BLOG February 2025 - Products and branding challenges facing motor industry

In this BLOG we look at two very different BRAND CHALLENGES facing globally recognised automotive brands of JAGUAR and TESLA.

Review the undermentioned and join the discussion

JAGUAR

One current brand study looks at the CONUNDRUM facing prestige UK car maker, JaGUar, their controversial rebranding and future E-MODELS ONLY line-up.

The huge challenge is managing that emotionally linked customer legacy, a significant part of current and future buyers’ decisions. 

Here’s an extract from the CASE STUDY which looks at those culture, tradition and emotional ties behind the brand with questions to test your business judgement.

“Has JaGUar pulled off a PRODUCTION AND MARKETING MASTERSTROKE or is it a MOVE TOO FAR, with disastrous consequences for its fan base, current and past model buyers?

JaGUar’s new DEDICATED E-MODEL LINE UP took many brand enthusiasts by surprise. The switch from INTERNAL COMBUSTION ENGINE (ICE) solely to E–CARS may result in a swathe of JaGUar owners cancelling orders and putting their BELOVED LEAPING CATS on the market!

In December 2024 JaGUar stopped building the XE, XF, F-Type,I-Pace and E-Pace. It’s the new logo and model directions, considered a betrayal that caused the most angst. Does this herald the end of the old-school JAG brand and all its historical connotations? Like a soothsayer, is the EPITAPH on the horizon? The ICONIC British performance car brand is as much part of English middle class life as patum peperium served on toast with Sunday afternoon tea.

One JAG family from England’s West Country commented -JAG products were woven into our family life.The Mark IX, chauffeured Mark X (3.8 & 4.2)and even a chauffered E-Type, appearing at TWICKENHAM RUGBY TESTS and ROLLING STONES rock concerts, and posh NATIONAL HUNT BALLS and more……. - the culture that JAGS represent.

Just like in the movies, many socialite sports women excitingly driving the E-TYPE no doubt felt like ISADORA DUNCAN, flowing locks in the wind, as the car sped around the hairpin bends of COTE-D’AZURE or high hedged WEST COUNTRY LANES – luckily, scarves kept short!

WEEPING AMONGST JaGUar PURISTS - So, what has all this to do with the JaGUar rebrand and going all-out electric? Many a tear will be shed by keen JaGUar enthusiasts. The grunt, sexy good looks of the E, gleeming XK engine block, SILVERSTONE handling may be hard to replicate in the new E-PINK plus fleet lineup.

CANNOT HALT PROGRESS - One cannot be a LUDDITE and shun progress, but with this huge marketing and brand transformation, one cannot but wonder if such a leap will result in a DEMISE OF THE MUCH LOVED BRAND, swallowed up and/or watered down under the TATA JAGUAR LAND ROVER label. JAG enthusiasts hope to be proved wrong, preferring the LEAPING CAT – the late MIKE HAWTHORN, JAGUAR’S LE MANS driver would, no doubt, have agreed!”

JOIN THE JAGUAR CONVERSATION

1. Will JAGUAR’s total production pause of all models, move to dedicated e-market and revised branding, devastate their market?

2. Is this a MARKETING MASTERSTROKE in the light of falling sales or a PR EXISTENTIAL DISASTER?

3. As JaGUar CEO will this be your legacy or your WATERLOO? If then latter what of the JAG OLD SCHOOL should be kept?

TESLA

BRAND DAMAGE being done by ELON MUSK’S GOVERNMENT INVOLVEMENT as TESLA faces global protests and car vandalism. As sales plummet and owners become increasingly concerned over resale value, that all important RESIDUAL VALUE if you have a car leasing plan. One protester’s sign reads - STOP MUSK’S COUP, another DON’T BUY SWASTICARS along with a TESLA LOGO.

This is a classic example when the leading figure in an organisation takes on a campaign which severely damages brand, sales and second hand values. Can a TESLA be on-sold? Is there a market for used TESLAs? A study from ELECTRIFYING.COM confirms that nearly two-thirds of UK buyers now actively avoid TESLA due to MUSK’S growing political entanglements.

JOIN THE TESLA CONVERSATION

1. Has the brand been permanently damaged by MUSK’S political activities?

2. How would go about resolving the issue and rebuild customer brand confidence?

Continuing development programmes

How good are your CONTINUING DEVELOPMENT PROGRAMMES? May be good technically, but poor in learning experience and screen aesthetics. Looking good, attractive and structured in an easily absorbable fashion increases market appeal of the CPD course and likely achievement of outcomes.

With the wisdom of ATHENA, over the years, the financial services TRAINING AND CONTINUING PROFESSONAL DEVELOPMENT industry have produced their fair share of good, bad and very bad CPD.

Sometimes the CPD created by firms for financial institutions is little more than a regurgitation of bank’s OPERATIONS MANUAL or CUT AND PASTE from the regulator’s playbook. Both content creation methods put people off.

Line managers empowered to ensure all their staff are up to date on risk and operations management question why their cost centre is charged so much for e-learning developed by their colleagues sitting on the other side of the partition without any additional features to their team’s learning experience – the quality of in-house support in content creation tailed-off as initial enthusiasm waned to one of CAN’T BE BOTHERED – TOO BUSY.

Contracting out CPD to third party agents can be more cost effective than having a bank’s own team design, research, populate and monitor performance. However, any third party CPD agent must know the subject matter really well, be able to keep datasets up to date, respond quickly to sudden market pronouncements likely to impact the performance of their client risk management practices.

In a recent diversification into the film industry, especially screenplay development, some of the skills in preparing content are portable to TRAINING AND CONTINUING PROFESSIONAL DEVELOPMENT on-line courses.

At DYNAMIQUE, we use a number of these SCREENPLAY features which has resulted in more compelling, engaging and creatively enlightening content catching the eye of partners and companies keen to take on our CREATIVE INTELLIGENCE PORTFOLIO.

Some enterprises and learning bodies take the view that CPD must be dull to be effective in its purpose, to upskill the recipient. Academic institutions, and compliance training houses develop factually correct content which is presented in a dreadfully dull manner.

Furthermore, content is often long-winded and written by people who obviously have not done the work – being little more than JOURNO CONTENT WRITERS. It’s the nuances and industry subtleties that define good from bad content and determine relevance.

Over the years a number of TECH firms entered the industry offering all types of sophisticated learning WHIZZ-DINGS. However, in practice, these WHIZZ-DINGS became a nightmare where datasets, other rules and guidance needed to be updated frequently, reflecting the fast moving dynamics of the industry.

There are many firms offering CPD templates, and recommending the SIX and SEVEN best practice points to provide good CPD. Many come with product bias i.e. they want to shift product rather than benefits. Standardised templates are half-of the problem when creating compelling content and a great learning experience.

CPD must provide students with that KNOWLEDGE THAT THEY DON’T KNOW OR WERE EVEN AWARE, but which can help deliver better outcomes for their enterprise and clients. The latter group being hugely important to Financial Advisory(retail) and Institutional Asset Managers (wholesale) as that is where the value in a financial services business lies -  the quality of the client folio.

The rise of AI, or as it should be called SMART TECHNOLOGY is an opportunity not a threat to the industry. AI has to be TRAINED ON LOTS OF DATA otherwise it will just churn out garbage. The skill will be what to put in the AI’s LEARNING LIBRARY, whether it makes sense to CPD objectives. Human judgement and scepticism so crucial to good learning experiences will always be in demand.

So, what to the future – CPD will always be required by leading firms who VALUE THEIR CLIENTS and WORKFORCE. Learning is a lifelong experience. It isn’t until people are well into their dotage that they HANG UP THEIR SKILL BUILDING BOOTS.   

Finally, to end on a market experience note. I don’t believe that regulation and compliance has led to better outcomes for many of the world’s capital markets’ clients. Regulators BEAT THE DRUM as to how their regulatory and enforcement actions have prevented and deterred malfeasance by industry practitioners. Before regulation came into being the market knew who the BAD APPLES were and who to avoid. That, in itself was a better deterrent – torpedoing their HOLY GRAIL  - that much coveted MARKET REPUTATION.

Furthermore, has regulation been a success or failure? Whilst creating a whole new industry and professional class of compliance specialists and enriching lawyers, thus providing good employment, the outcome for clients has been HARD TO DETERMINE in terms of costs and expenses which come out of overall returns.

Unintended consequences of regulation have resulted in ultra conservative investment and risk management  policies, potentially denying investors of better risk return opportunities as the product sponsors are terrified of REGULATORY CENSURE.

What of current level of qualifications? Level 5 (very basic entry level stuff) and CFA qualifications’ slightly higher up the scale, give clients no more comfort that the individual knows what they are doing or have the client’s best interest at heart, TREATING THEM FAIRLY.

If financial professionals MORAL COMPASSES ARE ALL AT SEA, they are a risk to themselves and to others. As one UK market regulator said of the actions of many financial professionals who should have known better contributing by their actions to the GLOBAL FINANCIAL CRISIS “if you guys had behaved properly there would be no need for regulation” (paraphrased).

Today’s SCREEN BASED ADVISOR may be lot worse than their bowler hatted predecessors who GOT OUT AND ABOUT A LOT MORE and REALLY KNEW THEIR CLIENTS, in business and social terms and how the capital markets really operated. That is why PUBLIC TRUST in financial services industry has declined to such a low ebb. Don’t lose heart, it can be turned around but needs a huge sea change in advisor and financial product providers’ attitudes, being less focused on profit imperative and more so on THEIR CLIENTS’ OUTCOMES.

Have a successful quarter – next blog Dec 2024.

Foreign exchange courses

The mighty US dollar, greenback–supported by the Federal Reserve’s signal that US borrowing costs are likely to remain higher for longer–is cold comfort for many countries that trade with the US. Understanding how foreign exchange market’s function, the tools and strategies adopted and impacts on foreign exchange rates are crucial skill sets for all importers, exporters, banks, FX platforms, share brokers, hedge funds and many more sectors trading cross-border. There is much in the global web universe on foreign exchange. Much of it is high-dispersed, hard to find and questionable in its clarity, robustness and applicability.

DYNAMIQUE is proud to present a trilogy of unique foreign exchange courses from basic 101 to more advanced institutional trading level 301 all wrapped up in one package. Delivered through the exceptionally intuitive DACREED LMS with full student/learner experience management tools, this programme will help people better manage risk, hedge, and actively manage their fast-moving trading exposures.

DYNAMIQUE has been researching, designing and presenting professional development courses for over 24 years. With a background in capital markets, financial consulting and workshop training, working with many prestigious financial institutions in London and New Zealand, our courses reflect what actually happens in markets today.

DYNAMIQUE’S foreign exchange partner TE MATA  is a leading NZ owned developer of EASY-TO-USE FOREIGN EXCHANGE TECHNICAL ANALYSIS systems to fully understand and better manage CURRENCY HEDGING and RISK. 

Full details of what you will learn, objectives and outcomes can be found on DACREED LMS.

Dynamique nuntium

Charlie Munger’s death at age of 99 caught everyone’s attention. Warren Buffett’s business partner and key driver of Berkshire Hathaway was known for his incisive views, acerbic wit and ability to spot a damp squid. As mentioned in many obituaries examples of wise counsel include such comments as:

“I think the best road to human happiness is to expect less. I think it’s going to get tougher”

“What you have to learn is to fold early when the odds are against you, or if you have a big edge, back it heavily because you don’t get a big edge often. Opportunity comes, but it doesn’t come often, so seize it when it does come”.

In New Zealand much chatter has focused on review of NZQA Level 5 for financial advisers and whether it should stay the same or be updated. No doubt any changes will be at the margins. The key question is “Will it result in better outcomes for clients?” For many financial advisers these are tough times. They need to be better and winning the hearts and minds of their clients throughout the complete product, service and advice cycle.

The Official Cash Rate remains at 5.5% as from 29th November 2023. Next RBNZ update 28th February 2024 - will the Governor be a dove or a hawk at the next setting date?

Other areas catching investors attention related to sustainable investing disclosures, move away from traditional asset classes to include private equity, credit and selective hedge fund strategies. Are investors paying too much for foreign exchange transactions and do investment managers know the true cost of running a fund and the lost opportunity in terms of returns this costs their clients? Product disclosure should provide detailed breakdowns of foreign exchange implicit costs, best execution analysis across all asset classes.

Finally, one cannot ignore a change of NZ government, the cost of unravelling policies and implementing new ones. Whilst remaining apolitical the swing from left to right, increasing budget deficits, weakening current account and international perception of the latest NZ MMP troika experiment will be observed with interest.