For a lot of businesses, the company name and the brand is the same thing. Naturally, then the question businesses should ask themselves is: “What do you want your name to stand for? What do you want it to mean in the mind of the customer? (Webster and Keller, 2004, cited in Business marketing management: B2B, 2012:164) Figure 1. Customer-Based Brand Equity Pyramid (Hutt and Speh, 2012:164)
Abovementioned Customer-Based Brand Equity Pyramid consists of four different steps and focuses on building a strong brand. Step 1 is to establish a broad brand awareness and/or brand identity. Step 2 is developing the connotation of the brand with strong, favorable and unique brand associations. Step 3 is to evoke a favorable …show more content…
It took Volvo a few years after the acquisition to develop a brand strategy for SDLG, and it was not a smooth logical process, but rather it came in less logical process as an answer to the reality changes. First, Volvo planned to keep SDLG as a separate company. But then Volvo discovered that SDLG themselves have not had the knowledge to steer the brand, that is where Volvo applied their previous experience and SDLG became a leader in China. When choosing a strategy for SDLG, putting the Volvo name on SDLG would not make sense, as those are two different value propositions, and it would not benefit Volvo in the long term. Volvo has not started the branding of SDLG from scratch, but they have looked at a successful case of a BMW acquisition and branding of Mini. BMW developed the strategy for BMW Mini in this way: 1) exploring the customer base (who was buying, price); 2) developed a strategy that delivered the brand promise (matched it to customers’ expectations); 3) set the brand strategies in manufacturing, product development, sales and marketing, distribution, company culture, leadership (all processes should be in line with the brand promise). Volvo has followed this successful case study for developing SDLG brand strategy in …show more content…
The core of dual brand strategy is Two brands, one goal (Dual Brand Strategy, 2012:5). According to Pat Olney, President and CEO Volvo Construction Equipment, Volvo and SDLG are separated brands with common goals. He also said that both of the brands have strong patrimony and spectacular future.(Ibid:4) Both companies want a great pleasure for the customers and to be known as leaders in their respective customer segments (Ibid:4). Volvo and SDLG are following Dual Brand strategy because they want to grow and support both brands and not to protect each other