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And
brother if anybody ever needed a BFB the folks at Mitsubishi Motors,
Japan's only money-losing car makers, are the ones. Here' s a little
backstory. By now you all know that Ian Bevis, their head marketing
guy bailed a few weeks ago. Last week, Diane Hong, their head of
advertising followed suit. Kevin Mayer, formerly product marketing
manager, has been named her successor and he will now oversee the
review, according to AdWeek.
But
that' s the least of their problems. Back in Nippon, the former
president of Mitsubishi Motors and the former chairman of its truck
unit are on trial separately for two fatal accidents, which are
suspected of being caused by concealed defects. Both have pleaded
not guilty. In one accident, a wheel fell off and crushed a pedestrian.
In the other, the brakes failed and the driver died after crashing
into an embankment . Recently, hard pencil boys, Phoenix Capital
Partners bought out DaimlerChrysler AG (38% of their 40%. ) Phoenix,
backed by Chase Morgan, has been known to tighten the screws when
it comes to driving down costs. Factories are being closed in Japan,
Australia and here in the U.S. That pesky though landmark sexual
harassment suit from a few years back keeps surfacing in the news.
An anticipated restructuring plan was postponed this week for the
third time. And now there seems to be the spectre of Nissan creeping
up on the horizon.
Meanwhile,
new CEO, Mr. Finbarr O'Neill, who was credited as the "Golden
Boy" in the Hundai turnaround, is firmly in control of the
ship that seems to be taking water from enraged dealers, sub-basement
sales figures and a disastrous zero percent interest, no money down
and no payments for a year program that left the company holding
the bag for a fleet full of repos. Mr. O'Neill is counting on a
three-year reorg plan to make Mitsubishi rebound to profitability
by 2007 from an expected $1.1 billion loss this year. As Automotive
News put it, "things can only go up from here." Mitsubishi
has seen its U.S. sales fall from 345,111 units in 2002 to 256,810
last year. It's on track to sell only 164,300 vehicles here this
year, with 11-month sales of 150,458 units.
Mitsubishi
plans within a year or so to introduce vehicles including a new
pickup truck based on the redesigned Dodge Dakota, a sporty new
station wagon and overdue sporty Eclipse coupe and convertible,
although some have reported it may have been pushed up by at least
6 months to mid year.
The
first thing Mr. O'Neill did on his watch was institute a10-year/100,000-mile
powertrain warranty program, which had worked like gang-busters
when he was at Hundai and is touted to do even better at Mitsubishi,
based on fairly low "things gone wrong" ratings on most
of their models. This should go a long way towards rebuilding consumer
confidence.
Mother
Mitsu back in Japan is very ego involved in the success of their
automotive nameplate and has rallied their various corporate entities
and zaibatzu brothers in support of their fallen comrade. Mitsubishi
Tokyo Financial Group, and others are reportedly mulling providing
´100 billion (R5.5 billion) in aid. However, history does not hold
proof of tolerance for money pits at the mother ship.
Once
upon a time there used to be an American operation called Mitsubishi
Cellular. They had a long string of promising joint ventures with
majors like Microsoft and AT&T. But after a six year run in the
cut throat telecom biz the parent company handed them their short
sword and instructed them to climb Mt. Fuji. Corporate Seppiku.
Their operations were taken over by Mitsubishi Electric and they
sunk beneath the waves leaving nothing but the hollow hulk of a
dead website.
The
stakes are high, no doubt. The "DoubleThink" team has
opted to cancel their Holiday plans and work through the end of
the year to have our campaign ready for the world to see on January
18, 2005.
Mitsubishi
spokeswoman Janis Little said Mitsubishi Motors North America is
"refocusing efforts on marketing, with an emphasis on sporty performance
and style. We don't intend to compete directly with outfits such
as Toyota and Honda. Our vehicles are for those who are young or
young-at-heart -- who want something a little different, with more
style and design features.'' On the other hand, auto analyst Gordon
Wangers, president of California's Automotive Marketing Consultants
and son of our buddy Jim Wangers ( "Godfather" of the
first Pontiac GTO) said, Mitsubishi "doesn't have many media dollars
to work with.'' Word-of-mouth thus is partly needed to help sell
Mitsubishi vehicles.".
As
we see it, Mr. O'Neill has less than 90 days to come up with a BFB
that can turn his business around. I don' t know what kind of silliness
the big guys are going to Pass off as "genius," but I
do know this. "Doublethink" is right now sitting on the
sho' nuff' really-dealie blockbuster for the Mitsubishi nameplate.
So
if you know Mr.O'Neill, suggest he get with us before we release
it to the world, so he can still get to take credit for it.
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So
You're Looking For An Ad Agency?
This
past week on the Adrant's forum Marcus Kirby, from the UK
put forth the question, " What selection criteria would
you employ to select an advertising agency?"
As usual,
without waiting to think I blundered on into the topic with
my un abridged opinions and enlisted a shit-storm of e-mail
from half of the people I know on Madison Avenue.
Never
one to shirk a pissing match I'm reposting the offending piece
here since more of you are clients, and it should give you
a chuckle.
In this
day and age any forward thinking company who retains an advertising
agency, given the current state of our "industry", is acting
counter to the interests of shareholder value.
Why would
a company willingly retain a vendor who would provide them
with credentials and achievements accomplished by practitioners
who, are more than likely, no longer with the firm?
Why would
a company willingly retain a vendor who will parade a team
of highly experienced professionals in to solicit their business
only to leave said client to the devices of inexperienced
and uncredentialed "juniors" once the business had been won?
Why would
a company willingly retain a vendor who will be responsible
for effectively investing millions of their dollars in hard
assets and billions of their dollars in brand equity with
absolutely no assurance of ROI? They wouldn't do that with
an IT infrastructure vendor?
Why would
a company willingly retain a vendor whose management team
could never match up to their own academically, or in terms
of fiduciary responsibility? Why would a company willingly
retain a vendor who would spend millions of dollars on something...anything...with
no other justification than ..."Ain't it kewl?"
Why would
a company willingly retain a vendor to build shareholder value,who
believes they had a great year if they made a 12% margin on
their expenditures?
Why would
a company willingly retain a vendor who allowed their principal
supplier ( network Television Outlets) to continually charge
their clients more and more, year after, year and deliver
less and less rating period after rating period? Whose "agent"
are they?
Why would
a company willingly retain a vendor who was charged with selling
their product on a basis of anything other than their performance
in selling their product? Why would a company willingly retain
a vendor who could not answer any of the above if their children's
life depended upon it?
The truth.
They won't for very much longer. Tell your mate, any route
but the agency route. The odds for success are better in Vegas.
25,000 agencies. Maybe 25 people who know how to make advertising
that works.
As you
might expect, the first person to retort my tongue-lashing
made the mistake of categorizing me as jaded. Oh no he did-ent!
Off I went again.
I'm afraid
I must take exception to being categorize as jaded. That is
far too mild a term to express my point of view as regards
the agency community in general.
Over the
past five year period every industry on the planet has had
to undergo drastic and sometimes even near-fatal changes to
remain viable. Agility, efficiency and risk management are
the pillars upon which these changes have been instituted.
How has the advertising agency evolved over the past five
year period? They have transitioned from a service model to
a financial enterprise model. What value have they created
for their clients in this transitional phase? Media clout?
That's questionable. Thought leadership? Hardly. Technological
advancement? Nope. A narrowing of the competitive landscape?
Where is the customer value in that?
While
you, (as a review consultant,) see the bright side of the
agency "profession," my perspective is somewhat different.
My clients call upon me to help them determine what ( if anything)
their agencies have contributed to their value chain over
the term of their contract. I am privy to the shortfalls,
voodoo billing practices, production boondoggles, raiment
kickbacks, bait and switch personnel changes. You know. The
"creative" stuff.
I get
to sit in the "exit" conferences, arbitrate the make-goods,
sniff out the "favored nation" vendor relationships. Call
it the "dark side."
Blame
it on the rise of "slacker management" in the face of the
brain drain of the 1980's and 1990's." Blame it on the bottom
line fever that has seen margins slide lower and lower as
agency skyscrapers built to aggrandize "godlike" management
committees now lie half empty. But mainly, blame it on an
industry that is for the most part, still stuck in the 1950's.
It is
precisely that "procurement" discipline of which you speak
and being privy to the results of such oversight, that leads
me to the conclusion that the agency business model as we
know it has outlived its usefulness. Just look at the increase
of direct reports to the average Marketing Officer and you
will see why the Agency of Record status is going the way
of the buggy whip. If ever, there were writing on the wall,
that single issue would be it. "Trusted Advisors," no longer.
"Vendors," and nothing more.
Jaded?
No. Embarrassed.
But hey.
Don't take my word for it. Look what their own lap dog has
to say about them.
POLL RESULTS
Americans ranked public service professions highest in honesty
and ethics. 1. Nurses 2. Grade school teachers 3. Druggists,
pharmacists 4. Military officers 5. Medical doctors 6. Policemen
7. Clergy 8. Judges 9. Day care providers 10. Bankers 11.
Auto mechanics 12. Local officeholders 13. Nursing home operators
14. State officeholders 15. TV Reporters 16. Newspaper reporters
17. Business executives 18. Congressmen 19. Lawyers 20. Advertising
practitioners 21. Car salesmen Source: Gallup Poll
Well,
they do call it AdRants. You may now fire at will.
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What
Makes A Guy Like Me, A Guy Like Me? It's
funny, how at the end of the year, people always seem to think about
beginnings. A lot of the people who read this column, or blog, or
whatever the hell it is, spend a considerable amount of time, wandering
around the archives.
Who
knows what they hope to find? Anyhow, I've been getting a handful
of questions about how I got started in this business, so against
my better judgment and since this is the last column of the year,
here goes.
First
of all, what I am about to tell you is the truth, the whole truth
and nothing but the truth. Or at least one of the truths.
I
guess I should start with letting you know which one. Having a rich
fantasy life, I find it difficult to maintain the concept of absolute
truth for fear of tipping myself over into self-destruct mode and
going supernova before sunset. So my truths seem to run in two and
sometimes three or even four somewhat parallel tracks.
Professional
Truth ( I am what I do) Personal Truth ( I do what I want) Social
Truth ( I am not alone in the world). Generally I can keep these
three realities somewhat balanced with the more troublesome Dark
Truth (I don't give a fuck). So here is how these truths ( which
are not necessarily self-evident) have played out thus far, to get
me where I am.
This
is the Professional Truth.
I
was born and raised in one of the most violent, crime ridden armpits
in America. Newark, NJ. When, is none of your business. My mother
was determined that I would not suffer the fate of the generation
of subteen felons that made up my contemporaries. She sent me to
a less poverty-stricken area to go to school. This meant I had to
walk three miles through the criminal zone to get an education and
three miles back to get home.
My real education came as a result of the journey. Every day I got
my lunch money lifted. Every day I went hungry. One day I decided
to leave my lunch money at home. That's when I found out how the
world worked. From that point forward, every day I got my ass kicked
by the kids who had come to count on me for their lunch money.
Cause meets effect. Fortunately I learned the importance of saving
money-even under duress.
When I saved up ten dollars, I went to a hardware store and bought
an 18" length of lead pipe and had them drill a hole in one end.
Through this hole I strung a length of clothes line just long enough
to tie around my wrist. The next day that I encountered my assailants,
I dropped the pipe out of my coat sleeve and began swinging it at
anything that moved. Four thugs went to the hospital that day. The
fifth thug became my best friend and protector until he was killed
in an armed robbery attempt three years later.
Once
I had secured my right to earn money, I began to use my artistic
abilities to paint signs, pinstripe cars, and ultimately to design
safety posters for the Lackawanna and then the once-mighty Pennsylvania
Railroads. Because I was now accepted by the criminal element in
my neighborhood I also began a thrilling, though short-lived career
as a sub-teen car thief. As a result I became the wealthiest kid
in my neighborhood and a chronic truant.
My
mother, realizing I lacked discipline in my life promptly sent me
to Catholic School. The first time the Nun showed me her paddle,
I snatched it out of her hand, through it out the window and walked
out of class. My mother, not one to give up easily, then enrolled
me in Arts High School. Good choice. I immediately added to my riches
by becoming an artistic gun for hire, doing other kids homework
in exchange for their weekly allowance.
At
15 I got bored and ran away from home to work on the railroad. My
job designing safety posters took me as far west as Chicago, as
far north as Boston and as far South as Washington, DC.
One
day, while traveling to DC I chanced to meet Congressman Adam Clayton
Powell. He was impressed with my ability to draw, undisturbed by
the rocking of a 90mph express train. He asked me to join him for
lunch in his offices on Capitol Hill. I was now 16 and not easily
impressed. I declined. A nearby Porter pulled me into the parlor
car bathroom and asked me if I knew who I had been talking to. I
shrugged. He informed me that Powell was the most powerful member
of Congress and a confident of the newly elected President Kennedy.
I wasted no time rectifying my mistake.
Over
lunch Cong. Powell told me that earlier that day a Church in Birmingham
Alabama had been bombed and three little girls had lost their lives.
I was the end of November and the Congressman wanted to send a Christmas
Card commemorating this tragic event to the other members of Congress
and the Senate. I told him I would do it right there in his office
and later that night it was on the GAO presses.
What
I didn't realize was that the landmark Civil Rights Bill had just
been introduced into Legislation, right before the Holidays, in
hopes that the membership would ignore it on their rush to get home
for Christmas. That Christmas Card forced the issue and was instrumental
in getting the Bill through Congress before the close of session.
I had learned that there was power in my artistic ability as well
as a means to earn a living. I had also learned the value of powerful
friends. The next day I went back home to finish my education.
Two
years later, while working on the March On Washington for Cong.
Powell I met Smokie Robinson backstage at the Howard Theater. He
and Levi Stubbs of the Four Tops were engaged in a heated debate
pertaining to the fact that the Four Tops debut album had been held
up from distribution because Bernie Yezin, Motown's off again, on
again Art Director had not been to work for the past three weeks.
Of course I chirped up and said I could do them an album cover over
night. Being just a kid, they all laughed and went back to their
discussion. Obie Benson, one of the Tops didn't laugh. He gave me
three of their lobby shots and told me to meet him the next day.
I did. They were blown away.
Within
24 hours I was on a United Flight headed for Detroit and my first
real job. Art Director of Motown at 19. The rest as they say is
history.
Have
a Joyous Holiday.
Stay
Tuned.
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