Skoda Auto
1. Problem
The main problem Skoda has is a brand image problem that is affecting its growth in the UK market, as a result of years of poor quality and national jokes from both the media and comedians, which has led to a bad perception and deep-seated consumer prejudice against Skoda. These preconceived opinions, perceptions, in addition to the Skoda brand seen as old, unfashionable, out of sync has led consumers (60% of respondents from a recent survey) to not want to buy a Skoda irrespective of the fact that the car might be of good quality. This mental and behavioral equity then affects the brand equity negatively.
2. Alternatives
a) Skoda should target more affluent and higher income buyers instead of low-income buyers. It should re-position itself as not just a cost-consuming brand but also a top quality modern brand. In terms of its positioning strategy, Skoda should consider re-branding and changing its name. The meaning of Skoda does not also help in the terms of the new brand image they want to create in this overcrowded market.
b) 1) Endorsements
Pro: + Skoda can use a celebrity or an athlete (example a top car racer like Lewis Hamilton) to add more credibility to the Skoda brand and influence more people to purchase a Skoda
Pro: + Skoda can also use these endorsements to build more awareness to better position its brand as top-quality.
Con: + A general perception that consumers have regarding endorsements is that the endorsed individual is being paid to say anything to praise the brand and improve sales. Therefore, consumers can retain some level of skepticism and not buy the brand.
2) Advertising Campaigns via TV, online ads, social media
Pro: Skoda can reach a greater a greater audience with its new modern top quality brand message.
Con: The new advertising message has to be clear and the targeted audience needs to connect emotionally and rationally with the message else it would be lost.
Con: Skoda needs to come up with different innovative
The main problem Skoda has is a brand image problem that is affecting its growth in the UK market, as a result of years of poor quality and national jokes from both the media and comedians, which has led to a bad perception and deep-seated consumer prejudice against Skoda. These preconceived opinions, perceptions, in addition to the Skoda brand seen as old, unfashionable, out of sync has led consumers (60% of respondents from a recent survey) to not want to buy a Skoda irrespective of the fact that the car might be of good quality. This mental and behavioral equity then affects the brand equity negatively.
2. Alternatives
a) Skoda should target more affluent and higher income buyers instead of low-income buyers. It should re-position itself as not just a cost-consuming brand but also a top quality modern brand. In terms of its positioning strategy, Skoda should consider re-branding and changing its name. The meaning of Skoda does not also help in the terms of the new brand image they want to create in this overcrowded market.
b) 1) Endorsements
Pro: + Skoda can use a celebrity or an athlete (example a top car racer like Lewis Hamilton) to add more credibility to the Skoda brand and influence more people to purchase a Skoda
Pro: + Skoda can also use these endorsements to build more awareness to better position its brand as top-quality.
Con: + A general perception that consumers have regarding endorsements is that the endorsed individual is being paid to say anything to praise the brand and improve sales. Therefore, consumers can retain some level of skepticism and not buy the brand.
2) Advertising Campaigns via TV, online ads, social media
Pro: Skoda can reach a greater a greater audience with its new modern top quality brand message.
Con: The new advertising message has to be clear and the targeted audience needs to connect emotionally and rationally with the message else it would be lost.
Con: Skoda needs to come up with different innovative