SOCIAL MEDIA BRANDING AND STRAGEGY: HOW DID HENRY FORD CREATE A BRAND FOR THE MODEL T IN 1908?
When Henry Ford created a brand for the Model T in 1908, there were 253 auto companies in the US. Henry Ford offered a low price, but that is not the reason why the Model T went on to become an historic brand. The Model T succeeded because Henry Ford was a brilliant marketer who knew how to brand a product. By observing him, we can gain great insights into branding a product. The Model T became an historic brand because it “friended” the public.
It is interesting to study the world that Henry Ford functioned in because there are analogies between our era and his. In 1908, the automobile was seen as the next big thing. Detroit was the center of the action---much as Silicone Valley is the center of our technology world. Inside the car community, Henry Ford had a sterling personal brand. Detroit of 1908 was a machine town and Henry Ford was an ace mechanic. He was also a champion race driver. The lesson for contemporary marketers is that to create a strong social media brand, it helps you immeasurably if you have strong credibility within your community. In creating a brand, ask yourself this question, why should people listen to me? The answer to that questions tells you how you should brand your product.
Because of his credibility, Henry Ford was like Steven Jobs in terms of personal brand. When the IPhone was first launched, it was highly anticipated because Steven Jobs was personally involved. This was the equivalent situation in 1908 before the Model T was launched.
The reason why the Model T stood out as a brand is that it had parts that were interchangeable, making repairs easy. Its frame used a new steel from Europe called vanadium that was strong but light, so that the Model T weighed about 25 per cent less than a comparable Buick. Most cars of the day, including the Buick, used ultra-heavy frames to cope with America’s rough and rutted roads, which made them prone to getting stuck. This is an area that Henry created a brand of his Model T. The Model T flexed the road. This allowed it to go places that other cars couldn’t.
Working people needed a car. In the market of 1908, price would be a key issue. The entrepreneur that could deliver a car that the masses could afford would create the pre-eminent brand. Ford didn’t invent the assembly line, but he did refine it and applied to a manufacturing situation. This gave the Model T the enormous cost advantages that were needed to create a brand.
The assembly line was a key to the Ford brand. He could produce more cars quicker, with each new car less costly to produce than the one before it. On January 5, 1914, Ford did something that sealed the Ford brand. He offered to pay his workers $5 a day. For its time, this was a stunning announcement. The car business is a feeder. There are many businesses that must feed the car business for the car business to work. Now these companies had to come up in wages to attract good workers to produce a product that was acceptable to Ford Motor Company.
A middle class was created. This middle class understood who had created their prosperity and people felt a loyalty to Henry Ford. Henry Ford had created a brand with the middle class. The middle class now wanted Henry’s car.
Social media brands are created when brands and customers create a friendship with one another. This is the relationship that developed between the public and Henry Ford. Henry Ford’s product “friended” the public in 1908.
Dean Hambleton
dnhambleton@gmail.com
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