Click on PLAY>>>above to view Ken’s welcome video to this month’s blog..
I just read an article detailing the value of the country’s leading brands indicating that not only is a brand important to the marketing of a product or service but it’s also an important component of the company’s total value on the investment markets. SAB Miller just turned down a $104 Billion offer from Anheuser-Busch in Bev, stating that the offer greatly undervalues the company and attributing its value to the strong brands in its portfolio of beers. As important as the brand is, it’s amazing what some major companies do to jeopardize the strength and even the viability of their brands with some deceitful practices.
This is painfully obvious in the current situation at Volkswagen and Audi where the company purposefully altered the software to deceive the regulators of their emissions control testing. So the CEO of VW has resigned, but the lack of trust will linger with the customers long after he is forgotten. One of the key criteria in building a successful brand is the development of trust with the customer. In this case that their vehicles are not polluting the environment is the end result. More important, however, is the fact that we, as drivers of their vehicles, must have trust in the workmanship and safety of the cars, as a basis for considering a purchase of their brands. 
While the recent infractions would not likely cause injury or damage to the customer or their vehicle, it certainly deteriorates the TRUST that we place that their car is going to run reliably and more important drive safely on today’s high-speed thoroughfares and in all kinds of weather conditions.
The brand strategy that I have championed for several years requires a company and its associates to “live up to the brand everyday”. Otherwise, all the great marketing and promotions are worthless as purchasers become disgruntled and share their negative experiences with their friends, family and the media. To those who were considering changing brands, these covert actions only convince the customer to stick with their existing brand or go elsewhere to a brand they can trust. Just prior to this scandal, VW became the largest auto producer in the world and it has become that by producing cars (since I owned my first beetle back in the 60’s) that were dependable and a great value.
General Motors was also the largest automaker in the world and it chose to deceive their customers with unsafe airbags and other hidden recalls that nearly made the company go broke just a few years ago. GM had worked hard to build a quality image not only for the company but also for the US auto industry. Instead, it jeopardized its existence and helped companies like VW and Toyota surpass them in revenues and market share.
Car selling for years has been based on deceit with loads of fine print, bait and switch tactics, and high-pressure sales policies at the dealer level. I’m currently being bombarded in the Tampa Bay market with commercials from a new Fuccillo KIA dealer in the area. The dealer’s owner fits the stereotype of your Uncle Billy from Jersey City who yells at the view that his deals and promotions are going to be “Huuuuggggee” along with his partner Caroline whose lines are consistently trampled by Billy while they talk about free trips and electronics to prompt a trip to their dealership. In fairness, they have created quite a media presence in a short period. And, the company owns high-volume dealerships all over the country with Billy’s tried and not-so-true tactics. We’ve grown accustomed to dealers’ tactics like this and that’s why customers dislike the whole auto purchasing experience. Unfortunately, no one trusts the dealer to give them the best deal and to live up to their promises after the sale.
What can we expect? If the parent corporations were lying and deceiving, why wouldn’t their authorized dealerships do the same? The key to building a brand that the customer values is building their trust at the same time. With out trust, the brands will likely underachieve and may soon perish.
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