Apologies Take the Back Seat in Toyota’s New Ad Campaign
Emily Fredrix | March 08, 2010
Analysts say Toyota is taking a risk in its ad campaign, which emphasizes customer loyalty rather than addressing safety concerns. The company’s focus on sales after the recalls may backfire. (Bloomberg Photo) Related articles
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New York. New ads for troubled motor-vehicle manufacturer Toyota are skipping the apologies and easing back into sales pitches too soon, say marketing experts.
The new campaign pushes the idea that Toyota customers remain loyal, even as the company faces congressional inquiries and some reports that its repairs may not fix the problem.
The campaign, by Toyota’s main ad agency Saatchi & Saatchi, emphasizes what Toyota said were real satisfied buyers testifying that they still felt safe in their new Toyotas even after weeks of revelations about accelerator problems.
“And our own personal experience? These cars that we’ve had have been exceptionally safe,” baby boomer Mark Murphy said in one ad. The ad said he and his wife, Donna, bought a Corolla and a Sienna on Feb. 20.
The campaign, which started on March 2 and is scheduled to run through April 5, does one thing right, marketing experts say — troubled brands have to play to their strengths by wooing loyal fans. But some say skipping past the apologies could make Toyota look like it is mocking safety concerns that are still very real.
Ford laid low on heavy sales pitches for its Ford Explorer for months in 2000 after blowouts of Bridgestone tires used on the sport utility vehicles caused more than 250 traffic deaths.
People need time to digest bad news, so companies should not try to start selling too soon, said Mike Sheldon, chief executive of ad agency Deutsch LA.
“We haven’t had that chance to just get through the problem and they’re already trying to sell me stuff? I believe that consumers will feel a little confused, like, ‘Aren’t you still fixing the problem? Why are you trying to sell me so hard?’” he said.
Saatchi & Saatchi referred calls for comment on the campaign to Toyota, who didn’t respond to requests.
The local and national television ads feature unprecedented incentives from Toyota, which saw its sales fall 9 percent last month. They’re the first major sales push since the company’s trio of apology ads, which started airing in early February, telling owners that Toyota was taking care of problems. Incentives include zero percent financing for five years and auto maintenance plans for new owners that rival offerings by luxury brands.
But buyers do not want that, Sheldon said. They still want to know the company is taking care of its problems before they are sold on new cars, deal or not, he said. The company should have waited at least a month, maybe two before pushing sales, Sheldon said.
“Any communication right now should be ‘here’s what you need to do, here’s how we’re solving this problem.’ Leave the schmaltzy music and imagery out,” he said.
Some even think Toyota should stop advertising for now and instead tell its story through news reports and social media, which can offer more credibility.
“When there’s a very negative story connected with a brand, it’s extremely difficult for any paid advertising to deal with that issue because it’s self-serving,” said Al Ries, chairman of Ries and Ries, a marketing strategy firm in Atlanta. “It’s not helping.”
But Toyota wants sales. First-time Toyota shopper numbers fell last month, the first full month of sales since the company suspended sales of eight models on Jan. 26. Toyota vice president Bob Carter said this week that it was focusing less on sales last month, but is shifting back now. All models are back in showrooms.
“Frankly as an organization, we turned our sights away from sales and went 100 percent at taking care of our customers. It was the right thing to do and now coming in March, we’re back in the sales business,” he said.
Some say the money the company is spending — the amount of which it declined to release — is worth it because it relies on these brand loyalists who can turn skeptical shoppers into potential buyers.
The ads are clearly designed to keep people feeling positively about the brand, said Deborah Mitchell, senior executive fellow at the Wisconsin School of Business. She said they worked because they featured so many loyalists, something few companies could pull off during such a tough time. But that strong loyalty can make the risks even bigger.
“If consumers decide Toyota has lied to them, there will be a huge backlash.”
Associated Press
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