Hummer Cars - Revitalization of Branding Strategy
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This report provides reasons behind Hummer’s divestment, current equity and brand heritage. It also aims to evaluate and articulate arguments for a potential revival through a review of internal and external factors such as competitors, stakeholders and influential market trends. Finally, this paper proposes a revitalization strategy which discusses the proposed retail and communication approaches, brand essence and possible enhancement of the product
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Hummer Cars - Revitalization of Branding Strategy
- 2. The Past: Brand’s identity and sequence of events 1979: The Humvee – US Army 1992: The Hummer 1999: GM bought the brand 2002: Introduction of H2 2005: Introduction of H3 targeting women & mass market 2006: H1 production stopped 2008: Financial crisis 2009: attempted bid to Chinese manufacturer 2010: divestment of Hummer
- 3. Why revitalise? Strong brand image, top of the mind awareness (Leudicke, 2006) Objective and constructive authenticity (Leigh et al, 2006) Strong American identity (Leudicke, 2006) Iconic design (Leudicke, 2006) Hummer brand community (Leudicke, 2006) Current macro- economic state
- 4. Retro-branding Support one side of the cultural divide: the brand enthusiasts HEROISM BRAND COMMUNITY BRAND ESSENCE PRODUCT ENHANCEMEN T RETAIL STRATEGY COMMUNICATION STRATEGY GLOCALISATION ARCADIAALLEGORY AURA ANTIMONY THE STRATEGY UMBRELLA(Brown et al., 2003) (Luedicke, 2011, 328)
- 5. Allegory – Brand's narrative Reinterpretation of War Legacy -Masculinity -Courage -Adventurism -Idealistic American Dream Learning from the mistake of repositioning H3 Heroism Core Values Rebuilding Brand Image
- 6. Retail Strategy: flagship showroom (Kozinets et al., 2002)
- 8. Arcadia – Brand Community Cultural brand Strategy “addresses a current social disruption, collective anxiety or desire of a nation” (Holt, 2004, 6; cited in Närvänen and Goulding, 2016, 1523) -the threat to the American identity’s legitimacy, its heroism and exceptionalism Brand community’s members: co-creators of the linking value -links together the meaning behind Hummer’s products and services and its consumers, in- between each other (Cova, 1997; cited in Cova and White, 2010, 258) New media -a way to reward the brand community- Social Media: #nothingliketheHummer consumers’ “self-exposure” and personal marketing (Cauquelin, 2003; cited in Cova and Pace, 2006, 1100) Exclusivity: shift the compensatory consumption (H3) to conspicuous consumption Online platform “brand hijack” opportunity (Wipperfurth, 2005; cited in Cova and Pace, 2006, 1090)
- 9. Aura – Brand essence Hummer's “marketing DNA” (Kelly, 1998; cited in Brown et al., 2003, 21) and core values: heroism, adventurism and success Same brand elements – strong heritage and equity, nostalgic recall of Hummer's glorious days
- 10. Antimony – The Brand paradox Progress Sustainability innovation Primitivism Compromise Loss Price to be paid vs. (Jacques Barzun, 2000; cited in Brown et al., 2003, 21) The gap filled by ambiguities and paradoxes allows consumers to insert their own hopes, dreams (Derrida, 1985; cited in Brown et al., 2003, 21) and evaluation of the brand Hummer’s antimony: sustainability controversies : Nature connection, heroism vs. nature damage
- 11. The Future - in a mood board
- 12. References 1. Brown, S., Kozinets, R. V., & Sherry Jr, J. F. (2003). Teaching old brands new tricks: Retro branding and the revival of brand meaning. Journal of Marketing, 67(3), 19-33. 2. Cova, B. & White, T. (2010). Counter-brand and alter-brand communities: the impact of Web 2.0 on tribal marketing approaches. Journal of Marketing Management, 26(3-4), 256-270. 3. Kozinets, R. V., Sherry, J. F., DeBerry-Spence, B., Duhachek, A., Nuttavuthisit, K. & Storm, D. (2002). Themed flagship brand stores in the new millennium theory, practice, prospects. Journal of Retailing, 1(78), 17-29. 4. Leigh, T. W. Peters, C. Shelton, J. (2006). The Consumer Quest for Authenticity: The Multiplicity of Meanings Within the MG Subculture of Consumption. Journal of the Academy of Marketing Science; Fall 2006; Vol 34(4); Business Premium Collection pg. 48. 5. Luedicke, M. K. (2006). Brand community under fire: The role of social environments for the HUMMER brand community. Advances in Consumer Research, 33, pp. 486-493. 6. Luedicke, M. K. (2011). Driving a deeply rooted brand: Cultural marketing lessons learned from GM's hummer advertising. Marketing Management: A Cultural Perspective, pp. 315-331. New York: Routledge. 7. Närvänen, E. and Goulding, C. (2016). Sociocultural brand revitalization: The role of consumer collectives in bringing brands back to life. European Journal of Marketing, 50(7/8), 1521-1546.
Editor's Notes
- ALex
- Alex
- Ibukun
- Andrada: Accordingly, the strategy proposed in this section for revitalizing Hummer is the retro-branding, due to the brand’s strong legacy and its current relevance to the contemporary values and tastes of its consumers (Brown et al., 2003, 20). Also, as mentioned before, Hummer’s controversial and polarising equity that positions consumers at the extremes of a love-hate scale, determines the strategic focus on supporting only one side of this cultural divide (Luedicke, 2011, 328): the brand enthusiasts. This is valuable especially because these enthusiasts enjoy the perks of being marginalised for their distinctive and critisised purchase (Luedicke, 2011, 322). In order to develop and explain the proposed strategy, its implementation will be detailed considering the retro branding’s elements as following: Allegory (brand story), Antinomy (brand paradox), Aura (brand essence) and Arcadia (idealized brand community) (Brown et al., 2003, 21).
- Hummer’s allegory embodies its symbolic story and narratives and represents the creator of the Hummer’s myth, the story that, as Campbell (1968, p. 117; cited in Murray, 2004, p. 27) describes, illustrates the world and the social conduct as understood and accepted by the consumers. Consequently, what could be more credible and relevant as a mythic-rooted communication narrative than Hummer’s own war legacy? Although controversial, the war heritage inherited from the Humvee is the representation of the heroic act of patriotism and the exceptionalism of the American nation. It also symbolizes the supreme act of courage and masculinity, coming from a populist and utopic space of the dessert battle fields, where breaking the rules and taking risks is the rule itself. Therefore, the core of this revitalisation strategy is to repair the mistake made by repositioning H3, a fact that deviated Hummer from its core values, and to go back to its origin.
- Icy: The retail strategy includes three key elements that create a flagship showroom (Kozinets et al., 2002): -a landscape look-alike showroom which provides an augmented reality tool for product customisation, -a virtual reality simulation room and -an outdoor drive test experience. Consequently, the Hummer showroom consists in the fusion between both a landscape-themed flagship and a cyberscape one (Kozinets et al., 2002), which aims to create a playscape (Maclaren and Brown, 2000, 315) where the consumer co-creates value and reconnects with Hummer’s values and myth. This utopic environment is designed to offer both a real driving experience on an off-road look-alike field and a virtual pre-consumption of it which introduces the consumer in a heroic world simulation. **Our strategy suggests future expansion in foreign markets. Also, it aims to adjust the positioning that Hummer had when the H3 was launched, which created a wave of hatred both towards the car and the American identity it represented. Accordingly, the appropriate recommendation is to communicate the American values that appeal internationally such as freedom, courage or success, briefly the utopic and idealistic American Dream.
- Sharanya: In terms of the communication strategy, this revitalisation approach proposes the association of Hummer with iconic entertainment brands that also communicate heroism, masculinity and adventurism, such as movie franchises, toys retailers and adventure gear producing companies, such as GoPro or Quechua. A potential movie partner example is Marvel Entertainment because of its American identity and its appeal to the young generation which Hummer needs to address. Additionally, other valuable endorsement opportunities this strategy suggests consist in adventure or car related TV shows such as The Amazing Race or Top Gear and racing or sport events sponsorships or an actual Hummer hosted driving challenge. Furthermore, other recommended promotion media would be both the traditional TV advertising and the New Media. In terms of TVC, the appropriate channels should be rooted into the American identity such as CNN or simply niche channels that match the target audience’s interests. Regarding the New Media, the promotion should tap into the brand community and also use its potential to generate content, a fact that will be discussed along with the Hummer’s Arcadia.
- Andrada: The final retro branding component is the arcadia, or its brand community, which together with the already discussed innovation approach, consists the revitalising means this strategy proposes. First of all, Hummer’s arcadia is built on a cultural brand strategy, which “addresses a current social disruption, collective anxiety or desire of a nation” (Holt, 2004, 6; cited in Närvänen and Goulding, 2016, 1523). This anxiety refers to the possibility of losing the American identity’s legitimacy, its heroism and exceptionalism that unite Hummer’s adapters through their values and beliefs and encourage them to protect this myth. Accordingly, Hummer’s consumers are the co-creators of the linking value, a brand’s value that links together the meaning behind Hummer’s products and services and its consumers, in-between each other (Cova, 1997; cited in Cova and White, 2010, 258). Also, as Närvänen and Goulding (2016, 1532) state, consumers’ participation in the co-creation of value is crucial in the second phase of the revitalisation process, the reappropriation, because they bring the old brand meanings nostalgically back to life, while introducing new ones. Thus, the role of the consumers within the brand community is valuable especially in terms of the previously mentioned New Media promotion as it facilitates consumers’ “self-exposure” and personal marketing (Cauquelin, 2003; cited in Cova and Pace, 2006, 1100), while they generate content for the brand. The proposed caption is #nothingliketheHummer and the company’s generated content could include TVC advertisements and recorded materials from the virtual reality simulation room within the showroom. Furthermore, Hummer’s community is resourceful due to the “brand hijack” opportunity (Wipperfurth, 2005; cited in Cova and Pace, 2006, 1090), in terms of which this strategy recommends an online platform dedicated exclusively to this marginalized, but cohesive community of Cowboys with common interests and beliefs. The role of this platform is to reward the loyalty of the community through brand bonuses and to shift the compensatory consumption, determined by the H3’s positioning, to conspicuous consumption that appeals to these individuals.
- Mark: The following element of the retro branding strategy is the Hummer’s Aura, which consists in the brand’s essence, its core values or as Kelly (1998) characterises it, its “marketing DNA” (Brown et al., 2003, 21). In this regard, the proposed strategy focuses on communicating Hummer’s heroic legacy, along with its instigation for adventure and success. Although, in terms of brand elements, there is no change intended due to the fact that Hummer’s strong heritage and equity evoke identification between the brands and its consumers and between the consumers themselves. “Like nothing else” is not only familiar and a nostalgic recall of Hummer’s glorious days, but also a lifestyle, a mindset for its target audience.
- Ibukun: The second aspect to analyse from a retro branding perspective is the antinomy, the gap filled by ambiguities and paradoxes that the brand is surrounded with, which allow consumers to insert their own hopes, dreams (Derrida, 1985; cited in Brown et al., 2003, 21) and evaluation of the brand. Regarding Hummer’s antinomy, this refers to sustainability controversies, especially because the consumers against the brand see it as a huge threat to the environment, while those who embrace Hummer see it as a way to connect themselves with the nature because of its off-road purpose. Also, this connection adds up to the heroic identity of the brand, as the Hummer communities offered their support after tragic events such as natural calamities (Luedicke, 2011, 327). However, although the proposed strategy focuses on the enthusiasts’ side of the cultural divide, it is necessary to admit that one way to revitalise Hummer must be done through innovation, a paradox itself, considering that it regards the sustainability issue of the brand. This innovative approach, along with Hummer’s environmental controversies can be seen as a blend between what Jacques Barzun (2000; cited in Brown et al., 2003, 21) describes as being progress and primitivism brought together. Consequently, the innovation approach could be seen as a future-looking view, which is crucial nowadays, while at the same time, a sustainability improvement concerning Hummer might be seen as a loss, a compromise, a price to be paid in order to bring the brand back to life.