There’s no doubt that Taylor Swift’s and her team’s marketing is genius. Experts expect Swift’s upcoming cinema debut to be a massive moneymaker. At the same time, her charisma and presence alone sparked renewed interest in the NFL among the Swifty set, while the movie venture is reinvigorating AMC (NYSE:AMC) when the company needs all the help it can get.
While the tactical mechanics of Taylor Swift’s marketing are interesting, the fundamental strategy driving her moves is more applicable to leveraging the same tools. Per Forbes, Taylor Swift’s marketing acumen hinges on three key tenets. First, her authentic storytelling creates a narrative that compels fans to invest themselves in her life. Next, Swift leverages social media platforms masterfully. Finally, Taylor Swift’s marketing machine is adept at changing as Taylor herself changes: her evolution “[allows] her to reach a wider audience and [demonstrates] an ability to adapt to changing trends.”
These three companies could take a note from Ms. Swift and follow suit – their future may depend on it.
General Motors (GM)
General Motors (NYSE:GM) is in a unique position that could end disastrously. At the same time, they’re positioned to generate and leverage a ton of goodwill and positive sentiment – if they follow Taylor Swift’s lead.
We’re all familiar, by this point, with GM’s ongoing struggle with organized labor. Generally, GM management refuses the bulk of labor organizers’ concerns while blaming union membership. In a recent interview, CEO Mary Barra told reporters, “I think the UAW leadership needs to get to the table because we need to get this resolved.”
Blaming the union is the wrong tactic in this situation. Nearly 70% of Americans approve of organized labor efforts, so pitting yourself against a popular movement won’t help sell cars. Instead, GM and its management have an opportunity to leverage the story and supplant their number one electric car competitor, Tesla (NASDAQ:TSLA).
GM is the second-largest electric vehicle manufacturer in the United States, behind Musk’s Tesla. Tesla is also the only major U.S. vehicle manufacturer not represented by a union. In many cases, the company’s moves and policies are explicitly anti-union. If GM pulls a Taylor Swift, they can turn this into the story of the century: Musk is already widely maligned in the media, for better or worse. I can state fairly certainly that there’s quite a bit of overlap between pro-union Americans and those interested in sustainability. If GM can turn the ongoing labor strike into a well-negotiated, fair agreement, management can make themselves the story’s hero. If not, they risk losing more than market share – they could lose their workforce.
Palantir Technologies (PLTR)
Palantir Technologies (NYSE:PLTR) is another company that could leverage storytelling better, à la Taylor Swift, alongside a friendlier social media presence. Though well-loved by government officials and investors alike, the company has a substantial PR problem. Without looking into the specifics of its image problem, the thrust of the matter is that average consumers are (rightfully) concerned with Palantir’s wide-ranging approach to data collection and questionable application in the hands of some government agencies.
However, Palantir transcends that, although its jargon-heavy X feed doesn’t tell the story well. Instead, Palantir should emphasize areas in which it’s doing the most good, including its ongoing efforts in enabling Ukrainian resistance in the face of Russian invasion. Likewise, the company’s efforts in reducing food scarcity is a story that goes largely untold. Beyond just government contracts, Palantir’s corporate offerings prove it’s more than just another part of the military-industrial complex. However, average Americans don’t see the full scope of the story. Palantir would do well to leverage its breadth of applicability to telling that story. Social media is the perfect starting point.
Airbnb (ABNB)
Finally, Airbnb (NASDAQ:ABNB) would do well to model their operational adaptability along Taylor Swift’s marketing strategy lines. States like New York are banning short-term rentals that makeup Airbnb’s bread and butter. At the same time, other sovereign nations globally are restricting or limiting Airbnb’s operational capacity in their home country.
Much of the backlash against Airbnb comes from concern that short-term rental owners are edging out families from the housing market. The claim states that Airbnb artificially drives up prices and makes a dream of generational wealth impossible. Honestly, that’s true in many markets. To adapt to this new era of greater regulatory demand, Airbnb must adapt to changing times.
While I don’t know the answer to Airbnb’s problem, the possibilities are endless. The company could further leverage existing hotels to drive customers to empty rooms through strategic partnerships or subsidize empty properties during down periods to ease the refugee burden in areas like New York by working with the same officials banning their holdings. In any case, the winds are shifting against Airbnb. If they don’t take a page from the Taylor Swift playbook, the company could face substantial trouble in key markets.
On the date of publication, Jeremy Flint held no positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
