Brands The reputation of many US brands has not been this bad for a long time. For decades, American brands stood for all the hopes and dreams with which the country itself likes to advertise itself: America, the promise goes, stands for freedom, unlimited possibilities and the chance to achieve happiness and prosperity. The endless freedoms of the Marlboro Man and the privileges promised by an American Express card have been engraved in the global memory for many years. However, the untouched top position that many US companies and their brands have long held in global competition, and with it the positive image of their products, has come under threat. It is no longer just a question of whether McDonald's is to blame for the increasing obesity of the Western population. According to some new studies, the controversial foreign policy of the Bush administration is also playing an increasing role. "A whole range of brands are affected by this, even if many companies don't want to see this as the reason," says Allyson Stewart-Allen, marketing consultant and author of the book "Working with Americans".
Decline in image and salesIn fact, two new studies clearly show that American products have bigger image problems than before. A survey by the New York market research company NOP World of around 30,000 people in 30 countries on all continents revealed that trust in companies such as Microsoft, Coca-Cola, McDonald's and Nike fell by three percent each between 2003 and 2004, whereas the figures had remained stable in previous years. "The drop in numbers is significant," says Cary Silvers, Vice President of NOP World. "We know from experience that a change in attitude usually precedes a change in behavior."
Another survey, this time by GMI World Poll with 8,000 respondents from the G7 countries, shows that many consumers now avoid buying American products. A fifth of all Europeans surveyed expressed this opinion, pointing in particular to brands such as Marlboro, AOL and American Airlines. 35 percent stated that their image of America is currently influenced primarily by US foreign policy.
The negative trend is also partly reflected in the sales figures. According to GMI, General Motors, for example, recorded a loss of 236 million dollars with its car brands on the European market in the third quarter of last year.
In Germany and France in particular, there were significant declines compared to the previous year. In the same quarter, Coca-Cola Germany sold 16% less than in the previous year, the clothing retailer Gap withdrew completely from Germany, and Wal-Mart also suffered heavy losses. McDonald's, Barbie manufacturer Matell and Altria (formerly Philip Morris) also recorded declines in sales. However, while the companies themselves generally point to high unemployment, tax burdens and difficult market conditions, skeptics believe that it cannot be the economy alone.
Corporations should use their influenceKeith Reinhard is certain that he saw the situation months ago: "We believe that the US Congress urgently needs to overhaul its diplomatic efforts," said the Chairman of the agency DDB Worldwide before the US Congressional Committee on Security and International Relations. Reinhard went further: "We also believe that American corporations, especially when they operate globally, have a responsibility to use their enormous influence to improve our country's image."
To achieve this ambitious goal, Reinhard founded the "Business for Diplomatic Action" project, which calls on advertising companies to use their contacts in the industry and approach the problem from a marketing perspective. One of the initiative's products is the World Citizens Guide, which familiarizes US students studying overseas with the sensitivities of their host countries. In April, a partnership was also announced with the National Business Travel Association (NBTA) to teach NBTA members how businesses can conduct public diplomacy for America in their own way.
Some companies are already taking advantage of their global position and are increasingly trying to give their products a regional flavor without denying their American background. Nike ewa sponsors local sports teams in the Netherlands and is thus trying "to make itself a mixture of a regional and an American brand", says Simon Anholt, marketing consultant and author of the book "Brand America". Other companies are buying up regional companies without making it public. For example, Coca-Cola owns products such as Almdudler in Austria or Malvern in England, which is named after a region, without the consumer getting the idea that these are products from a US company. Even McDonald's has recognized the signs of the times and has adapted its menus to regional tastes and added products such as salads, curry or lamb.
According to the Reputation Institute in New York, another reason why the dominance of American brands is declining is that there are now competing products to the US offerings in many nations. "In many European countries, those companies have a high visibility that can be assigned to the respective country in terms of origin," says Klaus-Peter Wiedmann, marketing professor at the University of Hanover and Germany Director of the Reputation Institute. For example, brands such as Porsche, Aldi and BMW are at the top in Germany, while only two US companies, Microsoft and McDonald's, made it into the top 10.
In order to restore the good reputation of US companies in Germany, Wiedmann suggests cooperation between German and US companies as a gesture of reconciliation: "The population would like that." US marketers, with all due understanding, consider this to be illusory. "It would mean that the business community would apologize for the actions of our government," says Allyson Stewart-Allen, and Cary Silvers agrees: "Brand companies have never been able to make up for the mistakes of public policy."
Confidence in many US companies has fallen significantly in recent times.
Gerti Schön