Re-Branding

If you change the branding, don't do it just to give the marketing staff something to do. Do it with the object of preserving the business in the certain prospect that your industry is about to undergo radical change occasioned by new technology and new entrants to the market.

The real elephant in the corner which needs addressing is the broadening of the car supply base, especially when the |Chinese get their quality side sorted. This will devastate the existing organistation of car retail industry in Europe.

I would suggest that, in order to face the sales threat, dealers will have to radically alter the way they do business, and become solely sales entities with a strong web presence.

Further they will have to reduce costs like never before. This might involve dumping the car service side to third parties. These type of organistaion are already setup on a nationwide basis . The imminent introduction of electric cars en-mass, means that income from servicing will decline because there is not so much to do with these vehicles.

In this environment, I think that VAG should employ a branding startegy that capitalises on existing strengths, stances and trends by firmly rationalising its brands into luxury and high performance(Audi), low -cost performance (Seat), standard, family, fleet travellers (VW) and low-cost (Skoda). In a highly competive and diversified market you want a nice strong, simple message, otherwise you'll get lost in the noise. Don't try and make each brand all things to all men. Fatal.

Also of importance is that with rising global net disposable incomes you're going to have a whole new generation of unbloodied, historically unaware and technically illierate consumers who, even on a good day with the wind behind them, will have diificulty distinguishing VW/Audi from Singer sewing machines.

In this revised environment, there's no reason why dealerships couldn't adjust their brand stock holding to more accurately reflect the current demographics of their neighbourhood and the fact that they would envitably address a much wider market through a strengthened web presence.

What VAG/AUDI need is a half-decent 20 year strategy which addresses all the above.

Whatever you do, don't *ffing tinker.

- This post should have gone as an attachment on the "Branding poll" below.

Nick

Edited 31 March, 201016 yr by Clunkclick