The Variance between Brand Positioning and Brand Perception -A Case Study about Volvo Cars in China Master Thesis in Business Administration Authors: Zheng Tian & Zhang Yaoqing Supervisors: Pär Vilhelmson & Ernst Hollander University of Gävle Department of Business Administration and Economic Study June 2011
54
Embed
The Variance between Brand Positioning and Brand …495487/FULLTEXT01.pdf · Abstract The thesis aim is to explore the variance between brand positioning and brand perception. A case
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
The Variance between Brand Positioning and Brand
Perception
-A Case Study about Volvo Cars in China
Master Thesis in Business Administration
Authors:
Zheng Tian & Zhang Yaoqing
Supervisors:
Pär Vilhelmson & Ernst Hollander
University of Gävle
Department of Business Administration and Economic Study
June 2011
Abstract
The thesis aim is to explore the variance between brand positioning and brand
perception. A case study of the Volvo Car Corporation in the Chinese automobile
market, is used to analysis the research questions.A questionnaire and an investigation
are the main source of information for a quantitative and qualitative methodology.
Based on the three theories to be used, which are market segmentation, brand
positioning and brand perception, the empirical materials collected from the
questionnaires and information from Volvo,the thesis interprets the brand positioning
of Volvo motorcars in the Chinese automobile market in China and brand perceptions
of Chinese consumers.Although there are several differences between brand
positioning of the Volvo Car Corporation and brand perception of consumers, the
obviousvariance still influences their purchasing of new products.
Keywords: Brand positioning, Brand perception, Volvo cars, Chinese
customers
Acknowledgements
Firstly, we are deeply grateful for our supervisors Ernst and Pär. They gave us
encouragement and guidance for this thesis. They very kindly gave us suggestions on
how to write a thesis in a professional way. This thesis could not have been completed
without their consistent enlightenment. Thank you for what you gave us during this
time.
We are greatly thankful to the teachers and professors who work in the department of
Business Administration, and who have taught and helped us in the past year. Thanks
for your time.
We thank our classmates, friends and family. They gave us support with the
questionnaires. Thank you for your support and advice at all times.
We make special thanks to our University of Gavle. Thank you for a beautiful place to
study. We won’t forget these years of studying and living in this fantastic place.
environment or protection, Volvo cars are hard working for perfect performance.
3. Volvo cars have different views about life and implement them to realise the value
of a different life.
34
User-focused positioning
Volvo cars think their cars are more suitable for people who have good taste, a
passionate attitude, who pay attention to the quality of life, and who enjoy a luxury
life but donot show off. A Volvo driver should understand the real meaning of life.
Competitor-focused positioning
They didnot mention any thing about competition on their website, and they didnot
use any competitor positioning.
According to Volvo, because their attributes are steady, practiced, safe and low-key,
they match with people’s character - pay attention to the quality of life and have a
passionate attitude.
In the theoretical part, the Brand Asset Valuator was introduced to investigate
consumer feedback. The Brand Asset Valuator includes four dimensions which are
differentiation, relevance, esteem and knowledge.Differentiation and relevance are
taken together and are seen to be reflected in its growth potentialbrand vitality, while
esteem and knowledgeare reflected in the current power of a brand- brand stature.
These four dimensions have an indivisible relationship with each other. All brands
arebegun and defined by differentiation. As mentioned above, differentiation is the
main reason for brand emergence and existence. Thelevel attributes and target client
group of Volvo cars differentiate this brand. People’s trust and affection towards
Volvo belong in the esteem dimension. The cost performance isincluded in the
reference dimension. And the combination of all these perceptions is the knowledge
people have about Volvo cars.
35
6.3 Deviation between brand positioning and brand perception
The Chinese motorcar market is different from the global motorcar market, which is
more like the American car market. Last year, the American car market sold 104
million cars, 28% less sales volumes than in 2008. Globally the motorcar market is
currently saturated. The Chinese motorcar market however, is still strong with 136
million cars sold last year, and sales volumes having increased 45% over 2008. If the
Volvo Cars Corporation wants to earn more profits in China, it has to meet Chinese
customer tastes exactly.
Based on the above,and reviewing in the context of the Volvo brand positioning and
Chinese customers’ brand perception, there are several variances found between the
brand positioning and brand perception.
i. From the Chinese customers’ brand perception survey, it was shown that most
people think Volvo car belong to semi-high-end level or middle-end level. But Volvo
Cars Corporation mentioned that Volvo car is fast developing as a luxury car brand in
China. This is one of the main variances between Volvo’s brand positioning and
Chinese consumer perceptions, which can affect their thinking about Volvo cars in
other aspects.
ii. Figure 14 shows the characteristics of Volvo brand positioning compared to.
Chinese customer brand perception. The blue vertical bar stands for the brand
perception of Chinese consumer about the attributes of Volvo car. The length of
vertical bar length depends on the percentage of votes they got. Green vertical bars
stand for the brand positioning of Volvo Cars Corporation. There are two different
lengths. The longer ones are the attributes which are strongly emphasized by the
Volvo Cars Corporation while the short ones are the attributes which are deemed to
not be that important. According to thisgraph, practicality, safety and low-key are the
attributes which werecommon to both Chinese consumers and the Volvo Cars
Corporation. This means practicality, safety and low-key are successfully positioned
in the consumer’s mind. Green, traditional, simple, sporty and advanced are also
attributes which the Volvo Cars Corporation think they have, but Chinese consumers
perc
simp
link
luxu
stea
cars
belo
old
cars
cars
dev
Cor
they
iii.
ceive these
ple, sporty
ks to the bra
ury, albeit th
ady, elegant
s, but whic
ong to the C
characteris
s such as ad
s are advanc
eloping are
rporationsta
y are going
Fig.14
Chinese c
to be less i
and advanc
and.Very fe
hat theyinc
t and slap-u
h are not i
Chinese con
tics Volvo
dvanced, sp
ced, sporty
e still not de
ate that Volv
to create m
4. Characteris
customers th
important. T
ced are attrib
ew Chinese
luded in the
up which C
included in
nsumer perc
cars hold, t
porty, and y
and youthf
eeply accep
vo carsareo
ore sporty a
stics of Volvo
hink that V
Character
Character
36
This means
butes of Vo
consumers
e positionin
Chinese con
n the brand
ception of V
they are now
youthful, bu
ful. This me
pted by Chi
ne of the m
and young c
o cars Brand p
Volvo cars
ristics of Volvo
ristics of Volvo
people also
lvo cars, bu
s accepted t
ng of Volvo
nsumers thin
positioning
Volvo Cars r
w developi
ut few Chin
eans that the
inese custom
more advanc
cars like C3
positioning v
are most
o cars by bran
o cars by bran
o accept gre
ut that they
the attribute
cars. There
nk are attri
g strategy o
rand image.
ng new attr
ese custom
ese new att
mer. Howev
ced among
0 in the futu
vs. Brand perc
suitable fo
d perception
d positioning
een, traditio
are not obv
es of youth
e are option
ibutes of V
of Volvo. T
. Other than
ributes for t
mers think V
ributes they
ver, Volvo C
all brands,
ure.
ception
or business
onal,
vious
and
ns of
Volvo
They
n the
their
Volvo
y are
Cars
and
smen
C
(Fig
corp
roya
poli
thei
thei
As
Chin
thin
dep
bein
peop
F
iv.
for p
(Fig
gure 15). So
porations. V
al familiess
iticians, star
ir potential
ir target gro
China has
na. On the
nk Volvo ca
artmentsare
nglow-key,
ple working
Fig.15.Which
Both Chine
people who
gure 16). B
0
20
40
60
80
100
ome of them
Volvo Cars
such as the
rs and other
customers.
oup for famo
no imperia
other hand
ars are goo
e a seriou
steady and
g in large co
kind of occup
ese custome
o pay attenti
But there is
B
m also think
Corporatio
e Swedish,
r famous pe
Famous or
ous persona
l family, th
d, both Chin
od choices
us working
d good tast
orporations
pation do Vol
ers and Volv
ion to the qu
a big perc
Brand percept
37
k it is suita
on stated th
Spanish a
ersonalities.
r very rich b
alities, but n
he positionin
nese custom
for staff w
g environm
te for peop
and busines
lvo cars suit?
vo Cars Cor
uality of the
ception vari
tion Bra
able for staf
hat Volvo c
and Danish
. They didn
businessme
normal busi
ng for roya
mers and th
working in
ment. Volv
ple who wo
ssmen were
? Brand positi
rporation th
eir lives and
iance in res
and positionin
ff in govern
ars are the
royal fami
n’t mention
en may also
inessmen ar
al families i
he Volvo Ca
governmen
vo cars ar
ork in gove
e not mentio
ioning vs. Bra
hink Volvo c
d have a pas
spect of Vo
ng
nment and l
first choic
ilies, impor
businessme
o be include
re not inclu
is not usefu
ars Corpora
nt. Governm
re famous
ernment,but
oned.
and perceptio
cars are suit
ssionate atti
olvo cars b
large
ce of
rtant
en as
ed in
uded.
ul in
ation
ment
for
t the
on
table
itude
rand
38
positioning in the fashion and youth context. Few Chinese customers believe that
Volvo cars are youthful, active and fashionable. But, as mentioned above, Volvo has
already made cars which are youthful active and fashionable. And in the future, they
will develop more cars which have this style. They plan to develop these three
attributes for Volvo cars and position accordingly to consumers. This result showed
that they were still not successful in changing Chinese consumer perceptions in
respect of these new Volvo attributes. Several customers said that Volvo cars are more
suited to older people. Young people prefer streamlined cars.
Fig.16.which kind of client group does Volvo cars suit? Brand positioning vs. Brand perception
Although there are several gaps between the Volvo brand positioning and brand
perceptions of Chinese customer, many Chinese consumers still have a good
impression of Volvo cars and confidence in the brand. Zhejiang Geely Holding Group
Co., Ltd. has completed the acquisition of all of the shares of the Volvo Cars
Corporation. Volvo cars will pay more attention to the Chinese market and satisfy
Chinese consumers’ needs in the future. Today, people usually describe Volvo cars as
being in decline like the nobility. Whilesafety, quality and environmental care are very
good for positioning in the customer’s mind, the fastdevelopment of the car market,
sometimes, safety and environmental care are the attributes which are losing
consumer’s attention. As a high-end brand, Volvo cars’ brand positioning strategy is
0
20
40
60
80
100
120
140
160
180
200
people who pay attention to the life
quality and passionate attitude
people who love luxurious life
people who are fashion, young and
active
Brand perception
Brand positioning
39
not perceived by Chinese customers. From Chinese consumer feedback, it would
appear that many people think Volvo should develop new characteristics and increase
the production volume. But Volvo has their own brand positioning, so they will adopt
customer’s suggestion to change their positioning, or advertise their content of brand
positioning to customer need further thinking and research.
40
7. Conclusion
This thesis analyses what the variance is between Volvo cars brand positioning and
Chinese customer brand perceptions, through the description of market segmentation,
brand positioning, brand perception and a questionnaire for Chinese consumers who
actively contributed to this study. Then the thesis comparedthe brand positioning and
brand perception to find out the variance. On completion several serious gaps were
found in the thesis.
Brand positioning cannot be changed all the time. Brand positioning needs to find a
most favourable position and occupy this position in the mind of the consumer,
differentiating the brand from other competitor brands. From the investigation of the
Volvo car brand positioning and brand perception, it was found that the brand
positioning of Volvo cars does not match with consumer perceptions. Practical, safety
and low-key are the attributes which were strongly accepted by both Chinese
consumers and Volvo Cars Corporation. But green, traditional, simple, sporty and
advanced are also attributes which Volvo Cars Corporation thinks they have but
people perceive on a lesser level.In respect of the attributes of young and luxury, very
few customers accept them. Most people think Volvo cars belong at the semi-high-end
level or middle level. The Volvo Cars Corporation mentioned that Volvo car is a fast
developing luxury car brand in China. Chinese customers think Volvo cars are most
suitable for businessmen (Figure 15). Some of them also think it is suitable for staff in
government and large corporations.The Volvo Cars Corporation has mentioned that
Volvo cars are the first choice of Royal families (Swedish, Spanish, Danish royal
families), important politicians, stars and other famous personalities. Very few
Chinese customers believe that Volvo cars are young, active and fashionable. As
mentioned above, Volvo has already made some types of car which are young active
and fashionable. And in the future, they will develop more cars which have this style.
And they plan develop these three attributes for Volvo cars and claim to consumers.
41
8. Limitation
When the questionnaire for Chinese customers was done, there was a big problem
which is that our friends are almost all young people. So we don’t have enough older
people to fulfill the questionnaire.
And as we were in Sweden we could not do face-to-face interviews with Chinese
questioners. There is only information from the questionnaire.
42
Reference
Aaker, D.A. and Shansby, G.J. (1982), “Positioning your product”, Business Horizons, Vol. 25,May, pp. 56-62 Aaker, D.A. (2003), “The power of the branded differentiator”, MIT Sloan Management Review, Vol. 45 No. 1, pp. 83-7 An-Tien Hsieh, Chung-Kai Li, (2008), “the moderating effect of brandimage on public relationsperception and customer loyalty”, Marketing Intelligence & Planning, Vol. 26 No. 1, pp. 26-42 Agarwal, J. and Malhotra, N.K. (2005), “An integrated model of attitude and affect: theoretical foundation and anempirical investigation”, Journal of Business Research,Vol. 58 No. 4, pp. 483-93 Alpert, F.H. and Kamins, M.A. (1995), “An empirical investigation of consumer memory, attitudeand perceptions toward pioneer and follower brands”, Journal of Marketing, Vol. 59, October, pp. 34-45 Amit K. Ghosh. andGountamChakraborty. (2004). “Using positioning models to measure and manage brand uncertainty”, Journal of Product & Brand Management. Vol. 13, No. 5 Blankson, C., Kalafatis, S.P.,Cheng, J.M.-S. and Hadjicharalambous, C. (2008), “Impact ofpositioning strategies on corporate performance”, Journal of Advertising Research, Vol. 48, No. 1, pp. 106-22 Blumberg Boris (2005), “Business research methods”, McGraw-Hill Education, Christoph Fuchs, Adamantios Diamantopoulos (2009), “Evaluating the effectiveness ofbrand-positioning strategies froma consumer perspective”, European Journal of Marketing, pp. 1763-1786 Diana Ingenhoff and Tanja Fuhrer (2010), “Positioning and differentiation by using brand personality attributesCorporate Communications”, AnInternational Journal, Vol. 15 No. 1,pp. 83-101 Dillon, W.R., Domzal, T. and Madden, T.J. (1986), “Evaluating alternative product-positioningstrategies”, Journal of Advertising Research, Vol. 26, August, pp. 29-35 DiMingo, E. (1988), “The fine art of positioning”, Journal of Business Strategy, Vol.9
43
No. 2, pp. 34-8 Ennis, F.B. (1982), “Positioning revisited”, advertising Age, Vol. 15, March, pp. 43-6 Keller, K.L. and Lehmann, D.R. (2006), “Brands and branding: research findings and futurepriorities”, Marketing Science, Vol. 25 No. 6, pp. 740-59 Garbarino, E. and Johnson, M.S. (1999), “The different rolesof satisfaction, trust, and commitment in customerrelationships”, Journal of Marketing, Vol. 63, April, pp. 70-87 Henry L. Gantt (1917), “the gantt chart”, US management consultant Morgan, R.E., Strong, C. and McGuinness, T. (2003), “Product-market positioning and prospectorstrategy”, European Journal of Marketing, Vol. 37 No. 10, pp. 1409-39 Myers, J.H. (1996), Segmentation and Positioning for Strategic Marketing Decisions, AmericanMarketing Association, Chicago, IL. Oliver Koll and Sylvia von Wallpach (2009, “One brand perception?Or many? Theheterogeneity of intra-brand knowledge”, Journal of Product & Brand Management PrahladKrishnamurthi (2007), “Persuasive Advertising,” Journal of Advertising Research, Oct. 20, IIFT Delhi 34(4), 63-69 Philip kotler, Gary armstong, veronica wong, john saunders (2008), “Principles of marketing”, fifth European edition published, pp.407-450 Remenyi, (2002), “Doing research in business and management”, sagepublications, London S. Ehtesham Ali (2007), “Market snap shot: a survery for measuring brand image (locally assembled motor cycle)”,PAF-Karachi Institute of Economics and Technology, market forces October, vol.3 No. 3 Sujan, M. and Bettman, J.R. (1989), “The effect of brandpositioning strategies on consumers’ brand and categoryperceptions: some insights from schema research”, Journalof Marketing Research, Vol. 26, November, pp. 454-67 Yin, R. K. (2003), Case study research: Design and methods. ThousandOaks, CA: Sage Young & Rubicam (1994), Brand Asset Valuator, London: Young & Rubicam
44
Internet reference
Auto.sohu, Certificate of Registration on Geely, http://auto.sohu.com/20071026/n252880212.shtml, accessed on 2011/05/19 Chinahourly, Mr. Li last wait: Geely“financing blitz” path expose, http://www.chinahourly.com/bizchina/1285/, accessed on 2011/05/22 Ignition.my, Volvo Car Corporation appoints new head of marketing, Sales & customer service, http://ignition.my/2011/05/17/volvo-car-corporation-appoints-new-head-of-marketing-sales-customer-service/, accessed on 2011/05/22 Geely, Geely signs purchase agreement to secure Volvo from Ford, http://www.geely.co.nz/page/News, accessed on 2011/05/19 Geely, Geely motor company, http://www.geely.co.nz/page/Geely_Motor_Co, accessed on 2011/05/19 Volvo cars web page(Global), corporate information, http://www.volvocars.com/intl/top/about/corporate/pages/default.aspx, accessed on2011/05/19 Volvo cars web page (Global), Volvo Car's environmental vision: "DRIVeTowards Zero", http://www.volvocars.com/intl/top/about/corporate/volvo-sustainability/pages/sustainability-news.aspx?itemid=214,accessed on2011/05/19 Volvo cars web page(Global), Volvo Cars' brand pyramid, http://www.volvocars.com/intl/top/about/corporate/volvo-sustainability/pages/company-philosophy.aspx,accessed on2011/05/19 Volvo cars web page(Global), Scandinavia luxury, http://www.volvocars.com/intl/top/about/corporate/volvo-sustainability/sustainable-profitability/pages/scandinavian-luxury.aspx,accessed on2011/05/19 Volvo cars web page(China), Volvo car C30, http://www.volvocars.com/zh-CN/top/about/developing/pages/innovation.aspx,accessed on2011/05/19 Volvo cars web page(China), Volvo ocean race, http://www.volvocars.com/zh-cn/top/about/developing/pages/life.aspx,accessed
45
on2011/05/19
Appendix 1
Questionnaire for Master Thesis (Answer)
2011/4/20
Totally participants: 234 people
On March 28th, 2010, the Ford Motor company declared, they have already signed
the contract which is about selling Volvo cars to China Geely group. This thesis is
mainly about “the deviation of brand positioning and brand perception—a case study
of Volvo cars in China”. This questioner is investigating the views of Volvo cars by
Chinese customer. The survey is anonymous. Thanks for your help and participation!
1. What’s your gender?
Male 68%
Female 32%
2. What’s your age?
less than 20 1%
20 –30 years old 69%
30—40 years old 15%
higher than 40 15%
3. What’s your job?
Student 29%
Staff in government 29%
Staff in corporation 32%
Business man 4%
Others 6%
46
4. If you want to buy a car, how do you think of the car brand?
Very care 48%
Care 44%
Do not care 8%
5. What is Volvo cars level?
High-end 8%
Semi-high-end 66%
Middle 23%
Low-end 3%
6. Which kind of characteristics do Volvo cars have in your opinion?
(Multiple-choice)
Luxurious 2% Young 1%
Steady 19% Simple 6%
Elegant 4% Practical 12%
Slap-up 5% Traditional 2%
Urban-style 6% Green 2%
Personality 3% Safety 16%
Advanced 3% Low-key 16%
Sporty 3%
7. What do you think of the performance of Volvo cars?
Very good 19%
Good 51.6%
Normal 29%
Not good 0.4%
47
8. How do you think about the cost performance of Volvo cars?
Very high 2%
High 40%
Medium 49%
Low 9%
9. If you will buy a new car, do you want to buy any Volvo car?
No, do not to buy 8%
Yes, will buy 35%
Yes, have to buy 4%
I don’t know. Depends the situation 53%
10. Which kind of occupation does Volvo cars suit?
Student 8%
Staff in government 21%
Staff in corporation 24%
Business man 32%
Others 15%
11. Which kind of client group does Volvo cars suit? (Multiple-choice)
people who pay attention to the life quality and passionate
attitude
77%
people who love luxurious life 14%
people who are fashion, young and active 7%
12. Do you think Volvo cars are more suitable for which of the following?
(Multiple-choice)
Go to school or work 3%
shopping and others 12%
48
vacation and interest 32%
business 47%
13. Do you think the brand of Volvo is worth to trust?
Totally worth 14%
very worth 68%
it’s ok 15%
not very worth 2%
no worth 1%
14. Do you like the brand of Volvo car?
Deep like 9%
prefer 40%
like 22%
just so-so 25%
do not like 4%
15. How will Volvo develop itself in the future in your opinion?(Multiple-choice)
increase the level of production 18%
maintain the current characteristics 20%
Reduce price , increase production
volume
29%
Develop new characteristics 33%
16. Volvo cars take “safety” as one main characteristic; do you think how attractive