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S e n S e P e r S P e c t i v e 2
In the 20th century the automobile represented self-expression at its most powerful – our dreams and desires given form in sheet metal. Few possessions represented our aspirations in the way our cars did.So what’s changed?
Brandview
The data in this piece is drawn from BrandView, Lippincott’s
unique approach to measuring and evaluating brands. Now
in its fourth year, this ongoing study is fielded online among
30,000 consumers across four continents. BrandView
quantifies leading indicators of brand success such as Story
Power, Experience Power and Brand Momentum to uncover
the fundamental drivers of brand and business success.
Story Power measures the resonance of the brand idea in
the market overall, while Experience Power measures the
brand’s connection with its users and customers.
S e n S e P e r S P e c t i v e 3
Within every industry, we have found leading brands find a way of differentiating
themselves through compelling stories, signature experiences, or both. Looking to the
fastest-growing markets in the 21st century, cars are often still thought of as potent
symbols of self-expression. They convey status, success and freedom where people still
want the car they drive to make a strong personal statement. However in most developed
markets, car-makers now face the challenge of delivering sustainable, flexible, economical
urban mobility while simultaneously finding new ways to be exciting and desirable.
The move from ‘ownership’ to ‘usership’, particularly among Generation Y, is fundamentally
changing what people need and want from a car. In fact, this is probably the most
significant shift the automotive industry has seen for over a century. The longing for pride
of ownership, demonstrated through the mechanical and the tactile, is becoming more
about the intangible and the virtual – how product, service and software come together to
deliver the experience beyond the vehicle. In a world where cars can interact with their
environment like never before, they are becoming just one piece of a more integrated
lifestyle and mobility system. From charging stations to telematics systems and in-car apps,
car-makers will increasingly need to create brand experiences across new and unfamiliar
touchpoints that fundamentally change the way the car fits into people’s lives.
Over the past decade we have also witnessed the seemingly unstoppable growth of the
premium car-makers. In their attempts to wow increasingly diverse global customers,
people can now drive an incredibly extensive range of vehicles from the likes of BMW, Audi,
Mercedes-Benz and Lexus: from performance SUVs to ultra-compacts, and everything in
between. However this level of variety risks diluting a brand’s core positioning to the point
where it is pulled far away from the essence of what made it so appealing and distinctive in
the first place. With markets like China rapidly catching up with the US in terms of volume,
interpreting and refining the DNA that makes these brands special – in a way that depends
less on the product, and that sustains both authenticity and vitality – will be essential for
any premium brand.
The global automotive industry is changing, and fast. New markets, customers, technology and competitors are forcing car-makers to take a fresh look at how they create relevance and desire. So what will it take to be a leading automotive brand in the future?
‘Look at me...’
S e n S e P e r S P e c t i v e 4
‘...think about me’
As we witness a new order emerging, some brands are positioned for success better than others. Consumers have a clear idea about which brands have their best days ahead, and which are remnants of the past. We call this Brand Momentum, and it is fueled by customer expectations for the future – illuminating those brands that excite people most.
In the US and China, German premium brands are
consistently seen as having the highest Brand Momentum.
People recognise that these brands have relevance and
desirability today, as well as ambition and aspiration for
the future. However, their challenge is to better
differentiate themselves from their direct competitors –
to be more distinctive, and emphasise their individual
character and uniqueness.
In China, without exception, domestic brands are in the
lower half of this ratio. In many ways this is surprising,
given how far these car-makers have come in a relatively
short time. However, their most significant barrier to
winning in China, and being competitive globally, is the
need to be recognized as authentic. These brands need to
have a genuine story – one that gives people a reason to
believe in the brand as well as the product.
In the US too, with notable exceptions such as Ford and
Chevrolet, domestic brands are behind in this metric. They
have failed to keep up with consumer expectations and
now need to consider how to regain relevance again,
particularly in the eyes of increasingly valuable Generation Y
customers. Their challenge is to better align their brand
personalities to the traits that younger generations value
and get excited about.
The Japanese have not yet come close to the Germans in
driving Brand Momentum in China. Yet as a stark contrast,
in the US Japanese car-makers are not only among those
brands considered to have their best days ahead, they are
also leaders in customer experience. These brands
understand how to deliver service that makes people feel
great. Their opportunity now is to build on this foundation
to create even more immersive brand experiences, while
striving to match German brand cachet.
S e n S e P e r S P e c t i v e 5
Brand momentum - china
2
10:1 1:10 Ratio of Best days ahead : Best days behind
Middle of the pack
Leading Lagging
10:1 1:10 Ratio of Best days ahead : Best days behind
Middle of the pack
Leading Lagging
Brand momentum - US
S e n S e P e r S P e c t i v e 6
In the future, which onewill I love?
In the future, which one will I love?
S e n S e P e r S P e c t i v e 7
actions to prepare for the future
Based on our experience of working with many of
the world’s leading car-makers and insights drawn
from our BrandView research, we believe that
building tomorrow’s leading automotive brands
will mean acting on four key imperatives.
4
S e n S e P e r S P e c t i v e 8
Allowing you to achieve greatness
Being strong and serving as a leader
Giving you freedom to explore and discover
Audi BMW Mercedes Lexus Infiniti
be distinctive...
Generally, car-makers are nearing parity in delivering quality,
safety and reliability. For most mass market and premium
brands, sources of product distinctiveness are becoming
ever narrower as components, architectures and platforms
become increasingly shared. While some variety in surface
design and ‘components of feeling’ can still be maintained,
it will be more important than ever to protect and enhance
brand and design distinctiveness to ensure people still see
and feel what makes the brand unique.
In the US, premium German and Japanese car-makers
are seen as distinctive compared to the overall market.
However, this is not the case within their own peer group.
Looking at their brand personalities, we find that all index
highest on similar traits. Today, none of these brands
choose to express an interpretation of ‘premium’ that
breaks the mold or offers a distinctive and compelling
point of view.
For both premium leaders and up-and-coming challengers,
there is a clear opportunity to move away from the
premium clichés of the past and stand for something more
distinctive. Now is the time to reinterpret and redefine what
‘premium’ means to customers – connecting to the traits
that will drive excitement and desire in the future.
In China, we see a similar story to the US for premium
car-makers overall, but here national provenance appears
to be especially relevant as a source of distinctiveness, with
Japanese and German brands seen as having quite distinct
and consistent personality profiles. The Japanese personality
profile indexes higher on ‘indulgence’, ‘freedom’ and
‘discovery’, while the Germans are associated more with
‘greatness’ and ‘leadership’. This implies there is an
opportunity to build distinctiveness beyond national
provenance, to build a brand personality that relies less
on where the brand is from and more on why it’s special.
composition of brand personalities - US
Premium brands in the US have a very similar personality profile
Audi BMW Mercedes Lexus Infiniti
Allowing you to achieve greatness
Being strong and serving as a leader
Giving you freedom to explore and discover
composition of brand personalities - china
Premium brands in China have profiles linked to national provenance
By defining the characteristics that make the brand truly unique, and why they matter to people
S e n S e P e r S P e c t i v e 9
be authentic...
In the future, brands will have far less control over how
they are presented to customers. This means the core brand
idea needs to be powerful and coherent whether you’re in
Nanjing, Nuremberg or North Dakota. This core authenticity,
which remains constant over time, can then be complemented
by a supporting set of attributes that are varied across
markets to drive vitality, excitement and freshness.
However BMW successfully tailors the supporting
personality elements of the brand to different markets,
while keeping its core personality consistent. By sustaining
this powerfully authentic core idea that is complemented
by flexible attributes, BMW ensures the personality of the
brand can be nuanced effectively in response to local
market needs.
So far, the failure of Chinese car brands to build authenticity
has limited their performance at home and denied them
the credibility to enter new markets. They tend not to be
loved by consumers because they lack a powerful,
compelling core idea for people to connect with. Building
this authenticity requires the brand to express a genuine
idea that is both relevant and desired; one that can be
understood and experienced in a way that makes people
want to invite the brand into their lives.
On the flip side, for brands that have a strong core idea, the
test is to ensure it can be flexed to appeal in different markets
without losing authenticity. Of all the global car-makers, our
study shows the one that demonstrates this principle best is
BMW. By anchoring itself to a powerfully authentic core
idea, the brand achieves consistently high levels of Story
Power and Experience Power right across the globe.
Experien
ce po
wer 60
80
100
120
140
160 160
0 20 40 60 80 100 120 140 160
Ind
ustry averag
e: 106
Industry average: 106
Love
d
Authenticity
Authenticity vs. Loved - china
In China, people love the brand they find to be highly authentic
20
60
100
140
180
220
20 60 100 140 180 220
TRIBAL
Exp
erie
nce
po
wer
Story Power
UNATTACHED
LEGENDS
STORY TELLERS
BMW achieves a remarkably consistent performance across markets
Story vs. experience
composition of brand personalities
Allowing you to achieve greatness
Sense of wonder
Letting you indulge
Being strong and serving as a leader
US China UK Brazil
BMW flexes its supporting brand characteristics across markets
By being true to the essence of what makes the brand special, while staying relevant and vital
S e n S e P e r S P e c t i v e 1 0
Helping make life more fun
Challenging convention
Letting you be who you are at heart
Helping you experience a sense of wonder
Chrysler Dodge Chevrolet GMC Hyundai
be relevant...
By connecting to the things people care about and by embodying the traits that people find exciting
Generation Y will represent over 30% of global car buyers
by 2015 and have values that are very different to previous
generations. Functional factors are no longer variables,
reliability is assumed and comfort is expected. They look
instead to brands that align to a specific and more
emotional set of needs, traits and values. Brands that are
unable to create relevance in this way face the prospect of
competing on an ever-narrowing set of functional factors,
restricting their chances of ever creating a true emotional
connection to these customers.
Looking at the personality traits most aligned to the values
of Generation Y, contrasting profiles emerge for many
US domestic brands compared with challenger brands
like Hyundai, which successfully appeals to younger
audiences with a compelling mix of technology, design
and value for money.
We see that Hyundai indexes highly on the characteristics
relevant to Generation Y, particularly around ‘fun’ and
‘challenging convention’. The US domestic brands can
certainly learn from the Hyundai profile having fought hard
to be desired by an increasingly design and technology savvy
customer. For brands such as Chrysler, Dodge, Chevrolet and
GMC, becoming better aligned to Generation Y will be their
greatest challenge if they are to compete successfully in the
future, laying the foundations for long-term brand loyalty.
However, while Generation Y is too big to ignore, it is still
far from being the whole market. How can you appeal to
the demands of younger customers while continuing to
serve the established market? VW is one brand that has
successfully nuanced its personality profile across generations.
Generation Y sees VW as a brand that is more about ‘fun’
and ‘wonder’, while for older generations the brand
appeals for being about ‘challenging convention’ and
‘being who you are at heart’. This divide allows VW to
target different messages at these groups through both
product positioning and segmented marketing – driving
a remarkable breadth of brand appeal in the process.
composition of brand personalities
Hyundai over indexes on traits relevant to Generation Y versus US domestic brands
VW has a differentiated personality profile between generations
Helping make life more fun
Challenging convention
Letting you be who you are at heart
Helping you experience a sense of wonder
Under 35 Over 35
composition of brand personalities
S e n S e P e r S P e c t i v e 1 1
be immersive...
By creating compelling, seamless experiences that deliver the brand beyond the vehicle
New touchpoints are becoming core to the experience
Economy Maximization
Remote Services
Congestion Avoidance
Intelligent Route
Planning
Public Transport
Integration
Traffic Management
Car Sharing Services
new digital ecosystem
80
100
120
140
160
80
100
120
140
160
1.
RANK
2.
3.
4.
5.
6.
7.
8.
9.
10.
Lexus
Honda
Toyota
Nissan
Infiniti
Chevrolet
Ford
Chrysler
Dodge
GMC
1.
RANK
2.
3.
4.
5.
6.
7.
8.
9.
10.
Lexus
Toyota
Nissan
Chevrolet
Honda
Ford
Dodge
Infiniti
Chrysler
GMC
“This is a brand I love” “This brand makes me feel great”
American brands Japanese brands
value brand ranking - US
Japanese brands lead domestic brands in the value market
For most automotive brands, the experience delivered
beyond the car remains remarkably generic; failing to be
as rich or immersive as that delivered by the vehicles
themselves. Generally this results in an over-reliance on
product and engineering differentiation.
Excluding the premium European car-makers and looking
towards the mass market in the US, it is Japanese brands
such as Lexus, Toyota, Honda and Nissan that have a
significant lead on US domestic brands for being loved
and making customers feel great. This is a true testament
to how much the service experience beyond the car counts
in the minds of customers. Japanese brands are loved for
being service leaders, with Lexus in particular putting
quality of service at the core of its ownership experience.
However, to stay at the top, service will need to become a
far more powerful tool for driving brand engagement. This
will need to start with dealerships becoming a significantly
more powerful touchpoint, delivering immersion into the
brand in the same way retail innovators such as Apple, Lego
and Nespresso have achieved. The automotive leaders of
tomorrow will transform their showrooms into exciting
brand experiences that mix brand theatre and immersion
with integrated sales and service.
The digital environment is also becoming an essential and
inseparable part of the automotive brand experience. In
fact, telematics are already one of the key drivers of vehicle
choice for younger buyers. As digital services become more
connected and independent of the car, the opportunity will
be to take control of new brand touchpoints that extend
the entire brand experience. The challenge will be to
maintain the integrity of the experience while integrating
branded and third-party services in a way that represents a
seamless, engaging alliance between user and brand.
Driving the future
In the new automotive reality, a renewed focus on brand building will be key to being both relevant and desired.
As you think about how to align your brand effectively to this new reality, the path to success begins with a realistic appraisal of your current position and future aspirations.
Being distinctive will protect brands from the need to compete on
increasingly narrow functional and performance differences
Being authentic will give brands the consistent foundation from
which to adapt credibly to multiple geographic and
demographic markets
Being relevant will allow brands to sustain excitement and loyalty
across different customer groups, driving long-term
brand advocacy
Being immersive will stretch the brand into new propositions, value-added
services and emerging parts of the mobility value chain
Questions to ask:
• Are you able to discover and then harness your
most powerful, differentiated sources of brand
distinctiveness? Do you know which traits are
most relevant, both now and in the future?
• Are you able to define and express an authentic brand
idea that combines a powerful, compelling core with
the adaptability and agility to flex across markets?
• Is your brand able to connect with Generation Y
customers in a way that makes them excited to invite
your brand into their lives? Are you able to flex your
brand to appeal across generations?
• Can you translate your brand into experiences beyond
the vehicle, embracing new and emerging physical and
digital environments?
© 2013 Lippincott, a division of Oliver Wyman, Inc.
www.lippincott.com
ABoUt LiPPincottLippincott is a leading brand strategy and design firm. We uniquely
combine business-based strategic thinking and creative excellence
to solve the most complex challenges facing corporations today.
As pioneers of corporate identity 70 years ago, we have been
behind some of the world’s most iconic brands and partner with
today’s leaders as they shape their brands for the future.
Dylan StuartPartner, Brand Strategydylan.stuart@lippincott.com
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