Page 32 - BrandZ Top 100 Most Valuable Global Brands 2014

Section 03 | The Categories
Consumer and Retail | Cars

The prospect of stricter regulations Action Points for Brand Building
Spotlight
Insight
encouraged manufacturers to invest in Insight
electric alternatives. Price, limited range
and the lack of recharging infrastructure Europeans say life 1. Be safe
3. Demonstrate leadership

remained signiicant barriers. Nissan Leaf without a car would Consumers may enjoy slipping into the Younger consumers especially are
Contrary to and Chevy Volt experienced soft sales. Brands improve be dificult
driver’s seat and feeling as if they’re making product choices driven by
Tesla generated excitement, but did not
popular perception, sell many units, although it has become a safety and driving surrounded by cooler technology than concerns about the environment. Car
status symbol. BMW is introducing its i3.
Over half of Europeans in a six- they can access on their smartphone. brands can react or they can lead with
Millennials aspire to enjoyment
But the stakes are much higher behind innovative technology.
nation study say that life would the wheel. Ultimately, people want to feel
own cars
Minivans sales in the US declined with the be dificult without a car. They conident that their families are safe.
rise of SUV crossovers, particularly at the Carmakers are increasingly are less likely than in the past
premium end of the market. Europeans focused on loading their
to view a car as an important
There are some Millennials that preferred small utility vehicles that it into products with the most advanced measure of success, however. 2. Be transparent
don’t care about cars at all. They
live in downtown San Francisco
small parking spaces and emit less technology in the service of driver About a third believe that the Even in today’s world of incessant
or New York where you can live carbon, an important issue in Europe.
comfort and safety. Many of
choice of personal technology social media it’s possible to keep a
these advances are now available says more about an individual secret, at least for a while. But keeping
without a car. But there also are The need to reduce carbon emissions is in mid-range models, either as than a car. Cars should have a secret has consequences. As has been
Millennials who would love to prompting European luxury brands like original equipment or affordable advanced technology, Europeans demonstrated repeatedly, the public may
have a car. And, like every other Mercedes and BMW to produce smaller accessories. Technology is say, especially for eliminating the disapprove of the original misdeed but
group, they want to get right to
premium level and show the world models. Regulations to improve air therefore becoming more and environmental impact of driving.
it’s less likely to forgive the cover-up.
they’ve succeeded. The problem quality in China, expected to be similar to more of an industry table stake.
the European standards, will impact the This tends to make the luxury Life dificult without a car
is that a lot of them don’t have Chinese produced cars.
brands less about advanced
any money. One of our Millennial features and performance and France
interns said recently, “Everyone
says Millennials are afraid to make Fast growing markets
more about the “badge” and 62
a big purchase. We already have some creature comforts. As a
result, some luxury brands are Insights: BrandZM BigData
made a big purchase, our college China car sales increased 13.9 percent to now focusing on the total buying
education.”
22.9 million units in 2013, according to experience as a signiicant UK
the China Association of Automobile
Andrew Ortlieb
Manufacturers. Sales declined in Brazil opportunity to differentiate
Making luxury accessible
Luxury (top 4 brands)
55
and India for the irst time in about a their brand. Over 80% of car
SVP, Strategic Services, Brand Strategy Group Team Detroit buyers begin their shopping Meaningful 118
andrew.ortlieb@teamdetroit.comA. decade. With slowing sales and a on-line before ever stepping
Technological advances in
Manago@added-value.com
weakened rupee, international carmakers into a dealership, yet the basic manufacturing, related safety Italy
in India turned to export to deal with dealer experience model hasn’t improvements, as well as better emission Different 132
overcapacity.
controls have increased the availability
52
fundamentally changed in over of luxury features across more mass- Leading the way 111
The European luxury brands sold well in 50 years. This could well become market brands. However, consumers view
the next battleground in the
China, led by Volkswagen’s Audi, which is industry.
the luxury car brands as having greater Mass (top 6 brands)
Denmark
the car of choice for oficial government meaningful difference and give the
transportation. Ford, which introduced brands more credit for “leading the way.”
Meaningful 106 49
several new models in China, experienced Hayes Roth
Fuel eficiency and almost a 50 percent increase in sales to Chief Marketing Oficer Toyota and BMW, the most valuable
Different 103
Landor
emissions shape over 935,000 units. Ford plans to Hayes.roth@landor.com
car brands, are equally meaningful.
Leading the way 103
Spain
preferences
introduce its Lincoln brand in China to BMW is more greatly differentiated and
compete in the luxury sector.
“leading the way,” but Toyota is ahead on 48
“environmental responsibility.”
Hybrids continued to do well, with sales Sales of Toyota and Honda rebounded in
Source: BrandZM database
up about 30 percent in the US. It’s not China after tensions subsided between All brands average = 100
Germany
that shoppers preferred the styling or Japan and China. Honda sales also were
performance of those cars, but they helped by the introduction of an updated 48
wanted to enjoy the key beneit – fuel Accord sedan. Nissan sold 1.3 million cars
eficiency. Toyota hybrid sales in Europe in China, a 17 percent increase.
grew 43 percent, driving strong proit for

the brand in that region.

Percent who agree; My life would be dificult
without a car.

Source: The Future of Sustainable Transport in
Europe, a report by The Futures Company for Ford (2012).

62 BrandZM Top 100 Most Valuable Global Brands 2014
63