« Will VW's Fast Last? Or a Fad That'll Fade Fast? |
Main
| Volvo C70 Convertible -- Almost Here! »
February 27, 2006
GM's Ethanol Grand Slam
Bottom line: In the admittedly minor competition to attain image leadership in Flex-Fuels, GM has scored a home run with their “Live Green Go Yellow” campaign.
It certainly helps that they unleashed the marketing blitz around the same time as President Bush's State of the Union Address, in which he said we have to end our dependence on foreign oil.
And they probably spent a boatload of money in the process.
But the fact is, GM fielded an absolutely sterling campaign that caught people's attention, from the theme music, yellow gas caps, messages and images – and a great website that's worth checking out for delightful entertainment value. I particularly like the “cornulator” that calculates how many barrels of oil you'd save driving an E85, or ethanol-powered vehicle.
Now, in the long run, ethanol's really not that big a deal, in the same way that hybrid's aren't. Both are stop gap measures that reduce some of the pressure on oil supply, gas prices and pollution, but the fact remains that petroleum-powered combustion engines eventually have to be eliminated.
So, the win for GM is in the brand psychology department. Their Go Yellow campaign is one of those things people might talk about at the water cooler, in bars or at the bowling alley, and gives the company some much needed feel good go juice.
In terms of image leadership, GM has also scored by practically wresting the Flex-Fuel concept from Ford and Chrylser. Jason Vines, the VP of Communications for Chrysler, is bitching about it on their media-only website, and I'm certain Ford isn't too happy about GM's well-timed and well-executed move, as they started their own initiative several months back with CEO Bill Ford, Jr. at the helm.
So in the same way Toyota owns hybrids, even though Honda was first to market, GM is now in control of the E85 image, even though all three traditional domestic car companies have been making ethanol-ready vehicles for years.
The problem for GM is whether or not they will abandon the campaign after a strong start, in the same way they've been all over the map with their incentive programs. In this characteristic they are similar to Microsoft, which has launched dozens of products and initiatives, only to orphan them once they realize a small project won't let them take over the Earth.
So if GM does truly go yellow on this project, but not in the way they intended, then Ford will be able to get back in there and get some of their juice back. But remember, ethanol just isn't that important in the long run.
Posted by Frank at February 27, 2006 2:12 PM | Filed under Auto News
| GM