Chrysler Brand Management - Assignment Example

? Chrysler Brand Management Chrysler Brand Management Introduction Brand management is the process of compelling a towards a product offering, through differentiating the product from other similar ones. The practice of brand management is psychological in nature, and is based on the idea of fitting a product in the life of a person, for whom it is designed. The most challenging part of this branding progression is to fulfill the promises, which are made with customers through advertisement and marketing. However, the technique of under-promising is an ideal one in these circumstances, which focuses on delivering more value in terms of price, quality and ease of use, than the customer expects. Through, successfully implementation of this methodology, firms can win loyal customer at a reasonable rate. Brand management practice is applicable across various industries, because of its perceptive dimension (Lienert). However, the positive product or brand image could be built in a fraction of seconds, when salesperson highlights the importance and applicability of a certain product in customer’s life; but the hard part is to backup this perceived value with actual product performance. All of the major automobile companies are attempting to lower their operational costs, because of Japanese competition (Mannering and Winston). But, they are taking this challenge in a wrong direction, because Japanese are not just selling vehicles, they are giving away comfort, low maintenance and high quality. Thus, they are providing more real value to the customer that enables them to charge some extra cash. The competitors should concentrate on enhancing the value provided to the customer, in order to counteract Japanese competition. On the other hand, the organizational performance of automaker majorly depends on the level of consumer contentment which it delivers, because a vehicle is believed to be an experience, rather than just a product (Place and Zonneveld). Branding strategy should also be designed in such a way, that it must strengthen the tactical position of the firm in the marketplace (Shahri). It includes creating new and compelling existing customers, to convert into repeat buyers. The most important feature in Chrystal’s branding strategy is to provide 25% off for a loyal customer. In this way, the company will be able to provide incentive to facilitate sales. Another unique aspect of brand endorsement is its center of attention, which is more abstractive in nature. It emphasizes on improving the quality of life of an individual through a product, thus brand management is all about increasing consumers’ comfort through adding new and meaningful products in their life. Brand managers believe that customers do not purchase clothes; they pay for good looks, which these clothes will provide them. The above mentioned argument fits well, within the industry of cars that this paper will analyze in the coming section. Such consumers are interested in fuel consumption, convenience and elegance, thus require a travelling solution not just a car. Fait, which possesses the managerial rights of Chrysler, is planning to lower their value chain costs through streamlining their dealership network, by combining small to medium size dealers with larger ones. This strategy will help them in lowering the number of dealers; therefore their transportation costs will drop significantly. The use of centralized dealers points towards the intention of top management on gaining a price advantage. In the history, Fait attempted to introduce its products as luxurious ones. But, this decision caused its offerings to compete in a different market, in which Honda and other similar companies had established brands. Therefore, Fait failed to make a name in this segment; mainly, because of its products’ low quality. The customers consider Chrystal’s products as economical and designed for middle class; due to this market perception best cost marketing strategy will be ideal for promoting these products. Under this strategy, the offering is designed in such a way, that it could offer additional features for the customer at a reasonable price. Moreover, because of these extra qualities, company will also be able to charge a premium over them. The main purpose of deploying this strategy is to differentiate the product line of Chrystal in the eyes of the customers; thus, improving brand equity. On the other hand, this framework will save the company from competing in a different market. But, it will facilitate it in surviving in a low cost market, through differentiation. At the same time, better quality in a lower price will result in increased sale; however, the differentiation should be achieved meaningfully, such as, in terms of fuel consumption, availability of spare parts and maintenance. So that, near to ideal travelling solution could be provided to the customer. Efficient customer care system is also a prerequisite for the successful implementation of the intended strategy, because via this, we could minimize the time taken to deliver a car in the hands of the customer. This feature will trigger a psychological comparison of the services provided by other companies, with that of provided by Chrystal, and will definitely contribute towards the betterment of brand equity. Now this paper turns its focus towards highlighting the basic features of co branding strategy, which will be used to introduce the products of Chrystal, as a sub-brand of Fiat. Fiat is well known for producing cars for middle class families, as, this organization made a failed attempt in changing the perception of its products through offering them in the prestigious market. As a product manager, I decided not to experiment with the brand image of the company; but concentrate on strengthening the existing one. The changing economic environment of the US society is resulting in shrinking buying power of the general public. Therefore, people are interested in savings and economical products, thus creating an ideal ground for Chrystal to flourish, because of the shifting preferences of customers. On the other hand, rising petrol prices are forcing buyers, to adjust their fuel options. Majority of the cars on US roads are running on compressed natural gas, but they were originally designed to consume petrol; due to this reason, they are not performing with peak fuel efficiency and resulting in high maintenance and usage cost for the customers. In this grim situation Chrystal, with the support of Fiat, is offering cars which are designed to run on both fuels with optimal efficiency. In this way, Chrystal will be able to capture a larger portion of the market share, which is dissatisfied with the engine and fuel related performance of their high priced vehicles. The slogan for this campaign might be “The most Economical Car”. It is also recommended for the company to arrange advertising campaigns that will allow people to experience the Chrystal cars. This technique will help the company to create a pool of representatives, who experienced its products and therefore, mention them to the ones in their close circles. In this way, the WOM will initiate to spread about the different experience of driving Chrystal cars. As a result, the company will not require a full funded marketing campaign through various marketing channels. This action will allow the company to divert marketing funds towards the betterment of the real experience of using a car. Conclusion This paper focused on the theory of brand management and defines it as the science of changing customer perception of a product, with an aim to compel him towards making a purchase decision. Furthermore, this effort analyzed the applicability of brand management in car industry, and developed a branding strategy for Chrystal. The argument developed during the review of relevant literature, highlighted Fiat, as a provider of economical travelling solution. In the light of Fiat’s prevailing market image, it is suggested for Chrystal, to market its product in such a way that should be consistent with Fait’s image. Moreover, the marketing department will arrange test drive campaigns, so that people could experience the value promised practically. On the other front, 25% off will be provided for loyal customers. Best cost strategy will be followed at Chrystal, which will aim at balancing the quality and price offering to provide a best travelling solution to the customers. Works Cited Lienert, A. "Brand Management." Management Review (1998): 53-57. Mannering, F and C Winston. "Brand Loyalty and the Decline of American Automobile Firms." Brookings Papers: Microeconomics. California: The California Institute of Technology, the National Bureau of Economic Research, the University of Californiaa t Irvine, and the U.S. Department of Justice., 1991. 67-114. Place, M and J Zonneveld. "Chrysler LLC: Managing Performance of a Diverse Dealership Community." Chief Learning Officer (2008): 47-52. Shahri, M. "The Effectiveness of Corporate Branding Strategy in Multi-Business Companies." Australian Journal of Business and Management Research Vol.1 No.6 (2011): 51-59. Read More