The survey conducted by haseschannen research

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 3 brands, produced by nine manufacturers, in five product categories. The survey, conducted by Hase/Schannen Research Associates in the third quarter of 2000, was supplemented by data from other market research firms, financial analysts, and news reports. (134-143)Q1'02_AutoBrand_v8 1/7/02 10:55 AM Page 137 R E V V I N G UP AU TO BR A NDI N G 137 To most consumers, for instance, Toyota’s products (like those from some other manufacturers) embody consistent quality and fuel economy. Toyota and its rivals must capture the loyalty of consumers by demonstrating the emotional benefits conferred by consistent quality and fuel economy: the assurance that products won’t let consumers down or will make them look and feel smart and self-assured. Likewise, people are drawn to the BMW as “the ultimate driving machine,’’ though they may choose a model with a small engine and automatic transmission. Among strong brands such as BMW and MercedesBenz, a common theme E X H I B I T 1 Separated at birth: Twin products meet separate fates unites all models and gives even the least $ glamorous of them Sales in 2000, thousands of units a certain aura. 1 Toyota Corolla 15,223 14,973 250 11,417 Strong companies know 3,556 230 that one weak model can tarnish the larger brand—thus when a model falters, they Chevrolet Prizm1 15,315 modify or withdraw 14,315 1,000 it. Four years after the 9,955 4,360 Honda Odyssey mini52 van received a chilly reception at its debut, Manufac- Rebate Net Depre- Trade-in for example, the comturer’s price ciation value suggested pany introduced a retail price totally redesigned vehiDifference per vehicle 658 1,462 cle. Most carmakers keep poor performers 1 As of Q4 2000. on the market much longer in hopes of recouping their investment. Honda’s approach seems to be more successful: the Odyssey now sells at a premium over list price, while its North American competitors must use discounts or rebates to sell minivans. BMW, Honda, and Toyota, among other companies, begin with a strong brand that imparts sales momentum to each model. Brands that are weak— because their products have acquired a reputation for shoddy workmanship, their designs are not evocative, or their models bear little relationship to one another—cannot pursue this top-down approach. But a company stands a good chance of selling more cars and, step by step, of rehabilitating the brand if managers take pains to match each model to the consumer segments most likely to be interested in it, identify and overcome the obstacles that (134-143)Q1'02_AutoBrand_v8 138 1/7/02 10:55 AM Page 138 T H E M c K I N S E Y Q U A R T E R LY 2 0 0 2 N UM B E R 1 keep browsers from becoming purchasers, and emphasize...
View Full Document

{[ snackBarMessage ]}

Ask a homework question - tutors are online