Identity

Wayne Huezinga autonation marshall strategy

A Tribute to Wayne Huezinga

We first met Wayne Huezinga when he asked our help in creating the identity of a new venture he was starting. When we asked about the venture, he said he planned to consolidate the largest unconsolidated industry in America, used cars. He pointed out that the annual sales of used cars was equal to half the sales of new cars. He also said that the average family could no longer afford the average family new car, so they were leasing cars instead of buying them. This meant that there would be a lot of formerly leased cars on the market when the leases expired within 2-4 years, with low miles, that he could buy and sell at a great discount.

He planned very large lots, with a great range of selection. He was not going to have sales people. Instead, he would have consultants to help customers figure out what kind of car was best for their needs and what would be the best way to pay for it. He was going to have fixed prices, the same for everyone. He would give you a firm price for your trade-in whether you bought a car from him or not.

We said, “Wayne, a lot of used car lots are owned by local businessmen who you will put out of business.” He replied, “Used car dealers take advantage of buyers, especially women. They misrepresent their cars, manipulate their pricing and don’t stand behind their product. They are ranked below politicians in honesty. They deserve to be put out of business.”

We named the new business AutoNation and within four years it was the largest auto dealer in America.

So, when you go to any car dealer in the future, new or used, you can thank Wayne Huenziga for bringing transparency and integrity to the industry.

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DACA is an Identity Issue.

DACA is as much an identity issue as it is an immigration one. The effects of decisions today may affect many people’s sense of who they are for much longer than its political news cycle.

We are faced with some 800,000 people who identify themselves as Americans – and why shouldn’t they?

  • Their parents are in America.
  • They grew up in America.
  • They were educated in America.
  • They work in America.
  • They pay taxes in America.
  • They serve in America’s armed forces.

America is the only home they have ever known. If they are returned to an unfamiliar country, they might not even speak the language.   

  • Will their identity no longer be American?
  • What will this do to America’s identity?
  • What will this do to America’s brand promise?

Britain recently went through an identity crisis with Brexit. The British brand cut off the European part of its identity. And the consequences for many Europeans and Brits alike has been a sense of broken promises. The DACA identity issue raises important questions about America’s identity and its own “brand” promise.

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trump brand

Does Identity Trump Brand?

In reading “How Will Trump Rebuild His Brand? published through Knowledge @ Wharton, we need to think about Trump’s brand and his identity, and how both may affect his upcoming presidency.

It can be confusing when the word brand is used to mean so many different things. Brands convey a promise that people come to rely on. The Trump brand promises ornate, luxurious, exclusive products or experiences at a premium price. It attracts prosperous clientele that are drawn to these qualities and who can afford these experiences. It is an appropriate brand for up-scale products and properties, because it is very well known, and it can command a premium price. Hence the brand has value to properties not even owned by Trump, and for which some product and property owners have been willing to pay a royalty.

Identity is different from Brand. Identity is about the reality of a person or company – who he, she or it really is – where brands are externally driven to appeal to others, identity is inner-driven. Identity flows from the reality of who the person or organization is – their innate driving force. Identity is bigger than brand. The identity of a corporation, organization, individual, or even a presidency may develop several “brands” aimed at different audiences. It can be especially powerful if all the brands stem from or reinforce the identity. The identity of Proctor & Gamble is characterized by a singular drive to provide quality household products that improve people’s lives. This is their driving force, but P&G has many brands (Crest, Tide, Pampers, Gillette, etc.), all shaped to appeal to different external audiences, yet all reinforcing P&G’s identity.

Donald Trump’s identity is more multi-faceted than his luxury brand. Trump’s identity should not be confused with his luxury brand. If Donald Trump’s drive for power is sincerely about populism, uniting the country and creating prosperity for all, and if he delivers on these goals, President Trump will be recognized and appreciated for not just luxury goods and properties. To accomplish his objectives, he may need to create a healthcare brand, a tax reform brand, a foreign trade  brand, and other “brands” shaped to appeal to different audiences. And these brands should all reinforce and deliver on his drive to “Make America Great Again.” If they don’t of course, all of these brands will lose credibility along with the presidential identity.

In conclusion, it is not only possible, but necessary, that a president serve many different audiences, and good branding can help, but the Trump luxury brand alone is not enough. What matters most is Trump’s Identity, who he really is, what he truly cares about and what he aspires to accomplish.

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It Never Pays to be a Copycat

It Never Pays to be a Copycat.

A recent WSJ Article trumpeted “Copycats Rule the Skies.” It was about how the three largest U.S. airlines have all become so much alike.

Why are the Delta, American and United brands so much alike? Patrick Moynihan, the former Harvard professor and U.S. Senator had a theory called, “The Iron Law of Emulation.” His theory held that nations that competed against each other became more and more like each other. This certainly seems to be the case with our airlines, hotels, banks, etc.

Moynihan pointed out how the U.S. and Russia once emulated each other: We got the bomb, they got the bomb; we got intercontinental missiles, they got intercontinental missiles; we got nuclear submarines, they got nuclear subs, and on and on.

During my 20 years at Landor, we designed the brand and identity strategies for dozens of leading airlines. Our purpose, always, was to differentiate each airline in a way that was relevant, true and compelling. To create a preference or command a premium, we built on each airline’s unique brand characteristics which were often its national characteristics: British Air was about their understated global competence. Singapore Air was about the pride that Singaporeans take in providing personal service. Alitalia was about Italian style. Hawaiian Air was about sunshine, flowers and relaxation. These identity strategies influenced all the decisions each airline made. Whom to hire, how to train, what kind of fleet to operate, and what passenger offerings and style of operations would reinforce their particular identity.READ MORE

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One word is critical to M&A Success – CULTURE

One word is critical to M&A success – CULTURE

We learned last week that Hewlett Packard Enterprise is merging its enterprise services unit with Computer Sciences Corp (Read the full story). This is a perfect opportunity to talk about the consequences of mergers on identity and brand, and how having a solid strategy for both is key in your merger’s success.

Research has shown that as many as 83 percent of mergers fail to achieve their original business goals. Brand value, or goodwill, suffers right along with business value, often destroying the appeal and premium that might have inspired the acquisition in the first place. Why is this? Because culture, and the purpose behind each organization being combined, is often ignored in favor of the numbers.

These deals are put together by attorneys and investment bankers, who fail to consider the cultural implications of the merger. These people think in terms of “synergy” and 1 + 1 = 3, when the real goal should be 1 + 1 = 1.

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Why One Identity is More Powerful than Many

Why One Identity is More Powerful than Many

Many organizations – whether corporations, non-profits, or educational institutions – develop broad stables of identities to segment their offerings to different audiences. Some of them succeed with this strategy, but many of them do not. Our client, The University at Buffalo (UB)’s recent success can help explain why a singular identity lends more collective strength to an institution than can a handful.

UB is an AAU institution, which means it has been carefully selected to sit among only 61 peers in the American Association of Universities. It is the largest and most comprehensive research university in the SUNY system, and has multiple nationally ranked departments. Over the years, however, UB has had multiple names, and adopted specialized identities for athletics and other departments. These changes had a dampening effect on awareness, appreciation and internal pride.

Now, the university is committing to a singular identity, backed by a strong and unifying brand strategy, and is already reaping huge rewards in local pride and national momentum.

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Spokespeople are No Substitute for a Strong Identity

Spokespeople are No Substitute for a Strong Identity

We have encountered prospective clients who believed that the best way to build awareness and enthusiasm for their corporate identity or brand was to find a charismatic and compelling spokesperson to represent them.

My personal favorite Spokesman is George Foreman. His delivery and personality are infectious (See his current TV pitch for Inventhelp), but when you sign up with George Foreman, you get a human being who could become inappropriate despite his charm.

Hiring celebrity spokespeople can be a dicey strategy. People, or their circumstances, can change. Consider the following situations:

When Lance Armstrong finally admitted cheating, he was dropped like a stone by all his sponsors. When Tiger Woods was caught cheating on his wife, however, Nike stuck by him.

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Building a Strong Corporate Identity

Most organizations realize that having a strong brand identity brings many benefits, among them more motivated employees, competitive advantage in the marketplace and a clear brand promise to engage customers and stakeholders.

But it’s not always clear how to build a strong identity if you don’t already have one. What does it take? And how do you know what to aim for?

 

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Why Large, Complex Organizations Need a Strong Brand Identity

If you read a lot of the branding and naming advice that’s out there on the Internet, it would be easy to think that the only time an organization should worry about its brand identity is when it is first getting started. What should you name your company? How should you position it against competitors? These are important questions for startups and new brands, but the truth is that large, complex organizations are just as often in need of identity strategy.

 

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The Benefit of Organizational Identity

Having worked on more than 300 identity programs over the course of our careers—for all types of clients, ranging from startups to Fortune 100 companies like GE, Boeing, Apple and Walt Disney—we’ve seen that the value of a strong brand identity cannot be underestimated. It can be the difference between success and failure for an organization, no matter how big or small.

From marketing and advertising to operations, investments and recruiting, everything you do begins with identity. It’s the organizing principle that makes your organization unique and meaningful. And because it is of such strategic importance, a strong identity drives tremendous value through your organization.

We recently made a video that distills our thinking about the value of organizational identity—why it’s important and what it can do for you.

Please take a look and share to anyone you think might be interested in learning more about why identity matters.

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