Brand Management in Automobile Industry

Though the industry is market driven now, it was not always like that. The example of Henry Ford producing just one car model with no even color options in the beginning of the last century is the evidence of it. 20th century’ was the time when giant manufacturers such as Ford and Daimler have set the standards and the core values internally and promoted them externally by showing what success the quality and reliability focus could bring. Nowadays, the velveteen of engine co- operations, standardized parts and platform sharing has made all the cars comparatively analogical in terms of qualities so valuable in the past.

Now customers demand something more to be integrated within the product they buy, not just the technical characteristics and quality. And that is the moment when brand management comes. Manufacturers have finally understood that they must promote the inherited values together with the brand character in order to differentiate their products in the market saturated with competing manufacturers. With focusing on the brand management, automotive companies now need to decide what brand management tactics should they employ in order to succeed.

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The two main options are brand extension tragedy or promoting one holistic brand character common for all company models. Having analyzed 5 articles on automotive brand management topic, I have realized that though they give a lot of interesting theoretical material on the employment of the brand management, frequently the authors contradict one another and even themselves, especially on the dilemma mentioned above. The articles authors claim that companies should be brand-focused and that the degree of the brand stretching should be moderate.

It is ever inexplicable, considering the admitted facts that porch has succeeded TTS reformatory Cayenne and that GM has succeeded with its Saturn sub- brand in sass’s. Thus, there is a question standing out – to what extend t opinion of the expert coincide with the reality? The analysis of the issues discussed in the articles as well as the assessment of the quality of auto statements and predictions will be revealed in the following review. The first point would like to discuss is the way the authors understand conceptions of brand management and its increasing importance for the industry.

Vincent Garibaldi De Upset, a well-known brand strategist, in his article “Can Americans do it better? [4] sees brand management as the b’ tool for Detroit car manufacturers in getting out of the bankruptcy risk. H view that the last 50 years there was no major engineering breakthrough automotive manufacturing is shared by the author of “Brand Manager the Automobile Industry’ article Pierre Dared[5], who also believes that operation in models development and interchangeable parts of the vehicle only improve what already exists, and therefore little room remains for product differentiation.

Both of the authors are promoting customer-Erie business strategies, stressing the importance of after-sales service. In focus on customer orientation is one of a few issues importance of which not put under any doubt in all of the articles. Most of the issues covered the articles in some way do contradict the view points stated in others. R instance, though Pierre Dared underlines that it is hard to differentiate 1 product with its features, Anne Ascension, the design director in GM. In her interview to Design Management Journal[J stresses the importance of product design in creating brand character.

In her interview she states the nowadays companies consider the vehicle design to be the essence of the. Rand’s personality and stress their attention on it. Top Management of Automotive Companies understand that the design has a great influence the perceived quality of the product, I. E. Whether the customer will or will 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.

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