The Second Automotive Reckoning: When Champion Brands Become Challengers Again

In the 1970's and 1980's the American automotive market went through seismic change. As well documented by David Halberstam in The Reckoning, the Japanese imports disrupted the insular, almost cartel-like power of American car brands in the U.S. They did so by capitalizing on the failure of a complacent industry to react to the convergence of 4 forces--inflation, an oil crisis, global political unrest, and the coming of age of Baby Boomers. In the process, they changed the value equation from styling and performance to MPG and Quality.

Today, not unlike then, there is a confluence of events that have the potential to fundamentally disrupt the current automotive status quo. Inflation, war in Russia, US political turmoil and a host of new automotive competitors are all setting the stage for rapid change. But unlike the '70's and '80's, it's not just about better MPG or quality, it's about new technology, new powertrains, new business models and new customer behaviors. if the previous reckoning was a 5 on the Richter scale, this one could be a 10!

Of course, when thinking about electrification, autonomous and connected vehicles, and new business models, one immediately thinks of Tesla. And while they do have an early advantage in defining the new landscape, early leaders don't always survive. Palm, Tivo, Betamax,  and Atari are part of a long list of innovators that eventually flamed out when their categories went mainstream. 

And the chink in Tesla's armor is beginning to show. Service problems and Musk's erratic behavior are wearing thin. Other start ups like Canoo, Byton, and Faraday Future are all struggling to survive. And even Nissan, a pioneer in electrification has just announced that they will discontinue the first successful mass market vehicle, the LEAF.

The fact is, we are still very early in the adoption curve. Even in the face of astronomical gas prices, year to date, EV's only account for 4.5% of total US vehicle sales. Thus, the playing field is still wide open. 

Everyone brand is a challenger brand

As the category experiences seismic change, both new and long established automotive brands will all become challenger brands. As such, they will need to challenge the ingredients of past success to determine what to keep, and what to leave behind as they redefine the value equation.

Writing the History of the Future 

What will it take to be successful in the electrified, autonomous, connected future? To avoid being the next sad case study, it's going to take new thinking, and new brand behaviors. And those that challenge the status quo will be setting the standards for the Post-Reckoning marketplace.

Eliminate Barriers to Accelerate Adoption

According to McKinsey, 20 times more charging stations will be necessary by 2030. Most automotive manufacturers have begun investing in charging infrastructure, but so much more will be necessary. In addition to charging stations, Hyundai is going beyond the car itself with Hyundai Home, allowing buyers to purchase a complete personal EV ecosystem inclusive of charging station, solar panels and battery storage. 

While these efforts are important, there is so much more potential to make EV's accessible, and accelerate mass adoption of EV's

• Approximately 40 million people in the US live in multiple unit dwelling,s limiting their access to home charging. What about working with property management companies and builders to electrify parking?
• As with any new technology, people are afraid to take the leap. What about offering extended test drives, or even EV weekend get away packages featuring EV friendly road trips, complete with planned rest stops and accommodations at partner hotels with vehicle charging stations?

Repurpose Existing Assets

Full adoption of EV's and connected services will mean less required maintenance and over the air fixes and upgrades that will limit the need for trips to dealerships. And, as fully autonomous vehicles accelerate ride sharing, fleets will need to be managed and maintained. 

• There are 16,000 franchised dealerships in the US. what if those dealerships were repurposed into charging rest stops with special perks available for owners?
• Those same 16,000 stations could also become storage and maintenance hubs for autonomous, ride share vehicles.
• How can brands repurpose connected services like GM's OnStar or Hyundai's Blue Link to become the go to place for for all transportation needs--from ride sharing to trip planning, to loyalty programs and more?
  

Accelerating Change Through Partnerships

Category convergence often results in partnerships to either fast track innovation or to marry complementary offerings. We are already seeing some big automotive-tech partnerships:

• Honda and Sony are partnering to enable a heretofore electric laggard to fast track battery and technology development
• General Motors ride hailing partnership with Cruise in San Francisco is helping them to fast track autonomous, connected services
• Hyundai is fast tracking digital retailing by pioneering a partnership with Amazon that allows customers to browse their local dealer's inventory on Amazon's platform

But there is so much more potential to think big with partnerships and change the value equation.

• How about a charging station/QSR brand partnership, where one can scarf down a free burger and fries while fast charging their vehicle?
• What about a joint venture with a BP, or Shell to repurpose gas stations as charging stations?
• Taking it even further, how about a Google partnership that syncs your calendar with Google Maps to ensure that your car seamlessly gets you everywhere you need to be when you need to be there?
• Or even, forging a partnership with Meta to repurpose vehicles that sit idle for 20+ hours per day to take fantastic, life-sized journeys into the Metaverse?

Tapping into their DNA

Finally, each brand must chart an authentic future that taps into the heart and soul of the brand. Stretching their unique strengths in new ways will help them stand out in the new landscape. Clearly Chevy and Ford are ‘finding new roads’ by bypassing small electrified vehicles and leaning into their truck heritage instead. And Hyundai, is already offering what might be dubbed as ‘America’s Best Battery Warranty’.
 
But will all brands DNA be so easily transferrable? BMW’s electrified vehicles have been advertised using ‘The Ultimate Electric Driving Machine’ as their EV tagline. But what does that really mean for an autonomous future? And Toyota, the leader of the first Reckoning could become the laggard of the second Reckoning if they don’t rethink the definition of quality beyond the sheet metal. 
 
The next few years will set the stage for the next few decades. The brands who behave as true challengers are likely to be the brands who win.

The New Automotive QDR--From Hardware to Software to Experiences

 The Origins of QDR

Anyone who has ever worked in Automotive knows those three simple letters--Q, D and R. Different manufacturers may refer to them in different sequence, DQR, QRD, QDR, etc, but they all stand for the same assumed three gold standards of automotive brand excellence--Quality (fit and finish), Dependability and Reliability (that the car won't break down, that it will start when you need it, etc.)

The power of these magic letters dates back to the 1970's and 80's when cars were, well, not so good. Breaking down on the side of the road was commonplace. So were new cars with sheetmetal gaps big enough to poke several fingers through. Cars were made with planned and unplanned obsolescence. When it wasn't a matter of choice but a matter of need to replace your car every 3-5 years because it was ready for the great junkyard in the sky. As a matter of fact, odometers did not have the capability to record anything over 99,999 miles because cars seldom reached that milestone.

Then the Japanese came and established new quality norms. Robotic assembly and more sophisticated engineering pushed the overall industry standards higher and higher, and the quality gap between brands became smaller and smaller. Today, no one wonders if their car will start when they turn the key. Today, the average car lasts 200,000 miles plus--and odometers can accommodate those miles.

Yet, to this day, QDR is still touted by many industry insiders and experts as the ultimate test of brand value.

The Changing of The Guard?

But there are some indications that the consumer definition of quality might be evolving away from indiscernible differences in sheetmetal and mechanical excellence in ways that are more aligned with the evolution of cars themselves.

• In 2021, Tesla leapfrogged Lexus and Mercedes and closely challenged BMW for the US luxury sales crown. 
• Tesla also had an astounding 184% increase in Interbrand's brand value calculation. An increase that catapulted Tesla's ranking on Interbrand's 100 most valuable brand rankings from unrated in 2019 to 40th place in 2020 to 14th place in 2021! 
• Tesla ranked first in two Consumer Reports consumer surveys -- 'Most Liked Car Brands' and  Model 3 ranked first in their 'Most Satisfying Car' survey. 

All of this despite the fact that Tesla ranks 3 from the bottom in both JD Power's Initial Quality and Vehicle Dependability Surveys. Contrary to its consumer surveys, Consumer Reports itself rates the brand second to last on on reliability. 

How can this be? Could this indicate that there is a real tipping point in category values? Is there a new consumer definition of Automotive Quality? One that is more consistent with the evolution of cars from transportation machines to electronic devices on wheels?

If one Googles 'reasons to purchase a Tesla', some key themes consistently appear across various sources. These are 'charging network/superchargers, safety, autopilot confidence, technological features (eg mobile service, smartphone as key, infotainment, etc), and low operating costs'. The environment seems secondary, or perhaps cost of entry. No one mentions quality, dependability or reliability, like they do for Lexus or Mercedes.

Towards a New Value Equation

Tesla's purchase reasons seem more aligned with key technology quality factors. They're much more about HOW things work than IF they work. No one expects their mobile phone not to start, but they do expect it to offer a seamless experience. They do expect flawless connectivity. They do expect over the air upgrades. And more and more, they expect it to help them navigate through life.

What Does it All Mean? Claiming Leadership For Tomorrow

So what does this mean for legacy car brands? What should they do to ensure that their quality perceptions move one step ahead of the evolution of the category? How can they build a bridge to the electrified, autonomous, service provider future that lies ahead? 

• First, they should stop thinking about product as sheet metal and bells and whistles and start to think more holistically about product as integrated customer experiences.  They should build ecosystems to remove silos between product and services, and between physical and digital environments. They should  develop new services and new infrastructures that enhance user experiences.

• Second, they should lead in shifting their brand narratives to better reflect the changing category values--not by promising the distant future today, but by laying the breadcrumbs to tomorrow. The narrative should highlight active safety to raise comfort levels necessary for impending autonomy. It should demonstrate how in car technology connects them to the rest of their lives. And it should highlight ownership services that go beyond the sheetmetal.

• Finally, they should measure success with a new set of quality KPI's that move away from static quality to better reflect dynamic customer expectations. KPI's should place value on seamlessness across touchpoints, reliability of software, and overall ease of use.

This represents the biggest opportunity in a long time for brands that have traditionally been Tier 2 brands to leapfrog the perennial Tier 1 winners. What starts in luxury trickles down to mainstream. Brands that  embrace this change will deposition the leaders to be the leaders of the future.

Because in the future QDR will stand for Quality of experiences; Reliability for looking out for their users; Dependability because they help customers to navigate seamlessly through all facets of ownership and usage.

What earthquakes, tsunamis and pandemics can teach us about global brand management

Having been a student, teacher and practitioner of global automotive marketing, I've come to believe that 'one size fits all' is never an option for global brands, but neither is 'to each his own'. Like it or not, we live in an interconnected world, and almost everything that happens somewhere, somehow has an effect somewhere else. The challenge global marketers face is to manage that effect across borders. And while it might seem counterintuitive, the secret to staying consistent globally is to be different locally.

While many textbooks have been written on the subject, there are valuable lessons that can be learned by looking way past business to other significant events--like earthquakes, tsunamis and pandemics. 

Lesson #1: Competitive Infrastructure Varies By Market

In March of 2011, I was in Yokohama when the 9.1 magnitude Great Tōhoku Earthquake struck. I was in a 1.5 year-old 22 story building and will never forget watching it twist around itself for almost 5 minutes. Remarkably, when the twisting and shaking was over, it sustained no permanent damage. Relieved, I remember thinking that a building constructed anywhere else in the world would likely have collapsed and thousands of lives would have been lost.

Japan's Strict Building Regulations Prevent Earthquake Damage

Just like the earthquake was no match for the formidable Japanese infrastructure, brands may encounter formidable competitors who can neutralize your biggest assets. As an example, the top 3 automotive sales brands are different in every one of the 8 markets listed below.  

Brands must understand what has driven success for leaders in each market. It's likely to be a some combination of heritage, filling unmet needs, innovative product offerings, market growth, and demographic trends. Brands should strategically weigh key market success factors against their own strengths and equities, and set expectations accordingly.

Even mighty Toyota has never been able to crack the code in Europe, where German brands have rendered Toyota's legendary strength, quality, as cost of entry in their market. As such, Toyota's share in Europe remains less than half that of markets like the US and others, where quality solved an unmet need.

Lesson #2: Home Market Relevance Diminishes With Distance From Home

An hour after the earthquake, I watched in shock as the news reports showed the massive tsunami hitting the coastline with lethal force. Ten hours later, it reached the California Coast, causing moderate damage in a few isolated spots.

Just like the tsunami's force diminished as it traveled further from its point of origin, a brand who is part of the fabric of its home market may have a hard time transferring that relevance to other markets. The further away from the home the the less relevant that story becomes. Thus, to be successful, the brand needs to leverage its DNA in a way that is relevant to the local market, and the state of that brand in that market.  

Take Hyundai. In South Korea, Hyundai is a hometown hero who was instrumental in rebuilding its country after the Korean War. Today, that role continues, as Hyundai Group's business units operate in almost every dimension of South Korean industry and infrastructure. It is because of its ubiquity that the Hyundai car brand commands more than a 50% share of its home market. 

As Hyundai expanded to other markets, it had to rely solely on the merits of its products which, at times did not hold up under scrutiny. Today, Hyundai's products are some of the best in the industry, and Hyundai is establishing local credibility on the merits of these class leading products.

Lesson #3: Understand the Local Culture and Communicate Accordingly

In 2020, we are watching a pandemic sweep across the globe, with some countries  containing it quickly, while others see no end in sight.

The current COVID-19 pandemic provides perhaps the most powerful illustration as to how culture differences manifest themselves in every aspect of life--and why you can't expect to connect with the same message in every market.

Geert Hofstede, a world renowned expert in cultural studies, defined 6 dimensions of culture and their effect on behaviors and communications style. Of these 6 dimensions, 4 seem to have the strongest relationship to success and failure in beating COVID-19--individual vs collective, long-term vs short-term orientation, tolerance for uncertainty, and tolerance for indulgence.

South Korea and Germany share similarities across these dimensions, and both have successfully flattened their curves. Meanwhile, the virus continues to rage out of control in the US. 

South Korea, with a curve that looks more like a needle, rates extremely high on collectivism, uncertainty avoidance, long term orientation, and restraint.  

While Germany scores higher on individualism, it was still able to lean into its long term orientation, uncertainty avoidance and cultural restraint to flatten the curve relatively fast. 

Conversely, the US is high on individualism, low on uncertainty avoidance, exhibits a very short term orientation, and indulgence is accepted. These dimensions likely explain the 'freedom' argument that seems to be fundamental to the anti-lockdown anti-masker sentiment, as well as the inability to abide by the rules for more than a few weeks.

These same dimensions of culture help to explain the efficacy of communication styles and corresponding messages across cultures. A culture dominated by  short term, individualistic dimensions requires a message that relates specifically to tangible evidence that can be proven today. It needs to be factual and to the point. Cultures with a longer term, collectivist mentality are more likely to respond to more esoteric, futuristic metaphorical stories.

A good example of how those differences manifest themselves in brand communications can be found by comparing Nissan's ads in China, a country that indexes high on long term orientation and collectivism, with the US and Canada, both indexing opposite to China on these dimensions. Where the China ads rely heavily on fantastic, futuristic imagery and metaphors, the US and Canada ads use straightforward everyday product demonstrations wrapped in personal stories, with features prominently highlighted.

Nissan China 

Nissan USA and Canada

It is important to note that while the brand's creative expressions are extremely different, they are both highlighting Nissan's 'Innovation that Excites'--but they are doing so in ways that connect with culture. 

So as brands strive to create global value though alignment, they need to be students of every market in which they compete. They need to evaluate the competitive environment and understand their relative strengths and weaknesses. They need to be cognizant of the fact that their history and heritage may not be relevant across the globe. And they need to understand that, sometimes inconsistency is what it takes to drive unity.

Boom, Bust or Reinvention? Could the Pandemic Create a New Kind of Car Culture?

In 2013, the New York Times declared that car culture was dead. For the next generation, it

seemed that driving had lost its caché. The percentage of young licensed drivers, and miles driven by them were trending down at precipitous rates. Technology had taken the place of cars as coveted objects of desire. Hipsters were fleeing the 'burbs and raising their kids in urban neighborhoods where everything was walkable. And for the occasional trip elsewhere, car sharing services were readily available . 

                            

Even though new vehicle sales rebounded handily after the Great Recession, the idea of cars for fun did not. As congested roads caused average highway speeds to plummet 40% or more, the dream of the open road became a pipe dream. As global warming hit the headlines, cars became a major culprit. 

Thus the type of vehicles that were purchased changed dramatically. Sales of sports cars, primarily purchased for the thrill of the ride plummeted. Instead, SUV's dominated the landscape as a means to an end--the destination had overshadowed the journey. Even the Porsche line up was dominated by SUV's

Now, the specter of COVID-19 is likely to change life in ways not seen in 100 years. Just like the Great Depression forever shaped the values and behaviors of an entire generation, COVID-19 is likely to do the same for those coming of age today. 

As we are work, learn and socialize remotely, and our vehicles sit idly in garages, it makes one wonder if this new 'do everything from home' mentality will make people question whether they need cars at all?

                                 

                      

Or could it actually do just the opposite -- could it create a new kind of car culture? 

Some things to consider: Will people ever feel safe using ride sharing vehicles or public transportation again? Will they continue to avoid public places like theaters, malls and restaurants, even after a vaccine is found? Will they choose not to fly? Will they eschew the denseness and consequent threat of urban living, and flee to the suburbs? If you  can work from anywhere, couldn't you live just about anywhere--even in the most remote places in the world?

If life change this way, the car might once again become central to life. If that is the case, is it possible that we could have a 'Back to the Future' car culture that looks oh so familiar but with a decidedly modern twist?  

Cars as a means to escape from 'the office' and 'school'?

• With roads free of congestion, and people confined to one place, will sport cars make a resurgence as the symbol of freedom and means for escape? The new breed of electric sports cars with the performance of the past and environmental friendliness of the future could handily fill the bill. 

• As designers of autonomous vehicles push the envelope on new interior configurations, could the car become a sanctuary, even when stationary? It could double as an extra room to relax and wind down. And unlike additions to your existing home, it could literally transport you, and be easily refreshed and remodeled every few years, so that your home never gets boring.

Cars as a reliable, safe haven in public places?

• Could drive in theaters make a comeback? There would by definition enable social distancing, while simultaneously eliminating the annoyance of intrusive cell phones and noisy audience members. Imagine driving up to a huge Jumbotron, and listening to the audio on your ultra premium in vehicle sound systems.
• Speaking of ultra premium audio, could outdoor live concerts also become drive in events?
• Will robotic car hops serve food at drive-in restaurants? Better yet, could robots serve at fine dining venues-- in the comfort of your luxury appointed autonomous dining room.

These are just a few of the possibilities. While we don't know what will happen, automakers should be looking beyond the current sales decline and begin to think of the post COVID-19 era as an opportunity to innovate in a way that regains the revered place in culture that cars once held.

Time for a Musk-ectomy? Why Tesla Needs Its Own Brand Narrative

Since its inception, the Tesla brand has been an extension of the Elon Musk brand. And for a long time. that served Tesla well. After all, with virtually zero marketing Tesla is a well known brand that has captured a large share of the premium automotive market. But, as Bob Dylan once wrote, things have changed. Thus, long before the recent SEC deal, a separation of brands was warranted.

Initially, Musk's audacity helped propel Tesla to the spotlight. Today, Musk's recklessness at best is an unnecessary distraction, at worst, could bring the Tesla brand down. Unfortunately, Tesla has been so dependent on the Musk brand that it has never established a brand, let alone a narrative of its own.

One only need look at online presence to discover this. The website is an e commerce shopping site, and nothing more. The YouTube channel features mostly dry 'how to', technical videos. The experience is as emotionless as picking out a new toaster. And due to Musk's impulsive response to a personal challenge, Tesla has no Facebook page, and no Twitter account, limiting the amount of potential fan engagement. There is no brand story, no sense of a bigger mission or brand experience. And that's a shame, because Tesla has a compelling story to tell.

Tesla fundamentally changed the game by obviating any and all objections one might have for buying an electric car, by making every aspect of the vehicle experience not just as good as, but better than internal combustion competitors. So, instead of electric being the reason to buy, it became the icing on the cake -- with a stellar execution in styling, performance, range, retail experience and charging infrastructure. Simply put, Tesla became the 'it' brand at the high end of the market. This is where early adopters who look to set the standards dominate. 

But as Tesla reaches down to higher volume segments, it is now at a critical inflection point, both internally and externally.

In August, at 17,000 units, the Tesla model 3 was the fifth best selling car in the US in volume, and first in revenue. In September, Tesla sold ~22,000 Model 3's. Currently, the Model 3 is likely fulfilling a couple of years of pent-up demand. Sustaining that volume over time will mean reaching beyond early adopters, and, instead serving a risk averse mass market buyer.

And over the next couple of years, those buyers will have a plethora of low risk EV choices from well known brands at every price point in the market, from the $20,000 VW compact ID to the $75,000 Porsche Taycan, to the $255,000 Aston Martin RapidE.

That's why it's critical that Tesla start telling a coherent, cohesive story that focuses not on Elon Musk, but on the entire Tesla brand experience. On what really sets Tesla apart from every other car brand. From the dealer free purchase experience to the performance, to the well established quick charging infrastructure, to the availability of solar panels that guarantee a true zero carbon footprint. No one else can tell this story. They haven't just invented a better car. Rather, they have reinvented car ownership to be an emotionally satisfying, purposeful experience every step of the way.

This is the story that needs to be told. It needs to be told clearly, without any interruption from Mr. Musk. It needs to be told in a way that inspires. It needs to be told in a way that will make a broader audience seek out, contribute to, and share the story. And it needs to be told now, or Tesla will wind up with Tucker, DeLorean, and the likes, as another 'what could have been' story in automotive history.

This Space for Rent: Vehicles as the New Frontier of Mobile Advertising?

 In 2017, like in many other years, the Automotive category ranked #1 in ad spending with a total outlay of $13 billion. But could the tables turn? Is it possible that over the next decade automotive companies will actually be collecting revenue from other advertisers? 

Converging trends that include connected cars, fully autonomous vehicles, augmented and virtual reality, could transform cars into the next mobile media. In fact, in the past few months, there have been a couple of developments that could signal the leading edge of this trend:

• California is currently testing a limited number of digital license plates. In addition to displaying license numbers and expiration dates, these plates are capable of displaying time sensitive, location based messages.

• General Motors recently introduced a marketplace app that, among other capabilities, allows you to order Starbucks while you are driving.

But this is only the beginning. There are a wide variety of possibilities ranging from incremental to transformative for cars to dominate mobile media. And each of these expanded possibilities opens up new potential revenue streams for car companies, and new brand value propositions for their customers.  Consider these:

Location Based Notifications

• Is there any reason why Chipotle wouldn't pay to intercept a vehicle that knows its driver is on a habitual noon run to Taco Bell with a special offer in a nearby location?

• Why not pay to guide commuters who are stuck in a gnarly traffic jam to the nearest McCafe drive through for a discounted refill of their coffee mug?

In these scenarios, automotive brands could offer customers who agree to accept sponsored notifications reduced rates on connected vehicle or other optional services. 

Smart, Mobile Billboards

• Moving to the outside of the vehicle, why couldn't door panels be embedded with flexible screens to mutate vehicles into rolling electronic billboards. Sponsored geo-targeted messages would adapt to the vehicle's current location and time to alert those in the area to offers from nearby businesses.

• Since autonomous, connected cars will communicate with one another, a vehicle will have the ability to know who is riding in adjacent vehicles. Advertisers could easily send a customized, highly targeted message on the body panels to the passengers in next vehicle while riding down the freeway. That message would be tailored to match passengers' past behavior and destinations, with the current time and place.

These scenarios would likely work best for manufacturer owned and operated car sharing services. Individual customers who value a discount over pride of ownership might also be enticed by large purchase incentives for cars that are used as media vehicles.

Reinventing Mobile Advertising

• While those examples more or less mimic existing smartphone or out of home advertising capabilities, there is also potential to completely reinvent the very idea of mobile advertising. Autonomous vehicle interior configurations will likely evolve to integrate multiple screens into lounge-like interiors. Even windows will have the potential to transform into screens. The potential to create mobile, 360 degree content could liberate advertisers from the tyranny of the small mobile screen. Add augmented and or virtual reality, and advertisers will be capable of delivering completely immersive experiences to the right audience at the right time and the right place like never before.

While this scenario could prove to be the most complex, it could also be the most lucrative...both in its ability to generate incremental revenue, as well as create a value added customer experience. Car brands could offer exclusive, sponsored content that is only available in their vehicles.

While there is much to figure out, including data privacy and the role and relationship between automotive companies, service and content providers, automotive brands who are willing to take a risk are likely to be handsomely rewarded.

Learnings from the 20th Century: Launch Messaging Strategies for 21st Century Car Brand

In the next few years, the automotive industry will see the launch of several new car brands.  The last time the US auto industry saw as many new brands coming to market was probably the late 1980's and early 1990's. During that time, Suzuki, Acura, Lexus, Saturn, Infiniti, Hyundai, Yugo, and Sterling, to name a few, were launched. Can new brands learn anything from the launch of those 20th Century brands?

It's easy to dismiss those launches as irrelevant today. After all, the 20th century brands'  reason for being was to capitalize on broad demographic and economic shifts. Today, the new automotive brand launches are inspired by dramatic changes in technology that will fundamentally alter the way cars are used. Technology has also completely reshaped the media landscape, making the 20th century 60 second network TV launch spot obsolete.

But yet, there still may be strategic lessons to be learned. In looking at the list of brands above, 4 did not survive. Of the surviving 4, the two who were arguably were most successful were Lexus and Hyundai. Lexus, because it managed to earn a spot in the top tier of luxury brands. Hyundai, because it has been able to challenge the volume market leaders, and make a significant dent in their market share.

How did they do it? From a product/pricing perspective, both were excellent value plays at either end of the market. Lexus had a superior product, yet undercut the European leaders by ~$10,000, and Hyundai offered an adequate product that cost almost half the price of other new cars. 

But what perhaps jumpstared their success, was their communication strategy. Both came out strongly with insight driven messages that created by value by depositioning their competitors. Lexus' 'The relentless pursuit of perfection' played on the dirty little secret that owners of top tier luxury cars of the day knew too well...their cars were not so bullet proof. Hyundai's 'Cars that make sense' made smug Japanese buyers reconsider what they had thought to be the smartest choice in the marketplace. What likely sealed the deal for these brands was how they demonstrated these messages by bringing them to life in provocative ways.

Lexus' iconic 'Ball Bearing' and 'Champagne Glass' ads demonstrated perfection by going against every automotive advertising convention. The cars weren't shown on the road. No one was even driving them. Yet, you knew they were closer to perfection than the luxury car in your driveway.

Hyundai relentlessly pounded the value message by finding compelling ways to quantify the better sense of choosing a Hyundai.

Of course, from a media perspective, these brands found the most impactful platform of the day, network TV to spread their message. Their media buys targeted their customers as best they could through demographics and rudimentary psychographics. But while media was important, messaging is what set them apart. 

The brands that didn't make it, were much less clear in articulating and demonstrating their positioning. While Saturn promised 'A different kind of car, a different kind of company', they were unable to convincingly demonstrate how they were different. Sterling touted its British heritage, without offering any tangible benefit of that heritage. Suzuki introduced the Samari as 'the most extraordinary event in your lifetime'...really? And Yugo--well, it was a Yugo. All of these brands also borrowed conventional cues from typical car commercials--acceleration/performance, romancing sheetmetal, winding roads, etc. 

Of course, message alone cannot build a brand. There were problems beyond advertising for all the brands that met their demise. Despite a great start, Hyundai also went through some rough patches over the years. But none of that diminishes the huge and swift impact of the Lexus and Hyundai launch messaging.

So how can today's start ups use these examples to develop an effective messaging strategy?

• Establish a clear, insight driven launch message that depositions the existing competition.
• Amplify that positioning by creating provocative, news/shareworthy content that makes the audience pause to rethink the entire category

How can new car brands implement these principles? Most new car brands are likely to differentiate themselves on some combination of autonomous driving, seamless connectivity, and cleaner powertrains, here are a few thought starters:

• Autonomous plus connected means you can use your time in your vehicle to be more productive. For brands who want to create value through superior 'productivity', how about a 24 hour challenge at the same time of the 24 hour LeMans race. Enlist writers, artists or musicians to create something from inside the car, while the car drives them. . Create film that juxtaposes the productivity of the creative process against the monotony of track laps. 
• As electric battery technology gets better, electric cars are likely to have better range than traditional internal combustion (I/C) cars. For brands staking their claim on the benefits of superior battery technology, what about an endurance challenge in a desolated, remote location between their car and a trusted I/C brand? It could instantly transfer the onus of range anxiety from electric to I/C.
• Autonomous also means safer. For brands deciding to leverage the value of 'safer', how about conducting and filming live 'human vs machine' reflex challenges? 

Of course, these brands should leverage new technologies to precisely target the right people at the right time to maximize impact and earned media. But without a solid messaging strategy that changes the game in their favor, they're more likely to be Sterling than Lexus. Because winding roads, motorsports, gorgeous sheet metal and Super Bowl ads just won't cut it.