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Will GM’s Manchester United sponsorship deal shift more Chevies?

May 31, 2012

For years the auto industry has been asking: how long before the Vauxhall marque becomes Opel? Maybe the question now needs rephrasing: how long before Opel becomes Chevrolet?

Certainly Opel becoming – in the fullness of time – Chevrolet would be one logical outcome of the sponsorship deal its owner, General Motors, has just struck with British Premier League football club Manchester United.

But that’s just a side-light on a global marketing communications strategy that actually has very little to do with Europe, where Chevrolet accounts for only 1.5% of total car sales. Symbolically, the sponsorship agreement between GM and Manchester United has been inked in Shanghai. Recent research by Kantar found that over half of Man U’s estimated 659 million fans worldwide are to be found in emerging markets, such as the BRICS. That is exactly where GM is targeting most growth for its prime brand, Chevrolet.

All very fine, you may say. But isn’t this just another example of fame-hungry GM global marketing supremo Joel Ewanick grabbing the headlines? And a costly one too, which may not eventually stack up. After all, what traction does a British football club – even one whose brand has achieved substantial recognition in the rest of the world – have in the market where Chevy currently sells most of its 4.76 million units a year? Not that much really (despite Kantar’s projection of  a 35 million Man U following in the USA – who are these people?).

Some might go even further and claim Ewanick and GM are actually being unpatriotic. What this sponsorship deal is really about is cocking a snook at America’s prime sport, baseball: Ewanick has personally decided that Super Bowl ads are too expensive (at $3.4m for 30 seconds prime time, a not unreasonable point of view) and he’s perversely made his point by concluding  a deal with a sport that cannot have any discernible uplift on US sales in the immediate future. Nor is this an inexpensive gesture. Recent sponsorships deals with Man U have not exactly cost peanuts. In 2010, for example, the club struck an agreement with insurance firm Aon worth £80m ($125m) over 4 years.

There may of course be a grain of truth in these objections. Ewanick’s behaviour is clearly tactical as well as strategic in intent. It is designed, at one level, to bring the Super Bowl ratecard (and let’s throw in the Facebook ratecard while we’re there) to heel by demonstrating there is a marcoms alternative. But a tactic is exactly what it is. My betting is he cannot afford to boycott either platform in the longer run.

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Carat in line to scoop $3bn General Motors global media account

December 7, 2011

A strong rumour suggests Carat has scooped the $3bn General Motors global media buying and planning account, which has been under review since August.

If true, this outcome amounts to a huge blow for Publicis Groupe, which services the majority of the account through its media specialist Starcom MediaVest, and – by the same token – a big fillip for Aegis, owner of Carat, the publicly listed company steered by Jerry Buhlmann.

The review, one of the biggest of its kind in the world, was instigated by GM marketing supremo Joel Ewanick as part of a slew of measures designed to tighten up the automobile giant’s worldwide marketing performance.

Before the review, GM used up to 20 media specialists. However, the bulk of the spend – two-thirds in fact – is committed to North America (the Chevrolet, Buick and Cadillac marques), and much of that has passed through Starcom since 2005. Carat, which has been on the GM roster for a slightly shorter period but consolidated its hold during a 2010 review, handles the $500m European business (Opel and Vauxhall). Interpublic’s Universal McCann was responsible for much of the Latin American business.

Although the review was slated as “global”, it did not in fact include GM’s operations in nascent markets India and China. What it did include, according to the briefing notes, was “digital…, SEO and social media.”

If Ewanick has stuck to his word and included these in the consolidated Carat package, his decision will represent a double-whammy for Publicis. Back in the summer, PG boss Maurice Lévy sought to shore up his position in the increasingly important GM digital account by taking a 51% stake in Big Fuel, which holds the North American social media account. The acquisition was aligned under the Vivaki digital unit.

What we don’t know, of course, is how profitable the account will be for Aegis. In their desperation to win an account, media men often allow their competitive negotiating instinct to overcome more rational arithmetical considerations, and pare the margins down to the bone in an all-out attempt to win. That said, a win will do Aegis’ share price no harm at all. And, being on a roll, Buhlmann can expect more clients to put him and his team at the top of their shortlists.

 


Buckle your safety belts: GM has put Joel Ewanick in the global driving seat

December 21, 2010

You’ll have to forgive me. Unlike former Porsche marketer Joel Ewanick, I don’t live in the fast-lane – meaning, I’ve just caught up with the news that he has been appointed to the new position of global chief marketing officer, General Motors.

Even by his standards, that was quick work. He only joined the organisation eight months ago as US vice president marketing, after a brief and apparently stormy sojourn at Nissan. But what an eight months that’s been. The relentless cutting-edge of the whirling dervish has left no department intact, no slogan unchallenged, no strategy unexamined, no agency relationship unmarked. Most notoriously, it will be recalled, he summarily despatched Publicis Worldwide only weeks after it had won the $700m Chevrolet account, and replaced it with (off-roster but on-message, so far as Ewanick is concerned) Goodby Silverstein & Partners. Then, judging perhaps that he had gratuitously made an enemy of one of the most powerful admen in the world, he placated Maurice Lévy by firing BBH from $270m Cadillac and giving the business to Fallon instead. I’m sure there were other reasons for this move: but it cannot be entirely coincidental that Fallon is wholly owned by Publicis Groupe, of which Lévy is the ceo, whereas BBH is only 49% owned by the same company. More money, then, into the main exchequer.

Any way, back to Ewanick. There are at least two, not entirely contradictory, ways of looking at his brand of marketing management; the success of his current appointment will depend on which is uppermost.

The first we have already seen: the change agent on steroids who will stop at nothing to become the world’s most famous car-marketer, in a vainglorious attempt to salvage the apparently unsalvageable: GM’s reputation.

The second is a man with an indisputable reputation for turning around troubled car marques. He did it at Porsche Cars North America during the nineties (no fly-by-nighter there – he stayed nearly nine years as general manager marketing); and he did it again during his 3-year stint as head of marketing at Hyundai North America. Hyundai is now – arguably – America’s most successful car brand.

In this new role we’re going to discover whether success has gone to Ewanick’s head or not. According to the man who appointed him, GM CEO Dan Akerson (himself a new kid on the managerial block), he “will ensure consistent global messaging fro all brands including Buick, Cadillac, Chevrolet, GMC, Holden, Opel and Vauxhall. Ewanick will provide oversight for global brand enhancements in the markets in which they are sold and work in association with the regional presidents in countries where GM has partnerships and joint ventures.”

The key regional bosses we are talking about here are the ones with dominion in Britain (Vauxhall), Australia (Holden) and Germany (Opel) – Ewanick already controls the rest. And the key issue is how much these brands desire, or even require, “consistent global messaging” – still less an American-centric version of it. Let’s not forget that these were the successful bits, devolved from GM’s incompetent Detroit management – the bits that didn’t have to go into Chapter 11 a while back. I wonder whether Ewanick has the forbearance to acknowledge that. Somehow, I can’t imagine tact is his number one quality.

Whatever happens, it’s going to be an interesting ride for GM’s European roster agencies. DLKW Lowe, McCann Erickson, Scholz & Friends and Amsterdam Worldwide, fasten your seat belts.


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