In a recent blog posting, Jack Trout talks about the issue of branding and how there is no solution to branding, only directions. Reading this immediately brings me back to Volvo's dilemma in how to regain sales.
Trout talks about one of the aspects of branding that I don't think is mentioned nearly enough- the fact that positioning gives a company a starting place when it comes to problems. Positioning is not only about placing the brand within the consumers' mind. Just knowing what your stands for goes in deciding how to act in difficult situations.
If Volvo started with the premise "We stand for safety, but where else can we go from here," they would begin the process of finding direction and not just worrying about the problem of declining sales.
Switching advertising agencies seems to be more of a solution move than a direction move. It will be interesting to see what strategy Volvo's new agency will take.
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2 comments:
Anna -- This is only the second time I have posted a blog.
From nearly 30 years in the Advertising industry, I might guess that 1) Volvo's sales may be declining because of reasons other than their positioning, and 2) that they can afford to go to sexiness of cars because their equity in safety, and the halo affect on all areas of quality, is so strong that consumer research will still show safety long after they will have gone into sexiness territory.
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