RE: Tristan Voros’ “KIA FALLING OFF THE LADDER”

Like Tristan, I believe there is an important link between a brand’s image and a product’s success. In his blog, he analyses that the reason Kia’s  luxury vehicle, the K900 has fallen flat on it’s face is due to Kia not positioning itself as a luxury brand. Why would anyone buy a $50,000 Kia, when they could indulge themselves in a Mercedes E-class? However, while it is true that brand positioning is important, I believe the reason behind the K900’s poor sales is not solely because Kia is not a luxury brand, but also, Kia’s poor brand recognition and small market share. For example, while Toyota does not carry the image of a luxury brand, it is certainly a reputable brand. This allows a product like its $80,000 Land Cruiser, to trump the sales of the “luxurious” Range Rover in countries such as Australia.  Currently, Kia is not in a position to introduce a luxury vehicle and take on two market segments. First, Kia should definitely address it’s market share and brand image in the mass market segment of the automotive industry. This may be done through product differentiation or rebranding, but introducing new luxury vehicles surely does not help with the cause.

 

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