Automakers are realizing that if they do not adjust to changing
youth tastes, they "risk becoming the dad at the middle school
dance," said Anne Hubert, a senior vice president at Scratch who
leads its consulting practice and works closely with G.M.
Last summer, Mr. Martin and his team temporarily transformed part
of the G.M. lobby into a loftlike space reminiscent of a coffee
shop, with graffiti on the walls and skateboards and throw pillows
scattered around. As part of its "Millennial-Con," Scratch brought
in viral video stars like Sergio Flores, known as the Sexy Sax Man,
a musician with a mullet and a denim jacket.
Mr. Martin has recruited what he calls "insurgents" -- young
Chevrolet employees who are willing to change things from the
insideand report to him on skeptical executives. "How do you embed
the voice of a generation in a company the size of G.M.?" he said,
sinking into an armchair near a communal coffee maker. "It's like
moving a crater."
But G.M. was determined to be moved. "It was the early days after
bankruptcy, and we said, What are we really going to do differently
in the next five or 10 years?" said Mark L. Reuss, president of
General Motors North America.
He lined up meetings with Viacom. He asked executives how the
company could apply MTV's research and programming strategy to
Chevrolet, which makes up 70 percent of G.M.'s sales in the United
Statesand was, in the halcyon days of the car, a youth brand. The
companies homed in on several of Chevy's smaller and more fuel-
efficient models, like the Sonic, the Cruze and the Spark.
Founded in 2010 as part of MTV, Scratch now taps into audiences
who watch other Viacom cable channels, like Comedy Central; Spike,
which caters to young men; and VH1, a music and celebrity channel.
It is a new source of revenue for the media company outside
traditional advertising.
"We used to use research in a very proprietary way, but it became
clear advertisers were hungry for our insights," said Philippe
Dauman, Viacom's president and chief executive.
G.M. hired John McFarland, 31, a marketing executive who
previously worked at Procter & Gamble, to oversee the company's MTV-
ification. Mr. McFarland said it had been a challenge to prove to
his bosses that young consumers had money to spend -- $170 billion
in buying power, according to the market research firm comScore --
and did not just rely on their parents. "There's been a lot of
pessimism in the auto industry toward this generation," he said.
But signs of change are there. On a recent morning in the General
Motors Technical Center, a couple of car executives huddled around a
"persona board" in the color and trim laboratory.
They studied a collage loaded with images of hip products like
Beats headphones, created by the music producer and rapper Dr. Dre;
a tablet computer; and a chunky watch. The board inspired new
Chevrolet colors, like "techno pink," "lemonade" and "denim," aimed
at "a 23-year-old who shops at H&M and Target and listens to Wale
with Beats headphones," said Rebecca Waldmeir, a color and trim
designer for Chevrolet. The rainbow of youthful hues will be
available on the Spark this summer.
Still, any turnaround will not be quick. Car designs have a lead
time of about three years. The paint has to dry (colors are baked in
the Arizona desert for a year before they are approved and
introduced to consumers). And the car industry, from assembly line
to union to smooth-talking dealer, revolves around a powerful and
entrenched culture.
It is also unlikely that G.M. will adopt some of Scratch's
advice. After installing "secret shoppers" at selected Chevrolet
dealerships, Scratch recommended that sales representatives abandon
the hard sell and that the traditional system, based on commissions,
be reimagined. Young buyers, they realized, are used to Apple
stores, where sales representatives do not push products. Joel
Ewanick, G.M.'s global chief marketing officer, said the automaker
was training dealers on how to adapt to young car buyers.
"We tried to teach dealers how to calibrate conversations," Mr.
Martin said. "Stop trying to be cool and give them the fist pump.
They can tell you don't get it."
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G.M.'S Pitch: We're Cooler Than You Think
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Source: (C) 2012 International Herald Tribune.
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