dCONCEPT Branding & Project Management

ECO CARS POSITIONED

2011-07-16T12:09:00.000-07:00

Tuesday, July 12, 2011

Will Prius be the aol of green cars, Tesla the Webvan?

As I have crawled along the jammed-up freeway in Marin, watching hybrid after hybrid fly by me in the car pool lane (a privilege that's just ended), I would never have guessed that cars with green technology still only represent 2% of the U.S. market.

It may take a while for the rest of America to reach the level of green car penetration we have in Marin but the growth rate is impressive (twice as fast as conventional cars). J.D. Power estimates that, in the next five years, the number of hybrid and electric car models will increase fivefold, from 31 today to 159 by 2016.

Such a fast-growing category combined, as it is, with fast-changing technology is full of risk and opportunity. As the field gets more crowded, Prius, the category leader, will try and stay ahead of the pack while new players like Tesla look for a way to break in. Here are the risks and challenges for both brands with doomsday benchmarks added for effect.

Smug1 by Gamma Man (Flickr)

Toyota Prius is the undisputed green car leader with more than half of hybrid sales in the U.S. Prius owes its success to great positioning, choosing a technology that was green enough (but still practical) and a design that was distinctive enough to act as a conspicuous badge for its owners (but not as wacky as, say, the earlier models of the Honda Insight).

As the current #1, Prius has to fend off the competition and it's planning to do that in classic leader fashion by launching new models to broaden its range and cater to different car buyer segments. It's trying to make sure it doesn't get outflanked. Its first new model will be the family-sized Prius V, then a smaller Prius C and sometime after a non-hybrid plug-in Prius.

Doomsday benchmark: aol

The worst case scenario for Prius is that it becomes a victim of its own success, too strongly associated with hybrid technology (vs. newer, greener alternatives), too associated with a certain type of early-adopting, holier-than-thou consumer and too associated with a particular period in the evolution of the green car market. aol was forever associated with its CDs offering more and more trial hours and, as Bill Visnick, an analyst with Edmunds Auto Observer, has pointed out Prius has its own association problems: "The fact is that it's very much known as a weeny sort of a car, and sort of a car for people who are driving too slow in the fast lane."

Photo by NRMAdriversseat (Flickr)

Meanwhile, at the other end of the spectrum both in terms of image and sales is Tesla. Tesla has generated tons of publicity even though it has sold hardly any cars (less than 2,000 worldwide). As Fast Company says, Tesla's Roadster: "Changed the mainstream perception of EVs from clunky golf carts to sleek vehicles that can actually be driven on highways." But now the company has swerved in a new direction. The Roadster is being discontinued and Tesla is going to try and sell cars to the masses. These will be manufactured in Toyota's former NUMMI plant, the size of 88 football fields, and producer of 7.7 million vehicles in its 25-year life.

Doomsday benchmark: Webvan

The worst case scenario for Tesla is that it can't make the leap from hype to mass manufacturer in the one fell swoop now needed. That leap proved too much for Webvan, another company that committed millions to infrastructure before its business was established. Transitioning from a niche to mainstream is difficult enough without adding in a huge plant that needs to be kept running.

There's no comparison really about the prospects of Prius vs. Tesla--the easy and safe bet is on Prius. It has some real challenges but nothing compared to the level of difficulty of Tesla, where the specter of DeLorean lurks in the perhaps not-too-distant shadows (as others have pointed out).

Created by Martin Bishop

Driving Business with Branding

2011-03-16T16:45:00.000-07:00

Erin Rigik | Mar 16, 2011

As competition increases from drug stores, fast-food restaurants and coffeehouse, communicating a clear branding strategy is timely and vital.

By Del Williams, Contributing Editor.
Every retail and franchise store has experienced the frustration of needing exterior signage on deadline. The problem is that large national sign vendors are simply not equipped to move quickly. When time and a personal touch are critical, some of the most respected retailers and franchises are choosing mid-sized sign vendors that are set up to deal with this very thing.
“When signage must be ready for new store openings or rebranding, ‘impossible’ deadlines must be met,” said Kevin Curry, president of Danby Gasoline Marketers in Meriden, Conn., a Gulf dealer that operates three stores and supplies 16 additional convenience stores throughout New England. “That’s when you need a flexible sign vendor to expedite that sort of work.”
Despite the importance that retailers and franchises place on getting exterior signage created on time and done properly, the process is more complex than it appears at first.
“Getting signage installed isn’t as simple as describing what you want and having someone make it,” Curry said. “Permitting and approvals are really the X-factors that determine how long it takes to complete a signage job. It depends on the building, the ordinances, whether it can be illuminated, and if there are special features involved. There are exceptions to every location that you may not have planned for. You have to be able to respond quickly, make the necessary adjustments, and get all the needed approvals under deadline.”
Dealing with Adversity
Dealing with these unpredictable circumstances is the primary reason Curry is a strong advocate of working with local companies.
“With the large sales volumes of national sign companies, you may not get the rapid turnaround and personal attention needed,” Curry said. “That’s particularly true if there are complications.”
For rapid turnaround and the flexibility to handle any required exterior signage changes, Curry, for example, uses Signage US, a one-stop signage provider based in his hometown of Meriden, Conn.
“A rapid response sign vendor like Signage US will make sure that all the details are handled: from surveys, photos and measurements, to meeting criteria and restrictions,” Curry said. “Not only will they do prototypes, drawings and design work, but also get landlord sign off, pursue city permit approval and make any needed changes.
Over the past decade, Signage US has expedited and coordinated the signs at each of Curry’s company-operated stores and a number of the stores he supplies. “They’ve done the entire signage process from start to finish—including initial design, permits, approvals, manufacture and installation—in as fast as one week,” Curry said. “ They keep us informed every step of the way.”
One factor that can delay even the best outdoor signage by weeks or months is the permitting process. Permit requests can seemingly disappear down a regulatory black hole, leaving frustrated retail owner-managers wondering when, if ever, proper permitting will emerge.
“Once they get the permit, they can get the sign built, shipped and installed in a week,” said Curry. “They’ll work directly with us on any custom work we need, which some larger vendors just aren’t set up to do. If anything gets hung up at any stage of the sign making process, they’re aware of it, keep us informed and handle it.”
Forecourt Value
The forecourt is more important than ever, especially as gas prices are rising at a fast clip. Fewer trips mean fewer opportunities to market through the forecourt, so retailers must use every strategy to drive store traffic and grow in-store sales.
Whether it’s pumptoppers, interactive pump videos, vending machines at the fuel island or outdoor displays that offer 12-packs and washer fluid, c-store owners are finding new options to do just that. The key to success is having products visible and priced attractively.
The most impressive forecourt marketing results come not from one big effort, but from the cumulative effect of many smaller ones, said Rick Dery senior vice president of branded marketing and chief marketing officer for Gulf Oil. Since Dery assumed his post five years ago, he’s instituted a number of changes and improvements that have seen average monthly sales at Gulf retail sites soar by 30%.
One of Dery’s current marketing programs is “Making Green Miles,” a social networking program that allows people to go online and share ideas about what they do to offset their carbon footprint.
“We’re trying to reach out to a whole new audience,” Dery said. “Every year, between 12 and 13 million new drivers enter the market. We recognize that electronic communications media are a viable way to get our message to them, especially on an interactive basis.”
This marketing effort includes a growing array of forecourt marketing that includes beverages, automobile accessories and pumptopper displays to communicate in-store specials. “The marketing effort doesn’t stop once we communicate with the customer,” Dery said. “Then the tactic becomes executing transactions and keeping them as loyal customers.”
NOCO Express, a 30-store chain in New York State has added a propane tank exchange programs to the front of its stores through a partnership with Blue Rhino. The program allows customers to drop off any empty propane tank and pick up a filled one. “It’s an easy, turnkey program, and it doesn’t take up much space,” said Terry Messmer, NOCO Express merchandising manager.
7-Eleven is using forecourt space to promote Redbox DVD kiosks. For 7-Eleven and NOCO the primary motivating factor is driving business by offering convenience.“For the price of a single movie ticket, a family of four can rent a just-released movie at redbox,” said Kevin Elliott, 7-Eleven’s senior vice president of merchandising. “I think more and more people will recognize the great value of this new convenience.”

GREEN BRANDING?

2011-03-03T14:10:00.000-08:00

Group releases sustainable branding study

by Christina Williams
Sustainable Business Oregon

A coalition of business folks calling themselves the Sustainable Branding Collaborative released the results of a survey Thursday that aims to shed some light on how sustainable companies should approach branding and marketing in an age when consumers are wary of greenwashing.

The survey was conducted last November among a targeted group of sustainability-minded professionals and garnered 291 responses.

Not surprisingly, the group found that respondents were bullish on the prospect of sustainable business — even in the face of changing political leadership and a struggling economy. Eighty-three percent of those surveyed said the movement is still gaining steam and will play a bigger or much bigger role in the U.S. economy over next five years.

"I was wondering if people were losing the faith," said Rich Bruer, veteran marketer and point person for the Sustainable Branding Collaborative. "That was overwhelmingly not the case."

The survey also uncovered that the majority of respondents would prefer a company that doesn't make any efforts — or claims — in the area of sustainability to a company that makes sustainability claims but falls short of delivering.

"People are sick and tired of greenwashing," Bruer said.

The survey was conducted in partnership with market researcher Michael Midghall and is available for download from the collabarative's website.

Bruer said the Sustainable Branding Collaborative is in "early beta," having been formed last year. He expects the group will pursue clients seeking help with sustainable branding. The release of the survey marks the group's formal launch.

The collaborative includes: Bruer; Midghall; Eric Brody of Shift Advantage; consultant Yvonne Chang; Thomas Joseph Doherty of Sustainable Self; Genevieve Marcherio of Red Lemon Creative; Michael Tevlin of Tevlin Strategic Communication; and Justin Yuen of FMYI.

"I've built an agency, I've done it that way," said Bruer who cofounded high-tech public relations and marketing firm McClennahan Bruer Communications in 1993. "This is kind of straddling that line between (a group of solo practitioners) and a formal agency."

BMW Announces “i”

2011-02-23T13:05:00.000-08:00

BMW Announces “i” Sub-Brand, i3 and i8 Production Cars - Car News

For when EfficientDynamics isn't quite enough: The BMW i brand is official.

BY JENS MEINERS AND MATTHIAS KNÖDLER
February 2011

BMW's "Project i" group, a self-described think tank, has been working on electric mobility since 2007. One tangible result was the two-seat Mini E, a car that’s to be followed by the electrified BMW 1-series ActiveE, a small fleet of which will be leased this summer. While these are electric versions of existing cars, another focus was put on developing dedicated models. To house these vehicles, BMW has announced a new sub-brand called “BMW i.”

The “i” moniker popped up in the 1970s in BMW nomenclature as a way to mark the company’s focus on forward-looking technology, and to differentiate the brand from the competition, namely Mercedes-Benz. Back then, it denoted fuel injection, as BMW was far quicker than Mercedes in replacing carburetors throughout its portfolio. (While all BMWs are now fuel-injected, the “i” lives on, tacked to the end of the model designations.)

More recently, BMW launched its "EfficientDynamics" moniker for its most fuel-efficient models, but the i vehicles take a more radical approach to efficiency, and so they will get their own branding. They will be products “for high-class clients,” gushes BMW marketing chief Ian Robertson.

i3 and i8 to Arrive in 2013-ish

Two models will form the foundation for BMW's new sub-brand. The first is dubbed the i3; it was heretofore known as the “megacity vehicle” and will launch in 2013. The second is the i8, the series-production version of the 2009 EfficientDynamics concept. It will launch shortly after the i3. Europe will get the cars first, but the U.S. market will be served as well. Further, BMW has trademarked i1 through i9, as well as e1 through e9, so you can be assured the company plans an entire range of vehicles.

BMW had previously released renderings of the megacity vehicle, and the company allowed us to take a closer look and get a ride in a test mule based on the EfficientDynamics concept last fall. The new brand's motto is "Born Electric,” but while the i3 will be a fully electric car, different powertrain options, such as the addition of a range-extending engine, are within the realm of possibility. The i8, by contrast, will be a plug-in hybrid designed for high performance. It will be an expensive and futuristic two-door coupe, a true halo car way out of the average buyer's price range.

As differently as those two vehicles are positioned, they share a lot of technology under the skin. First is the shared architectural approach of an aluminum chassis combined with a passenger cell made of carbon fiber. BMW calls it the "LifeDrive" architecture. It’s designed to offset a lot of the additional weight from battery packs—BMW says it saves over 650 pounds versus using more conventional construction for the i3.

The i3 and i8 also will dip into a shared parts bin for electric motors, lithium-ion batteries, and powertrain electronics. Consequently, they both will be built in BMW's plant in Leipzig, Germany, alongside the 1-series and the X1. Still, i models will be set off from the rest of BMW’s lineup by their specific styling language. The BMW roundel, kidney grille, and taillights all will get blue surrounds, and the models will have especially large wheels for their size.

ConnectedDrive Included

The focus of BMW i isn’t limited simply to powertrains and fuel efficiency; its vehicles will include the latest in "ConnectedDrive" technology, too. That means car-to-infrastructure communications, and the integration and delivery of local information on parking, charging locations, and more. Using the tech to facilitate car sharing is another possibility. ConnectedDrive is being showcased at this year’s Geneva auto show in a roadster concept of the same name; check out our story on that car for more details.

A lot of these ideas on mobility have been tried before, notably by Daimler with its Smart brand, but perhaps the world is finally ready for them. We’ll know before long, but in the meantime, we hope to bring you more details on the actual i3 and i8 models soon.

2011-02-14T22:23:00.000-08:00

Party photos of the week: Bachelor/Bachelorette charity auction

LAURA SERRA

Globe and Mail Update

Published Monday, Feb. 07, 2011 4:00PM EST

Last updated Wednesday, Feb. 09, 2011 9:18AM EST

On February 3, Eligible Inc., held their first annual Bachelor/Bachelorette charity auction raising more than $30,000 for the Canadian Centre for Abuse and Awareness. World champion boxer Fitzroy Vanderpool was among the bachelors up for auction to a crowd of more than 500 guests at the Capitol Event Theatre. It was Miss Universe Canada 2010, Elena Semikina, who stole the spotlight and garnered the highest bid of the evening at $4,000 which included dinner, a photo shoot, and a one-year membership at the Yorkville club.

Sam Trotta (STRIATION 6 - Sponsor), Bachelorette Catherine Harrison and Davidson Elie (dCONCEPT - Sponsor)

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Bachelorettes Veronica Stoller (left) and Nicole Forrester
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Miss Universe Canada 2010 Elena Semikina (left) and bachelor Drew Taylor
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Cindy Roemer (left) and bachelorette Heather Sinclair
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Bachelor Strat Allen and bachelorette Marni Sky
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Bachelorette Daniele Lamb (left) and Nicole Bae
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Mike Harding and Michelle Blanche
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Bachelor Robert Cribb (left) and Gary Wilson, president of Eligible Inc.
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Bachelor David Olesen (left) and bachelorette Dr. Melanie Locke
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Sam Trotta (left), bachelorette Catherine Harrison and Davidson Elie