It was an interesting week in the marketing world. Here are a few observations (and my "grades") on what is working and what is not.

• Cash for Clunkers — This has been a huge success. Clearly, there was (is) pent up demand for automobiles, and consumers have demonstrated that a bit of government cash is all they needed to start spending again. The mistake is to end the program tomorrow. They should take several billion from the slow to catch fire stimulus plan and keep Cash for Clunkers alive for a few more months. It is a stimulus program that ACTUALLY works, so why is it ending? A rousing "A" for Cash for Clunkers. A "D" for ending it prematurely.
• GM on eBay — Now this is a true clunker of a marketing program. It has generated buzz, but apparently no sales. People still like to touch and feel their cars before they buy them. GM knew this, but was looking for a lift wherever it could find one. I really don’t see this program working in the long run. But, I do commend them for trying. The program gets a "C."
• Starbucks Raising AND Lowering Prices — It was really kind of a confusing move by the huge coffee company which has been valiantly trying to regain its sales Mojo. Starbucks confirmed this week that they are "raising" prices on those highly caloric, "complex" coffee drinks (that are really deserts), while also lowering prices on "simple" drinks like brewed coffee. So, do these contradictory marketing moves sort of cancel each other out? Perhaps. But, I really don’t think it’s a great idea for Starbucks to be raising any prices these days, even if their costs have gone up. That said, I only drink the brewed coffee anyway, so I am glad I will save a nickel or two. I would grade this marketing strategy just a "C" for Starbucks. That said, they have made some other smart marketing and branding moves in recent months to improve their results and reclaim some of the strength of their brand.
• Volkswagen Tries to Get Competitive in US Market — VW has been lagging behind the Japanese for years in the American market. So now comes a NYT story this week that the new US CEO of the venerable German car maker is really trying to get serious about succeeding in the US. So what is his strategy? VW is opening up a new manufacturing plant in Chattanooga, TN to produce a mid-size car, probably under the Jetta model name (using Jetta is their first mistake!). This larger, American made car will supposedly be purpose-built for American car buyers, which means that it will be larger, less sporty and have lots of cup holders. And that is their strategy? Building a German version of a Ford sedan?! At least they are trying something new. The article points out that VW is indeed a bit player in the US car market. They are on track to capture just 2% of the US market for cars and light trucks this year, and that is up from only 1.4% two years ago. I guess the company’s lame ad campaign, featuring the vintage black Beetle spouting "Das Auto," is actually working somewhat. I thought this campaign was a replay of the ill-fated "Farfegnugen" campaign of a few years ago. Here’s the thing: Volkswagen has not had a real hit in the US for years. No one knows what VW stands for in the American market, and their brand is now just kind of dead in the water (notwithstanding the "Das Auto" creative). Think about it. VWs are not the best looking, the best made, the most fuel efficient, the fastest, the coolest, the cheapest,  the safest and DEFINITELY NOT the most reliable cars available. So what exactly are they?? When they can answer that question with a brand positioning that actually meets the needs of a decent portion of the market, then they will have a US business again. VW gets a "D" in marketing this semester (they would get an "F" if it weren’t for the fact that their new CEO is at least trying and the company’s GTI is an OK sporty couple…my neighbor loves his).
• Porsche Unveils its New Four Door Panamera — VW’s stable-mate Porsche is continuing to dilute its own iconic brand with yet another larger car for aging yuppies, VCs and dentists. Porsche’s newly launched Panamera four-door "gran-turismo" follows up that brand’s ill-advised move to create an SUV a few years ago. Yes, the Porsche Cayenne SUV sold pretty well, but it still damaged the most successful and storied sports car brand on the planet. I think the four-door is an even stupider move for Porsche. Just because you can sell the thing does not mean that it is a good strategy for a brand that is about pure sports car performance and driving pleasure. Sometimes holding back on short-term strategies that generate revenue is the best way to protect and preserve the brand for the long haul. Mercedes is still smarting from its disastrous moves years ago to market a cheaper "Baby Benz" model. And, Starbucks’ current woes are largely attributable to its head long drive for growth, which steered the brand away from its true coffee-centric culture where barrista’s grind fresh coffee and make espresso the old fashioned way (by hand) rather than just push a button on an ugly stainless steel machine. Porsche will ultimately regret its larger, non sports car models. This classic branding mistake earns Porsche a solid "D."

What are your marketing hits and misses for the week that just was?

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