SOCIAL MEDIA BRANDING AND STRATEGY; HOW ALFRED SLOAN OF GM USED "COOL" TO OVERCOME THE FORD MODEL T IN 1923

            To create a successful social media brand it is imperative that new material is constantly being created and shared with customers. In creating a brand, image is critical. Brand has two sides. There is a functional side, and there is a side that conveys a symbol. In branding, there is a “cool” factor. Many times it is the “cool” factor that sets a product apart. One of the first C.E.Os to understand this was Albert Sloan. Albert Sloan, though he was leader General Motors in 1923, is an excellent bench mark for contemporary social marketers.

            In 1923, Albert Sloan faced a dilemma that seemed insurmountable. The Model T Ford possessed 60% of the American car market. In terms of numbers of cars, close 9 out of 10 cars that were on the road were Fords. Only 12% of the market belonged to General Motors. Many executives at General Motors in 1923 thought the chance of overtaking Ford impossible. Albert Sloan knew that Ford could be overtaken because he understood social media.

            Albert communicated with customers much like today’s social media world. This engagement was two-fold.   As is the case today on a Facebook Page, Albert learned what customers “liked” in cars.  Times had changed drastically from 1908. There was now a middle class. There were a large group of Americans who had disposable income. The type of car that was driven was the means by which people defined success. The type of car that you had told people what income you were in.

            People wanted variety. In addition, to just supplying a nice ride people also wanted something that looked nice. Style now became important in selecting and buying a car. Sloan understood that image was a deciding factor in the marketing of cars.

            How do you show off variety and style in cars? How do you create buzz?  Albert Sloan decided upon an annual model changeover, a staple in today’s car industry, but a radical new way in 1923.

            The annual model changeover is the means by which General Motors became a social media brand in 1923. Billy Durant, the original creator of General Motors, left Alfred with 5 brands. Alfred had variety built into the GM brand. To enlarge on variety further and to emphasis stylishness and fashion, Albert decided that each brands appearance would change each year---the model change.

            This created buzz and excitement, not only among customers but also among GM personnel. There was a feeling of extreme anticipation on what the new models would look like. This anticipation created important touch points for General Motors. People started talking about the cars. This gave GM advertising that they didn’t have to pay for. The new models created 5 new touch points for GM. If a person bought an entry level Chevrolet, and an Oldsmobile went by while talking to a friend, they would say to their friend, “Look at that Oldsmobile”. Even if the Oldsmobile brand wasn’t bought by the customer, it still got their attention. General Motors wasn’t just one product; it was many products, each creating interest for General Motors.

            The models, the stylishness, the fashion, the brand image, created a new brand for General Motors. The brand of General Motors was that “GM was cool”. General Motors of 1923 became to be seen as Apple is seen today---the company of “cool”.  People wanted to be seen driving a GM car because they were “cool”, just as many people buy Apple products today because they are “cool”, and if you have them you are “cool”.

            “Cool” created a brand for GM in 1923. Ford began to be seen as “old”.

Dean Hambleton

dnhambleton@gmail.com           

BRAND IMAGE; A COMPARSION BETWEEN HOW THE CADILLAC OF 1923 AND THE ACURA OF 1986 WERE INTRODUCED

BRAND IMAGE: A COMPARSION BETWEEN HOW THE CADILLAC OF 1923 AND ACURA OF 1986 WERE INTRODUCED

            A brand image is critical to creating a brand because a brand’s image makes a speech to a consumer. Through its image, a brand explains to the world what the brand’s importance is. The first man to understand the importance of brand image was Alfred Sloan, the CEO of General Motors in 1923.

            In 1923, General Motors wanted to become the pre-eminent brand in cars. To do that, GM had to convey to its customers that its cars are different than Ford’s because the people who drive them are different. The image that GM wanted to convey is that successful people drive Cadillac.  Because Cadillac is part of the GM group, the image that GM was trying to create is that GM is equivalent with success. If you drive GM, you are a successful person---you must be---you drive GM---and GM is successful. Cadillac was used to brand all GM products. Ford let them do it. Ford had only 1 car, the Model T. Henry Ford thought that expensive cars were unnecessary and frivolous.  He gave the field to GM. He wanted to communicate the image that a Model T was a practical car---you can have a dependable ride without an exorbitant cost. Henry Ford didn’t realize that the American society had changed. People now defined their station in life with a car. Sloan realized that Cadillac created a sense of accomplishment for the entire GM brand. This image is an important reason why GM became the leading brand in 1926.

            Times change, and it is important for social media strategists to understand why Honda created a different brand image of its luxury brand, the Acura, when it introduced the car in 1986.

            Cadillac and the other GM brands had been in existence for a long time before 1923. Customers had a history and a relationship with these brands. The Acura was a new car. It didn’t exist prior to 1986. This meant it had no image that it could communicate to people. Acura had to start from scratch. Honda felt that Acura had to create its own image. Honda felt that Acura should have conversations with a new demographic of customers. The customers that would be buying an Acura, were not the same customers that had been buying Civics, Accords, and Preludes.   It had no concept, such as success, to communicate to the public.  Because it is new, Honda did not want a poor introduction of the Acura to hinder their other brands.

            Honda’s strategy, in contrast to GM in 1923, is to create a new image for the Acura. Acura became a new thing. It had separate dealerships, and separate manufacturing factories. In terms of social media, Honda wanted the Acura to create their own fans, their own friends, their own following.

            By relying on a new network the Acura became very successful. Because it created a proper imaging campaign the Acura has gone on to become the largest selling luxury car in the American market. In a social media era, we must understand some things in creating a brand image.

            The image is created in the mind of the customer. Image is something that is received from the brand and interpreted by the customer.

            The prospect positions the image in relation to other products, with the help of marketer. General Motors was able to define Cadillac as successful and cool in relation to Model T, as old.

            The image must also be flexible. This is why Sloan invented annual model changes, to keep adding buzz to the image.

Dean Hambleton

dnhambleton@gmail.com  

           

HOW ALFRED SLOAN OF GM USED BRAND IMAGE TO CREATE A BRAND FOR CADILLAC IN 1923

HOW ALFRED SLOAN OF GM USED BRAND IMAGE TO CREATE THE CADILLAC BRAND IN 1923

            Brand image is the means by which products make speeches. This is a critical fact to know in creating a brand, especially in a social media era. The essence of social media is communication. A brand and its customer communicate to one another in an almost human dimension. A person selects a brand to make a speech. You select a brand to convey your position in life.

            Alfred Sloan, the CEO of General Motors in 1923, understood this. He is probably one of the first CEO’s to understand how important image is in creating a brand. He understood that brand image is a subjective thing---it is in a person’s mind. It has no functional value---but it is a critical factor in creating a brand. Brand image is a critical factor in having a product selected. This is why the Cadillac brand was a central factor in Sloan’s strategy of overtaking the Model T and becoming the pre-eminent brand in cars in the 1920s.

            As 1923 began, Mr. Sloan looked to be fighting a no win uphill battle against Ford Motor Company. The model T was one of the most successful brands of all time. When Mr. Sloan looked out of his office window, nine out of 10 cars he saw was a Model T. He knew that the only way he could compete against Ford would be to create a social media brand.

            In our day and age, “social media” conjures up the images of large social media platforms. In its purest essence, social media is the personal conversation between a brand and its customers. The two create a human relationship. They become friends. Friends speak to someone openly. This is what Mr. Sloan did in creating his social media brand circa 1923. To create his social media brand for General Motors, he traveled extensively.

            Mr. Sloan traveled the country, talking to people, listening to people. He wanted to find out what were the deciding factors that people experienced in buying a car. He discovered a critical fact about the America of 1923.

            In 1923, America now had a middle class, it had a leisure class. People had disposable income. Women were now entering the workforce. This was a big impact for two reasons. This meant there was now a second paycheck in the house. It also meant that women now exerted a bigger influence in buying decisions. A car is a major for a family.

            Another important fact that Mr. Sloan learned in his personal social media was that people used a car to explain their financial position in life. People entering the workforce drive Chevrolets. People who are successful drive Cadillac. This is why Sloan knew that Cadillac was critical in his branding. Few people could afford Cadillac----but all WANTED TO. Cadillac was the brand of success. By extension, General Motor products were driven by successful people.

            Sloan was also the first automotive CEO to advertise heavily. In his advertising he emphasized the “success” factor;  he emphasized the “cool” factor.

This campaign worked. By 1926, General Motors had overtaken Ford as the pre-eminent brand in America---mainly because of brand image. The point to be made in observing Mr. Sloan in 1923, is the critical importance that brand image has on our modern social media brands.

            The importance of brand image can be best explained in a story about Mr. Ford.  Henry Ford, Thomas Edison, and Henry Firestone were the best of friends. Each year they took a camping trip together. One year their car, a Model T, broke down. It was near a farm, and Mr. Ford roused the farmer to help him get his car started. This farmer did Mr. Ford a favor. The farmer didn’t recognize Mr. Ford. Mr. Ford gave the farmer a rather large gratituity. The farmer, still not recognizing the three men, could not accept the large amount money. Being as humble as he could, Mr. Ford said, ”farmer, we three are somewhat successful. We can afford this, please take this”. The farmer looked at them and said, “You fellows can’t be too successful. After all, you’re just driving a Ford “.  

Dean Hambleton

dnhambleton@gmail.com

SOCIAL MEDIA STRATEGY AND BRANDING; WHAT IS BRAND CULTURE AND WHY IS IT IMPORTANT?

A brand CULTURE is an explanation of the “WHY” of a product. The brand culture defines the values of a brand.  Brand IDENTITY is an explanation of the  “WHO”  the product. “Who are we?” This explains a brand’s identity. WHY are we like that. This explain the brand culture.

Nike's identity is that is a good company that does good things for people. When kids started killing each other for shoes, Nike's culture, its values, couldn't allow this to go on. Nike's culture made it change its image and its advertising.

SOCIAL MEDIA STRATEGY AND BRANDING: WHAT IS BRAND PERSONALITY AND WHY IS IT IMPORTANT

• Brand identity is when we define ourselves.
• Brand pesonality is when other prople define us
• An example is Coach Taylor on "Friday Night Lights"
• This is important because unless we define ourselves, our brand will be hijacked with terrible reprocusssions.
• An example is Nike.
• Nike defined themselves as a concerned brand, the market defined them as "cool shoes". Kids strarted killing one another
• Nike took back its brand