GE’s new image ads bring identity to life
26 February 2002
The Star -Ledger, Reuters
By F. Brinley Bruton

GE brings good things to life, according to a classic ad slogan that made the world's biggest company a household name.

Now General Electric is going for a fresh image as it adjusts to life without legendary boss Jack Welch and negotiates a wave of criticism about its complex finances.

The conglomerate used the Winter Olympics - televised by its NBC unit - as a showcase for a new corporate image campaign that positions GE as "a company of ideas" - a company that does a lot more than make light bulbs and washing machines.

Big industry is back, but this time in a sleek, modern and multicultural form. The commercials sport snappy images of X-ray machines, jet engines and satisfied customers and workers from around the world.

GE is touting its industrial and technological might, something that was considered passe by many during the go-go 1990s, says Jack Trout, a marketing strategist at the helm of Trout & Partners Ltd.

"This is the return of the big-time industrialist making stuff, selling stuff - real stuff," he said.
Largely absent from the new ads are references to the company's financial services arm, GE Capital, which contributed a whopping 40 percent of GE's $13.7 billion in earnings last year.

"People understand microwave ovens and sonograms as somehow being useful. (Lending) is not typically the type of thing you associate with corporate munificence," said Bob Garfield, television commercial critic for Advertising Age magazine, and co-host of National Public Radio's 'On the Media.' "Jesus didn't clear the temple of the toaster users, he cleared it of the money lenders."

In one of the spots, black-and-white images of GE founder Thomas Edison are interspersed with images of jet engines and trains - all set to the thumping beat of 'Around The World' by German pop music group ATC.

REAL STUFF

Most advertising and marketing executives interviewed gave the GE corporate ads and its main agency BBDO, glowing reviews, using words like "brilliant," "smart" and "on the money."

By burnishing its public image and steering away from complicated financial dealings, GE is reassuring investors and consumers that it won't spring on them the type of accounting tricks that brought down energy trader Enron Corp. , they said.

"Enron has had so many repercussions ... Anything that smacks of phony money, smacks of financial manipulation is going to be suspect," Trout said.

GE recently said it would shed more light on the inner financial workings of GE Capital, which has businesses ranging from Thai auto leasing to credit card operations. The company took the measure amid general investor fears that Corporate America has overstated profits through bookkeeping finesse.

AS AMERICAN AS GE

Advertising and marketing industry insiders see the slick new ads as a departure from what some call feel-good images the company has peddled in recent history.

The ads are also a chance for the company's new chief executive, Jeff Immelt, to infuse the public's perception of GE with his own distinctive flavor, Alan Siegel, founder of brand and marketing consultancy Siegelgale said.

"I see it more as (Immelt's) long-term program to build a brand," he said.

Immelt in September took over from Welch, who earned a sort of corporate demigod status during his tenure at GE.

GE also pounced on the perfect venue to start polishing its corporate image, advertising experts said.

The Olympics spots are a marked departure from the company's accustomed advertising venue of Sunday morning talk shows aimed at so-called "thought leaders" or the "power crowd," observers said. Studies show viewers react more favorably toward companies that advertise during the international games, said Andy Donchin, director of national broadcasting at media agency Carat.

"With the mood of the country, the heightened patriotism, corporate image is very important," Donchin said.