October 26, 2008

Crash Course in Auto Branding


“The number one attribute when buying a car is still appearance or style. The data shows that consumers rank safety number four or five,” says Peter Wise, a branding consultant for Landor Associates.

Gerald Meyers, a former chairman and president of American Motors, says it’s not so much appearance as “the statement the car makes."

"That’s the primary thing about buying any motor vehicle -- the statement it makes about the person driving,” says Meyers.

In other words, every brand of automobile sends out a message. Cadillac and Mercedes-Benz say luxury and a lofty station in life. Jaguar and Porsche say excitement and swagger. Toyota and Honda say practicality and value.

In the most prosperous countries, the automobile has always been more than a way to get around. It represents who people are or hope to be. The car becomes their personal brand statement to the world. Safety has traditionally not been at the forefront of the car-purchasing decision.

But that attitude may be changing.

There is growing evidence that safety is becoming more important to consumers around the world. In the US a few years ago, the well-publicized one-car accidents involving Ford Explorers equipped with Firestone tires put safety on the radar screen of car buyers. According to Ward’s Auto World, sales of cars and minivans with all-wheel drive (AWD) has nearly tripled since 1991. AWD, which provides power to all four wheels when needed, is widely viewed as a key safety feature.

Another reason for the shift toward safety may be due to the fact that more working mothers are exerting a greater influence on the purchase of the family car. While researching the automotive market for her new book, Marketing to Moms, author Maria Bailey found that car safety is the most desirable feature for mothers. She claims that married women make 80 percent of the car-buying decisions in America. While some automotive executives believe that number to be high, the point is clear: safety is becoming more of an important factor.

Which automakers have already managed to brand their cars as safe?

The name on top of everyone’s list is Volvo, which is part of Ford Motor Company’s Premier Automotive Group. Volvo Car Corporation of Goteberg, Sweden, celebrated its 75th anniversary in 2002. Over the years, critics have called its cars bland, boxy and conservative. But thanks to the dedication and singular focus of Volvo engineers, no one has ever said a Volvo wasn’t safe.

“Volvo is the first car that comes to mind when talking safety. It has had great branding and positioning,” said Robert Gelphman, a San Francisco-based public relations consultant. “But safety is an illusive branding component perpetuated by car manufacturers that maybe do not have anything else to offer.”

Besides Volvo, experts list BMW, Lincoln, Saab, Honda and Subaru as cars that have successfully been branded as safe.

“Years ago, Subaru was never thought of as a safe vehicle. But now it is. They’ve done a remarkably good job in educating consumers on the benefits of the AWD system in their cars,” says Landor’s Wise, adding that automakers today are making safety a larger part of their marketing message.

“One of the things that automakers are doing now more effectively than ever is marketing their cars as safe brands,” agrees Brian Chee, editor of the Autobytel, Inc. websites (autobytel.com, autoweb.com and carsmart.com).

“From a brand perspective, a lot of consumers still rely on what automakers say in their TV commercials as far as what’s safe and what’s not safe. However, that’s changing with people going online to do their own research and even buying over the Internet. Now they have the opportunity to get their own information to make their own decisions,” he says.

Over the years, several automotive brands have earned the reputation of being dangerous. Largely, this was due to several well-publicized accidents and mishaps. Some notorious examples: the Ford Pinto (the gas tank would explode when the car was hit from behind) and the rollover-prone Chevrolet Corvair, which Ralph Nader immortalized in his book, Unsafe at Any Speed.

While safety is more important today, everyone admits that it is difficult to brand a car as especially safe.

“It is a challenge because safety is practically a requirement for modern vehicles,” explains Wise. “But there’s a difference between being safe and being the safest. And there are lots of ways to define safe. One is the ability of the automobile to endure an impact. Another is that the automobile has a certain athleticism and responsiveness to avoid or substantially mitigate an impact. There’s a feeling of being safe amid the chaos of heavy traffic by sitting up high. There is maintaining driver alertness. Certain automobiles are designed to enhance the alertness and the performance of the driver. That is, in fact, safety.

“The Ultimate Driving Machine is core to the promise of the BMW brand,” he continues. “They also happen to be very safe vehicles. But are they the safest in the event of an impact?”

That question brings up the universal debate of which is safer: big and heavy cars or small and nimble ones. There is a widely held perception (especially in the US) that the former is safer.

“It’s not a perception; it’s true,” states Meyers, now a professor at the University of Michigan Business School. “The laws of physics have not been repealed. Drive a Sherman tank; you’ll never get touched.”

Chee of Autobytel doesn’t agree.

“We have this misconception that a bigger car is a safer car,” he says. “That isn’t necessarily true. If you get into an accident with an SUV, you may not get an injury because you have so much metal around you and it’s so high. However, in a typical driving situation where you lose control, a small car is easier to control and get out of trouble.

“The European perspective is that nimble, good handling, quick cars are better,” he says. “The American perspective is that big, lumbering tanks are.”

Says Wise, “Americans feel safe in large trucks and SUV-type vehicles. The justification that people will give for buying them -- it’s almost across brands, to an extent -- is that ‘if there’s going to be an accident, I want to be a survivor.’ ”

The difference between the European and American perceptions of safe cars and the need for them will probably not change.

“For the most part, European consumers have a more sophisticated understanding of automotive safety,” says Wise. “The broad American market tends to equate safety with size. And for the vast amount of Americans, fuel efficiency is nowhere on the radar screen. People are much more concerned about that in Europe and other parts of the world.

Meyers agrees. “Broadly, the European driver is interested in handling, maneuverability, visibility and agility,” he says. “The American driver doesn’t care about those things. The American driver primarily wants big, heavy, tough cars.”

As safety increases as a main concern of today's drivers, it's sure to influence their purchasing decision. The challenge is for carmakers to brand their cars as safe, which will require different strategies depending on who, and where, your market is.

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