2. POCKETBOOK PATRIOTISM
The Marketing and Myths of ‘Made in America’
Eminem is not your classic American pitchman. And that’s exactly why he’s the face of
Chrysler’s attempt to reconnect with American consumers. Debuting with a Super Bowl
spot featuring Marshall Mathers slow-rolling through the decrepit streets of Motor City,
Chrysler’s gospel-themed “Imported from Detroit” campaign pushes a compelling mix
of tradition, dignity and perseverance. It’s more than a pitch for a luxury car. It’s a tribute
to a way of life.
The appeal to American pride isn’t unique to Chrysler. The domestic car industry has
been waving the flag for years. But this new campaign’s tone is pitch-perfect and the
timing couldn’t be better.
Recently, a number of companies have turned their American roots into a major
selling point. Pushing everything from cars to clothes, these brands have converted
loyal citizens into loyal customers. To emulate their success, marketers will need to
assess how cultural relevance can influence opportunity size and advertising strategy.
The cultural landscape has shifted. There’s a palpable fear that America’s best days are
behind it and that the “American” way of life no longer exists.
And yet, according to a recent Harris Interactive survey, over 60 percent of U.S.
consumers say they are more likely to purchase goods marketed as “Made in America. ”
The vast majority believe the best way to jumpstart the struggling economy is to buy
more American goods, an assessment supported by nearly 75 percent of adults polled
by BIGresearch in January 2011.
It’s increasingly clear that Made in America isn’t what it used to be. Chrysler’s patriotic
pitch was the brainchild of a Frenchman, CMO Olivier Francois, and an Italian-Canadian,
BY DAVID GRZELAK CEO Sergio Marchionne. The automaker’s corporate parent, Fiat, is headquartered in
Turin, Italy, a world away from Motown.
& MYA FRAZIER
Nevertheless, brands with a distinctive American character – even without a purely
domestic manufacturing base – can gain an edge on competitors if they recognize and
move beyond the myths surrounding “Made in America” marketing.
Myth: Made in America is Moot for Global Brands
For global brands with complex supply chains, some part of production will likely be
overseas. That’s a reality that most consumers seem to accept. Offshoring to foreign
manufacturers does not automatically disqualify companies from proclaiming their
American heritage or commitment to U.S. workers.
New Balance launched a new national campaign in 2009 promoting its shoe line as
“Made in America. Closer inspection of the sneaker labels revealed that many were
”
merely assembled in this country. In fact, only 25 percent of the company’s footwear
is produced here in the U.S. While the American-made claim may seem disingenuous,
the company’s five New England factories represent a commitment to the American
Certain product categories, such as workforce that none of its main competitors can claim, because other athletic shoe
manufacturers produce zero percent of their goods domestically.
hand tools and motorcycle boots,
may seem more naturally appealing Two years ago, Japanese automaker Toyota was voted the Most “American
to pocketbook patriots, but mar- Manufacturer” by Cars.com in a poll based on popularity and domestic production. The
keting strategies that emphasize Toyota Camry – built in Kentucky – dethroned the Ford F-150 from the top spot on the
American roots have been used American-Made Index. While foreign companies have been relocating manufacturing
to boost sales of everything from facilities to the U.S., American carmakers have been shifting production to Asia and
khakis to skis to cars. Mexico, making the definition of an “American car” increasingly difficult to nail down.
Consider that the Korean-built Chevy Aveo, for example, is reportedly made with
POCKETBOOK PATRIOTISM | 2
3. 99 percent foreign parts, and the Ford Mustang, an American classic, now comes off the
assembly line with 40 percent foreign parts.
For a product to be called “Made in U.S.A. it must be “all or virtually all” made in the
”
United States, according to FTC guidelines. Yet heritage brands that no longer have a
purely domestic manufacturing base can still derive value from their American roots,
even if they’re not formally labeled “Made in U.S.A.
”
Woolrich, maker of classic outdoor clothes that your great-grandfather – or Ernest
Hemingway – might have worn while hunting stags or splitting logs, has experienced
a resurgence in recent years. Its classic buffalo-checked coat is the cornerstone of a full
line of apparel that has been embraced as an antidote to metrosexual Italian chic and
cheap Asian knockoffs. The company operates a wool mill in Woolrich, Penn., where it
was founded in 1830 and still maintains its headquarters, yet the clothes are actually
assembled in Europe. Despite the lack of local production, the Woolrich brand has
maintained its reputation as a high-quality U.S.A. original because their clothes look
American.
Still, many consumers who actively seek to buy American believe they are supporting
U.S. workers like themselves. It’s a decision based on practical patriotism with a
personal appeal, not blind support of corporate brands or abstract ideals.
“If it’s made in America and you buy in America, there’s a job in America. And I’m
creating jobs, said Scott W. Anderson, describing the rebirth of the Anderson-Little
”
clothing line that his grandfather founded during the Great Depression, and which
recently relaunched from a factory in Florida. In an interview with Adweek, Anderson
said: “Eighty-five percent of the time, made in America is the determining factor in
the sale. ”
At the Red Wing Shoe factory in Minnesota, which has been using local labor to
handcraft boots for over 100 years, global marketing manager Jenny Tauer agreed
that consumers “want to be proud of keeping people employed. Red Wing work-wear
”
products are made in the U.S.A., a distinction that created a reported uptick in sales and
brand visibility during the downturn.
The success of companies touting “Made in America” credentials is atypical in the
FTC guidelines apply to what apparel business, which has been defined by European styles and Asian production for
can be marketed, whether the better part of two decades. In 1980, 70 percent of clothes sold in the U.S. were made
implicitly or explicitly, as “Made in here; that figure had slipped below 50 percent by 1995. Today, it’s below 10 percent,
according to Women’s Wear Daily.
U.S.A. There are also alternative
”
certifications that acknowledge the Common sense suggests that patriotism levels rise when a nation faces a common
complex realities of globalization, threat, such as the recent economic downturn, and decline again as the threat recedes.
including My America Jobs, This isn’t actually true. The proportion of people saying they are very patriotic has varied
which ranks brands from one to by just four or five percentage points over the last two decades, according to Pew
five stars, based on their relative Research and Gallup. The percentage of people who say they are extremely patriotic,
amount of domestic manufacturing however, increased to 32 percent of the total population in 2010, which is one-third
and assembly. more than 2002 (24%) and two-thirds more than 1999 (19%), according to Gallup/USA
Today polls. Brands that are facing strong foreign competition should consider how this
peak of patriotism impacts their positioning.
There are nearly 20,000 active U.S. trademarks that incorporate “America” in their
name, according to the U.S. Patent and Trademark Office, but only a handful of brands
have the cultural cachet – and workforce credentials – to live up to the name.
Myth: The Youth of America Just Don’t Care
It’s a common misconception that the youth of this country do not care about where
their products are made. Marketing analysts will tell you that older buyers are more
POCKETBOOK PATRIOTISM | 3
4. loyal and more likely to skew toward domestic brands. That’s accurate in many
cases, but it is not an inviolate rule. Far from it, in fact.
Opinion polls are partly to blame for this mistaken impression. In a Harris
Interactive survey, fully three-quarters of adults aged 55 and over said that they
would be more likely to purchase goods marketed as “Made in America. That ”
figure fell to 44 percent among U.S. consumers aged 18-34. It’s also noteworthy
that consumers over the age of 65 are nearly twice as likely to be extremely
patriotic (40%) than consumers aged 18 to 29 (22%), according to Gallup/USA
Today surveys. Among these self-identified super-patriots, there are far more
men (37%) than women (28%). Consumers in the Midwest also tend to be more
sympathetic to domestic brands than shoppers in California and the Northeast.
Based on this data, male Midwestern septuagenarians would seem most likely
to prioritize and patronize American brands over foreign competition. If that’s the
case, why did Chrysler choose a controversial 38-year-old hip-hop star as its new
front man?
Classic American heritage brands like Pabst Blue Ribbon, Zippo lighters and Red
Wing Shoes have surged to popularity by engaging and motivating younger
demographic groups. In this context, the choice of Eminem makes sense. Because
even behind the leather-wrapped wheel of a luxury vehicle like the Chrysler 200,
Eminem is clearly not a pitchman for the senior set.
Opinion polls often fail to predict actual buying behavior, and on issues of
patriotism, they may be missing the mark of what America really means to
Millennial and Generation X consumers. Young working-class men, in particular,
face severe unemployment and dwindling prospects for well-paying jobs. Among
young males aged 16-24 who are looking for work, the unemployment level
peaked at around 20 percent last year. The domestic manufacturing base has
already been dismantled and is not likely to return. Patriotism, in this context,
represents a connection to an American way of life – and buying into the familiar
heritage of strong American brands may offset the fear among some consumers
that the country’s best days are behind it. Brands ranging from muscle cars, such
as the Charger and the Mustang, to popular media programs, like Dirty Jobs and
American Chopper, tap into the powerful ideals of America.
In the current economy, price will often trump the patriotism card for the majority
of young consumers. However, even in this environment, brands that build an
emotional connection with consumers may outmaneuver those that compete
on price alone. The cultural relevance of the brand can actually outweigh (or at
least compete with) traditional differentiators like cost and performance. Brands
can elevate their message above the commoditized conversation about product
attributes into a more meaningful connection.
Country-of-origin effect and “People are starved for things that are true to what they are, said Bill Thomas,
”
consumer ethnocentrism have founder and CEO of Bills Khakis, who told Women’s Wear Daily that the “Made in
been examined in over 1,000 America” label has served his brand well lately. “There’s more relevance for these
products now. ”
research studies, beginning with
the seminal “Elasticity of Product
Bias” by Robert Schooler and
Albert Widlt in 1968. Yet there Myth: Patriotic Pitches Require Flags and Fireworks
Eminem may be the most-liked person on Facebook, but he also has a reputation as
has been criticism that Ivory a scrappy workaholic from a hardscrabble hood. He’s not Steve McQueen. He’s not
Tower research increasingly lacks James Dean. But like those past icons of American cool, he exudes confidence and
relevance to business practitioners. charisma without looking like he’s trying too hard. He’s a guy who tells it like it is.
Likewise, industry opinion polls on
patriotism and product preference These days, one-third of Americans define “luxury” as being able to pay the
often fail to predict actual buying bills on time, and three-quarters are now living a simpler life as a result of the
activity. recession, according to a survey last year from BIGresearch. In terms of advertising
POCKETBOOK PATRIOTISM | 4
5. tone, triumphalism can safely be ruled out. A low-key approach is often more
effective. So unless your brand is the National Football League, skip the cheerleaders,
flags or fireworks.
Pabst Blue Ribbon is a useful case study in how subtle marketing can build all-
American brand equity. During the depths of the recession in 2009, annual sales
of PBR jumped 25 percent, even though PBR prices were higher than other sub-
premium beers like Miller High Life, which had dramatically outspent PBR in terms of
measured media.
Pabst Brewing Co. studied how it was being consumed and perceived in the
marketplace. The brand had an anti-establishment edge and appealed to a retro
crowd of nonconformists, according to one major market wholesaler consulted
by Advertising Age. PBR expanded that niche fandom among urban hipsters into
mainstream success as recessionary drinkers looking to trade down opted for the
beer with the most cultural cachet.
Clint Eastwood, playing a cranky old ass-kicker in Gran Torino, appears in several
scenes holding an open red, white and blue can of PBR. It was a well-conceived
placement that bridges the traditionalist, patriotic PBR customer base and the new
generation of loyalists. The brand has managed to hold onto both demographics,
partly because these guys don’t drink at the same bars, but also by eschewing mass
media marketing. The beer voted “America’s Best” at the Chicago World’s Fair in 1893
has recaptured its status as a true standout.
Digital, social and events marketing can be highly effective for promoting an all-
American image that doesn’t pander to patriots. These channels are also useful for
activating existing enthusiasts and leveraging their energy to generate mainstream
awareness. Red Wing boots, for example, are popular with professional truckers,
hence the company’s sponsorship of the National Truck Driving Championships. But
the footwear is also a favorite of well-heeled, male hipsters who dig the trucker vibe
and old-school machismo. For them, Red Wing Shoes created a website featuring
sepia-toned photos of work boots and the factory alongside a timeline that stresses
the brand’s connection to the heartland since 1905. Red Wing Shoes also produced
a series of videos (viewable on YouTube) showcasing their down-to-earth employees
in their Midwestern plant, including an interview with a cobbler that has been viewed
over 50,000 times in its first two weeks online.
There’s a big shift we’re starting to already see, Rob Kozinets, an anthropologist
”
and professor of marketing at York University’s Schulich School of Business, told
Advertising Age. “People are becoming more concerned about production, not just
consumption. It’s interesting to see it showing up in advertising.”
The Takeaway
• “Made in America” isn’t moot for global brands. Major brands with complex
supply chains may not meet the formal standards for “Made in U.S.A. marketing,
”
but buying American isn’t just about labels, it’s about cultural brand relevance that
motivates and affirms consumers.
• The youth of America do respond to patriotic appeals. While older residents of the
Midwest and High Plains tend to profess the highest levels of patriotism and related
purchase intent, a number of brands – from Pabst Blue Ribbon to Red Wing Shoes –
have built their reputations as purveyors of classic American cool by also appealing
to younger urban hipsters.
• Forget the flags and fireworks. A low-key approach is better suited to the post-
recession dynamic and will be more credible in establishing bona fides. Digital,
social and events marketing can be highly effective in this regard.
POCKETBOOK PATRIOTISM | 5
6. ABOUT THE AUTHORS
David Grzelak, Executive Vice President, Consumer Culture
David runs the Columbus Project, an Engauge ethnographic
research initiative that has been tracking media consumption and
purchase habits in the homes of 100 families in the American
heartland since 2007 As a cultural anthropologist and researcher,
.
he has dedicated his career to combining cultural and theoretical
thinking with sound marketing strategies in order to influence
consumer behavior in the marketplace. It’s his goal to truly
understand consumer beliefs; that’s why he spends his time visiting
consumers in their natural habitat, where opinions are formed
and decisions are made. He then uses this firsthand knowledge to
guide strategic thinking for clients and brands. His brand experience
includes Nationwide Insurance, Huntington National Bank,
ZonePerfect, Kraft Foods, and American Electric Power.
Mya Frazier, Director of Trends and Insights
Prior to joining Engauge, Mya spent more than a decade as a
business journalist, including stints as a staff writer at Advertising
Age and The Cleveland Plain Dealer. Her writings on business and
culture have also appeared in The Economist, The New York Times,
Sky Delta and American Demographics. She currently writes a blog
for Forbes.com and PBS, chronicling the impact of digital, mobile
and social marketing trends on content, culture and commerce.
Follow her @myafrazier.
ABOUT ENGAUGE
One of the nation’s largest independent agencies, Engauge leverages creativity
and technology to connect brands and people. The agency’s client roster includes
Nationwide Insurance, Perkins Restaurant & Bakery, Ainsworth Pet Nutrition, Coca-
Cola, Best Buy For Business, Chick-fil-A, Brown-Forman, Food Lion, The State of
Georgia, Donatos, NGK Spark Plugs and more. Engauge, which has offices in Atlanta,
Austin, Columbus, Orlando and Pittsburgh, is a portfolio company of Halyard Capital.
FOR NEW BUSINESS INQUIRIES:
Greg Davis
Executive Vice President,
Business Development
email: gdavis@engauge.com
mobile: 914.645.4381
Image Credits:
p1: Nesster, http://flic.kr/p/545kBa
p2: Jason Kuffer, http://flic.kr/p/4jKGQ2
p4: Stewart Butterfield, http://flic.kr/p/fUUDz
p5: Quinn Dombrowski, http://flic.kr/p/4vRUEL
POCKETBOOK PATRIOTISM | 6
