Thursday, July 7, 2011

BRAND IMAGE; A COMPARSION BETWEEN HOW THE CADILLAC OF 1923 AND THE ACURA OF 1986 WERE INTRODUCED

BRAND IMAGE: A COMPARSION BETWEEN HOW THE CADILLAC OF 1923 AND ACURA OF 1986 WERE INTRODUCED

            A brand image is critical to creating a brand because a brand’s image makes a speech to a consumer. Through its image, a brand explains to the world what the brand’s importance is. The first man to understand the importance of brand image was Alfred Sloan, the CEO of General Motors in 1923.
            In 1923, General Motors wanted to become the pre-eminent brand in cars. To do that, GM had to convey to its customers that its cars are different than Ford’s because the people who drive them are different. The image that GM wanted to convey is that successful people drive Cadillac.  Because Cadillac is part of the GM group, the image that GM was trying to create is that GM is equivalent with success. If you drive GM, you are a successful person---you must be---you drive GM---and GM is successful. Cadillac was used to brand all GM products. Ford let them do it. Ford had only 1 car, the Model T. Henry Ford thought that expensive cars were unnecessary and frivolous.  He gave the field to GM. He wanted to communicate the image that a Model T was a practical car---you can have a dependable ride without an exorbitant cost. Henry Ford didn’t realize that the American society had changed. People now defined their station in life with a car. Sloan realized that Cadillac created a sense of accomplishment for the entire GM brand. This image is an important reason why GM became the leading brand in 1926.
            Times change, and it is important for social media strategists to understand why Honda created a different brand image of its luxury brand, the Acura, when it introduced the car in 1986.
            Cadillac and the other GM brands had been in existence for a long time before 1923. Customers had a history and a relationship with these brands. The Acura was a new car. It didn’t exist prior to 1986. This meant it had no image that it could communicate to people. Acura had to start from scratch. Honda felt that Acura had to create its own image. Honda felt that Acura should have conversations with a new demographic of customers. The customers that would be buying an Acura, were not the same customers that had been buying Civics, Accords, and Preludes.   It had no concept, such as success, to communicate to the public.  Because it is new, Honda did not want a poor introduction of the Acura to hinder their other brands.
            Honda’s strategy, in contrast to GM in 1923, is to create a new image for the Acura. Acura became a new thing. It had separate dealerships, and separate manufacturing factories. In terms of social media, Honda wanted the Acura to create their own fans, their own friends, their own following.
            By relying on a new network the Acura became very successful. Because it created a proper imaging campaign the Acura has gone on to become the largest selling luxury car in the American market. In a social media era, we must understand some things in creating a brand image.
            The image is created in the mind of the customer. Image is something that is received from the brand and interpreted by the customer.
            The prospect positions the image in relation to other products, with the help of marketer. General Motors was able to define Cadillac as successful and cool in relation to Model T, as old.
            The image must also be flexible. This is why Sloan invented annual model changes, to keep adding buzz to the image.


Dean Hambleton
dnhambleton@gmail.com  
           

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