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    New Doc 2022-11-18 15.29.42

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    GENERAL ELECTRIC: BRANDING IN BUSINESS-TO-BUSINESS' INTRODUCTION When General Electric’s ninth chairm, and Chief Executive Officer on Septe in those following days. The events o economically. Not only did these ch: CEO would ever face in the compa stepping into a role that some of A: predecessors included Thomas E had shaped one of Ametica’s mo: an, Jeff Immelt, took office as Chairman of the Board mber 7, 2001, few could imagine what would happen »n September 11% changed the world politically and fanges create some of the most difficult challenges any iny’s 125 year history, but additionally Immelt was \merica’s most famous businessmen had undertaken. His dison, Reginald FZ Jones, and Jack Welch, who over time s st enduring companies into a diverse portfolio of businesses ranging from light bulbs to jet engines to financial services. This unique combination of businesses had enabled the General Electric Company to grow into one of the world’s binges businesses, with §157 billion in revenues and over $350 billion in market value in 2005. __As.Immelt entered office, a struggling economy, rising fuel costs, and global warming were the major concerns of the day. Immelt believed that the future of the company lay in innovation and emerging technologies such as fossil fuels and wind power. He began to implement this vision, first dropping the well-known slogan “We Bring Good Things to Life” for “Imagination at Work” in 2003. Then, as stricter global regulations and environmental concerns became more prominent, he launched a company-wide initiative called “Ecomagination” in 2005, which set aggressive goals for GE to produce cleaner technologies. This major shift in marketing and business strategies did not immediately boost GE’s stock, however, which hovered around $30 per share after Immelt took over as CEO. Nevertheless, Immelt continued to believe that focusing on innovation and eco- friendly technology was the best, most profitable direction for the company. GE HISTORY ‘The Early Years (1878-1954) Thomas Edison once stated in the late nineteenth century, “I find out what the world needs, and then I proceed to invent”—a motto'that has served 2s the foundation for innovation at General Electric. The history of the company started when Thomas Edison founded the ic Li i is most famous Edison Electric Light Company in 1878. A year later he developed his most famo invention, the incandescent lamp (aow called the light bulb) fs bis borstory in Men Park, NJ, The first ads for Edison Electric invention were simple, informative signs that ead“ oom is equipped with Editon Eletric Light, Do not attempt to light with match, Il by door.” ST agi a nk city cteate the General Electric Company. Thomson-Houston’s leader, Charles Coffin, was named GE’ fst president and Edison was appointed director. Inventions-continued to flourish in those esrly years and the first business divisions included lighting, transportation, medical equipment, ead appliances. By the turn of the century, print ads explained one of 55 Scanned with CamScanner i ail and provides t— ne se a a Blectric Light = hax ectre Lig 7 a aime pody can now afford 7 Anot ad Ee we ih a Franliness convenience. Eve CT rnpany about this WON iy Li . Fad ae a “ oe al eae a gaa ape ave Electricity Light at one half of the ind out why it is so : ; 1 Transportation, o or the 1900s and 1910s, most of GE's revenue came foes conte oe “which manufactured large electrical equipment for ral roads and publ i working on jet engines as early as the late-1910s. GE Ap nce, hi the or ote, ge Vac a cal Hotpoint Stoves, Thor Washing ‘Machines, and Premier VaCv'™ — > piastics, GE Financial ini Iy divisions include stics, the company’s remaining scien Oe ie Es soe AT&T and Westin yghouse that “ces, GE Medical Supplies, an ! founed the Radio cea a marica (RCA). Despite the fact that GE produced so oducts, few consumers recognized the GE brand. ’ aan eae etre’ marketing and sales made mprovements following World War 1919, electric lines only reached 25 percent of veimately 65 percent of thanks to the expansion of electricity. In 1919, elect aoa cans, Five years late, that number had increased 1 appro’ 1 pe ie E unify its diverse ‘Americans, In 1922, GE hired ad agency, BDO, whose executives company needed to do two things. First ‘BDO recommended that G! portfolio of products under one corporate brand. Second, they recommended that GE (0's founders, suggested that c Company. In addition, rate a more personal brand identity. Bruce Baston, one of BDO’s | GE drop the name “Company” from the end of the General Electri ‘called “The Initials of a Friend. ..GE.” Many insisting that executives were he helped GE launch a full corporate campaign employees did not approve of this corporate advertising, the public. Consequently, GE executives recognized the loyees first—a strategy that has spending their money to educate importance of selling GE’s corporate campaigns to the emp keting success over the yeats. famous GE script logo. The signature logo, which become one of the keys to GE's mai BDO also helped create the now has gone unchanged for decades, had two basic parts. Fist, the letters, G and B, were aa ao seipt black and white font. Second, the letters were surrounded by counter: aan te waves, symbolizing the company’s wide range of products. By the mid-1920s, the Togo appeared on all ofthe company’s products and in its print ads. : 28° PF addon tots ently matketing campaigns, GE became renowned for developing innovative products, The inventiveness and entrepreneurial talents of founder Thomas Edison lived on in GE’s main research lab in Schenectady, New York. The lab, which became known as “The House of Magi,” was responsible fora number of innovations inching the X-ray tube and the high-frequency alternator, the latter of which mad di and television broadcasting possible. Importantly, GE was able to develop com: cal aot many is intenons, evidenced by waning its invention of the high ternator into a four i, si the National Brosdcasting Coy a oa o Lose Corporation of America (RCA) and “The House of Magic was responsible for many othi sary plonees ip. television ang casio. fine GE niger Ovi Yeung tacked eo 198D 2a ee eee ee fomnee GEG ig remarked in 1930 that the research lab “is the balance 56 Scanned with CamScanner The next round of company slogans came about in the 1930s. “More Goods for More People at Less Cost” reflected customer's concerns during the depression years. By the ate 1940s, GE adopted, “You can put your Confidence in General Electric” which fit the ‘ostwar sentiment appropriately. The baby boom and housing explosion that followed the end of the war helped fuel tremendous growth for the company. Consumers stocked their homes with GE products'like televisions, portable mixers, hair dryers, dishwashers, radios, and light bulbs. In addition, GE was one of the first companies to take advantage of television advertising, which helped humanize the corporation. The Growing Years (1954-1980) In 1955, after decades of successful expansion into a diversified technology powerhouse, GE underwent a major restructuring based on the decentralized management approach of its president at the time, Ralph Cordiner. Cordiner’s approach created a bureaucratic corps of professional managers who were frequently rotated across businesses, even if it meant they entered a sector where they had no scientific knowledge. This decentralized approach, while it occasionally led to employee frustration with the many layers of management, was credited with enabling GE to continue its growth despite its immense size. GE continued its marketing strategy of using high-profile corporate branding campaigns. One of the company’s most successful corporate advertising campaigns - “Progress is Our'Most Important Product—launched in the mid-1950s. “Progress is Our Most Important Product” became a household slogan within a few years thanks to the General Electric Theatre, a half-hour television broadcast featuring top Hollywood stars in a variety of movies and shows.'Future President of the United States Ronald Reagan joined General Electric Theatre as its host in September 1954, before he gave up acting to venture into politics: Reagan introduced the program and closed it with personal comments. Most of GE's commercials featured Nancy and Ronald Reagan in a complete electrical kitchen talking to the viewers about the benefits of GE and its products. A typical plug for GE. sounded like this: "In the meantime, remember: From electricity comes progress; progress in our daily living; progress in our daily work; progress in the defense of our nation; and at General Electric, progress is .. . When you live better electrically, you lead a richer, fuller, more satisfying life. Progress in products goes hand in hand with providing progress in the human values that enrich theives of us all"! : Reagan’s mannerism and General Elecirie Theatre were so effective at reaching consumers across the country that experts from the polling firm, Gallup-Robinson, stated jt was “the leading institutional campaign on television for selling ideas to the public.” In 1972, when Reginald Jones became Chairman and CEO, GE revised “Progress is Our Most Important Product” to “Progress for People.” The advertisements in the 1970s focused more on innovation and the product's benefits rather than their features. “Progress for People” ran for nine years. In that time, GE pushed to expand internationally and made significant investments in R&D. As a result, the company generated 40 percent of its _ camings abroad in 1980 compared with 30 percent in 1970. The company also focused on nuclear technology as an alternative source of power, a consequence of the energy crisis that 57 Scanned with CamScanner i d focus on consume, t placed a renewe i 1970s. Furthermore, i eee singed the globe inthe he 1970 percent of the company's net sme ITER products, which accounted oP 32 ree Snes more dha dvbled for $10 transportation and applia dt Se ae ee oar manage. Jones admitted that “moving le ees fa supertanker. It takes five miles to get one degree gt See ee ee i porumicsatd antdpatng aatket meres weal iy change." Exploiting new growth pees challenges to the company’s continued growth in the upcoming ANEW ERA OF GROWTH AND EXPANSION -2001) aa ee a ni ei 1960 as a junior engineer and quickly became Jack Welch joined General Electric aie Gries frustrated with the company’s strict bureaucracy. He came close to leaving GE a year later but was persuaded to stay by his former boss who saw Welch’s leadership potential. Welch wns promoted to general manager of GE Plastics in 1969, vice president in 1972, senior vice President in 1977, and vice chairman in 1979. In 1981, Jack Welch succeeded Reginald Jones 4s General Electric's eighth CEO. Over the course of his wo decade leadership as CEO, Welch helped grow GE from an “American manufactures into a global services giant,” and acased the company's market value from $12 billion in 1981 ‘0 $280 in 2001, making it the world's most valuable corpotation, Welch's success came much in patt to his leadership skills. He was a great communicator and created an open, informal learning environment at GE. But he was also UGY demanding and once stated, “Reward those who meet expectations and discard those who don't” Welch kept to his word and f company every year. In his first fr €s, Commercial ‘1 augmenting th fo . revenue growth during Wa =. em through acquisitions, “enute came from acquired Welchis Marketing §, Welch's management smite ement sa, Successful leader tre SHE (See Exhibit 1) was not the onl ly thing that mad, een Matketng and buigien UP 8 vide mide ae SE, pate lng ee Mego: Welch also show nce th firm,” ae ~ , Owed that he bet; i ya cleved in taki i on ing tisk i “© market B2R produ ‘As geo mt rotat : ger of GE Scanned with CamScanner Welch helped develop a “marketin, sted more like Tide detergent. Pron throwing pitches at Welch ibe year in sles and the spot re wd effective. f In 1979, GE launched “We Bring Good Things to Life,” perhaps one of the best known and most successful advertising campaigns of all time, Welch embraced this campaign from the start and the company spent over $1 billion nurturing it throughout his tenure. ig and promotion campaign....that was bei tics, ” Peibn.. -Cuatwas being Plast ? The spot featured St, Louis Cardinal pitcher, Bob who held up a Lexan plastic sheet. GE Plastics had a ceived extensive media attention for being different, risky, We Bring Good Things to Life ‘We Bring Good Things to Life” ran for 24 years and in that time, humanized the conglomerate by demonstrating the benefits that GE’s products brought to people. The tagline, “We Bring Good Things to Life,” was created by Phil Dusenberry-—the former creative director and chairman of BBDO North America. Dusenberry came up with the , famous slogan in a cab, 12 hours before presenting it to Jack Welch. The tagline was set to a jingle, which stuck in consumer's heads because it was a simple musical scale. The campaign also included a print element, which targeted consumers by explaining the benefits of its consumer products. A print ad in the 1980s for a GE microwave stated, “GE didn’t design a microwave that works over-a grill just to impress home builders. We did it to impress home buyers.” rok Back when the slogan was developed, GE’s revenues came from a diverse array of products, including light bulbs, plastics, consumer appliances, jet engines, and nuclear reactor divisions: The new campaign, however, focused primarily on light bulbs and, appliances because GE believed those products touched an emotional side of consumers. GE board member Walter Wriston explained that “millions of people actoss the country open their refrigerator door, and the light goes on, and they see GE. That monogram stares them in the face every time they turn on the light.” !° Avchassic GE spot from the 1980s called “Patricia” did an effective job of communicating the wide range of GE products, but cleverly started and ended with the classic GE light bulb: ‘A Man's hand reached and turned on a GE light bulb. A narrators’ voice explained, “This is the hand .... that turned on the light... that lit up the desk . .. where the idea was born for a quieter jet engine . ,. that flew the technician .. . who works at the power plant . . . which produces its energy far more efficiently. . . as it lights up the city. . . powers the hospital with its life saving images . . . where Sam is found healthy...” As a young boy is shown skipping off to a football game, the voiceover continued, “ini time for the game .. . held under the lights ... broadcast to millions by'a satellite system . . . designed with precision . . . sent by powerful locomotives . . . that ride past a factory that helped build a car with advanced thermo-plastics . . . that sits in the drive at the home of Patricia who went to the fridge and got a drink for her dad . .. who works ina room where he turned out the light as he puts his young daughter to bed. GE—Everyday GE technology touches the lives of just about everybody.” 59 Scanned with CamScanner . faced several public relations disasters, _ | Over the folowing evo derade cia Rivers! and a tax ae ithe. {Bidet Hoeven ton member Wriston remembered that eet ee ch wever, ; . shat fous by reinforcing only the good things GE did. ve ae xis tie bbsigesitee uublic perceives GE as bringing good things to life. The lights w Tees the beer cold, the washing machine gets the spots out of your pants. An ne eePt of some guy ripping off the government on work parts is sort ‘of an ene 8 that doesn, affect me and GE because my relationship with GE is the light bulb. Welch’s Strategy Led to Results ‘ Throughout the 1980s and 1990s Jack Welch kept the media and marketing strategy focus and simple, Welch even eliminated the Chief Marketing Officer position during this time embraced ‘“We Bring Good Things to Life” and did not change it much throughout his talk shows, which targeted a small group of business and political “influentials.” ‘elch’s primary focus was to be number one or two in each of ite 11 business “divisions (Exhibit 2). Welch explained, “When you're number foun or five is slumber one sneezes, you get pneumonia. When you're number one, you control your destiny." GE achieved these market positions Primarily by focusing on existing business well. The GE-Honeywell 0 industrial companies and ence Welch rered on Sec; lo*ked the GE Scanned with CamScanner yr Gp INTHE NEW CENTURY The Jeff: Immelt Years (Post-2001) On Friday, September 7, 2001, Jeff Immelt succeeded Jack Welch as the ninth chairman and Chief Executive Officer of General Electric at the age of 44. The Dartmouth College and Harvard Business School alum started his career at GE in 1982. Over the course of the next two decades, he held senior roles in GE Appliances, GE Plastics, and most recently was President and CEO of GE Medical Systems, an §8 billion division of GE. Len Vickers, a former GE executive who helped create the “We Bring Good Things to Life” campaign commented, “I think Jeff early on was spotted as ‘A’ material and a real leader. What I liked about him was that he had a marketing head, a marketing mind-set. He always thought and talked in terms of opportunity, not challenges.” f Immele’s initial strategy during the challenging post-9/11 business climate was to continue to shed GE’s consumer businesses as his predecessor had.!6 Despite this similarity, the differences between Immelt and Welch were evident from the beginning. While Welch had focused on financial services and expanding through acquisitions, Immelt believed the future lay in technology and innovation, including emerging technologies such as solar energy, hydrogen storage, nanotechnology, and fuel cells. Immelt explained, “In the late 1990s, we became business traders and not business growers. Today organic growth is absolutely the biggest task of every one of our companies... The crisis in [corporate America] today is a little bit about governance and a lot about a rampant lack of innovation.” To realize his vision, Immelt added 5,000 engineers in three years, including several to senior management. He built three more Global Research Centers—as the “House of Magic”: was'renamed—in Shanghai, Munich, and Bangalore. He reduced the acquisitions team, though GE still made'some large acquisitions, buying Vivendi Universal for $14 billion and $10 billion for medical imaging company Amersham. He appointed Beth Comstock as Chief Marketing Officer—a position that Welch had eliminated. In addition, Immelt appointed a marketing leader to each of GE’s major business lines to help develop new ideas and visions for each division. ANew Campaign Immelt, Comstock, and GE’s longtime agency BBDO Worldwide, believed that the best way to communicate this new vision and direction for the company was to create an innovative ‘marketing campaign. A source at GE explained, “Welch wanted advertising that was touchy- feely. Something you could put your arms around. [Immelt] doesn’t want to walk away from the [We Bring Good Things to Life] line, but he wants to come up with his own style of advertising. Something that would be an extension of himself. He wants advertising that’s more high-tech, more innovative and contemporary. Something that will make GE look more advanced, out in front.”"8 So, after 24 years and §1 billon of supporting “We Bring Seod Things to Life,” GE dropped its signature slogan for the new tagline “Imagination at fork.” The company did not launch “Imagination at Work” without engaging its employees first, Beth Comstock explained the initial internal branding strategy, “The Company talked to'employees around the globe to find out what they held as the core attributes of GE, what they held in high esteem, and what they valued about their company. Scanned with CamScanner — lidated the research we did. But we didn’t start off by saying we were po, pee Good Things to Life.’ She further explained that GE developed »°® internal campaign, which would ensure that employees understood the importance of a re, branding effort, felt part of the campaign’s creative process, and were supportive of the n, slogan. Once Comstock and her team felt good about the internal branding process and the support of GE’s employees, they launched “Imagination at Work” to the public. Imagination at Work : ‘ The initial “Imagination at Work” campaign began in January 2003 with a $100 million launch. The creative emphasized the company’s revived focus of innovation and targeted three distinct audiences. First, the campaign reinforced to GE employees that the company, ‘new primary focus would be innovation and technological advances. Immelt backed up ths promise by increasing the R&D budget to $2.7 billion in 2003. Second, the campaign communicated to analysts and investors on Wall Street that innovation would be central to GE's future growth and profitability. Finally, “Imagination at Work” communicated to consumers how GE products made their lives better. Comstock noted the importance of this corporate campaign encompassing the company's entire portfolio, “When you're a company like ours, with 11 different businesses, brand is really important in pulling the identity of the company together. Integration was important in communicating the brand actoss the organization and to all of our constituents.”2? The television ads highlighted three of GE’s divisions GE Transportation, GE Plastics and GE Medical Systems—because they told the best story of recent innovation, Judy Hu, general manager of advertising and brand, stated, “One of the reasons that we Picked these operating units is that we wanted to get the message out about the diversity of the units, the diversity of the products and services that we have at GE, We did a lot of consumer tesearch, and most people today - investors and customers—only think of GE in terms of lighting and appliances. It was really important to tell them this is a new GE." The television spots took on a humorous.tone and the first featured the Wright Brothers’ rickety Kitty Hawk plane from 1903: AGE aircraft engine strapped to the plane helped transform it into a jet The Kitty Hawk-tumed-jet soared high into the sky as Johnny Cash's ‘Well Visit the Man in the Moon”, played in the background. ‘The message to viewers was that GE’s products could take things to places people never imagined Another spot for GE Healthcare featured a brain surgeon and his team performing an operation: e The scene switched from an operating room to’an outer s i. pace sci-fi look and feel The sabeon and his crew members zapped troubled spots with aser guns - depicting how GE technology helped. difficult medical procedures with precision, The pony eos Perform operating room where another doctor said increduleuchy yee » ah Xo iano back to the shin. The sogpeon snapped ont of his see a GE voice explained, “GE Healthcare's medred imaging allows dostors 1g ‘navigate a patient’ brain in ways that seem like seices fiction 62 Scanned with CamScanner GE's black and white logo underwent a “facelift” for the first time ever. The logo, hich appeared at the end of the TV spots, changed to one that quickly flashed colorful bols of the company’s different products (for example, the NBC peacock, a jet engine, a ord mill, an x-r2y, a locomotive, and a leaf) before ending with its signature black and white Jogo. This fresh new logo not only communicated the diverse areas of GE but also symbolized a contemporary company, focused on innovation and technology. ‘The campaign also included print ads like one that featured GE’s founder, Thomas Edison, with his head opening up. Out of his head spilled visions of aircraft engines, high tech windmills, refrigerators, and other GE products. GE spent over $200 million on the campaign in print, TV, and online advertising during the first two years. Reaction to the Campaign The “Imagination at Work” tagline met with mixed reviews. Some criticized GE for abandoning decades of equity built up in the “Good Things to Life” slogan and of not being able to “breathe new life into the current theme.” Critics called the new slogan ‘unimaginative’ and pointed out that the “______at Work” theme had already been used. Black & Decker had used “Ideas at Work,” Ford, ABB, and Bank of America had all used “Ingenuity at Work,” and Sony had once used on “Innovation at Work.” In addition, many felt the $200 million campaign budget was wasted, especially since few of GE’s products advertised were sold to consumers. One research study conducted in 2004 found that 39 percent of consumers recognized ‘We Bring Good Things to Life,” whereas only 5 percent recognized “Imagination at Work.”24 On the other hand, GE executives and BBDO defended its campaign: Comstock stated, “We're a 120-year old company, and you don’t get to your third century without changing with the times. We certainly were not looking to change for change’s sake, but you also can’t stay still”5 Some marketing experts agreed with Comstock; noting that the campaign helped return GE to its roots as an innovative company, focused on shareholder value One brand strategist commented, “These ads have nothing to do with getting consumers to buy GE light bulbs—and everything to do with getting investors to buy GE stock. They realize the investor community will not regard them as highly for consumer goods that it is looking for innovation and new technology. These ads imply a product and innovation mindset at GE that will put them at the heart of the economy in the future.”27 Early surveys indicated that the campaign was resonating with consumers. USA Today's Ad Track, a weekly consumer survey, found that 19 percent of the consumers surveyed liked the new GE commercials “a lot”—just 2 percent shy of the weekly average of 21 percent In addition, only 1 percent of those surveyed “disliked” the ads—much less than the Ad Track average of 13 percent. The low percent of ‘disliked’ responses surprised ‘many critics because GE had dropped such a popular campaign, But, Hu responded, “We haven't seen a single negative response, given the changes we've made.” Other studies showed that the ads were changing consumer's attitudes toward GE. Perceptions of GE being seen as ‘innovative’ increased by 35 percent; offering high tech solutions increased by 40 percent; being dynamic increased by 50 percent.» In addition, there was a 14 percent increase in traffic on GE.com, and 1.7 million individuals received GE’s interactive ads virally, 63 Scanned with CamScanner GE Goes “Green” ' . Ge spent the 18 months after <<{magination at Work” was launched conducting extensg consumer research. Executives wanted t0 ‘understand the effectiveness of the new camps, ea quetomer’s major concems, and current global econom = trends. Several themes emerged from the research, including concerns about rising fuel costs, tighter global aera nental regulations, and increased expectations of the value of a company’s produg covvnenviees, One reporter summarized the times by saying, “Tn an 6° of corporate eutiiic

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