From the Wall Street Journal: “Bling-Bling Buick”

Robert_Nashville
01-11-2007, 10:53 AM
Seeking Younger Buyers, General Motors' Staid Brand Uses Customized Cars, Celebrities to Reach the Hip-Hop Crowd

By GINA CHON and JENNIFER SARANOW - January 11, 2007

The average Buick buyer is a man in his mid-60s -- not the type of consumer inclined to trick out his car with 22-inch wheels, a lowered suspension and tinted windows. So why was a Buick Lucerne with just those modifications on display at a party hosted by General Motors Corp. last weekend that also featured actress Vivica Fox, known for roles in movies like "Booty Call" and "Soul Food," and hip-hop star Jay-Z?

The answer is simple math. For 2006, sales of GM's Buick were down by almost 15% compared with 2005, according to Autodata Corp. Now, the brand is trying to expand its appeal among young, urban consumers -- deemed essential if it's going to help reverse GM's flagging fortunes and build sustainable sales.

"The idea is that the urban market sets the trend for the mainstream market," says Heather Waszczenko, Buick's national advertising manager.

With that in mind, Buick is re-examining its advertising and studying car-customization trends. So far, that has brought about the brand's first major appearance at a large car aftermarket show -- the venue for the customizers to show off their souped-up vehicles -- in Las Vegas; a pilot marketing program in Atlanta featuring billboards, Lucernes displayed outside nightclubs and radio spots; and bigger wheels for Buick models.

Buick is not alone in trying to court a younger, urban buyer. Ford Motor Co.'s Lincoln and Volvo luxury lines, and Toyota Motor Corp.'s Lexus are among the other automobile brands that traditionally appeal to a more mature demographic and have recently been looking for younger buyers.

Such attempts to speak to a younger and more urban audience carry risks: They could alienate the brands' longtime older customers, who remain comfortable with their car's sedate and respectable image.

And if the companies try too hard and don't have a clear idea of who they are trying to reach, they could alienate consumers of all stripes. Buick says it's too early to tell whether its new efforts will work but says more car customizers are asking for Buicks to soup up for shows and other events.

Buick first realized its brand's potential among young African-Americans early last year when Dub, an urban custom-car-culture magazine, asked for a Buick Lucerne that it could customize for events.

Around the same time, Buick's product manager for the Lucerne started hearing about "scraypers" -- or "scrapers" -- a style of customized car developed by young African-Americans in the Oakland, Calif., area. Buick models from the 1980s and '90s are popular in the genre, outfitted with wheels so big that the tires scrape the inside of the car's fender, according to some definitions of how the genre got its name.

To learn more about what Buick can do to appeal to the young, urban and mostly black men who hold so much sway over popular tastes these days, Buick hosted an "Urban Media Roundtable" in Atlanta last June, bringing together about a dozen journalists, most of them African-American, from publications from hip-hop magazine XXL to luxury lifestyle Web site eCityofStyle.com. The goal was "trying to understand the pacemakers and what they think is hot," says David Darovitz, Buick's manager of communications, as well as figure out how to market new Buicks to them.

Buick has already started implementing a number of suggestions from the gathering, but the discussion also showed the disconnect between the brand and its target audience that could hinder Buick's turnaround and possibly turn off some customers.

Ken Panton, the 42-year-old president of eCityofStyle.com and a Buick roundtable participant, said the brand's idea of "urban" -- a young black teen listening to Run DMC -- seems a bit old-fashioned.

Today, he says, "there is a new definition of urban," embracing upper-middle-class white kids wearing Lacoste shirts and Sean John jeans.

During the discussion, Marcus Amick, who writes about cars for the mostly African-American readership of the Michigan Chronicle and other publications, said Buick and its GM brethren rely too heavily on celebrities to reach younger consumers.

The discussion turned to hip-hop star Ludacris, who moonlights as a pitchman for GM's Pontiac Solstice convertible.

Kimatni Rawlins, the 33-year-old publisher of AutomotiveRhythms.com, a Web site devoted to the "urban automotive experience," piped up: "There is no way you can convince me that Ludacris is driving a Solstice."

"He definitely owns one," shot back Larry Woodard, whose urban advertising firm, Vigilante, developed the Ludacris campaign.

"He owns it because it was probably part of his sponsorship deal," countered Mr. Rawlins. (A spokesman for the entertainer confirms he owns a Solstice as part of his deal with Pontiac. )

Buick's Mr. Darovitz eventually steered the conversation back to Buick. "If there was one celebrity you would align with Buick, who would that be?" Tiger Woods, the panelists chimed in together. Some rolled their eyes.

"Tiger Woods is nice, he's a very successful golfer, but he doesn't necessarily resonate with people in the urban center," said Greg Morrison, a 57-year-old free-lance journalist formerly with the Black Family Channel.

Mr. Morrison had the impression that Buick was lumping all black and Hispanic people together in a narrow definition of urban. "We play golf, we have memberships to country clubs and nice homes," he says. Still, he gives Buick points for trying. "It's a learning curve. The best analogy I can give you is trying to teach George Bush the Bankhead bounce," referring to a hip-hop dance named for the Atlanta neighborhood where it originated.

A month after its urban roundtable, Buick hosted an "immersion day" in Atlanta, organized by Vigilante, where Buick marketing executives and dealers listened to a panel of urban-lifestyle experts from music, fashion and other industries.

One of the first tests of Buick's new strategy came in November at the Specialty Equipment Market Association show in Las Vegas, the largest car customization and accessory show in the U.S. As the hip-hop-hybrid music of violin-playing duo Nuttin' But Stringz played to the crowd, Buick lifted the veil on 11 Lucernes tricked out by 10 customizers and Rides magazine.

The cars were styled with "black cherry" paint, lowered suspensions, 22-inch wheels, souped-up sound systems, suicide doors (paired side doors that open away from each other) and alligator-leather upholstery. One of these customized vehicles is on display at the Consumer Electronics Show in Las Vegas this week.

"I always thought of Buick as an older name, but now they are doing what we're also doing. We're infusing two worlds -- hip-hop and classical," says Tourie Escobar, 20 years old, who, with his brother Damien, 19, constitute Nuttin' But Stringz.

As part of a pilot marketing campaign, Buick is also parking Lucerne sedans outside nightclubs, movie premieres, concerts, barber shops and other venues in Atlanta where trendsetters are known to gather. Print, bus and billboard ads in Atlanta show Lucernes with an African-American male model wearing urban-inspired fashions. Radio spots for the Lucerne air on jazz, gospel and adult contemporary stations.

Having learned that the urban set pays attention to features like wheels and grilles, the company is shooting stock photos for future car models that emphasize these features.

A press kit that will be available in May for the new Enclave crossover vehicle, which was unveiled late last fall by longtime Buick endorser Tiger Woods in Los Angeles, contains such photos that emphasize "aggressive angles" and the new 20-inch wheels available as an accessory, the largest wheels ever available from Buick.

"We have found a newfound interest in Buick among a certain community, and the Lucerne especially," says Steve Shannon, the brand's general manager. "And we think we can capitalize on it."

Robert_Nashville
01-11-2007, 11:00 AM
And Lincoln Seems to Take Just the Opposite Apprioach!

Lincoln Launches New Ad Strategy: Hip-Hop Is Out, 'Likable Luxury' Is In

By GINA CHON and TERI AGINS - January 11, 2007

Many marketers rely on hip-hop and bling to appeal to black consumers. Ford Motor Co.'s Lincoln luxury brand is taking a different approach.

Consider the new spokesperson for the MKX, Lincoln's first entry in the compact crossover wagon market pioneered by the Lexus RX 330. Lincoln has chosen Amsale Aberra, a 52-year-old couture wedding gown designer -- and a native of Ethiopia -- for a commercial to introduce the model.

Ms. Aberra has a celebrity following among actresses such as Halle Berry, Julia Roberts and Salma Hayek. Amsale -- pronounced Ahm-SAH-leh -- is Ms. Aberra's New York-based wedding- and evening-dress house, which claims annual sales of about $30 million. The Amsale label is in the same league as Vera Wang, another high-end wedding-gown brand. Lincoln also hopes Ms. Aberra and her story will appeal to whites and other ethnicities.

"She embodies the American dream that crosses cultural and racial barriers as very all-American, and we want to celebrate that," said Marc Perry, the multicultural-marketing manager for Ford Lincoln Mercury. Uniworld Group, the New York agency specialized in advertising to African Americans, brought Ms. Aberra to Lincoln.

Since the late 1990s, Lincoln has struggled to find a consistent new look for its vehicles and a powerful new advertising hook. Now, Lincoln executives say they see an opportunity in carving out a position as an approachable and casual luxury brand. This is in contrast to DaimlerChrysler AG's Mercedes-Benz, which Lincoln labels as "Old World" luxury, and General Motors Corp.'s Cadillac brand, which Lincoln calls "Money-is-Everything" luxury. Lincoln wants to be the universally likable luxury brand -- the Oprah Winfrey or Ralph Lauren of the automotive world, brand executives say.

"We have a different set of values," says Lincoln Marketing Manager Mike Richards about other auto makers. "Our customers are not concerned about shouting about their success. Lincoln is not arrogant or boastful."

Lincoln executives say the company wanted to get away from the hip-hop image in order to broaden its appeal. In addition, the company is seeking to distinguish itself from other auto makers that rely on hip-hop in their marketing.

In recent years, when auto companies have sought to make their products cool, they have turned to hip-hop stars. Chrysler, for example, had Snoop Dogg, and before that it dropped singer Celine Dion in favor of hip-hop star Missy Elliott.

Lincoln hooked up with hip-hop star Kanye West, who featured two Lincoln vehicles in his music video, "Drive Slow," and the company hosted his Grammy party last year. But Lincoln says its relationship with Mr. West has ended, and it is now focused on its partnership with Ms. Aberra and other initiatives to make Lincoln an "approachable" brand.

Initially, the commercials featuring Ms. Aberra were slated for the minority media and certain urban markets. But Lincoln later decided to include the Amsale ads in Lincoln's general market ads, shown on prime-time television. Next year Lincoln says Ms. Aberra will participate in other promotional efforts for the new Lincoln. "This is an important product line for us to get young people to consider Lincoln. Amsale represents an agent of change," Mr. Perry says.

Lincoln's new ads also feature Scott Tucker, a black furniture designer, in a Lincoln Navigator ad. It's part of Lincoln's overall "Reach Higher" campaign.

Lincoln's shift comes as rival Cadillac, having capitalized on rappers and athletes to promote its flashy Escalade SUV, now also is trying to broaden its appeal to those who may be turned off by hip-hop. At a Power Point presentation for the media last year, Cadillac showed crooner Frank Sinatra and hip-hop star 50 Cent as the two extremes of its image. Cadillac is seeking a more middle ground. A recent commercial for the Escalade featured New York Giants running back Tiki Barber.

Lincoln was the best-selling luxury brand in America in 1998, with hits like the Navigator, which started the luxury SUV craze, and the venerable Town Car, the limousine of choice in New York and other large cities.

But Ford allowed the Lincoln lineup to get rusty as it invested instead in its Premier Automotive Group of European luxury brands, including Volvo, Land Rover, Jaguar and Aston Martin. While Lincoln's competitors, notably Cadillac, came up with refreshed models and new segment entries, Lincoln lost ground. In 2005, Lincoln sales fell 11%, putting Lincoln in 8th place among major luxury-car brands in the U.S. Last year, Lincoln sales fell 2.2%

Lincoln's new strategy could backfire, because many luxury-vehicle buyers purchase a vehicle precisely because they want to flaunt their success. In a recent Luxury Institute automotive brand survey, Lincoln was at the bottom of the list of luxury cars when it came to brand status, quality, perception of exclusivity and social status. "The American consumer is looking for American luxury, so Lincoln does have a chance," Luxury Institute CEO Milton Pedraza said. "Still, Lincoln has a lot of work to do."

Lincoln is banking on four redesigned or new products that are hitting the market within a four-month period. First out is the MKZ, formerly known as the Zephyr, which went on sale in September.

Lincoln also just launched the MKX crossover wagon. The target customer for the MKX, which has a starting price of $34,795, is 60% female and the average age is 35 years old. That compares to the 69-year-old male buyer of a Town Car. Lincoln is hoping to sell 35,000 MKX's the first year the car is on the market, compared to the more than 108,000 RX Lexus models sold last year.

On Sunday, Lincoln unveiled the MKR concept sedan at the North American International Auto Show in Detroit. Ford says the vehicle reflects the future design direction of Lincoln, which includes a new double-wing, slanted grille and thin, horizontal tail lamps that Lincoln calls sophisticated and modern. In the past, the brand had been criticized for not having exciting designs.

In conjunction with the product launches, Lincoln will be spending more than it ever has on marketing, although it declined to give a budget figure.

"With the products we have now, I think customers will see us in a new light," said Al Giombetti, of Ford Lincoln Mercury marketing and sales.

km9v
01-11-2007, 11:07 AM
Pimp my Buick!

guionM
01-11-2007, 12:43 PM
GM invested zero dollars to market Cadillac Escalades to the "Bling-Bling" crowd. Ditto Chrysler with it's 300.

I find it a bit irritating to see marketers attempting to be "hip" by targeting a group they know nothing about, and hiring celebrities to pimp their cars who wouldn't be caught dead in them.

Escalade and Chrysler 300 became cool....... because of great styling!

The new Escalade is the king of "Bling" (and you just know the same will hold true for the new CTS) because Cadillac has tapped into a gold mine of style that appeals to ALL ages and ALL market groups.

I saw plenty of gray haired, Pebble Beach guys driving Chrysler 300s, I saw plenty of older LaJolla ladies driving Escalades. At the same time, Snoop Dog called Dieter Zetsche to get one of the 1st 300Cs and Eminem had an Escalade. Our Governor famously owns a Hummer.....but so does any rap star who wants street cred.

Good design cuts across all boundaries. What is going on with Buick and Lincoln is patronizing.

Ludacrious..... in a Solstice?!!!

Plueeze! :rolleyes: :no:

2000GTP
01-11-2007, 02:35 PM
Its not a bad idea to attract the young crowd, but I wonder if the younger crowd will be open minded enough to embrace the Buick nameplate in general.

flowmotion
01-11-2007, 03:59 PM
GM invested zero dollars to market Cadillac Escalades to the "Bling-Bling" crowd. Ditto Chrysler with it's 300.

Actually, that's not true for Chrysler -- their marketing plan with the 300 was based on "urban" * customers from the get-go. I read an article about how the car was extensively focus-tested at this group and how this even extended into certain aspects such as seat design. And what you see here is GM and Ford attempting to copy this very successful effort.

* Kinda a silly term -- what they mean is youth marketing towards middle-class African-Americans. That is by portraying the car as desirable to younger hip-hop types, they can get older, middle-class African-Americans to buy it.

Now the Escalade is pure bling, of course.

Good Ph.D
01-11-2007, 08:55 PM
I have mixed feelings.. actually they're quite clear about the whole materialist culture that is so chic right now, especially in the black community, and Im not fond of pandering to it to sell anything.

However, as was said in another thread, for whatever reason the black community, along with the rural community for obvious reasons, is one of the last markets imports havent penetrated as much, they would do well to take advantage of that.

Z28x
01-11-2007, 09:26 PM
Good design cuts across all boundaries. What is going on with Buick and Lincoln is patronizing.

:yes: If you have to tell someone something is "cool" then it probably isn't. Great design sells its self

guionM
01-11-2007, 09:35 PM
Actually, that's not true for Chrysler -- their marketing plan with the 300 was based on "urban" * customers from the get-go. I read an article about how the car was extensively focus-tested at this group and how this even extended into certain aspects such as seat design. And what you see here is GM and Ford attempting to copy this very successful effort.

* Kinda a silly term -- what they mean is youth marketing towards middle-class African-Americans. That is by portraying the car as desirable to younger hip-hop types, they can get older, middle-class African-Americans to buy it.

Now the Escalade is pure bling, of course.

I'd like to see that article about how the 300 was marketed to "urban" customers "from the get-go" because I happen to know a little bit on how the 300 was developed.

As far as marketing specifically to African Americans, the intention is to get key celebrities to endorse it, which makes it popular with urban youth, which makes it popular with fad conscious suburbanites (more rap is sold to Caucasion kids than African Americans). Also, today, urban also means Hispanic and quite a few Caucasion (Pittsburgh still has large numbers of Italians & Irish, St Louis has a large community of Bosians, and New York, LA, and San Francisco have just about everyone), so we are talking about a single race only in stereotypes.

Also a stereotype is that most all older middle class African Americans are into hip hop. You're begining to sound like those marketing guys. :lol:

flowmotion
01-12-2007, 06:25 AM
I'd like to see that article about how the 300 was marketed to "urban" customers "from the get-go" because I happen to know a little bit on how the 300 was developed.

As far as marketing specifically to African Americans, the intention is to get key celebrities to endorse it, which makes it popular with urban youth, which makes it popular with fad conscious suburbanites (more rap is sold to Caucasion kids than African Americans).

Sorry, I can't remember where I read stuff 3 years ago. But as you say, they had a bunch of celebrity endorsements lined up before the car even came out (aka "the get-go"), so it didn't exactly "just happen" without a lot of really smart marketing at Chrysler.

Of course, I didn't mean to imply that Chrysler was only marketing to one racial group or another, just that they had their initial target marketing nailed for this one and the 300's success was certainly no accident.

Also a stereotype is that most all older middle class African Americans are into hip hop. You're begining to sound like those marketing guys. :lol:
But then again, the stereotype that they like to drive big American Land Yachts was proven true. (Please don't call the NAACP on me :p )