Author Archive

Key Managerial Changes Shaking Up BMW

Déjà vu all over again?

by Marty Bernstein on Jul.21, 2010

Former BMWNA Marketing Chief Jack Pitney will now take responsibility for the maker's eastern region.

A few years ago in a sweeping change in positions that surprised the auto industry, Jack Pitney, then head of the new Mini division, switched jobs with Jim McDowell, who was serving as the British marque’s vice president of marketing.

In the famous words of Yogi Berra, “It’s deja vu, all over again.”

Mini’s parent, BMW, is making two new veep switches, one financial, as Wayne Orchowski, vice president of the Eastern Region, becomes VP of operations and COO of BMW Group Financial Services. That move might not have even made the radar, but the other switch is causing some seismic tremors in the marketing world and blogs as Jack Pitney, vice president of marketing for the BMW Brand (and the acknowledged, if not titled, CMO of BMW US) will assume the role of vice president of BMW’s Eastern Region.

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When a CMO moves from one company to another, retires or leaves the industry it’s usually not unexpected, but a move from the major staff position to a major line operation job is rare.  Except it’s Pitney’s career DNA.  How many remember when he moved from head of BMW public relations to lead the launch of Mini in the U.S. another line function. That too surprised industry pundits.

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Marty’s Marketing Minutia

by Marty Bernstein on Jun.11, 2010

Hyundai and Kia kick off big marketing programs in FIFA World Cup

Hyundai will kick off a major ad campaign with the start of soccer, er, football's big event, the World Cup.

Throughout the world, football (soccer to us) is more than just a game with eleven participants punting a ball around a well-manicured green — or pitch or dusty field. It is a nationalistic, often ethnic, competition rivaling century-long conflicts on fields of honor. The Wall Street Journal has called it geopolitical football.

The 32 best football teams in the world – determined by elimination – divided into eight groups begin play today in a long and hard-fought battle for the coveted FIFA World Cup, the Cupa de Mondial.

Millions upon millions upon millions will be tuned to their television sets as the matches are played.  And it’s these vast numbers that advertisers of any worldwide brand are anxious to reach with commercials and promotions.  For the Korean brands Hyundai and Kia this is a ready-made audience for their respective brands.

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Of the two related Korean brands, Hyundai has become an “Official Automotive Partner of the 2010 FWC South Africa,” with Kia’s participation more limited. The event is a massive undertaking befitting its worldwide nature, and all games are televised live, with repeat-casts on the web, from the ten different venues. Over 1 million applications for tickets have been received from soccer mad fans. The parties have already been running for weeks.

Cumulatively the number of viewers is in the hundreds of millions, so, even for those agape at the power of the recent Winter Olympics and the Super Bowl, in terms of appeal, audience size and advertising together, they cannot match the power of the World Cup.

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Marty’s Marketing Minutia

Hamsters, hucksters and holidays.

by Marty Bernstein on May.28, 2010

Kia Responds to Public Demand: Soul’s Hamsters Return

The hip-hop Kia hamsters are making their return.

Those hip-hop hamsters are back.  But we’ll get to the news in a moment.

People either like or dislike television commercials. There’s no such a thing as just okay, all right or average.  Black or white, nothing gray.

The first Kia Soul commercial, (Click Here) became a hit with consumers, said Michael Sprague, the Korean maker’s vice president of marketing, in a phone interview, “It generated over three million total YouTube hits and garnered more Facebook fans than any of its segment competitors.”

I followed up with the question “Is a social network hit equal to the Washington politico saying that every phone, call, letter or email is tantamount to receiving 1,000 calls?”  Sprague’s response was, “Yes!”  Now that’s big time.

The advertising research and creative communities liked it too. It has won major accolades for Kia, whose  advertising agency, David&Goliath, created the first commercial.  Among the kudos: Nielsen’s Top Automotive Ad of the Year, awarded at the 2010 New York Auto Show, and based on direct feedback from consumers. Next month Kia will receive a prestigious Effie Award. High praise indeed.

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Praise however is measured in terms of sales, right?  Sprague noted Kia introduced the Soul, their first car truly aimed at GenY during the worst auto year in history, with an economy in the ceramic receptacle, yet the Soul became the market share leader in its segment in only its second month on sale, and sold more cars than its two chief competitors every month thereafter. The campaign exceeded internal sales goals by over 30%.” Enuf said.

As a former ad guy I had to find out more ‘cause I knew presenting much less selling an idea like this had to be easier said than done.

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Chevy’s Revolving Door Claims Another Ad Agency

New CMO Joel Ewanick switches agencies...again.

by Marty Bernstein on May.21, 2010

They’re out. And they’re in. No, they’re out now, too. And they’re in!

New Chevy ad agency Goodby Silverstein will now have to sell sheet metal, not just vitamin D.

If Joel Ewanick’s departure from Hyundai – spending a brief minute and a half at Nissan before becoming  CMO of General Motors — made waves, then his latest move is setting off a tsunami.  No, Ewanick seems entrenched at GM, but one of his first moves has been to swing the ax at Publicis Worldwide – which was the Chevrolet agency of record only about as long as Ewanick was at Nissan.

Instead, he has appointed Goodby Silverstein Partners to handle the mega million dollar Chevy account, a decision of epic proportions.

The fact that GM CEO Ed Whitacre relinquished some of his very tight marketing managerial reins to Ewanick amounts to more than a transfer of plenipotentiary powers to a proven automotive marketing executive: it evidences a genuine concern for the demands of proven professional marketing counsel to supervise the plans and programs for GM’s largest and most important brand.

Ewanick’s marketing chops have been well detailed, documented and discussed (Click Here for more on his move to GM and background at Hyundai), but how much has been revealed about the new agency over the past day or so? Not much … until now. Following is a bit of information gathered from their website goodbysilverstein.com and various industry publications:

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GS&P History

The new Chevy agency was incorporated in 1983 as Goodby, Berlin & Silverstein by co-founders Jeff Goodby and Rich Silverstein who had worked together at Ogilvy and Mather in San Fran with then freelancer Andy Berlin. The agency started with limited funding yet landed prestigious accounts. In 1992 Omnicom, Inc. purchased the agency, in 1993 Berline left the agency and in 1994 the name was changed to Goodby, Silverstein & Partners, and just ten years later in 2004 Jeff Goodby and Rich Silverstein were inducted in The One Club Hall of Fame for Advertisers.

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Marty’s Marketing Minutia

Peripatetic, putrid, pretty, potential

by Marty Bernstein on May.07, 2010

From Hyundai to Nissan to GM, can Ewanick repeat his prior success?

Lingering over breakfast early Wednesday morning in sunny Los Angeles my mobile rang and I noted it was from a good friend who must remain nameless. The familiar voice said,

“It’s hitting the web now!”

What is?

“The news!”

What news?

“Joel Ewanick has left Nissan and is the new vice president of marketing at General Motors!”

You’re not kidding are you? Hell, he’s only been at Nissan about a month.

“Not about this.”

“Thanks. Will call ya back.”

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Clicking off, the buzzer on my  iPhone began to chatter as started landing with the breaking news just verbally delivered to me.  Just about six weeks ago in a special MMM I heaped praise on Joel Ewanick for the work and accomplishments he had supervised at Hyundai and speculated on the remunerative rewards he was probably going to reap at Nissan.

Generous, er General Motors has obviously opened the seemingly unlimited coffers of our tax dollar-paid multi-billion dollar loan (that’ll probably never be a fully repaid loan) to bestow upon a very talented guy the keys to the new automotive kingdom they hope will come.  I really don’t give a damn why he left Nissan, that’s his personal and professional business, not mine.

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Marty’s Marketing Minutia — Behind the Chevy Ad Shake-up

Why there's still baseball, apple pie and Chevy, but no CE.

by Marty Bernstein on Apr.27, 2010

With performer Dinah Shore, Campbell-Ewald created one of the most memorable ad campaigns in automotive history.

Campbell-Ewald has had one helluva long run as the advertising agency of record for the Chevrolet division of General Motors. An impressive 90 years. 4,680 weeks. 32,850 days. Millions of billing hours. 1,000+ current employees. Thousands of talented and semi-talented alums.

These are more than just numbers, they are representative of the dedication, passion and reliability of the company and the people that shaped and helped make the Chevrolet brand the one-time market leader and the biggest generator of bottom line profits for General Motors.

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From personal experience I can say, without fear of contradiction, “it was a great place to work!”  The hours were good, the pay rewarding, benefits reasonable, liberal vacation time, good expense accounts and for the most part the “C-group” – CEO, COB, CAS, CCO, CFO — of executives were real pros.  Of course there were exceptions.

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Marty’s Marketing Minutia

Ewanick: effective, efficient, enviable, and now ex-Hyundai.

by Marty Bernstein on Mar.19, 2010

Last year Hyundai let buyers refuel at $1.49 a gallon under an incentive program.

First it was a phone call, “Did you hear?” Then a text, “this can’t be true … can it?” Finally a call, text and email all essentially with the same message, “Look at their media site, it’s up and official, “Joel Ewanick is moving from Hyundai to Nissan as vice president marketing!”

My calls to him were not returned. Voicemail and email messages requests for off-the-record backgrounding to Nissan’s agency EVP account director or to Nissan PR staff were not returned.

The contemporary history of marketing in automobile business is littered with the remains of once celebrated marketers – both men and women with titles of vice president, director of marketing and the now catchy, chief marketing officer – whose careers died from poor vehicles, poor performance under pressure, arrogance and hubris.

However, Ewanick was the poster child of marketing success in a devastated industry. He was the celebrated darling of marketing media, some mainstream media and automotive analysts.

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With some amazing products, audacious assurance, and his introduction of “big presence in big venues” ad strategy, Hyundai rose like Phoenix from the ashes of price marketing to a position of prominence. Ewanick was rewarded with many prestigious awards and accolades – in my opinion, all well deserved.    (more…)

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Marty’s Marketing Minutia

by Marty Bernstein on Mar.05, 2010

BMW launches new campaign based on the “joy” of driving

The recent launch of the new 5-Series will be complemented by the debut of the BMW ActiveHybrid 5 at the Geneva Motor Show.

BMW sings an ode to "Joy" in a dramatic shift in advertising campaigns.

BMW’s slogan “The Ultimate Driving Machine” has been part of the brand’s DNA since 1974, according to Dave Kiley’s book Driven, when the Ammirati &Purvis ad agency pitched it to the BMW execs in Munich (including Bob Lutz) in their new business presentation that won them the account.

A phone call from a public relations person alerted me to a hot release headed my way about the new BMW campaign, “the joy of driving,” from the brand’s worldwide agency GSD&M.  Joy, but considering the long history of “Ultimate Driving Machine,” perhaps shocking is an equally applicable term.

In a subsequent phone interview with Jack Pitney, vice president marketing of BMW, prompted my first question “Are you giving up the Ultimate Driving Machine slogan?”  Pitney, who was home sick in bed answered rather hoarsely “We are not giving up the best, longest running automotive slogan ever written: The Ultimate Driving Machine. Our research showed the time was right to move to softer, more personally involving advertising communications.”

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That’s how our conversation began about the new ad campaign.  Here a few excerpts from that conversation.

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Hyundai Exclusive Academy Award “Carvertiser”

An actor nominated for an Oscar can’t appear in a commercial during the broadcast?

by Marty Bernstein on Mar.05, 2010

More than $1 million of a thirty-second spot, with steadily declining ratings?

Given its impressive sales growth last year, ongoing through February of this year, (from an admittedly small base of 30,000 units a month) Hyundai’s vehicles are resonating with consumers. Its aggressive advertising campaigns, based on a “Big Voices in Big Places” strategy, which includes high-profile advertising in sporting events, entertainment awards shows and outdoor video boards placement tactics, is working very well thank you.

After taking over from long-time Oscar sponsor General Motors last year as the biggest Oscar advertiser, Hyundai will continue as the exclusive automotive advertiser on this year’s Academy Award ABC network broadcasts and has bought time for eight 0:30-second commercials during the annual homage to movies broadcast.

This could be a title of somewhat dubious distinction unless Oscar’s ratings are on the upswing. Broadcasts of the annual Academy Awards show are down, according to Nielsen, from a high of 55 million homes in 1997, when Titanic won Best Picture, to last year’s 36.3 million homes when … ah, hmm what was that movie … won?

Adding up the cost of $1.2 to $1.5 million per 0:30, Hyundai’s buy of eight spots – seven featuring the new Sonata and one for the award winning Genesis sedan – is impressive. However, there was some not so good news.

Not during our broadcast you don't.

Jeff Bridges, Hyundai’s voiceover since 2007, is nominated for the Best Actor award for his role in Crazy Heart; thus his mellifluous voice could not be used on the commercials.

The logical solution could have been get another, non-Oscar-nominee to rerecord Bridges voiceover, right? Yes, but not this time. The answer was to get not one but several actors to substitute their voice for that of Bridges.

“Praise for this idea,” Joel Ewanick vice president of marketing of Hyundai America, said, “Should go to Chris Perry, Hyundai’s director-marketing communications, for suggesting the idea.” On a conference call with Hyundai, Perry said, “My team working with Special Artists Agency, Jeff Bridges talent management firm, got an enviable package of seven very well known, recognizable, famous actors to substitute in our commercials, record their voiceovers, edit them into our old and new commercials, get them approved  and shipped them to ABC just in time.”

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Oscar Who?

In addition, they did it in about a week and half, which is an incredible achievement in Lalaland where it often takes that long to decide where to have lunch.

So whom did Hyundai get? (more…)

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Marty’s Marketing Minutia – Super Bowl Special

Hype, honor, hope, humor, hypocrisy, hierarchy and ho hum

by Marty Bernstein on Feb.05, 2010

The clock is ticking down. This Sunday, February 7, at 6:00 PM, between 95 and 100 million people are predicted to turn to CBS to watch, nosh, wager, cheer, jeer, drink and honor America’s favorite sporting event: the annual extravaganza of Super Bowl 44 or as the NFL demands, Super Bowl XLIV.  Roman numerals are much classier, right?

But 51% of the viewers, according to new study from the Nielsen Results, (based on a sample of 25,000 households in the company’s Homescan panel), said they enjoy the commercials that run during the game more than the game itself.

Thus Sunday is more than just a football game between the Indianapolis Colts and the New Orleans Saints. It is the new American institution known as the Cockamamie Commercials Competition or the Stupor Bowl of Advertising. Take your choice.

Some 36 different advertisers are joining the fray this year, but to us it’s all about the car commercials! This year five automotive advertisers are in one helluva money-spending battle not just to entertain us, but to achieve a lofty marketing goal. Well, at least some are.

Taking the digital in-game field will be Audi, Chrysler, Honda, Hyundai and Kia who will be spending millions despite the overall dismal results of 2009. There’s a non-discount rate of $3,000,000 for each :30-second commercial in XLIV.  The buy is scattered. Some brands have bought pre-game, half time, post game and promo positions at a lower, but still significant, rate. CBS isn’t cheap. The audience is huge.

Until recently advertisers kept their new commercials secret until the game itself.  I recall hiring a special company to videotape the entire game, and then edit it down to just the commercials, for Monday after during the game meeting with my former agency’s creative staff.  And it wasn’t cheap.  But the web, You Tube and technology has changed all that – only Chrysler has kept its commercial secret.

Here’s the line on who is doing what and whom should win the best automotive commercial(s) award as well as the odd, interesting and strange trivia and stats that have become part of the annual Sunday bash.

Hyundai is the odds on favorite

The not-so-little company that could and did shake up the automobile industry has scored big, not only with the award-winning Genesis sedan, and it unique assurance program, but by backing its superb spots with the voiceovers of Academy Award nominee Jeff Bridges.

The question is: does quantity equate with quality?

In a phone interview with Joel Ewanick, Hyundai’s vice president of marketing, I learned the “watch out, here we come brand” is going to have eight, yes eight Super Bowl commercials. “Why the heavy lifting?” I asked.  Ewanick responded, “We are focusing this year’s Super Bowl campaign on the all-new 2011 Sonata, the most significant new model introduction in our history.”

In last years XLIII, Hyundai ran just two spots, so this year’s buy equals that of some really big advertisers in the fast food and beer categories.

I could provide a detailed description of each commercial, which seems rather stupid when you can watch them by clicking but I will provide a little info. Here’s the starting line-up for Hyundai’s strong campaign.

Here’s the pregame show  line-up:

In-game commercials   (more…)

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