This just in from Automotive News:

VW replaces ad agency with Mini's firm


By Jamie LaReau
Automotive News / September 06, 2005

DETROIT -- Volkswagen is replacing longtime advertising agency Arnold Worldwide with Crispin Porter + Bogusky of Miami. Crispin Porter is known for its work on BMW's Mini account.

Crispin Porter will take charge of all advertising and marketing for the VW brand account, effective Dec. 5. Crispin Porter resigned the Mini account on Tuesday, effective in 90 days, said Jeff Hicks, CEO and partner of the agency.

Boston-based Arnold has been VW's ad agency for 10 years, said Ron Lawner, Arnold's chairman and chief creative officer. He said the agency received a call from Volkswagen of America Executive Vice President Len Hunt, who heads the VW brand, this morning terminating the relationship.

"I was surprised," Lawner said. "That account meant an awful lot to this agency. It's very traumatic."

Hunt said it was a difficult call to make after a 10-year partnership. "I stressed how happy we've been with them but that we wanted to go in a new direction," he said.

That new direction includes redirecting advertising dollars away from traditional TV and print toward more viral, event-driven and online advertising, Hunt said.

"We've begun to realize the world's changed a little bit," he said. "Today, it's not so much about communication with people; it's about connecting with them."

A call to BMW of North America LLC was not returned this morning.

In a statement to the press, Hunt said VW needs to take "bold steps to turn this business around in the U.S. and Canada" and is reviewing all aspects of the business. VW's U.S. sales have struggled this year. The brand's August U.S. sales inched up 1.6 percent compared with August 2004. U.S. sales for the first eight months of the year, however, are down 19.1 percent, compared with the year-ago period.

"With the addition of CP&B on our team, we'll now be equipped to maximize our marketing efforts," Hunt said.

VW's director of brand innovation, Kerri Martin, had been Mini's marketing communication manager until March 15 when VWoA hired her. Hunt said Martin did influence the decision to replace Arnold. He said she worked with Crispin Porter when she was at Mini and believes the agency is good at the grass-roots kind of marketing that VW wants to shift to.

Lawner said Martin probably wanted the change.

"It happens in our business," he said. "The car market is not great, but the saddest part, besides working for a brand for a decade that I loved, was that we have so many creative new campaigns coming out for the Passat and the Beetle."

Crispin Porter's Hicks said Martin wasn't the sole driver for the move.

"We did work with her, but if you talk to VW, it's a decision that was taken by the entire VW team," Hicks said. Crispin Porter worked with Mini for five years and launched the brand in the United States.

Hicks said VW has been known for strong advertising. But, he said, the effort to turn Volkswagen around is attractive.

"VW is in a transition period, and we like to get involved in brands that are in the middle of a turnaround," Hicks said. "Spiritually, this agency loves a challenge."

VWoA spent $417 million on advertising last year, according to TNS Media Intelligence, a company that gathers information on advertising and marketing. Mini spent about $22 million in advertising last year.

Lawner was not sure of VWoA's reasons for ending the relationship. He said: "I don't know what reason they would terminate a relationship with one of the best ad agencies in the business." He is confident another car manufacturer will contact Arnold. "We've broken new ground with VW," he joked, "And now we're available."

 

interesting news bit and I am sure the new agency will help them somewhat ... although VW needs some more exciting cars than they have in their lineup right now ... not sure what/how the new agency will actually help polish.

 

I think its more of the product and price + people knowing about them.

The VW ads have been pretty good, but when you go up to a dealership and check out the prices... they just aren't very competitive compare to many rivals. Not to mention the whole VW lineup is kinda bland, nothing "really" stands out.

 

I imagine that that whole ignition coil fiasco probably turned a lot of people off to the brand. I know if I had been considering one when that story broke, it definitely would have changed my mind. However, I would never consider one anyway. I know four people who have owned Jettas, and they have all ended up wanting to blow up their car or set it on fire, just so the car couldn't beat them to it. No amount of clever advertising is going to counteract the negative word of mouth about VW reliability (and yes, I do realize that that statement is coming from a MINI owner! ).

 

th elocal vw dealer here has great tv and print advertising-and a pretty nice sales staff, im told-but-god help you once you go to thier service dept. if it might possibly even a slight chance be a warranty issue-they will do whatever they can to pry some money from you. once its with in a whisker of being out of warranty, they will do whatever to stall the repair till you have to open your wallet. and once you sign it in, no matter what happens to your car while in thier care, it wasnt thier fault. my brother is currently suing them over thier idiotic bumbling ineptness, and they gave him the paperwork with which to file and prove the lawsuit!!

 

Exactly!!! MINI ads are clever, true, but MINIs sell MINIs...plain and simple.

 

Mini ads never sold me on the car, rather only reminded me it was there and that I wanted it...the car is the only thing that mattered.


VW will gain 100x more than Mini could from any ads. This is no big deal.

 

Before this totally turns into a VW Sucks thread, this former Jetta owner
says Crispen Porter has it's work cut out for itself.

hs

 

"Jetta, made in Mexico just like the water that made you crap your pants last time you visited." So buy a VW and enjoy that pleasure once more.

 

Now, there's a peppy slogan, Rick! (Or is it a "poopy" one?)


Clover

 

I always will believe that MINIs sell themselves, and each MINI that is owned/driven by the individuals who post on this site and others, is advertisement enough.

If VW thinks its gotten a chance in hell in catching some of MINIs spark, they better get some new designs, and fast.

 

Can I remember you that there are good cars made in Mexico like the Accord? Also the water issue happens to everyone who visits another country.

 

I'll miss the MINI ads - hopefully the new agency can pick up the ball (wheel?) and run with it. As others have said, though - it's not the ads that sold me on the car. Like the taco bell chihuahua they make for great commercials, but if it doesn't sell more product, it's not good advertising. Given that they sold out though (at least on the west coast)...

 

I agree...MINI ads gave me something to do (collect) while I was waiting to be able to buy.

 

The MINI may sell itself, but I think MINI's marketing campaign has helped foster a sense of community among MINI owner. The whole notion of "Let's [fill in the blank]" subtly says buy a MINI and be part of this group, while the focus on custom ordering etc. counterbalances that with individuality. I was pretty much oblivious to MINIs ads when I test drove the MINI on the spur of the moment, so I doubt that the ads influenced my decision to buy. But the ad campaign adds a fun factor to owning the MINI that I think is pretty unique.

 

Brand advertising is only supposed to create awareness, not sell the car. Marketing is supposed to only get folks in the door.

I think, given the SUV state-of-mind our country was in a few years back, CP&B has done a great job bringing folks closer to the ground and into the MINI dealerships.

I totally agree. I feel that MINI marketing has done an awesome job of creating post-purchase, brand assurance.

 

A snippet from Ad Age daily bulletin:
"Kerri Martin
Crispin's appointment follows the April arrival of Kerri Martin to VW in the new position of director of marketing development. Ms. Martin came to VW from Mini, where she had been marketing communications manager.

Ms. Martin, now director of brand innovation, said the change to Crispin Porter shows VW's wish to shake up the communications model. She said the agency is known for its "strong grasp of pop culture and ... non-traditional approach to branding. [The agency has] a stellar track record of building, reviving and marketing iconic brands.""


When they hired Martin, they knew exactly what they were doing.

 

I'm sorta glad....after the first year i got tired of the "cute" MINI ad campaign

 

I could not agree more with your statment, MINI teasers were the best and I happened to have almost anything MINI(freeebies) I got my hands on. It's Crispen-Porter challenge now to try to creat a relationship consumer-product like they did with the MINI, this time for VW, its obvious they will have to do something to their product to back up any advertising efforts..

I am sure you all remeber that smile on your face anything you came across any kind of MINI advertising. Would C&P be able to do the same???
only time will tell.....

 

Volkswagen can copy MINI's successful marketing scheme all they want, but at the end of the day, the fact remains that their current product stable is stale, not exciting and lacks that "something" to bring people back into the fold.

The new Jetta has been a flop of nuclear proportions. The current car is actually a step back on the Mark IV platform it replaces. The new Jetta is essentially VW's remake of the Toyota Corolla. One thing I can assure you... The last thing VW buyers want is to have a car that resembles a lowly Japanese econobox

VW's problems run skin deep and I am afraid those folks are barking at the wrong tree. VW (like GM) believes that brand marketing is the cure all for all their problems. Not so. VW needs to understand that in this cut throat automotive environment, PRODUCT IS FIRST AND FOREMOST KING!. Without product, no matter how cute and clever advertaising schemes they can come up with, their cars are still lackluster. "You can never polish a turd"

MINI was a hit from the get go because this is one amazing product that even without Crispin and Porter's advertaising, the car would have still sold briskly. Message to VW" : "Hello McFly, anybody home????" Think! VW needs to revamp its product line, make significant improvements to their tarnished quality image and to completely turn around their lousy dealership network.

I wish them luck, but if VW believes that snatching away an ex-MINI communications executive and take over their ad agency is going to solve their problems, they are in for a very rude awakening.

 

Excellent commentary from autoextremist.com:

http://autoextremist.com/page6.shtml#table


"The Volkswagen advertising account was pulled from Havas advertising agency Arnold Worldwide in favor of Crispin Porter + Bogusky, VW announced yesterday. Crispin Porter + Bogusky is the Miami-based ad agency best known for its work for Burger King and MINI. VW, desperate for something, anything, to help turn things around in the U.S., is hoping that the obligatory "hot" ad shop can jump-start its flagging fortunes, while it continues to wait for its new products to make an impact. VW had already dismissed Havas' media buying company MPG last January, but the company did not conduct a traditional ad agency review before handing C P + B its account. It's an interesting move, but it won't make up for the fact that VW's new products have been painfully slow in getting to the U.S. market. And VW continues to fight the perception out in the market that its quality numbers still aren't there yet. VW is a damaged brand in the U.S., and there's just no getting around that fact. And Wolfgang Bernhard or no, we just don't see them making the progress they need to be making if they intend on turning things around."

"Crispin Porter + Bogusky. From the "Be Careful What You Wish For" File. It's the oldest story in advertising. Small ad shop does great work, becoming the agency of the moment. It then attracts new clients, makes more money, then gets invited to pitch more and more business. Somewhere along the way, the agency loses its focus and forgets what got them there in the first place and goes after the "big score" - the huge advertising account that they just know will put them over the top. So, they position themselves to go after new business and then end up jettisoning the original client they made their mark with in favor of a much bigger piece of the action. After being awarded the VW account, Crispin Porter + Bogusky informed Mini that they would be resigning the Mini account in 90 days. According to a report in Automotive News yesterday, VW's "director of brand innovation," Kerri Martin, who had been recently Mini's marketing communication manager until March 15, influenced the decision, VW said. Well, duh. Crispin Porter + Bogusky will find out the hard way that VW is an entirely different animal from Mini in terms of size, market positioning, the scope of its dealer network and the level of pressure required to perform. Be careful what you wish for, indeed. Good luck, C P + B - you'll need it."

Peter DeLorenzo hit the nail on the head!

 

^^^ Yeah what minims said! That is "it", and (despite my many rants about MINI Inc. "managing my expectations") I never put it together... You get the best of both worlds, be part of an "in group" and yet maintain cool individuality... Good show!


I agree in general with the points made in this thread about VW blandness and those darn reliability concerns; however, I have some doubts that Volkswagen is relying solely on a "hot" ad agency to fix these problematic perceptions. If a middle-manager 'puter guy (yours truly) can see that it won't work, (too "one dimensional" a solution and doesn't address very much of what's really wrong) then you'd think all the gray matter at VW corporate ought to be able to see it too?

My $.02,
Tatt

 

It will be interesting to see what the "new" VW ads are like and what happens to MINI ads/marketing.

It seems as if VW has taken thier eye off the ball with the new Jetta and Phaeton. Will the Passat may remain a favorite? We will see soon.

 

I have seen so little mini marketing, that I find it difficult to believe it has been a factor in the success of the mini. I was attracted to the mini by the great reviews in the automative press and by the comments of mini owners. I did not see much in the way of print, radio or television advertisements. I think mini's website is clumsey and slow, and lacks as much information as I would like. Dealer websites are wothless. I thought some of the gimmics were stupid - the contract that you're going to drive with your convertible open 80% of the time. Cutsey childish games - did not appeal to me. I like the mini emblem, and there are some interesting discussions about the heritage of the design. It's good factual information that I find relevant, as opposed to cutesey gimmicky advertisement. Although I suspect they are trying to appeal to a younger demographic than me in their advertising. It's really the car that is appealing - look at the public reacion when you are on the road. People love the idea of a small efficient tightly built car that performs well and has a reasonable price. I would say to volkswagen "it's the car, stupid." And customer satisfaction. If you have happy customers, word spreads. Keep the customers happy at all cost.

 

Lotta VW bashing going on. Have to tell you my daughter has a Jetta TDI (Turbo Diesel). The car runs great, plenty of power, reliable, gets 45 mpg, and trans. shifts like a knife thru warm butter. Super smooth and precise. No nagging ECU problems, no maintenance issues at all.

I wish that engine and transmission were available for the mini.