Transcript
Rory Sutherland (0:00)
Foreign.
John Evans (0:06)
Ladies and gentlemen, welcome to this very special edition of the uncensored cmo. Now, unless you've been living under a rock for the past few weeks, you cannot have missed that we've all been talking about Jaguar. Now, I know some of you might be a bit sick of it by now, but I know a man who just happens to have owned not one, not two, but six Jaguars and is a particular expert on transport. His name, of course, is Roly Sutherland, and he's got some points of view about Jaguar that I think might just surprise you. Just to warn you, I don't really say very much this episode, but you know what? I don't need to, because it's Rory. Here we go. Okay, Rory, thank you for joining me on the podcast. Now, I happen to know that you are actually a Jag owner or have been a Jag owner yourself. So I reckon that means you're pretty well qualified to have a point of view on this. What do you make of all the Ferrari then?
Rory Sutherland (0:52)
What slightly alarmed me here is that I've owned six Jags. I absolutely love the brand. It was slightly painful for me to shift from a Jag when I went to an electric car. Yet what pains me is that two of the people who are my go to people in marketing, which would be Roger L. Martin and Mark Ritson, both hate this. And I'm going to make a slightly counter case here because I'm saying they're absolutely right in everything they say about building consistent brands based on effectively all the sort of cues and values and typography and visual language and all the pre existing assets of a brand. Okay. Of respecting those. You know, don't redesign the Tropicana. You can lose 25% of your sales and find it difficult to recover. You know, don't alienate your core audience. Da da, da, da da. I agree with all of that. But sometimes you have to pivot and when you do so, you will receive extraordinary hostility and disproportionate hostility. You know, Snickers, for example, drove people. When Marathon became Snickers for the younger among you, it drove people practically insane. Okay? New Coke, still one of the most famous kind of marketing gaffes in a way, but actually there are times when you don't need to change and you're simply winding up your target audience for no good effect. Gillette, I might give us an example of that. Okay, but in this case, what you have to remember, and this happens in tech, right, BlackBerry was a fantastic brand which absolutely believed in the value of the keyboard. And by the way, I'm going to go even further and say they were right. Okay? You can type much faster on a keyboard than you can on a touchscreen. Okay. And in some ways, I think the shift from the BlackBerry to the iPhone was actually an act of sabotage on human productivity because people still, in a funny kind of way, hard power users still miss the BlackBerry, I think. But what happens when you get occasionally these kind of weird tectonic shifts in tech is that all those rules of branding, which is, you know, be highly alert to, respectful of your existing target audience and don't surprise them, sometimes have to go out of the window because they. The entire nature of people's brand repertoire changes when they go from a petrol car to an electric car, just as when the smartphone came in, everything BlackBerry had that was valuable and which a brand purist would say you have to venerate and respect goes out of the window. Interestingly, my car buying basically went jag, jag, jag, Land Rover, Jag, jag, Jaguar, Ford Mustang, Mach E. I nearly bought a Tesla, but I wanted something that had a bit of Detroit in it. In other words, I didn't want my car to be entirely Californian in its conception. You know, I wanted a little bit of hardware, you know. But it is interesting because electrification, when you go electric, what you might call your normal brand repertoire, gets completely reset. And this is a point which I don't think a lot of the critics spotted, which is obviously, by definition, they made the decision to go electric. Now, if you're a complete purist, okay, there are a load of these automotive purists who basically, you know, are very dangerous to listen to. Actually, I've said that that absolute brand fanatic loyalists are incredibly difficult and dangerous to listen to. So real brand purists, the absolute petrol head market, are highly conservative. They're absolutely obsessed with heritage and indeed with kind of technical specifications. And the reason they're dangerous to listen to is that they are incredibly reluctant to cope with change. Whether they buy your cars or not, by the way, is a completely separate matter. There are a lot of unbelievable car fetishists who absolutely adore Jaguars, but who don't own any Jaguars and never have and never will. But if you went on the Apple fanboy websites at the time they launched the ipod, the typical comment was something like, just what the world needs, another MP3 player. So just as tech fetishists are absolutely obsessed with the specification of the thing, not its effect on the consumer, and they have a very, very unusual set of criteria which are based on the fact that they are car stamp collectors effectively. So you have to alienate those people sometimes if you're in a market where you have to innovate. Now, the example I always cite in talking about the Jaguar instance is the Judas heckle of Bob Dylan at the Manchester Free Trade hall when he went electronic. So you had a massive and devoted folk scene back then. And the second that Bob Dylan actually adopted amplification, it was viewed as an act of heresy for the folkies. But sometimes as a musician you do have to move on by alienating your core, some of your core audience to a degree. Now quite often they actually move with you having grumbled and shouted, what is it? Famously Kid A. Okay. The Radiohead album alienated most Radiohead listeners. I'm sure there were loads of Beatles fans who went, why the hell do you have to make Sergeant Pepper when you could be effectively making another version of Love Me Do? Not quite, but I want to hold your hand. Okay, so lots of people basically who wouldn't have dreamt of buying a Kia or a Hyundai are now contemplating buying the Kia or the Hyundai. Because in the electrification world those brands which were also ran as in the petrol car world, they were Johnny Come lately's are seen as the brands that lent into electrification. And so we're going to have native electric car brands, Tesla obviously, byd, mg of course, in a funny kind of way, which have always been electric. There is a thing in behavioral science called the Jack of all Trades heuristic that we'll tend to see an entity that only does one thing as being better at that thing than something that does that thing and something else. It's why I'm proposing a restaurant chain called Bacon Sandwich. Because if you only make bacon sandwiches, people will not unreasonably assume it's going to have to be good. There's a bar and deal called Bloody Mary's and I always order a Bloody Mary there. Because if you call yourself Bloody Mary's you can't really make a shit Bloody Mary. The point I'm making is that I think that you can position yourself in two ways if you're a legacy car maker, which is you could create a brand new native only car brand. Native only electric car brand. Okay, but they're going to be lots of those, right? Then you can either be what you might call a heel dragger or a leaner inner. They're the people like Volvo, you might say, as a brand which has undoubtedly lent into electrification. They're clearly enthusiastic Adopters of the same. And then, of necessity, there are, for example, the German volume carmakers who can't help but look like heel draggers because they're facing Clay Christensen's classic innovators dilemma, where you've got huge, huge sunk cost interests in manufacturing petrol, even diesel vehicles. Okay? And you've got to make this unbelievably painful transition where, in a sense, your investment in electric cars for a 5 to 10 year period is actually hurting your core business. Now, Jaguar is a tiny, tiny carmaker which is dying. I mean, they sold 8,000 cars in the United States last year. Now, one thing they don't have a problem with is having to defend their core business because it's kind of on the way out almost. There are times, I think, where you just have to roll the dice, bet the farm go different, and that will massively offend your existing loyalists, not necessarily the people who buy the car. Okay, I'd consider buying this thing. I think it looks fantastic, by the way, I'd be very happy if the people at Jaguar want to thank me for their defence by offering me a test drive at some point. Okay. You know, I want Jaguars to be magnificent. And this is heroic and magnificent in the way that the XK120 was and the way that the E type was, not in the way that a petrol car is. I mean, you don't want to go into that awful business where you've got skeuomorphic exhaust pipes and, you know, pretend leather and driving gloves and all that stuff, because that does sit in the, in the past and what a car is in the age of electric cars. Okay. How cars differentiate themselves is a really tough question because you're not going to be able to do it on price if you're a Western automaker. So, you know, you obviously have heritage, but to some extent a lot of that heritage is tied up in a world which no longer exists in the sense that Burberry has a problem in that nobody really buys raincoats except for Americans and flashers as far as I can. Right. And you know, I love the. I love the Giles Gilbert Scott red telephone boxes. I think they're glorious, but I don't think they should be the BT logo. But there is that part of your brand which probably belongs in a museum or in this case, I guess, a car collection rather than it belongs in a showroom. And they can afford to alienate their core target audience because they're going massively upmarket. They've spotted the US as their biggest market. There will always be very rich people who want to fit in. And they're always going to be very rich people who want to look different. And they're targeting the second group. Most really rich people are actually boring, actually. They just want to look like other really rich people. Right? They go, where do rich people live? Ooh, they live in Belgravia. I'll buy a house there. Right, okay. Where do rich people go on holiday? Ooh, I'm going there. But they're also the rich people who kind of go to Machu Picchu, or the rich people who, you know, you know, who are obsessed with walking the Silk Road, whatever. Bullshit. Okay, right now the point I'm making is if you're not going to planning to be more than 0.01% of the car market, you have a very clear idea of who your market is. They will want a bit of heritage, okay? They will want a heritage name. It's not like it's called. They call the car Snickers. Okay? Jaguar typography has always changed. It's not a, you know, you can't use the typography of the Mark 2 or the, you know. You know, I mean, come on, you know, they've changed their typography. They updated that all the time. Their logo has been updated. They have switched it. So it goes from left to right rather than right to left. Johnny Walker did that. By the way, the reason things tend to face right to left in logos is actually drawn from heraldry, of all things. I think that's why the cat originally faced to the left. And they just said it looks more forward looking if the cat is facing to the right. Johnnie Walker did that when I think BBH took over. The walking man now walks left to right rather than right to left.
