Brand Management in Automobile Industry
Literature Review
Mr. Bentley? He builds fast trucks.
Ettore Bugatti[1]
Peter Drucker, who is claimed to be “the greatest management thinker of the last century”[2], once declared: “The automotive industry is an industry of industries”[3]. The automobile industry exists for more than a century and tracing the changes and development that took place there could tell volumes about the human history. In some way automotive industry reflects it, but if one looks deeper into it one could notice that in some way the industry itself formed the history of the 20th century. Though the industry is market driven now, it was not always like that. The example of Henry Ford producing just one car model with
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In her interview she states that nowadays companies consider the vehicle design to be the essence of the brand’s personality and stress their attention on it. Top Management of Automotive Companies understand that the design has a great influence on the perceived quality of the product, i.e. whether the customer will or will not love the car at a first glance. Anne, as all other authors, states that brand management should not be narrowed into a certain department and that every department of a company makes its own contribution to the development of the brand, starting from marketing and finishing with the delivery service. Her opinion is absolutely the same with the opinion of Philip Kotler in his book “Marketing Insights”. Besides that, similarly to Ms. Asensio he considers that: “great brands present emotional benefits, not just rational benefits”[7]. Deiter Becker in his presentation “Trends and Challenges in Automotive Industry”[8] touches upon the brand management only indirectly. Nevertheless, his presentation in some way unites the point of views of the previous articles, since he mentioned the importance of brand specific customer service and the design. The last article – “Building Brand Loyalty by Improving Customer Experience” written by Clive Meakins and Sijith Abraham[9] is focusing on the importance of CRM in brand management. They base
The branded product at the heart of the SLP is the Ford Mustang. The Mustang was first introduced in 1964 and has become one of Ford's most iconic brands (Damian, 2006). Automobiles in general are a good subject for the study of branding because the car itself changes every year, but the brand does not. Over time, specific brands become associated with particular attributes, in terms of product category, positioning, price, and in the case of cars their styling, design and the lifestyle attributes that are associated with that vehicle. The Mustang has gone through roughly five iterations, and is currently in its fifth generation (Markus, 2010).
In fact, the brand name was even vital than the marketing itself. At this level in the UK market, Audi was prescient. They produced vehicles of high quality and were consistent and continuous. Brand building and brand marketing forms an integration of the continuity improvement mainly displayed in the UK markets and improved levels of services. Success of marketing band had a direct impact on the creation of awareness of luxurious brand and loyalty of consumers, and none of the luxury car firms could be overlooked. As the loyalty of the brand is majorly because of the domestic customers, improvement of quality services and establishment of a good name is of great
They have brands and models of cars to appeal to every kind of demographic group, and simply cater for the needs and wants of consumers. • Ford is particularly successful in their sponsorships, advertising and other forms of marketing. Ford is currently sponsoring the football Champions League, with “Destination Football” slogan (Bloomberg, 2005). • The current research and development activities of Ford allow them to be pioneers in certain production technologies (Kochan, 2001). Weaknesses • In an attempt to attract younger generations to purchase Jaguar cars, Ford introduced “baby Jag”. The effects of such an action proved to be negative in damaging Jaguar’s reputation, and is a weakness for Ford (Kerwin, 2002) • Quality assurance needs to be more of a focal point for Ford to avoid recalling cars and expensive repair operations. (Kochan, 2001) • In 2002, Ford and Bridgestone experienced a faulty tyre scandal which caused a two billion dollar loss (BBC, January 2002). Opportunities • To develop vehicles that uses other forms of energy than petrol and diesel and to become pioneers in this area. • The numbers of car owners who replace their old models with new ones are on the increase (Mintel, 2004). • Demand for cars by women drivers is on the increase and so is the overall demand for cars (Key Note, 2005). Threats • Further increases in gasoline prices, and eventually the world supply of gasoline finishing. • To become
Innovation and quality was accentuated over the concept of mass production of cars. New methods of production were developed in order to facilitate automotive designs and innovation. In order to meet the demands of different the market segments, Ford Motors Company followed a brilliant business strategy by marketing its vehicles under three distinct brands: Ford, Lincoln and Motorcraft. It is a relevant example of an economy of scale as well as economy of scope. It became a leading manufacturer, producing automobiles of all genre: commercial vehicles, luxury cars and miscellaneous automotive parts. The affordable family cars are sold under the ‘Ford’ brand, while the luxury cars and limousines are manufactured and sold under the ‘Lincoln’ brand. The firm is divided into two departments: automotive and financial services. A range of services is provided by the company, which includes automotive finance, vehicle leasing and post-sale
The American automotive industry has led the American economy for many years. This industry has shaped our development, and influenced American culture and social mores. Now, ensnared by globalization and other dominant factors, it faces a difficult reality. The American automotive industry significantly impacted the lives of Americans. Detroit’s “Big Three” had the most significant roles in this. Chrysler, Ford, and General Motors were American symbols. They are credited for a significant percentage of all American jobs; they put numerous blue-collar families into the middle class, and helped America cultivate into the giant of the twentieth century. Unfortunately, the fabled automotive firms are not what they once were and are traveling
Since an increasing number of people focus on brand names instead of product, brands become important elements for customers to choose products (Carroll, 2008). When customers trust the brand, the benefits for the manufactures are generated. In the first place, brands can be used by products as the tool to identify and differentiate themselves from various products. Secondly, brands are helpful for companies to build a competitive advantage (Bick, 2009). Therefore, organisations take more attention to branding.
Yet now, some say that the past is what troubles the automotive giant. In an interview with a former General Motors executive, GM 's sheer size as well as the sense of complacency developed after years of success was cited as the chief challenges GM would have to overcome (Interview, 2004). In a sense GM has been derailed, the strengths that once made it successful are the same forces that have led to its current flaws. (McCall, 1998) Thus, Wagoner is proposing to go against GM 's years of tradition and "Challenge the process." This is not the only step in the CIEME model that Wagoner has acted on. (Kouzes & Posner, 1995) He has already "Modeled the way" by cutting GM inefficiencies so that the company now competes directly against the streamlined Japanese automotives. Part of this streamlining includes Enabling the correct management to act. Furthermore, our interviewee attested to the fact that all GM employees were Inspired to share a number of Wagoner 's visions for the company. The remaining question is whether or not Wagoner will be able to Encourage the heart of General Motors.
At the beginning of twenty centuries until now the American auto industry has been growing and in demand. Henry Ford innovated mass-production techniques that became standard, with Ford, General Motors and Chrysler emerges as the “Big Three” auto companies by the 1920s. Manufacturers funneled their resources to the military during World War II, and afterward automobile production in Europe and Japan soared to meet demand. Once vital to the expansion of American urban centers, the industry had become a shared global enterprise with the rise of Japan as the leading automaker by 1980. And Americans dominated the industry in the first half of the twentieth century. Hence, from the
There are some good examples of ingredient branding of durable goods on the market, such as Shimano as a component supplier of cycles, and Intel in the computer industry. Intel, for instance, “positioned itself to be the heart and soul of personal computers. The strategy was to create a brand, and it worked – for PCs” (Karolefski, 2001). In other industries that produce industrial goods, like the car industry, ingredient branding has not been a common strategy. The primary question that guides us through this paper is: Is it possible for industrial goods industry like the automotive industry to adopt an ingredient brand when ingredient branding is not a common phenomenon?
Cars have been an essential part of living for some time now. Ever since mass-production allowed for the wide-spread distribution of cars, they have been paramount to everything from our economy to our daily commute. Globalization along with the growing market caused competition among manufacturers, and so manufacturers had to find ways to appeal to the new competitive consumer market. Automotive advertising started to take a new form and targeted peoples particular interests, emotions, and desires instead of being strictly informative or utilitarian. Even the car themselves had to change along with the decades to provide luxuries and compete with the market. Although many car manufactures took steps in the right direction, one great example of this changing market is the 1955 Ford Thunderbird.
One of the most significant barriers comprises the brand equityenjoyed by most established brands. The repute of the brand is extremely important to customers; luxury brands such as Jaguar, Mercedes-Benz, BMW and Audi have a long and magnificent history to boast about, and the companies work hard to preserve the association between them and other symbols of individuality and of top-notch quality and performance.
much influenced by the brand name of the cars. There are too many brands of car which tend to give more choices to the customers to choose from. Brand recognition is the area to which a brand is accepted for stated brand choice factors. The technique used to analyze brand choice factors is factor analysis. It focused on brand choice factors of respondents. Major variables that determine the brand selection are presented for further factor analysis and ANOVA is used in order to analyses the factors For that, first correlation matrix is formed to find the appropriateness of factor model by checking whether such correlated variables exists or not. The 14 variables/factors used (In first row) in the correlation matrix are represented by the
Partnering with Red Bull Racing and Sebastian Vettel has provided Infiniti with the global brand exposure. Formula 1 racing has a global audience and is the perfect showcase for high performance cars and technology. The fact that Sebastian Vettel the best driver in the world, wanted to help design a new luxury Infiniti model demonstrated the strength of the brand and its cars.This case study illustrates how Infiniti increased its global brand awareness, and entered new markets and increased its market share in the luxury car market with the help of Red Bull Racing and Formula 1. In March 2011, Infinity partnered with Red Bull Racing and Formula 1 and announced that it would become the sponsor and technical partner to what is now known as Infiniti Red Bull Racing. Red Bull Racing and Infiniti are trying to achieve a shared ambition for incomparable performance. This is known as brand synergy where the combination of two brands leads to results that are potentially greater than the brands would achieve individually. Infiniti’s customers are passionate about design and technology and they want the best performance from their cars. Therefore these qualities fit perfectly with Red Bull Racing’s values of creativity, innovation and doing things differently.With achieving business objectives, the Infiniti’s marketing mix considers
The development of marketing concept from a Product orientation to a Sales orientation and finally a Marketing orientation has signified an important change in how we understand and conceptualizes marketing in the 21st century. It signified an increased focus in the behavior of consumers and how by applying different marketing strategies organizations have been able to influence the way in which consumers react to their potential needs and how marketers can change their strategy to target different consumers wants. An assessment has been made in this essay looking at the development of the Volkswagen (herein referred to as VW) polo hatchback model.
The invention of automobiles had been dated long back in history. From that day till now, it had not only made our lives easier but also simpler. From times back then till now many big automobile companies had came into existence, some of them were successful and some were not, thus going out of market and competition. Among them, Porsche and Volkswagen Group(VW) have emerged as one of the world leaders in automobile industry. Through years of hardwork and sheer use of technology and engineering developments, both of these companies have carved a name for themselves in their respective markets. But sometimes, bad management and several areas of conflict arise between two companies that can lead to its downfall. In this case too the CEO of Porsche, just wanted to administer each and everything according to his own ways and rules, but on the other hand the CEO of Volkswagen, even after facing huge loses wanted to continue on with his strategy because he was quite confident about his strategy and clearly had a broader outlook of the scenario. Therefore, due to having different mindsets, there was a conflict between the ideas of two which led to the decline of one of them. These conflicts can be summed up in the following couple of questions: