Toyota, BMW, Ford, Mercedes-Bens, Honda, Nissan, Audi, Tesla, Land Rover, and Porsche are some of the most powerful brands in automotive. With brand values between $5 billion USD and $25 billion USD, they amount to $139.28 billion USD in brand value.
So why are some auto brands so successful at leveraging their brand, while others have more modest success? It is because they have a definition of brand-value that they guide.
The influence of brand recognition is apparent, especially when we think of the most powerful brands in auto. Value is steeped in our auto culture. When we think of prominent auto brands, we think of the differences that convince us that there are meaningful differences between them.
For instance, Porsche and Toyota are two auto brands, viewed completely different but both are successful. The reason some auto brands are more successful at leveraging their brand is that they are brand-guided. That means to have strong alignment of strategy, deep customer insight, and brand control. The aforementioned brands have a clear understanding of what the brand stands for, whereas auto brands with modest success haven’t identified the importance of their brand to recognizing profits. The reason they may not have recognized it is because they believe their brand will not be relevant in the upcoming future, or there is just little interest in the defining brand ownership, and this might be because they see no value in the cost of securing benefits to create differentiation and brand value.
My definition of value is from the perspective of the customer. I take this stance because a customer-based approach recognizes the work of a brand-guided company. The customer perspective acknowledges brand knowledge, beliefs, feelings, and images associated with the brand. The impact is a competitive difference over other market offerings, that can sustain, build, and aid in uncovering relationship opportunities if managed correctly.
So, defining automotive brand value comes down to how brands differentiate themselves. Many auto brands establish brand value through the benefits of the vehicle itself, in addition, to non-vehicle related means. By understanding customer desires and creating a relevant image around their vehicles, auto brands are committing to their future success. The control of the vehicle and non-vehicle factors align brands with desires that consumers want, and this creates top-of-mind brand awareness, which is often related to strong brand perceptions and beliefs in the brand. The impact is value, that is created through persuasive and consistent communication, that ends result is purchase, repurchase, and customer loyalty.
Look out for the second part of this article next week, which will explore how two top auto brands deliver value to their customers. If you’re ready to drive business change, contact us so we can help take your company to the next level.
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