Brand Management
Car manufacturers are outsourcing an ever-increasing proportion of their operations, driven by the need to focus on core competencies, by the rising complexity of today’s automobiles and the growing variety of models, and by severe cost pressures.
So what will remain as the core competency of car manufacturers in the years to come? It is the development of their brands and the creation of related products and services that will define their brand image. Brand management is a core competency of car manufacturers and the key to customer loyalty. At a time when technology has become almost universally available, brands are distinguished through design, image, and customer experience. Managing the brand portfolio across the growing number of customer segments, regions, and vehicle models is critical.
Nearly all car manufacturers today have a portfolio of brands to serve different market segments or regions. This creates multiple growth opportunities but also a number of severe pitfalls. For premium brands, the tradeoff between volume and value growth will require sophisticated market insights, whereas volume brands will need to find the right brand positioning in a broad variety of customer segments and regions around the globe.
