Category Archives: Products

Mercedes and their Smart Cars, or the B-list.

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A while back, we had an in-class discussion about whether Mercedes Benz was tarnishing its brand image by releasing a lower end model. My group member , Alice, whom I recently found out drives the same car as me (great taste!), seems to share the same opinion as I do, on the Benz matter as well. To quote her post,

“It’s the fact that Mercedes is now everywhere on the road that really turns me off.”

Couldn’t agree more. With the amount of Mercedes’ out on the streets now, it feels like they’re beginning to decline in their product life cycle. They’re starting to spit out anything they can (there’s now 14 different classes), and it’s getting repetitive. I mean, it’s not like they’re selling model after model of SLR McLarens. I’ve only seen 2 SLR’s over the past few years, and I see about 2 B-classes every 10 minutes driving in Vancouver and Richmond. I don’t find it prestigious nor perceive it to have a high value when I see it everywhere, every time. Nothing new.

Mercedes prides itself on luxury, and new technology. Neither of which I see any more. Unless I look at this:

but it’s not a Benz.  It’s the Hyundai Genesis, base cost of $40,000, is just $10,000 more than the B-class. The highest end of Hyundai vs. the Lowest end of Mercedes, A sports car vs. an “all around car”.

It’s just a matter of time that Hyundai will increase it’s perceived value, as long as it sticks true to its brand name and image – “Affordable New Cars”.

Like we’ve learned from the beginning, “your brand comes from the promises you keep”.

Mercedes may have then proceeded with “promises are meant to be broken”. Bold. Very bold, but not that smart. So much for Smart Cars..

First The Force, now The Drive.

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Volkswagen’s super bowl ad was it’s first display of the company’s attempt to penetrate the US market. Jim Henry of BNET reports that Volkswagen is looking to spend $4 billion dollars in the US market to push the company’s sales objective up to 1 million sales. However, they can’t just stop in the US.

Volkswagen Norway took this into their hands, literally. AdFreak features the new interactive print-ad that VW Norway has created. I’ll let the video explain itself:

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One comment specifically caught my eye,

“thus creating a successful ad (viral) which is seen by more people regardless of those who actually see and experience the ad physically”

Although the cars may not be out on the market yet, by featuring them in such memorable ads, they are trying to cover the five components of brand equity: brand awareness, perceived value, brand loyalty, brand associations, and symbols/trademarks/patents. They know that there is no trial-ability in the products yet, however, the main purpose of such ads is to get potential consumers to remember the name.

They want consumers to be aware of the Volkswagen brand and what it has to offer. For example, with the Darth Vader ad, they wanted for customers to value that Volkswagen can not only meet the needs of a businessman, but for his son as well. In terms of the virtual ad, both existing and potential Volkswagen customers are able to test out the new features that the car has to offer, and as well, although it may not be legally implicated, they will now be remembered as the first brand that created a “virtual drive” for their customers through a simple iPhone app.

Perhaps next time we are looking for a vehicle upgrade, The Force will bring us right into the Volksagen dealership.

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The World’s Top Brand Goes to …

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And the winner is…

http://www.usageorge.com/Wallpapers/Commercial/Coca-Cola-Polar-Bear.html

None other than our polar bear loving friends, Coca Cola.

When I think of my experiences with Coca Cola, I think back of the House of Happiness that they had at Livecity for the 2010 Olympics. What I found the most intriguing was their promotion of “Healthy Living”. When we think Coke, we often think pop, soda, sugar, carbs, and almost everything unhealthy into one delicious can (typical of any junk food). Never have we ever thought of it as a healthy choice to be drinking Coca Cola.

As the world’s number one global brand, Coca Cola prides themselves on “Growth, leadership, and sustainability”. They recognized that society in general has gotten more health concious over the last few decades, and recognized in their SWOT analysis that an opportunity had presented itself. What a better way to promote their stride for a “healthy lifestyle” than to team up with the Olympics – the showcase of the world’s top athletes who are bound to live healthy lives. As well, Coca Cola recognized that they had recognized another weakness, in that their brand was not known for it’s sustainability either. The House of Happiness was filled with events and games that demonstrated these core values. What a better way to remind and educate their consumers than to put them through fun tasks that demonstrated what the brand really stood for.

Even the top brand of the world needs to constantly perform an immediate analysis and use tools like the SWOT analysis to clarify and re-establish brand clarity to both consumers, and the company itself. In doing so, companies remind themselves what their brands stand for, and most importantly, remind consumers why their brand has competitive advantages over leading competitors.

Here’s a snapshot of the runner ups:

http://www.interbrand.com/en/best-global-brands/best-global-brands-2008/best-global-brands-2010.aspx

Businesses don’t lose when consumers get new items to choose

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The success of Zara lies behind its awareness of the large profit margin that is created when many consumer choices are offered. More importantly, Zara uses an approach that many competitors do not.

http://planetgreen.discovery.com/fashion-beauty/images/2008-05/pile-donated-clothing-large.jpg

Each night, store managers of Zara take the time to

“scan through and collect the mountains of unsold items customers tried on without buying,”

in hopes of finding patterns to the items that have not sparked interests in their customers.

On the other hand, many stores make the mistake of rushing to replenish their floor with the items that have not left the fitting room, without realizing that they are constantly pushing out inventory that consumers have shown no interest of buying. Zara stays ahead of the game by finding the unwanted items, and pushing out new items to customers, and offering them new choices of things they might like. I work in retail myself, and I get sick of having to prep the same items over and over because they never make it out of the store. I can only imagine the disappointment that consumers face when they return to a store only to find the same items on the shelves that they have already rejected.