General Motors faces a dilemma. In the past, products from GM haven't been stellar but customer loyalty and smart marketing allowed the company to attain respectable sales numbers anyway. However, after a series of major new product launches, GM isn't pleased with the effectiveness of the current marketing campaigns.
GM fired its Global Marketing Chief Joel Ewanick on Sunday. According to GM spokesman Greg Martin, "I can tell you that he failed to meet the expectations the company has for its employees." Sources admitted that Ewanick and some of the top execs at GM have been in disagreement for a couple months already due to a number of high-profile moves and questionable choices including the decision to pull advertising from Facebook just days before the social media giant launched its IPO. This move especially did not sit well with GM CEO Dan Akerson.
What's more, Ewanick previously represented the marketing efforts for Hyundai and pushed for a major campaign during the 2008 Super Bowl and the '08 elections for the South Korean brand. However, Ewanick's decision to pull GM out of the Super Bowl ad deal was in marked contrast to his past efforts. According to some GM insiders, Ewanicks committed the move as a bluff to force ad rates during Super Bowl to lower. With hindsight being 20/20, the bluff failed.
However, the move that broke the camel's back was perhaps Ewanick's handling of the big sponsorship deals with British soccer clubs Manchester United and the Liverpool Football Club for Chevrolet. Details of the deal have not been released by according to a GM insider, the terms of the UK soccer deals possessed "serious breaches."
Nonetheless, GM and Manchester United have made a joint statement announcing GM as the official sponsor for the Manchester football club. Alan Batey, GM North America Vice President, said, "We are extremely proud to connect our brand, Chevrolet, with Manchester United and its passionate supporters all around the world. Manchester United's statistics are impressive, but this relationship goes far beyond the numbers - this relationship is about connecting our brand with the deep-seated emotion that surrounds the team everywhere it goes.
Joel Ewanick was first hired to become GM's U.S. marketing chief back in May 2010 and was then quickly promoted to lead global marketing. Early into his tenure, Ewanick dropped GM's multiple marketing agencies to consolidate all advertising efforts with the agency Commonwealth of Detroit. According to some estimates, the consolidation was supposed to save GM almost $2 billion over the span of five years.
Despite bold decisions and big efforts, Ewanick's plans didn't pan out. GM has lost some major market share, only gaining 4 percent in sales while the overall U.S. market enjoyed a sales increase of 15 percent. According to Executive Vice President of TrueCar.com Larry Dominique, "GM's decline in market share likely played a part in the departure of Ewanick, who helped Hyundai gain market share in the U.S. with its creative marketing. GM has introduced some impressive vehicles in the past few years, yet because of so much competition in the marketplace, GM's marketing and advertising really didn't separate itself from other automakers."
Whatever the reason may be for Ewanick's termination, the bottom line is that in order for Ewanick to attain the new marketing model he believes GM deserves, he dropped a lot of important agency relationships and perhaps shook the culture within GM too quickly and abruptly.
Ultimately, amid lagging sales performances, Ewanick failed to gain the trust of those that work with him. What's more, a series of disagreements in market strategy suggest a failure to communicate between Ewanick and the associates and executives as well.
Whether a marketing campaign is successful depends a lot on the ad's ability to make a connection to its customers. What sort of approach would you prefer to have GM engage you? Be sure to share your thoughts in the comment box below!
Despite the very public termination from GM, 52-year-old Joel Ewanick is still considered one of the most recognized marketing minds in the industry. Expect Ewanick to be picked up by another automaker soon.
