduced, the answer to these questions is likely yes. The three driving forces that will enable Hyundai's success are technology, an evolving competitive set, and a new generation of customers.

First, technology has enabled brands to leverage digital points of experience in ways never possible when Lexus was launched. Uber has demonstrated that pain points can be eliminated and value can be created strictly with the smart use of technology.

Digital Points of Experience?

Secondly competitive reference points have shifted. As automotive luxury brands continue to chase volume by reaching further and further down market, the definition of what luxury means has become blurred. How far can a badge stretch before it is devalued? And while these brands continue to tell the old luxury stories of craftsmanship and performance, Tesla has entered the market above them with a new storyline of innovation. Tesla's innovation permeates every aspect of the customer experience, and is creating a new luxury value equation that may very well appeal to a new generation of buyers.

New Luxury Value Equation?

Which leads to the third driving force, Millennials. Just like Boomers, aka Yuppies were entering their peak earning years when Lexus was launched, Millennials  are entering their peak earning years right now. And by 2018, Millennials are projected to become the largest generational segment in the luxury market.  

The Changing of the Luxury Guard?

Millennials have different expectations of luxury brands. They are less impressed with badges, and more impressed with the corporation behind the badge, and its commitment to society. For the 'we generation, luxury brands should be inclusive, rather than exclusive. Millennials expect that higher price points will deliver exponentially higher intrinsic value.


How can Genesis capitalize on these trends?

• Genesis can augment physical customer experiences with digital points of experience that will help them to achieve the deep one-to-one relationships that are hallmarks of luxury brands. With digital prowess and a customer orientation, Genesis could architect the premier automotive luxury experience.
• Because Genesis is not creating a dealer network that feeds on volume to cover its rent factor, Genesis has the luxury of supporting a premium-priced, higher profit per unit product line. This, in turn, has the added potential to raise Hyundai's price ceiling and profit, thought their close association.
• Genesis can advance its brand story along the lines of the new luxury brand equation by tapping into its parent company's roots to take the idea of 'New Thinking, New Possibilities' to a whole new level. Just like Hyundai raised the bar for mainstream brands with its 100,000 mile warranty, Genesis can raise the bar for traditional luxury marques with innovations in product, financing, service and ownership. They should look to technology companies and even ultra-premium automotive brands for inspiration in creating exponential customer value.
• In marketing, Genesis should position itself in a category of one, at the forefront of a new definition of luxury. It should create an inclusive luxury brand by encouraging audience engagement and participation at every step in the customer journey. It should develop and amplify strong CSR initiatives that contribute to the greater good of society. 

And, while creating a new luxury brand is a daunting task, if all goes well, sometime in the not too distant future, Mercedes, BMW, and Lexus, might need to begin their relentless pursuit of Genesis.

VW Lessons Learned: Why You Can't 'Position' Trust

Like everyone else remotely aware of the car business, I have been watching in shock as the VW emissions cheating scandal plays out. Suffice to say, VW Group has foolishly squandered the most important driver of brand equity and corporate reputation...it squandered years of hard earned trust. 

And it has done so at a time when corporate reputation is becoming almost as important as the efficacy of products and services in driving purchase decisions.

Consider these startling statistics from Cone Communications 2015 Global Corporate Social Responsibility Study:

• 80% of consumers would be willing to buy a product from an unknown brand if it had strong social and environmental commitments
• 57% would purchase a product of a lesser quality or efficacy if it was more socially or environmentally responsible

Moreover, in a 2014 study by Weber Shandwick, 40% of those who liked a product they owned and were were surprised that product came from a company that they didn’t like, stopped buying the product.

So, here is VW Group. Owner of some of the best known and loved automotive brands in the world, with one of the strongest reputations for quality caught lying about their environmental responsibility! How could this have happened??

While no one knows for sure, I decided to do some research on corporate reputation and social responsibility. Every year, the Reputation Institute publishes their 'Global Trak 100' ranking of corporate reputation.

Their methodology is quite simple with 7 factors including governance, leadership, and social responsibility comprising their ratings. And while some companies can be good in one or two areas, how do the top companies excel across the board? I decided to look at the stated commitments that the top ten companies on the Reputation Institute's list make to their stakeholders.

These top ten include companies like Google, Daimler, Lego, Apple, and Intel. Each one states a clear social purpose for their being that goes directly from their core business out to the benefit of society:

• Google: Organize the World's information and make it universally accessible and useful
• Daimler: Playing a pioneering role in the ongoing development of mobility, especially safety and sustainability
• Lego: Inspire and develop the builders of tomorrow
• Apple: (as stated by Steve Jobs): To make a contribution to the world by making tools for the mind that advance mankind
• Intel: Foster innovation worldwide

When I searched for a comparable statement from the Volkswagen Group, I found this: 

• 'To position the VW group as a global economic and environmental leader among automotive manufacturers.' 

This statement falls short of the leaders in 2 critical areas.

1) 'Positioning' is becoming an Obsolete Practice

First and foremost, in a post scandal context, the word 'position' jumped off the screen! Perhaps it was the most important word in the sentence. 'Positioning' typically involves the shaping audience perceptions by telling them how you are different and better than others. And the idea of positioning relies on the obsolete assumption that your audience will patently believe what you tell them. 

The fact is, brands and companies can no longer 'position' themselves, but rather audiences position them based upon the brand and company behavior. Take Audi's 'Truth in Engineering' tagline. While it told you Audis desired positioning, this has now been exposed as a blatant lie. Audiences will likely position Audi completely opposite from its stated position.

2) Social purpose is becoming corporate cost of entry 

Secondly, the statement references its desired outcome as a competitive benchmark, rather than a positive societal impact. In a global study conducted by Cone Communications, 94% of consumers expect companies to be in business not just to make profits, but also to actively support broader environmental and societal issues. 

Simply put, companies should be in business for a greater purpose that goes beyond profits. And that purpose should become the north star for everything that the organization does. And that's what the companies at the top of the Corporate Reputation list do.

For instance, Lego, is committed to inspiring and developing the builders of tomorrow. They deliver on that commitment in every corporate behavior..from their core business and theme park, extending through all of their CSR initiatives.

Only time will tell if VW Group can rebound from this current scandal. But is is probably time for some deep soul searching for VW to discover their purpose, make a public commitment to fulfilling that purpose, and behaving it every day in every corner of their company.

Car Dealers Beware. Why Protecting the Franchise System is the Least of Your Worries.

Much has been written about Tesla's challenge to dealer franchise laws. Most automakers don't think that Tesla's model is sustainable at high volumes. And while time will tell who is right, automakers and dealers might be missing the bigger disruptions that are about to rock the foundations of the dealership business model.

On the new car side, dealer profitability has traditionally been generated from the three fundamental components of most new car purchases: selling price, trade in allowance, and finance and insurance income. And a peek into the future suggests that all three components will be disrupted as technology and mobility continue to converge.

Let's start with the easiest of the three, price negotiation. While it is still a common practice, True Car has already leveled the playing field. Tesla has eliminated negotiation from their process. Even Lexus is experimenting with no haggle pricing. Expect this trend to continue until price negotiations are a thing of the past.

But that's only the beginning. What about trade-ins? This is a practice that is a vestige of pre-automotive horse trading. The fact is trading a car into the dealership results in higher prices for customers. While most buyers know they can make more selling their car to private parties, historically this has been a random, risky and time consuming process that delays the new car purchase. So most customers trade-in their car for the sake of convenience and expediency. 

But technology is about to change this. The recently launched Beepi, is likely the first in a series of technology enabled start ups that have the potential to do to the used car business what Uber did to the taxi business. 

Beepi has taken the risk and inconvenience out of private party used car sales. From a 30 day sales guarantee, at a higher price than dealer trade in allowance, to managing the payment process, registration and delivery, Beepi has created a viable alternative to the trade-in. And this creates the potential to finally de-couple trade-ins from the new car deal.

That, however is just the tip of the iceberg. What if used cars didn't exist at all? It's not as far fetched as it seems. Elon Musk has already stated his intent to re-use Tesla batteries to power the grid, so the idea that cars could be dismantled, repurposed and recycled is not so far out there. And like all technology products, cars can be modularly upgraded so that they are likely to last until they become obsolete, and unsellable. And a world without used cars will have a knock on effect to the third part of the transaction, financing. The first casualty will be leasing...as it will be impossible without a residual value.

In addition, as we move to fully autonomous driving vehicles, it is more likely that these vehicles will be shared than owned. In a scenario where there are no owners, only users, the idea of new vs used becomes somewhat irrelevant...as does the purchase transaction itself!

And of course, modularly upgraded cars and autonomous car sharing changes the dealership service business model as well.

So instead of worrying about whether or not Tesla will disrupt the franchise model, perhaps automakers and their franchisees should be thinking about what the new automotive franchise business model will look like post auto/tech convergence. For in the end, it's not about who owns the business, but rather what the business is.

Why Car Companies Shouldn't Wait For Autonomous Driving to Emulate Uber

Sometime in the not too distant future, your personal car experience is likely to be just like today’s Uber experience…you will pick up your smartphone and summon your car. Your phone will notify you when it is at the door, ready to pick you up. When you arrive at your destination, it will drop you off and go park itself.

And while autonomous driving will transform everything about driving and owning cars, car companies need not wait until then to look to Uber for ideas to transform their customer experiences.

Uber has been so successful, even in the face of regulatory challenges for one simple reason…Uber used insight and technology to create new and better digital points of experience to eliminate or augment significant physical pain points in the conventional taxi/limo experience.

And while the car business has come a long way from the days when dealers threw your car keys on their roof to force you to buy a new car, the automotive purchase and ownership experience is still fraught with more pain points than most other categories. And in some cases it has taken third party disrupters, like True Car to bring relief to an obvious pain point, lack of pricing transparency, that automakers easily could have eliminated themselves.

So what can car companies learn from Uber? How can they pre-empt third parties and fend off new competitors by taking back and transforming the customer experience? How can they leverage technology and customer behavior trends in their favor?

While most car companies have created a few customer apps, they tend to be 'one offs' such as captive finance apps that help manage payments, or electric vehicle apps that help monitor range and charging levels. Because Uber realized that the actual ride was only a fraction of the entire experience, they developed a seamlessly holistic app that guided their customers and drivers through the entire process, providing the right information at the right time.

A fresh look at the process in a holistic and empathetic manner will allow you to discover new opportunities architect an all-new, technology driven customer journey that will drive better and more frequent brand experiences that will engender greater customer satisfaction and loyalty. 

Some things to look for:

Address disconnects and pain points

Collaborate with your dealers to tackle the most brutal pain point of all…the F&I, (finance and insurance) process. Uber understood that cash was inconvenient; that tipping could be confusing; that splitting a fare could be potentially embarrassing; so they stepped in to address these issues. 

Today’s buyers are used to on-demand, transparent experiences, while F&I remains largely a mysterious, intimidating, time intensive process that can leave the customer second-guessing. The benefits of an app driven F&I experience that confirms approval and payment terms prior to stepping into the dealership include higher levels of customer satisfaction, increased captive finance penetration, better traffic quality and greater dealer operational efficiency. All of which can be accomplished without sacrificing dealer autonomy or F&I income. 

Other areas to consider: trade in valuation, service appointments, recalls, etc.

Look for new opportunities to add value throughout the ownership cycle

Automakers should view the entire purchase and ownership experience through the lens of their customer's world. How does your car fit in their lives? How can you help to create better customer experiences?

Should your app monitor gas mileage? Or better yet, should it anticipate when you need to fill up and direct you to the gas station with the best gas prices? 

Should it help you find a parking garage? Or better yet should it contact an on demand valet to meet you at your destination and park the car?

Ask customers  to rate every interaction with your brand and make the results public

While a few of your dealers might bristle at the thought, the good ones will view this for what it is...a marketing opportunity for their dealership to garner positive word of mouth and greater levels of trust. And that trust will halo back from the dealer to your brand. It will also finally force 'problem' dealers who are hurting your brand to raise their game or go home. This should eliminate the need for the age old 'come to Jesus' interventions that rarely yield positive long term results.

Think in the future tense

It is important to also remember that Uber is not only a technology play that eliminated pain points, but that Uber is also a lifestyle play that capitalized on the emerging sharing economy to develop a peer to peer business model. Automakers should be looking for insight into other nascent trends that will create new opportunities for their business, and allow them to be authors of history of the future.

Making a Dent in the Universe

'We're here to make a dent in the Universe'... Steve Jobs

Many brands have mission statements about 'enriching people's lives', 'making life better', or even 'changing the world'  but in most cases, it's about making things incrementally better in relatively small ways. But a select few have actually managed to do so on a scale that forever dents the universe.

What separates brands that make a true dent vs a repairable scratch? While there is certainly some magic, brilliance and luck to any success story, by looking at Apple and other brands that have dented the universe, four consistent patterns emerge. And while there is certainly more to it than these four principles, following them may increase a brands' chances to dent the universe.

1. Having a huge, future focused, and very concrete vision of what the end game looks like. 

When Steve Jobs came back to Apple in 1997, he began to imagine a digitally transformed world. By 2001, he spoke of the digital hub, and imagined a future where personal entertainment, information, communications, and images were all interconnected. While he didn't have all the answers yet, he had a strikingly clear vision of the end game.

Similarly, Google's ambition is to organize the world's information, and make it universally accessible and useful. While they started as a search engine, clearly, they were already headed down the path to be so much more. 

Tesla's vision does not stop at cars but rather endeavors to transform the economy from 'mine and burn hydrocarbon' to 'solar based electric'. 

Brands that can clearly articulate their end game are much more likely to deliver on their promises than brands that stick to nebulous promises of better living or better world.

2. Having a focused strategic plan that connects today's actions to tomorrow's vision.

While a concrete vision is the first step, a viable strategic plan that is connected to that vision is just as important. How are you going to migrate your product and service offerings along a trajectory that progressively marches towards your end game? How are you going to match that migration to available audiences along the way?

When Jobs first spoke of the digital hub, he'd already realized that there was indeed a real business opportunity, first by monetizing digital music, for 'music lovers'. and then by moving beyond entertainment to monetize other human passion points. He knew that Apple could build a sustainable business by connecting people to what mattered most to them. This idea laid the strategic groundwork for the success of iPhone, iPad, and even the Apple Watch. 

And while those products fueled growth, perhaps as important was that the plan gave Apple permission to eliminate products and ideas that did not fit with the end game.

Google may have begun with search, but quickly added images, maps, calendars, video, etc that would make them the 'go-to' source for all information, including user data that could be monetized to fund more and more new product development.

Amazon, in its quest to become a 'customer centric place where people can find and discover anything they want to buy online', started with books, but quickly migrated to DVD's, toys, and beyond, as they steadily added categories and customer services that aligned with their vision.


3. Creating your own inflection points

If you are going to dent the Universe, you can't wait for change, you need to create change. Brands must understand key barriers to, and accelerators of adoption, and be prepared to include those in their plan.

By offering iTunes with iPod, Apple used content to accelerate adoption. App availability was key in driving iPhone adoption.

By creating AdWords in 2000, Google was able to virtually own the nascent SEO category.

Similarly, Elon Musk knew that in order for electric to be viable, you needed a charging infrastructure...which, in addition to accelerating adoption of electric vehicles, also serves as another proof of concept of Tesla's broader mission.

4. Telling the story from day 1
Transformative brands need believers and evangelists to go with them, and spread their message. And they need that message to lay the breadcrumbs for the future through thematic messaging that can carry through the evolution of the brand, and ultimately pay off the end game.

Rather than focus on bits and bytes and category specific features, Apple's story has always been about seamless ease of use and personal empowerment. And every new Apple product introduction advances, rather than interrupts the story. And every Apple communication advances that same story.

And ironically, becoming a storied brand requires more than just telling stories. It requires turning every experience into media, and ensuring that those experiences pay off the larger brand story. Google's home page screams simplicity and access. From one click shopping, to Amazon prime, to same day delivery, Amazon advances their customer centric story.

And if brands follow these four steps, and surround these fundamentals with ground breaking innovations that serve universal unmet needs, they can truly dent the universe. 

And when they do, it will be as much of an 'Aha' as it is an 'Of Course!'.

The Impending Automotive Revolution: Why Traditional Car Companies Should be Very Afraid!

It all started with Elon Musk. For the past few year's he's been the lone crusader to challenge the antiquity of the car business. But suddenly it seems that he's not alone anymore. 

The new 'Big Three'?

For in addition to Tesla, three of the strongest, most disruptive brands in the world, Apple, Google and Virgin have all set their sights on the automotive category. And if I were running a traditional car company, I'd be very, very afraid.

Automotive naysayers will argue that these brands will fail because the car business is like no other. That the margins are too slim. That it is too complex. That only 'car guys' understand the business. And there was a time when all this was true. But while they were sleeping, cars have evolved from mechanical machines to electronic devices. And that's why many of the old category rules just don't apply anymore.

And that's why if all three brands join Musk in the quest to change the automotive business, traditional car brands will become nothing more than objects of nostalgia.

These newcomers will transform the category from one that is steeped in 100 year old business practices to one that is on the cutting edge of thought leadership. 

While all three brands will bring distinct points of view to automotive, they also have much in common. They all simplify, democratize and humanize categories that they decide to enter. All bets are that they will do the same to automotive.

The five things likely to change, faster than anyone thought possible:

1. Electric goes mainstream
These are not brands that will be associated with an industry fueled by dead dinosaurs. Why? Because they don't have a thriving internal combustion business to protect. Because they will consider electric as a mass market opportunity from the get go. And they won't shy away from developing better electric technology and the new infrastructure that supports it. 

2. The dealer franchise system will crumble
These are not brands that will sign away the most crucial part of the customer experience to a third party. Why? Because they are masterful architects of holistic brand experiences. Because Elon Musk has already paved the way for alternatives. They will pioneer new retail innovations that are built on technology, empathy and transparency.

3. Service departments, as we know them, will cease to exist
These are not brands that will tolerate the customer inconvenience associated with most automotive maintenance. Why? Because as Tesla has already demonstrated, software upgrades can replace routine maintenance. Other trouble shooting will likely be done promptly over the phone, walking owners through 'fixes'. Only catastrophic failures will require physical intervention.

4. Brands who differentiate on sheet metal alone will be commoditized
These are not brands that will be satisfied by creating a pretty face. Why? Because they are used to eliminating every pain point in an experience, and putting a unique brand spin on it. Great aesthetics will be also be purposeful And in doing so, they will likely make traditional automotive design seem hollow and superficial.

5. Cars will have uses beyond going from point A to point B
These are not brands that will attack low interest in car ownership by stopping at car sharing experiments. Why? Because they are masterful multi takers who foster convergence. Just as Elon Musk opened the door for cars that power your home and Apple pioneered apps that made phone calls a tiny portion of smart phone functionality, your car will multitask in ways car companies never imagined. Cars will likely play a critical role in the internet of things.

And when this happens, traditional car companies will be scratching their heads, wondering how they joined the ranks of great brands like Polaroid, Blackberry, and Kodak. Brands who had every right to own the market forever, but for their own myopia. 

Apple's Car: A Better Ford or A Category Breaker?

Reports are surfacing that Apple is working on an automotive project. What might that mean for the car of the future?

Much has to do with which Apple shows up on this project. Will it be the Apple of late? The one that tweaks what already is to make it better? Or is this an opportunity for Apple to bring its traditional magic to a category sorely in need of innovative thinking?

Tweaking what already exists will no doubt bring some cool technologies, features and connectivity to cars. Of course, it would include Apple CarPlay, and synch with your other Apple devices via iCloud. Yes, software upgrades would replace some routine maintenance. Surely your iPhone or Apple Watch would render smart keys redundant. Of course, you would be able to monitor and control your car's functions remotely. Wouldn't it be great to wake up to a snowstorm and pre warm your car as you sip your coffee in front of your fireplace? And why not integrate Apple Pay, so that all your tolls, gas and drive through payments are handled by your car?

All of this would be very easy for Apple to do, and they would do it better than anyone else has yet to do. They'd be building a much better Ford or Toyota.

But what if Apple really behaved like Apple in making a car? What might they do differently to change the automotive rules? Some might argue that Elon Musk is already doing this; or that Google has a head start and Apple is too late. 

Certainly, Tesla has brought huge innovation to automotive power trains and retailing. Google's driverless car shows promise.

But the thing that Apple does better than anyone else is total disruption of form and function: integrating hardware and software to create beautifully functional designs that offer seamless ease of use.

So if Apple draws upon its heritage to make a car, what could it look like? What might happen by really 'thinking different'? By completely disruption form and function?

Let's go back to the birth of the automobile. It was called a 'horseless carriage' for very good reason. Automotive pioneers took the basic design and configuration of the carriage...four wheels,  forward facing seats, a driver's station, and 2 headlamps and replaced the horse in the front with an engine in the front. 

Today, almost all cars, trucks, and SUV's , even Tesla still use that same basic design and configuration. And, as revolutionary as the technology in Google's driverless car might be, it's really just developing new guts for the same animal. That is why they are able to test their technology using a Prius body.

Some manufacturers, like Nissan have explored alternative design, most notably with its Bladeglider concept. But as unconventional as this concept is, the cockpit layout harkens back to more traditional driver interface.

But, as Steve Jobs once said, 'Design is not just what it looks like, design is how it works.' And Apple as category breaker ignores all preconceived notions to deliver new forms that are designed with the sole purpose of enhancing functionality and user experience. 
From the first iMac to the iPhone and iPad, Apple has pioneered new, more user friendly forms. The iMac was not just cool and colorful, but simple to set up and use. Its shape was as functional as it was interesting, as it enhanced usability. The first iPhone's design was as functional as it was sleek...transforming the complicated, clunky smartphone into an indispensable object of desire.

Similarly, the first thing category breaker Apple would be likely to do is to rethink the car experience from the inside out, and then build the right design to enable that experience. And, in doing so, would interrogate every aspect of the automotive experience:

• What's missing from the current experience? What's unnecessary?
• What is the most intuitive and simple way to control a vehicle? Does it really need a steering wheel and pedals, or can all this be accomplished through gestures or verbal commands, like an iPhone or iPad?
• What is the role of infotainment? Should each occupant be able to choose their own content? Can iTunes be evolved to enable this?
• Do we need a 'driver's seat', or can the car be controlled from any position within the car? Can this control be seamlessly handed off between occupants without getting out of the car, just like Handoff works across devices?
• Must the layout be fixed, or should it be customizable depending on your personal needs like your iPhone screen?  Could you reconfigure the interior from another device during the synching process?

This list would likely go on and on, leaving no detail of the experience unturned. And of course, the answer to every question would inform the overall design and shape. And in the end, we might actually see the first true re-invention of the automobile in over 100 years.

Let's hope that's the Apple that decides to shows up.

Superbowl ads with purpose: Genius or Disingenuous?

Well, it seems the sophomore, or at least sophomoric curse of  Superbowl ads is finally over. After several years of silly gags in search of ideas, this year, much of the humor was intelligent and quite a few brands chose to connect emotionally via social purpose. So now the question is, how well did the social purpose connect to the advertised brands? Were these genuine efforts, or simply brands in search of social purpose?

Well, in this writer's opinion, some brands tried to stretch beyond their rightful boundaries, while others had a seamless connection between their message, their brand and their business. Interestingly, there were several common themes across brands that allow for some head to head comparisons:

Theme 1: Triumph over adversity

Microsoft and Toyota chose to tell stories of physically disabled people who didn't let their disabilities stop them. 

Toyota's 'How Great I Am' spot, featuring Muhammad Ali's voiceover, and Paralympian Amy Purdy, was a beautiful spot. That is, until it cut to the end frame with an in your face picture of the 'Bold New Camry'. 

Microsoft's 'Braylon O'Neil' showcased how the magic of Microsoft technology has enabled a six year old boy born without a tibia or fibula to thrive. 

The verdict: Microsoft 1- Toyota 0. 
Toyota's ending was such a jarring disconnect. However bold the styling of the new Camry might be, it bears little comparison to the truly bold individuals featured in the ad. Microsoft, on the other hand was telling a story in which it was integrally involved, paying off the brand idea of 'Empowering Us All' much better than any Windows demonstration could have done. Microsoft's other ad, 'Estella's Brilliant Bus' also showcased the impact that Microsoft technology has on human empowerment.

Theme 2: Love and Happiness

Two iconic American brands, Coke and McDonald's have taken their brands into this highly emotional, and difficult to own territory. 

Coke's 'Make it Happy' chose to extend their long running 'Happiness' theme by literally leaking a bit of Coke happiness into the internet, thus transforming hate messages to happy messages.

McDonald's 'Pay with Lovin'' played off it's new brand emphasis on 'lovin'' by exchangin' money for love for some of its lucky customers.

The verdict: Coke 1 - McDonald's 0. 
Coke has long stood for happiness and optimism. While this year's spot was not as anthemic and straightforward as previous efforts like last year's 'America the Beautiful', it was certainly consistent with Coke's long running brand theme. It would be nice to see Coke somehow extend this idea from a 60 second ad to a real initiative. Per my last post, I'm just not feelin' that McDonalds has the right to own 'love', and a limited time offer (from now until Valentine's Day), does little to convince me otherwise. It felt more gimmicky than genuine.

Theme 3: Dads

For some reason dads were popular this year, so this was a crowded field, with Toyota, Dove, and Nissan all paying tribute to the influence that fathers have on their kids lives. 

Toyota's 'My Bold Dad' once again told a charming, although a bit hackneyed, story and once again slammed on the emotional brakes by trying to connect 'bold' fathers to the 'bold new Camry'. 

Nissan's 'With Dad' featured the personal and professional conflicts of a Nissan race car driver who spends too much time away from his family. Nissan products, from Nismo race cars to the soon to be introduced Maxima, were integral to the story. 

Dove's 'Real Strength' presented a series of vignettes illustrating a caring bond between Dads and kids, ending with the line that 'care makes you stronger'. 

The verdict: Nissan .5 - Dove .5 - Toyota 0
First, the simple difference between Nissan and Toyota was that Nissan featured a human story, in which their vehicles played a supporting role, while Toyota was borrowing emotional capital to sell you a Camry. This difference made Nissan's effort seem much more genuine than Toyota's. It is however, interesting to note that the Nissan ad did not end with the 'Innovation that Excites' tagline--perhaps because this ad may have been a little off brand?

Dove's male version of its 'Real Beauty' series, which has  been highly acclaimed for contributing to building women's self esteem from the inside out. While I'm not sure that 'Real Strength' is as directly tied to Dove's core competency, the 'Real Beauty' equity  gave Dove permission to create this men's initiative. That said, the Dove Men+Care products tacked onto the end seemed distracting and detracting.

Wild Card: The 'One Off's'
Dodge's 'Wisdom', Nationwide's 'Make Safe Happen',  Always' 'Like a Girl', and of course  NFL's 'No More' also brought social purpose to the Superbowl. 

The Verdict: 'Like A Girl' Wins
While they all managed to have relevance to their brands and businesses, Always won the show. Let's face it, Always' core business is not one that lends itself to the Superbowl, but, due to the nature of their business, Always comes into its core customer's lives at a time when their confidence is most vulnerable. And the execution, while perhaps a little heavy handed, certainly demonstrated how society has shaped women's self perceptions during this vulnerable time. Of course, in order for this not to be a 'one off', it would be nice to see Always extend this idea by taking real action to instill confidence in young women.

All in all, this year's Superbowl brought new and welcome brand sensibilities to the game. Given the ever more important role that corporate social responsibility plays in driving business for brands, it is likely that next year's Super Bowl will again feature some ads with social purpose. And while not all will be home runs, or shall I say touchdowns, the brands that chose to connect their messages to their core business and brands will be the ones most likely to create real brand value through their media investment.

What’s Love Got to Do With It?

Why Brands Shouldn't Stray From the Truth When Seeking Deeper Engagement

During my entire career in marketing, I have espoused the idea that if brands owners are to reap true economic value from their brands, they must do so by establishing an emotional connection with their audiences. It’s what branding is all about. But lately, I've noticed a disturbing trend in which brands seem to be willing do anything to make that connection...regardless of whether it is related to their brand or their business.

The latest example that comes to mind is McDonalds. In the last few weeks there has been quite a bit of media attention directed at their 'Signs' ad, which attempts to show McDonald's deep connection to America and its local communities. The ad has been both praised and derided.

'Signs'
https://www.youtube.com/watch?v=93KTpF9JDWo

Of course, the ad got my attention as well. It made me want to understand what drove McDonald's to deviate so far from its normal tone and message. And it turns out that this ad is just an execution under a broader brand refresh, in which McDonald's is shifting the emphasis in ‘I’m lovin’ it’ to focus more on the ‘lovin’’.

In a video laying out McDonald’s new emphasis on ‘lovin’’, CMO Deborah Wahl is quoted as saying,'We believe that a little more lovin' can change a lot, even the world we live in. Lately, the balance of lovin' and hatin' seems off. Who better to stand up for lovin' than McDonald's?'. And that's when I began to have my doubts about this new direction. Is 'standing up for lovin'' really McDonald's role in the world?

In another ad, McDonald's, ‘Archenemies’ takes on the idea of 'love' in a completely different, much lighter tone. Here, McDonald’s seemingly brings together every iconic pair of archenemies, including dog and mailman, Roadrunner and Wiley Coyote, even Democrats and Republicans. It certainly is a charming, warm and well-done ad. The idea has been extended repeatedly through engaging content in social media.Yet, while I love the content, it just seemed to reinforce my doubts about what it is doing for McDonald's. 

'Archenemies'https://www.youtube.com/watch?v=EShRCWOtNJ4

And these doubts left me conflicted. After all, I’ve sat in meetings spewing accolades about Subaru’s ‘love’ campaign, and how it has strengthened their brand and more than doubled their business. Why didn’t I feel the same about McDonald's new 'love' direction?

Subaru 'Love'
https://www.youtube.com/watch?v=XXElwDlpoIk

So I decided to compare Subaru’s ‘love’ to McDonald’s ‘love’. 

Subaru uses the tagline, ‘Love, it’s what makes a Subaru, a Subaru.’ Subaru has always had a fiercely loyal, upscale owner base who eschewed more expensive brands for Subaru. Subaru's ‘love’ is between its car and their owners. Love that is sparked by all the life enriching experiences that their car, and its legendary 4 wheel drive capability has facilitated. Simply put, the emotional bond is directly rooted in Subaru’s core competency and genuine customer experiences. And that is why Subaru's product, service, CSR, and brand communications work seamlessly to credibly amplify this 'love'. 

But, unless I missed an important diplomatic shift, McDonald’s core competency is not world peace. While a lot has changed since ‘You deserve a break today’ was McDonald’s mantra, McDonald’s core competency has not--McDonald's continues to provide a welcome break from the daily routine of harried people from all walks of life. 

And that was precisely the way that McDonald’s portrayed itself in the original ‘I’m lovin’ it’ launch in 2003 ads. That welcome break forged the love between the brand and its audience. That break was the 'it' in 'I'm lovin' it.' And that's why McDonald's could tell seamless brand and product stories under this powerful, emotionally charged brand umbrella. 

Original 2003 'I'm Lovin' Ad

https://www.youtube.com/watch?v=dI-xHMM8wXE&spfreload=10

But it seems that this latest brand refresh, attempts to co-opt 'love' in a way that's bigger than McDonalds has the right to. And that is probably why, despite the fact that love can be so powerful, it is very difficult for McDonald's to drill the idea of love down to the ads most connected to its business... its product ads. Instead, under the new brand umbrella, the latest Big Mac ad takes on a mock confrontational tone,  goading 'vegetarians, foodies and gastronauts' to avert their eyes while they extol the classic virtues of the big Mac and dismiss healthy food trends. The only reminder of the new brand direction comes at the very end as McDonald's uses the same animated heart graphic that they use in Archenemies, to transition to the end slate with the tagline and new 'I'm loving it' graphic. Thus the graphic and tagline seem disconnected in tone and message from the body of the ad.

'Unapologetic Big Mac'
https://www.youtube.com/watch?v=vHKznhffxig

And interestingly, McDonald's has not chosen to use their new brand umbrella at all when it comes to yet a third communications initiative, called 'Our Food, Your Questions', which addresses food quality concerns through a series of documentary like vignettes on its website. While this initiative might be the most genuine effort of all to move McDonald's image forward, it is delivered in a completely different tone and makes no mention of 'love' at all!

So, in the end it what are we to believe about who McDonald's is? Champion for world peace ? Satisfier of indulgent food cravings? Or a brand devoted to food quality? I'm not sure.

And that's why, in a world of communication channel and format proliferation, brand owners must be more diligent than ever to ensure that every piece of content, every attempt to emotionally connect with their audience be driven by a strategy that is rooted in true audience experiences and delivered with consistent tone and messaging, so that in the end, every dollar spent creates real brand and business value.