Positioning at the Trough

Seven simple steps to successfully position your brand to benefit from the ever-growing 2009 government stimulus programs.

As democrats, republicans, conservatives, liberals, socialists, capitalists, Keynesians or Greenspansians, we have all taken refuge around the rallying cry, “They are too big to let fail”. Billions have turned in to trillions and the government assistance trough has never looked fuller or more important to the success of American brand capitalism.

2008 saw once invincible brands fall, one after another. As a result, the modern view of branding and its relative importance and value to an organizations success, has taken a very large blow.
The auto companies flew to Washington with brands a blazing, only to be escorted to the door with their tails between the legs.
For weeks, media pundits commented on the big three CEO’s poor performance, but the bigger brand story remains untold.

These three gentlemen are very lucky today, for not even the existing Bush or incoming Obama stood up for them. The gentlemen were saved by their companies’ brands. Despite their three brands incredible mismanagement, they were positioned to be among the first to line up at the rapidly growing government trough.

Their story of brand mismanagement, repositioning, reinvestment and commitment can serve us all in better understanding the importance of brand, it’s meaning, power, role and value in a successful free market economy. These lessons are laid out as 7 simple steps every brand, big or small, can take to successfully position itself to benefit from the ever-growing 2009 government stimulus programs.

1. Focus on the right business At first glance this appears obvious and in many ways it is, but after years of helping clients rethink this question and refocus their answer, it’s power to set to direct and set the proper tone for the entire organization becomes crystal clear.

The big three, (GM, Ford, and Chrysler) went to Washington asking for billions to bail out the car companies, “the backbone of American business”. By simply redefining and focusing their business on developing better transportation vs. building cars, they would have communicated that they were looking for support in building our future rather than sustaining their past.

2. Use a bit of brand contrition Nobody has stepped to the front of the class to explain what has caused this current economic crisis. The blame, right or wrong, is being placed at everyone’s’ feet, and your brand must accept some of that responsibility.
The internet, cable news, cell phones, etc., have put all brands under much more scrutiny today, and brands within site, sound, or text of the government feeding frenzy are under a virtual microscope.
Flying on corporate jets or over reacting and personally driving over 20 hours does not show contrition or sensitivity, simply defiant arrogance.
Take a step back, out of your office, plane, car, and country club and take a moment to view your brand from the perspective of your new additional customers: taxpayers, politicians, and pundits.

3. Understand the difference between confidence and arrogance Brand Ford did the best job of the big three at this over the last 90 days. They brought out both Bill Ford, ex CEO, and recently appointed CEO, Allen Mulally to make their case. Bill Ford, the green visionary shackled as a quintessential industry insider, and Allen Mulally, the industry outsider from Boeing who is credited with turning that massive organization around with the successful Dream Liner. The result is a leadership team that demonstrates contrition (Bill Ford) and confidence (Allen Mulally).

Together they are helping to build a brand that communicates confidence rather than displaying arrogance. An organization that recognizes they do have all of the answers, but that is committed to taking the steps necessary to get the job done.

4. Extend your brand benefits from consumers to taxpayers to society This is perhaps the toughest challenge in today’s environment, fall short and you could walk away with no money and more regulations. Over state your brand’s benefits and you will suffer the consequences of being seen as just another slick marketer.

The big three get a passing grade in this area. They clearly went overboard when making claims that no one other than they could build cars in America and export them on their scale. We all have seen Honda, Toyota, and BMW do it, not to the same scale, but the strength of their brands tell us they could if given the opening.
Much better was the many little stories showcasing the extent to the big three’s reach into the American economy. The thousands of big and small suppliers that are spread across America, many owned by families and supporting small town diners, governments, and churches.

5. Differentiate yourself with urgency Many more brands are beginning to get in line for government billions; soon the line will grow into a large crowd. Quickly government prioritization will not only be determined by desperate need, but urgent action. Desperation in some cases works, as in the case of financial services and auto sectors, but quickly Americans are getting tired of the screams for help, and are rather turning towards the calls for urgent action.

Communicating a sense of urgency correctly comes with an understanding of reality and inspiration that says our brand is ready to contribute to turning this economy around NOW. A colleague of mine, Denis Riney, categorizes these brands as “Shovel ready” as a means to communicate they are ready to take advantage of the proposed billions promised to flow in the name of infrastructure reinvestment.

6. Keep your message consistent The big three utterly failed on this one and as a result looked inept and confused as they spun around chasing their tails. On the other hand we have to look no further than Barack Obama and his brand manager David Axelrod for a contemporary case study that will be sure to be studied by brand marketers for years to come.
Brand Obama stayed focused on “change” through out the campaign as others, most notably Clinton, chased focus groups changing her message so many times no one remembers what she was trying to communicate.

7. Don’t be afraid to say no Sometimes the most powerful brand message is to say no. Charles Schwab quickly said no to federal banking bail out funds reinforcing the long-term brand message of no-nonsense, trusted and unbiased financial advisory services. A number of smaller regional banks have chosen to pass on federal assistance helping to differentiate them selves and instill consumer confidence.
Ford attempted to do this by saying no to loans but yes to a line of credit. If they passed on the industries trek to seek handouts from Washington they may have differentiated themselves from their competitors while building some real brand value, but instead this nuance was lost with of all their valued brand constituents from consumers and the media to union and government leaders.

GE is perhaps the best example of a firm that desperately needed the cash, but strategically chose to protect their brands reputation and instead stuck a deal with legendary investor Warren Buffet under much less favorable financial terms, but much better brand terms.
Whether you need to position your brand at our government’s money trough to simply survive or expand in to the emerging high growth opportunities that infrastructure, energy, education, and healthcare will bring, follow these 7 simple branding stimulus steps: Focus, Contrition, Confidence, Expansion, Urgency, Consistency, and not being afraid to say No. Big or small your brand will be better positioned to benefit from the ever-growing 2009 government stimulus programs.


Many will say the melt down of 2008 was the year branding died, but to those I say good-bye and good-riddance.

2009 will be the year that reestablished how important a tool a well-positioned brand is to driving an organization to new levels of success, and that should inspire us all.

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By Bill Engler - a recognized industry thought leader and Principal with BrandLogic, the nations leading independent brand consultancy.