The Brand Man Speaks

Lack of Civility cuts across occupation, race and political affiliation...is the end of the empire near?

I just felt compelled to write a short piece on what appears to me and many others to be an rapidly approaching end of any type of civility in this country....maybe the world....that reminds one of the decline of the Roman Empire....

Between Serena's  unsportsmanlike/unladylike behavior at the US Open that cost her the match, Kanye West's selfish and inflated ego stage stealing from Taylor Swift at the MTV Video Awards to Congressman Joe Wilson's outrageous outburst during a Presidential speech to congress, ("You lie")....what has become of us, our cultural...more importantly our future? We are in deep trouble and it doesn't look too promising for things to get better.

Watching out for you everyday.

Eli

Sears Tower to be called Willis Tower; will brand change undermine iconic skyscraper?

When Chicago became home to the tallest building in the world (now eclipsed by buildings in Asia) it was an important milestone for the windy city giving it great cache and bragging rights over New York. Retail giant Sears was the building's primary tenant and since the 70s when the huge building was opened it instantly became a notable US landmark: The Sears Tower.

Now the building's owners are changing its name to Willis Tower to reflect its new largest tenant, Willis Insurance out of London. And a great debate has ensued.

Ballparks, stadiums and notable buildings make a bundle when they sell rights to name their structures to high paying sponsors or building tenants. Names change often in this world as one company's fortunes decline another takes up the helm with new naming rights and signage.

In the case of the Sears Tower, the brand ID for this impressive structure that just opened an observation deck of glass hanging off the top of the building, is key to its stature. It has been called the Sears Tower since day one and changing it now seems a bad move. The Sears Tower is more than a sponsorship or important tenant name (Sears has NOT been a tenant for over a decade or more). It is a name tied to the building itself; its Brand ID. Sears is still based in the Chicago area and although not the major retailer of the past, it still is a important retail player US wide and closely tied to its Chicago area roots.

Additionally, the name Willis just seems flat doesn't roll off the tongue and somehow in my mind will diminish the iconic nature of the "Sears" Tower.

I have read the name change is a done deal but does that mean it is a good idea when it comes to tourists and Chicago's brand? It will take a long time for people to "forget" the Sears Tower brand and ask to be taken to the Willis Tower. Further, naming the building after an obscure English insurance company no one in the US knows about or cares about also seems foolhardy and anti-American, no?

Fans of the Sears Tower are taking their case to the world via Facebook and other social media to try to generate enough negative support for the new name to try to force the building's owners to not change the name. They also are seeking landmark status for the building and its name (although the building is not old enough for such a status as those things go), hoping a government decree will make it impossible for Sears to be replaced with Willis.

Some have said changing the name of the Sears Tower would be like changing the name of the Empire State Building or Eiffel Tower...it just wouldn't be done no matter how much money was put up for the rights. What do you think?

Watching out for you everyday.

Eli

Ford takes bailout money from Energy Dept; Chance for brand to be #1

Ford Motor Company has successfully avoided the need to take the government's bailout money like both GM and Chrysler and has been able to keep its employees, dealers and operations mostly intact.

Now Ford has announced that it will take some US Taxpayer money but as an investment from the Energy Department to develop and launch fuel efficient automobiles.

I think Ford is doing the right thing and handling this economic situation far better than its (former) competitors. The Ford brand has enjoyed unprecedented positive perception among the American public because of its expert handling of this difficult economic condition in the auto industry. Fox News asked me if I thought this perceptive would be hurt now that Ford has taken bailout money.

View my interview here:
Ford Takes Government Money

I think that Ford has the opportunity to become the premier auto company in America, a position it has long desired but been unable to obtain. Ford could be the "hero" company that saves the American auto industry if it plays its cards right and brings the right product to market.

Watching out for you everyday.

Eli

Cheerios under fire from FDA; fair or unfair?

Good old American cereal brand Cheerios is under fire from the FDA for posting drug like claims on the boxes of one of the country's favorite morning foods.

For several years now General Mills has promoted heart health by encouraging consumers to eat its Cheerios brand which contains whole grains which have been determined to assist in lowering one's cholesterol.

Out of the blue, under the new O'bama administration, the FDA has decided to crack down on what it believes to be questionable marketing practices and benefit claims.

The FDA says Cheerios' claims are "serious violations" of federal law as the words "clinically proven to help lower cholesterol" indicate the product is a drug without drug claim approval. The FDA doesn't dispute the claim just insists General Mills needs to apply for FDA approval to use those words.

The cereal has used this language for over two years with no prior complaints that I am aware of.

In a time when world food protection issues are not being handled by the FDA anywhere near as well as they should, this bold PR move against a honorable brand seems gratuitous and overblown. I suspect as do many experts that in the coming weeks, General Mills and the FDA will come to a compromise over the language given it is important for consumers to know what kinds of inexpensive basic foods they can consume that are good for them in a country where obesity impacts over 60% of the population.

Watching out for you everyday.

Eli

AIG senior management: All Candidates for Cheaters, Liars and Thieves Club

I have periodically written about a "brand" I started called; Club CLT. It stands for Cheaters Liars and Thieves. I have added names to the list of people who have stood out as major offenders, mostly corporate types who have benefited greatly at the expense of regular people and our nation as a whole.

Today I add the entire senior management staff at insurance giant AIG now that we know they were awarded millions in bonus money even as the company took billions in bail-out aid from the US Government (actually American Taxpayers).

Now we also learned today that many recipients left the company immediately after receiving a million dollars or more in bonus money.

ALL THESE PEOPLE SHOULD BE ARRESTED FOR STEALING AND DO JAIL TIME..all the them. Desperate measures are appropriate for CLT Club members.

We need to fire the senior management of any of these companies that get bail-out money...and hire the talented unemployed who for no fault of their own are on the streets. This country must be full of talent begging to work for a lot less money and do better work. It's these very same senior managers that screwed up these companies in the first place...aren't we just putting the wolf back in the sheep's' den?

Do you agree? What do you think?

Watching out for you everyday.

Eli

IBM becoming UNAMERICAN brand?

Reports indicate that IBM has offered employees who are likely to be laid off shortly by Big Blue the "opportunity" to move to India and become part of the company's out-sourced work groups. IBM will help with relocation. (How nice of them...)

Various organizations have condemned this news...although IBM will not confirm it but does acknowledge they will be laying off workers shortly.

Imagine, IBM once thought to be a stalwart American brand thinks offering thousands of employees the opportunity to leave the US to stay employed is a good thing....I haven't heard anything so ANTI-AMERICAN in a long time.

Maybe if IBM's top executives would take a pay cut many of these folks could not only keep their jobs but also keep them here in the United States.

Let's hope this doesn't really materialize as a result of pressure from Americans and our new President.

Watching out for you everyday.

Eli

New CLT inductee, John Thain, Former CEO of Merrill Lynch

We have a new member of my CLT Club, (Cheaters, Liars and Thieves), and it is now ex-CEO of Merrill Lynch, John Thain.

When he joined Merrill to help it out of its major financial mess, he was praised for being a very smart guy who many felt including Merrill's top executives and brokers could guide the investment bank out of its abyss.

He was fired this week because he wasn't so smart after all. His sense of "entitlement" despite the billions in losses at Merrill under his watch led to a $1.2 Million office renovation including an $88,000 toilet. It also included handing out BILLIONS in bonuses to his top brass despite the fact that the entity was bleeding to death just before it was bought by Bank of America.

One of the biggest problems in this country right now is GREED especially among the top executives of the investment banking world. Different than traditional bankers, these CLTs have long thought they were so self-important that lavish living was part of the reward for ascending the investment banking ladder and the company's performance was irrelevant.

In the case of Thain, I believe he should have to pay back the cost of his office re-do and his cronies who received billions in bonuses should have to return this money as well. NO ONE should be paid a bonus if their work leads to billions of dollars in losses affecting millions of people.

So welcome Mr. John Thain to that increasingly less elite club called CLT.

Watching out for you everyday.

Eli

Brand California may price itself out of the marketplace

The recession economy has played havoc on nearly every business, individual and entity in the United States including states and cities.

California is one of the most hard hit by the economic down-turn. The state's comptroller recently announced that it would not be able to pay tax refunds to consumers this year instead sending out IOUs for repayment sometime in the future. (Can you imagine that?)

The state benefited greatly from skyrocketing real estate values but that money was spent and short-lived. Now with housing prices and values collapsing by over 50% in some parts of the state the resulting real estate taxes can't possible cover the commitments made for that money.

Governator Arnold Schwarzenegger plans to raise taxes and fees everywhere including the state's sales tax which may soon cross the 10% mark in Los Angeles making it the highest in the land. Additionally, Arnold is planning increases in state levies like a higher alcohol tax from 4 cents to nearly 30 per 750ML bottle.

In one case this alcohol levy will change a notable brand "Two-buck Chuck", a wine sold by Trader Joe's from Charles Shaw for under $2.00 and a big favorite in Los Angeles. The tax increase will make it impossible for the brand to stay under $2 completely undermining its brand strategy. Wine industry folks would rather have the tax be part of the increased sales tax so the increase doesn't impact their marketing efforts. Even though the wine will still be a bargain at say $2.29, it's raison d'etre will change somewhat. This is akin to the fact that 99 cents stores are moving to over $1.00 with most items and now calling the stores in some cases 99.9 cents stores. The idea that a 99 cent store goes over the $1 mark markedly undermines the brand in the mind of the consumers even if it is only 1 cent more.

California may end up pricing itself out of the marketplace by making the state too expensive to live in or even visit. I believe for the first time in decades more people are leaving California than moving in...primarily because of high unemployment and the extremely high cost of living.

As dire a circumstance as this difficult economy is, it is important for brands of all kinds to be mindful of how short-term changes in their strategies may forever impact consumer perception and loyalty to those brands. This is not something to be done quickly or impulsively and requires careful thought and planning. It does not appear that California has done this homework or if they have, they haven't come up with a viable solution that does not undermine the brand.

Watching out for you everyday.

Eli

US Automakers must consolidate brands to survive; something that should have been done years ago

As GM and Chrysler begin their bail-out effort it is important to consider that it was not only the economy that brought the US automakers down but also their refusal to see that they had too many brands and marques out in the marketplace.

Many of the branded marques are just sheet metal duplicates of other marques with little or no true differentiation. For years aggressive marketing programs helped distinguish each company and their products but in reality more and more they were producing numerous products with different names but nothing else meaningful to consumers. For economic reasons, most of the marques shared so many parts that it made too many models look alike without any reason for their existence other than inertia.

Other than Cadillac and Chevy the other GM brands Olds (now defunct) Buick and Pontiac have become mostly interchangeable and undistinguished with boring designs and uninspiring attributes. Cadillac was nearly dead before the Escalade became a staple in the "hood" with the bling group and probably is one of GMs best moves in recent years prior to the gas crisis....although the Hybrid Escalade seems like a joke to me, there is a place for some model of hybrid that truly is luxurious and efficient on par with the Toyota Prius.

Chevy has always been the work horse brand. But even among Chevy marques several could be eliminated and not many would be missed because they are so bland.

It might make sense for GM to reduce their models to half of what they are now. They should just sell a few Cadillac marques (high end) a Buick/Pontiac mix of a five or six models (mid) and Chevy (low) and eliminate most of the rest of Buick and Pontiac and of course Saturn, Saab and Hummer to concentrate on survival with meaningful and competitive product.

Chrysler is mostly a loser in my mind as a brand. Beyond the success of their mini-vans and maybe the 300 series and Ram trucks, the rest of the marques are pretty weak, uncompetitive entries. Jeep still has an important spot in the marketplace because it is a unique brand but honestly the rest of the collection could be tossed..(ok maybe save the re-introduced Charger but it won't sell enough to keep Chrysler alive).

Ford, which isn't asking for and has not received any bail out money could also go through some marque pruning and be a better, stronger brand. Of the three, Ford seems to have a better handle on innovation and new interesting designs (Edge and Flex) and is making an effort to offer more fuel efficient cars than the other two. The product has improved greatly since the days of F.O.R.D, Fix or repair daily, Found on the road dead. I was impressed with their new ideas at the LA Auto Show. Ford should, however, dump the Mercury division altogether...duplication without any reason for being. Lincoln needs a major shot of innovation and design help or it too should go bye bye.

Watching out for you everyday.

Eli

AIG Insurance executives formally inducted into Club CLT

In a previous post I wrote about a "new" brand called CLT...and the elite "club" the brand was forming. CLT stands for Cheaters, Liars and Thieves and its club embraces the individuals in the country who have cheated, lied or stolen their way to prosperity and success on the backs of ordinary Americans.

The first major entry (from tens of emails I received) is an entire executive group from one company, insurance giant AIG.

If AIG is familiar to you it is because it is one of the US companies being bailed out to the tune of $85 million.

While Congress and the Federal Reserve were working on a bailout program, top executives of AIG "partied like it was 1999" as the song goes at the super expensive luxury California resort, St. Regis Hotel and Spa in Monarch Beach.

This "business" trip cost nearly $500,000 including $23,000 for Spa treatments. Chief Executive Martin Sullivan thinks there was nothing wrong with this trip and its costs and his team deserved it. (Read CNN Online story about this extravagant trip, also watch Anderson Cooper's 360 series that will feature the top 10 "most wanted" CLTs this week).

So here's to AIG executives behind their free-spending leader Sullivan....you are all now members of Club CLT. Hopefully this membership leads to some serious action against you and the company including the forced return of all that money from each individual who participated in the luxury trip on essentially tax-payer dollars.

Greed, greed and more greed. I wish we could put these folks in jail is the sentiment readers of my blog have expressed. So do I.

Watching out for you everyday.

Eli