A Big Brand Boo-Boo

It has admittedly been a tough few years for American automakers. Without bailout dollars from the federal government, the likes of Chrysler and General Motors may not have survived. But we have seen a few American car brands disappear permanently since the economic collapse, including Mercury, Saturn, and Hummer, to name just three.

Not all these brands disappeared strictly as a result of the poor economy. Consider the case of Pontiac. The 84-year old brand is no more because of the recent expiration of the contract between General Motors and its Pontiac dealers. While it was announced that the brand would be discontinued in early 2009, you could still purchase Pontiac vehicles from authorized dealers. Of course, the brand's "muscle cars" of yesteryear — the GTO, Firebird, and Trans Am — have not been sitting on Pontiac lots for many years.

So what really caused the demise of Pontiac? In the mid-1980s, the brand undertook an ill-advised, and ultimately fatal, brand re-invention. Pontiac pinned its future on minivans (Trans Sport) and crossover vehicles (Aztek). As a result, the brand's once robust, macho image, which defined mid-20th century America, withered away to a mere shadow of itself. The Aztek was ultimately voted one of the ugliest cars ever invented.

At StepbyStepMarketing.com™, we constantly reinforce the notion of brand consistency — that is, staying true to your brand. Decide what you stand for and deliver on your brand values with religious fervor. You still will need to migrate your brand as markets shrink, expand, and change, but there's a big difference between updating your brand to meet changing times and blowing it up altogether.

I wonder what Pontiac might do differently if it could turn back the clock 20 years. Perhaps produce smaller, more compact, and more fuel-efficient cars or SUVs that had the heft and machismo that made the brand successful in the first place. Hindsight is 20-20, no doubt, but it's a shame that a canary yellow GTO and a fire-engine red Trans Am will soon appear only at antique car shows. It seems a better fate might have awaited both vehicles with more careful brand stewardship.

So if times are changing for your business, take steps to remain competitive by updating and modernizing your products or services. At the same time, hang on to your roots and what makes you unique and special. A brand boo-boo that ultimately kills you is a very tough mistake to make.