Thursday, June 10, 2010

Mercury Heads For The Sun


Let us all bow our heads and say a prayer for the dearly departed Mercury brand...

What? You didn't know Mercury was still around?

2009 wasn't a kind year to the automotive industry to put it in the nicest terms possible. Not only did sales plummet faster than Lindsay Lohans career, famed (and not so famed) brands Pontiac, Saturn, and Hummer saw their days come to and end. Even Saab almost succumbed to the axe. Let us not forget that the entire General Motors and Chrysler corporations as a whole almost went bankrupt. Now, Mercury is following in the footsteps of Pontiac, Saturn, and Hummer.

What Went Wrong?

This topic could go on for a while as to what was wrong, but Mercury is an easier puzzle to solve. While Pontiac and Saturn were relatively successful selling hundreds of thousands of vehicles each year, Mercury had seen its sales dwindle since 2000 to less than 25% of the 2000 total by 2009. Mercury had not had a dedicated, unique product since 2002. Remember the Mercury Cougar featuring the highly touted "New Edge" design? That was it. The Mercury Villager could fall into this catagory with the Cougar, but it was only a rebadged Nissan Quest until the Quest went futuristic in 2003. All Mercury products were slightly more upscale versions of their Ford counterparts featuring more chrome and a higher price tag...that was it.

Badge Engineering

Mercury fell into the pitfalls of badge engineering. Take a car, slap a different grill on it, tweak the tail-lights and head-lights, put a different badge and some more chrome on it and VIOLA'...you have a new car. This is what almost killed General Motors as a whole. Remeber the last generation Chevy TrailBlazer? You could get that same vehicle as an Oldsmobile Bravada, Buick Rainier, Isuzu Ascender, Saab 9-7, and GMC Envoy. Same SUV, different grill and badge. However, would you ever believe that Volkswagen uses this tactic as well? Did you know that the much loved Audi TT is simply a Volkswagen Golf? Volkswagen takes the time and effort to differentiate their platforms enough to make sure the consumer doesn't realize it's getting 31 flavors of the same vanilla.



What Ross Would Have Done

There is no doubt that Ford could have benefitted and made a profit from the Mercury brand given the right inputs. After the demise of the Pontiac and Saturn brands, there is a void for a sporty, affordable, American brand. Dodge may possibly be able to fill that niche', but in the Chrysler restructuring process Dodge may have to play the role of Ford and Chevy...the Toyota and Honda alternative. With some marketing changes focused on a younger audience, affordable, and sporty products (Mercury version of a the European Ford Focus hatchback, Ford Kuga, or Ford S-Max), Mercury could have been positioned to be a more grown-up version of a Scion-fighter. Mercury could have been the "conquest" brand getting younger Americans in American vehicles vs. Scions and Honda Civics. I think, considering most didn't know the brand even existed anymore, a face-lift and make-over would have been successful and relatively simple.

However, all of this fodder is in vein. I'm sure you are all going to run out and buy a Mercury Milan (what's that?) now while you can. I think my grandmother could get a great deal on a Grand Marquis...

Thursday, April 15, 2010

Ross for President!: Tea-Parties and Taxes

This is going to be the first installment of the Ross for President series. Enjoy!

I am tired of hearing about tea-parties. Tea-parties are something that little girls participate in with their stuffed animals and baby dolls. I appreciate the fact that people are exercising their freedom of speech, but I say do your talking at the polls...VOTE!

After recently stating my disdain with this tea-party mess, a friend from Mississippi (a very conservative friend) stated that I should support them because, "...you are going to be even more tired of paying taxes." That point is debatable. Nobody likes paying taxes, especially for things you don't agree with. Then, I had a brilliant thought. What if you could pick and choose how your tax money was spent? Would it make you feel better to know your taxes were spent on the things you felt were worthy? And if taxes were increased, would it bother you as much in this scenario?

What if you were provided with a gigantic list of all the agencies and agenda your tax money goes to, and you had the opportunity to CHOOSE which you supported? You fill out your form for your tax money: 8% goes to the Mississippi Department of Transportation, 10% to the Harris County School District, 5% to Save the Whales, 10% to Social Security, etc. Maybe you want your money going to The Navy, higher education, cancer research, and AMTRAK. Now, I know the budget would be thrown a major curve ball. I imagine we would end up with schools having more money than they knew what to do with, highways crumbling to pieces, and the war budget being...almost nothing. But, would this be so bad? The people would be spending the money where they felt the priorities lay. You want money for high-speed rail funding? Beg the people to allocate their dollars to you. Government employee pay raises? Convince me to take my money from the National Park Service. YOU pick where YOUR money is spent. Tired of the war? Stop giving them your tax money.

I'm no fool, and I know this would never happen. But, in the truest sense of the word, the PEOPLE would get to make the decisions...and isn't that what we like to think this country is all about?

ROSS FOR BOSS! :)

Thursday, April 1, 2010

Culture of Communism vs. Culture of Materialism

Growing up, what is one of the main things we are taught in America to hate? What is something that is "against" everything America stands for? Communism. From Cold-War USSR to today's China, we are taught that Communism is everything that is anti-American.

Growing up, what are we always told? Go to school, do well, get an education, graduate college. Then, you get a good job, get married (if you legally can), and...you can buy stuff. That Lamborghini can be yours. The new Gucci purse can be your next new accessory. Two-story house? Make that three-stories. You can have all of it in our economic system...that's how it "works" and how it thrives.

What prompted this?
Last night I sat down with a friend of mine that is from Volgograd, Russia. He has lived in the US for 10 years and is 32 years old. I've always been fascinated by other cultures and how America differs from them. The more people I talk to, the more I realize just how different we are.

Communist Culture
As I asked questions, one thing I was interested in learning more about was life under communism in general. As previously stated, we're taught that communism is a 100% bad thing. So, how was it to live life under communist rule. Americans, it seems, like to paint a picture of starving peasants longing to overthrow government oppression in a Marie Antoinette style drama. But, the picture was painted much differently by my friend.

Imagine you're guaranteed a job and a wage. All of your basic needs are met. You have food on the table, clothes on your back, and a roof over your head. Your neighbors, and everyone else for that matter, are basically on the same level economically. You're no better or worse than anyone else. My friend was quick to point out that in Soviet Russia, the longing or "need" to have the nice new car, Prada pumps...nice new stuff...wasn't present because those items weren't present. Basically, you don't know what your missing if it's not there. Fair enough, I say. People were content knowing they were alive, their basic needs were met, they had a job, and they had enough money. My only question is...where is the motivation?

In the US we are motivated by the need to have stuff and have nicer stuff than we already have. Think about it. Why do we have to have leather seats in our cars? Or, why do we need a sunroof in it too? Isn't the point to get us to point A and point B? Why do we need a 6 bedroom house when there's only 3 people living there? Does that Prada watch tell any better time than a cheap watch? Furthermore, why do we even care?

I find the paradox between the idea of, "You don't miss something or long for it if it's not there" vs. "You're constantly aware of what you don't have and are always striving to get it" very interesting. It makes it all seem very pointless. What it does is make the sense of entitlement different. In the US we feel as though we are entitled to have the opportunity to have whatever we want if we "work" for it. But, in this example of communism, you're only entitled to what everyone else has...so there is no sense of entitlement. Basically, it's all in your head. It's a cultural thing.

Point is?...
I say all that to say this. It proves it's not about whether communism is bad or good, or a free market, democratic society is better or worse, it just proves that it's all cultural and how you view things. Do you like knowing you have the opportunity to have that Lamborghini and three-story house, or would you trade that in for the guarantee of a job, wage, home, food, and clothing for the rest of your days?

Tuesday, March 30, 2010

The Start of Something Big

They all say you have to start somewhere, right? Maybe this shall be the beginning of the next big thing...ME.

Here's the low-down.
Imagine you've spent your life reading about baseball, playing baseball, striving to be #1 at baseball, having others recognize your talent at baseball. You know you could make Babe Ruth look like a 5 year-old T-Ball player. However, right as it came time for you step onto that baseball diamond and prove your greatness...baseball collapses and you get an offer to play hockey...and you hate hockey. Welcome to my world.

I'm sure there are thousands of people out there that feel the same way. I can't be alone in this, but it is just as frustrating nevertheless. Or, maybe it's just my ambition that has me down, like a car stuck in the mud with a big V-8 engine revving trying to get somewhere but just gets bogged down further the harder it tries. Graduating in the middle of a recession was the worst of bad luck, for sure, but I'm determind to make big things happen for myself.

So what's this blog about?
Since my job is about as mentally stimulating as listening to the guy from the Visine commercials (...dry eyes? Try Clear Eyes...) - and I'm a nice pair of Gucci square-tipped dress-shoes operating in an environment of scuffed-up Red Wing boots - this is going to be my place to express my ideas, talk about business happenings, business as it relates to politics (I know, touchy subject), pop culture and what business can learn from it (Britney Spears anyone?)...anything that is an exercise to my mind. Think of it as the aforementioned baseball-turned-hockey players baseball blog. You may see anything from an ideas stemming from an inspirational Paula Abdul tweet (you can follow her at @paulaabdul on Twitter), to rants about American business after a ride in a Chevy Cobalt rental car (feel the love for old GM already?). I may also include special blogs entitled - If Ross Were Boss - on what I would do if I were president. It could be a bumpy ride, so fasten your safety belts.

What can you do?
Read? Yep, that's it. You can also follow me @rossbynum on Twitter, e-mail me at the link below, or add me on Linked-In. Oh, and if you happen to like all this, you can always check out my resume'. But hey, if all else fails I'll just be on The Apprentice next season. No joke, I had a phone interview last week. Long-shot but stranger things have happened.

ross_bynum@yahoo.com