New strategy in the driving seat at Aston Martin
As human beings, many of us are driven by emotion. How we feel about things can influence whether we buy into them. Millions of pounds are spent each year by marketing scientists aimed at steering us and our emotions into brands and products. From make-up to clothing to computers to financial products. But there is one product category that stirs emotions for men, I would argue, more than anything else. Yes, cars mean so much to so many that signing a big fat, chunky finance agreement for five years of massive monthly payments means nothing so long as they can drive out of the dealership in that gorgeous piece of sophisticated tech on wheels.
I have suffered from this emotional attachment to certain brands. I did once upon a time love Jaguar. There was something refined and truly powerful in the brand that compelled me to spend a disproportionate amount of monthly finance on a shiny Jag that turned heads and cost a bomb to insure. Alas, those halcyon days are gone as speed scares me now and so do personal contract purpose agreements where I rent expensive wheels for a few years then give it back – essentially owning nothing.
That said, if I had the capital I think I could be tempted for one last hurrah. But this time, with a lottery win, it would be an Aston Martin. And I’m not the only one mesmerised by this brand. The emotion that Aston Martin stirs in car enthusiasts is stochastic, passionate and foolhardy all at the same time. James Bond drives one. Well, drives in the movies sense of the word. Lately in the 007 films the Aston Martins have looked just awesome. Add to this that Prince Charles is partial to an Aston Martin and the whole emotion of the brand gets bigger and fuller. But there is a problem. The C-suite at Aston Martin is undergoing big change. Both the chair and CEO are on their way out after what can only be described as an awful two years. Andy Palmer, who has been CEO since 2014, is being shown the door. And no wontion der, many suggest, after a 98 per cent tank in the share price since its float on the London Stock Exchange. Shares traded at £19 when the company went public in October 2018. Only last week they hit 35p. The company that was valued at £4 billion is now worth a mere £562 million. And many initial shareholders who loved the brand have lost a shedload of cash.
But, all is not lost. Brands like Aston Martin that imbue so much passion and emoin their customers need more than just a swanky showroom experience these days. We live in a global financial world where niche brands have to do more to compete. Enter Lawrence Stroll.
A man with bags of cash and ideas, rich and powerful friends, and a Formula 1 team in his back pocket. Now we may see some rocket fuel in the tanks of Aston Martin. Not to mention some great electric or hydrogen cars also. Stroll appears to have big plans for the brand. From 2021, Aston Martin will enter Formula 1 as Stroll’s current set-up is renamed Aston Martin Works. How exciting this will be for Aston Martin enthusiasts. Not only does James Bond drive one, but a “top named” F1 driver will also be in the pilot seat. I can already see the value of Aston Martin rising. But it will take more than money. And here is where Stroll is bringing in a top performer to pull together his big bet. Tobias Moers, the Mercedes Benz AMG division boss, is coming to Aston Martin, which already uses AMG technology in its cars. This looks like a clever chess move as Stroll seeks to shape up the new Aston Martin of the 21st Century. In terms of a pit lane strategy, the telemetry is gearing up nicely. New owner, new CEO, new finance, new strategic partnerships and a race for pole position. If Stroll pulls it off, then Aston Martin and its brand can not just create emotion for enthusiasts, car-owners and shareholders. It can create value and perhaps alleviate some of the pain being experienced by those who pumped money into the stock market flotation.
Jim Duffy MBE, Create Special
We live in a global financial world
where niche brands have to do more to compete