Contemporary Brand Management Assignment

Contemporary Brand Management
Volkswagen
Reena Kaur Somal33311957ModuleLeader: Vish
MaheshwariWordCount: 4,085SubmissionDate:
12.01.15
L e e d s B e c k e t t U n i v e r s i t y
Contemporary BrandManagement

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Table of Contents
1.0. THE BRAND....................................................................................................................................................4
1.1. WHAT IS A BRAND?....................................................................................................................................4
1.2. DIFFERENCE BETWEEN A BRAND AND A COMMODITY AND A PRODUCT..........................................5
1.3. BACKGROUND OF BRAND ..........................................................................................................................6
1.4. BRAND STRATEGY......................................................................................................................................6
2.0. BRAND POSITIONING.................................................................................................................................8
2.1.WHAT IS BRAND POSITIONING? ...............................................................................................................8
2.2. NEW POSITIONING STATEMENT .............................................................................................................8
2.3. PERCEPTUAL MAPPING/COMPETITOR POSITIONING.........................................................................9
3.0. BRAND ANALYSIS.....................................................................................................................................11
3.1. BRAND IDENTITY .....................................................................................................................................11
3.2. BRAND IMAGE...........................................................................................................................................14
3.3. BRAND EQUITY.........................................................................................................................................17
3.4. BRAND PERSONALITY .............................................................................................................................19
3.5. BRAND PERSONALITY PYRAMID ...........................................................................................................20
4.0. SPECIAL INTEREST - ADVERTISING.....................................................................................................21
4.1. APPLICATION OF HOW VOLKSWAGEN USES ADVERTISING...............................................................21
4.2. PERFORMANCE EVALUATION OF VOLKSWAGEN’S THINK BLUE CAMPAIGN ................................22
5.0. BRAND MANAGEMENT RECOMMENDATION...............................................................................24
6.0. BIBLIOGRAPHY ..........................................................................................................................................25
7.0. APPENDICES................................................................................................................................................29
7.1. APPENDIX 1– COMPANY BACKGROUND .............................................................................................29
7.2. APPENDIX 2– SLOGAN “DAS AUTO”....................................................................................................29
7.3. APPENDIX 3– POSITIONING..................................................................................................................29
7.4. APPENDIX 4– VOLKSWAGEN’S AIMS...................................................................................................29
7.5. APPENDIX 5– THINK BLUE CAMPAIGN...............................................................................................30
7.6. APPENDIX 6– THINK BLUE.BABY TELEVISION ADVERT ...............................................................30
7.7. APPENDIX 7- THINK BLUE BABY CAMPAIGN - COMPLAINTS ........................................................30
7.8. APPENDIX 8– CONSUMERS VIEWPOINT ON HOW ETHICAL BRANDS ARE .....................................31
7.9. APPENDIX 9– CONSUMERS VIEWPOINT ON WHICH BRANDS THEY TRUST...................................31
9.9. APPENDIX 9 – 2012 HARRIS POLL EQUITREND – FULL LINE AUTOMOTIVE BRAND OF THE
YEAR...................................................................................................................................................................32
9.10. APPENDIX 10– SURVEY QUESTIONS.................................................................................................33
9.11. APPENDIX 11– SURVEY RESULTS 1..................................................................................................35
9.20. APPENDIX 20– SURVEY RESULTS 10...............................................................................................53

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List of Figures
Figure 1 – What a brand is…………………………………………………………………………..……………4
Figure 2 – Evolution of a strong brand…………………………………………………………………...…5
Figure 3 – Added value for consumer……………………………………………………………………….5
Figure 4 – Volkswagen Group……………………………………………………………………………………6
Figure 5 –Brand Architecture Strategies…………………………………………………..……………….7
Figure 6 – Perceptual Map………………………………………………………………………………………..9
Figure 7 – Brand Components…………………………………………………………………………..…….11
Figure 8 – Volkswagen’s Brand Identity Prism………………………………………………….…..…13
Figure 9 – Brand Elements………………………………………………………………….......………..…..13
Figure 10 – The Brand Love Curve………..…………………………………………………………….…..14
Figure 11 – Consumer Decision Making Process…………………………………….……………….15
Figure 12- Image Congruence Hypothesis..……………………………………………………………..16
Figure 13 - 2013 and 2014 EquiTrend Rankings for Full Line Automotive Brand of the
Year…………………………………………………..……………………………………………………………..…….17
Figure 14 - Brand Equity Pyramid…………………………………………………..………………………18
Figure 15 – Image Loyalty Model Grouping Table.......................................................19
Figure 16 – Brand Personality Pyramid………………………………………………………………..….20
Figure 17 - Aaker’s 5- Dimension Brand Personality Model……………………………………20
Figure 18 - Brand Attitude Strategy Quadrants from the Rossiter-Percy Grid…………22
Figure 19 - Hierarchy of Effects Model………………………………………………………..…………23
Figure 20 - PCDL Model – Building brand identity in competitive markets……………..24

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1.0. The Brand
1.1. What is a brand?
De Chernatony & Mcdonald (2003) and Johansson & Carlson (2014) both
state that a brand is a name, logo, symbol or design or a combination of them
all attached to a product or service. Although this does help display features
of the brand, this does not take into account the values of the brand, which
De Chernatony (2010) believes value is key for a brand. Godin (2007) agrees
in the retrospect that brands are the set of expectations, memories, stories
and relationships that taken together account for a consumers decision to
choose one product or service of another. A brand essentially is intended to
identify the goods or services of either a group of sellers or a seller through
differentiating its goods/services from those of competitors (Ghodeswar
2008). In order for a brand to succeed, a strong brand has a sure identity, a
positive image and a unique personality, which can be illustrated from Figure
1 (Johansson & Carlson 2014).
Figure 1 - What a brand is
(Source adapted from Johansson & Carlson 2014, p4)
According to Johansson & Carlson (2014), in order for a brand to be
successful it should have a unique and distinct identity where the consumers
understand what the brand stands for. Figure 2 outlines the process of
evolving a strong brand from these three components, which in turn provides
added value for the consumer illustrated in Figure 3. Added value is a relative
concept that enables customers to make a purchase on the basis of
superiority over competing brands (De Chernatony 2006).
Identity
• Name
• Logo
• Colours
• Products
• Services
Image
• Positive
associations
• Negative
associations
• Promises
Personality
• Traits the brand
elicits
• Gestralt of these
traits

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Figure 2 – Evolution of a strong brand
(Source adapted from Johansson & Carlson 2014, p6)
Figure 3 - Added value for consumer
(Image adapted from Kapferer 2004).
1.2. Difference between a brand and a commodity and a product
A brand is a well-established company formed through a concept and not
about the product features, for instance Volkswagen whereas a commodity is
a raw material with no story told e.g. tyres, oil. The difference between a
product and a brand is that at product level this is the way the manufacturer
produces this service (Johansson & Carlson 2014).
Brand is
born & its
identityis
defined
Brand image
emerges in
consumers'
minds
Brand
personality
develops
Consumers
benefit from
consuming brand
Firm benefits
from the brand
Consumer
Identification
Continuity
Ethical
Optimization
Hedonistic
Badge
Guarantee
Practicality

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1.3. Background of brand
Volkswagen is one of the world's leading automobile manufacturer with its
strapline "Das Auto" standing for innovative, high-quality and reliable cars
(Volkswagen Group 2014). The company has recorded revenues of £197,007
million during December 2013, an increase of 2.2% over 2012 (Volkswagen
Annual Report 2013). Volkswagen comprises of 12 brands from 7 European
countries (See Figure 4). Each brand has its own character and operates as an
independent entity on the market (See Appendix 1). Volkswagen has
constantly maintained their brand story in being a global market leader.
Chairman of the Board of Management of Volkswagen stated that “Our
pursuit of innovation and perfection and our responsible approach will help
to make us the world’s leading automaker by 2018 – both economically and
ecologically” (Volkswagen Annual Report 2013).
Figure 4 – Volkswagen Group
(Image taken from Volkswagen Group 2014)
1.4. Brand Strategy
According to Interbrand (2014), Volkswagen has made German engineering
and reliable technology its hallmark. This can be reiterated and
communicated through their brand marketing strategies. Kapferer (2004)
identifies six models in the management of brand-product relationships
illustrated in Figure 5. Volkswagen adopts mixed approaches but can be
clearly identified as adopting an endorsing brand strategy whereby the
“brand supports and assumes a secondary position to the product brand”
(Kapferer 2004). Endorsing brands allow greater freedom of movement and
they each have their own image and personality e.g. Volkswagen: Audi, Seat,
Skoda, Bentley, Porsche etc. all act as a guarantor to Volkswagen.

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Figure 5 – Brand Architecture Strategies
(Image adapted from Kapferer, 2004).
Brand
Architecture
Strategy
Product
Line
Range
Source
Umbrella
Endorsing

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2.0. Brand Positioning
2.1.What is brand positioning?
Positioning is key to a brand’s marketing strategy. It is vital to implement
brand positioning, as it is the act of designing company’s offer and image, so
that it occupies a distinct and valued place in target consumer’s mind (Keller,
2013). Essentially this means that consumers should have favourable beliefs
and positive emotions attached to the brand compared to that of its
competitors. Good positioning occurs through emphasizing attributes where
the brand has relative advantages and deemphasizes the weak attributes
(Johansson & Carlson 2014).
2.2. New Positioning Statement
Johansson & Carlson (2014) identify that a brand positioning statement is
based upon the company’s objectives and represents the way the brand
manager would like the brand to be perceived by consumers. Kapferer’s 2007
model is particularly useful in determining a new positioning statement for
Volkswagen. In order to achieve the correct positioning, points of difference
and points of parity must be established. Since Volkswagen are not claiming
to be the market leaders, they are adopting a differentiated positioning
approach as they are looking for a benefit that the brand offers other than
the primary category benefit that helps to position the market leader
centrally. Points-of-difference are defined as assets of the brand which
consumers believe they cannot find within any of its competitors (Keller
2013). Volkswagen adopts this point of difference approach as they are
competing with the market leaders (Keller 2013). Kapferer’s model below
answers the four questions in determining a new positioning statement for
Volkswagen.
 A brand for what?
Automobile service offering trusted, safe and environmentally sound
vehicles
 A brand for whom?
Female drivers concerned about the environment and interested in
reliable automobiles.
 A brand for when?
Brand to be consumed through daily activities driving to work,
shopping and travelling on long distance trips
 A brand against whom?
Other full line automobiles Ford, Honda, Nissan, Toyota.

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These questions outline that Volkswagen’s position is aimed towards the driver
who values trust and sustainability in a car; whereby eco-friendliness and
sustainability are key by competing in an increasingly tough market. Volkswagen
can also be said to adopt an affective positioning strategy to drive associations
towards the brand by focusing on consumers’ emotions and feelings (Mahajam &
Wind 2002). Their “Think Blue” campaign is a prime example of how they are
trying to connect with the audience’s emotions through trying to establish a
relationship with the consumer to identify with the campaign. This can link in
with Percy & Elliot (2014) who regard this as a user-orientated positioning
strategy whereby the user (i.e. driver) is the focus and the underlying purchase
motivation in the category is social approval.
2.3. Perceptual Mapping/Competitor Positioning
VW's broad product portfolio means it faces competition from established
premium brands, design innovators, and VW's own subsidiaries, SEAT and
Škoda (Interbrand 2014). Volkswagen are rising to the competition by
emphasising on the brand rather than the products. For instance, to deepen
the brand's emotional connection and relevance, the brand launched an
exclusive app for fans of the 2014 FIFA World Cup (Interbrand 2014). The
brand is also innovating around E-mobility and self-driving cars (Interbrand
2014). Figure 6 illustrates a perceptual map positioning Volkswagen against
its competitors in relation to Keller’s (2003) points-of-difference (desirability,
deliverability & differentiation) concerned around how ethical it is and trust
levels.
Figure 6 - Perceptual Map
Unethical
Ethical
High TrustLow Trust
Volkswagen
Ford
Renault
Peugeot
Vauxhall
Fiat
Audi

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Overall, Volkswagen is successfully positioning itself as the market leader in
its sustainability efforts and trust levels evidenced in their positioning
statement. Volkswagen’s main competitor is Audi in relation to consumers’
trust in them, illustrated in Appendix 7.9. with 38% of users voted
Volkswagen as the most trusted brand compared to 37% for Audi from
Mintel (2014). De Chernatony (2010) p4 stated, “The most trusted brands
are those whose behaviour is consistent with their brand values” which links
back to Volkswagen’s values outlined in Appendix 7.4 and their vision to be
the most successful, fascinating and sustainable automaker in the world
(Volkswagen Group 2014). In relation to how ethical Volkswagen are, they
have the highest brand image with 30% of users, followed closely by its main
competitor Audi with 29% (Mintel 2014) reiterating how Volkswagen is
succeeding it beating its competitor Audi in this area.

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3.0. Brand Analysis
In this section an analysis of Volkswagen will be undertaken in regards to
how the different brand elements are developed, communicated and
discussed in relation to identity, image, equity and personality.
3.1. Brand Identity
According to de Chernatony (2006), brand identity is the “distinctive or
central idea of a brand and how the brand communicates this idea to its
stakeholders”. Volkswagen’s brand identity can be categorised in relation to
Keller’s (2003) five relative brand components in Figure 7.
Figure 7 – Brand Components
Name Volkswagen means "people's car" in German. It was started in
the 1930s, at the request of the country's leader.
Logo
Packaging N/A
Colour Blue associated with excellence and class.
Design N/A
The brand name and logo together represent a brand’s identity and image.
When recognised and recalled they should evoke, whether consciously or
subconsciously, the associations and promises that constitute the brand
identity, image and, in the end, personality (Johansson & Carlson 2014).
Volkswagen successfully communicates their name well through being a
German car company and associating its name with its heritage of ‘people’s’
car’ in German. Primary research conducted identified how 100% of
respondents have heard of the brand Volkswagen before (See Appendix 11-
20). Over the years, Volkswagen has been abbreviated to the acronym “VW”
whereby when respondents were asked what first comes to mind when they
think of Volkswagen, 60% stated ‘VW/the logo’ reiterating how successful the
name has been communicated (See Appendix 11-20). Volkswagen’s simple
slogan “Das Auto” which is part of the brand name helps consumers identify
the brand through translation into “The Car”. It successfully aims this at
customers to create memorable taglines that help anchor the brand in
consumer’s mind, which is covered more in depth in Appendix 7.2 (Yalch,
1991).

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In regards to colour, the colour blue works well in relation to automobiles
and links strongly back to their “Think Blue” campaign as it illustrates
connotations of sustainability, class and excellence. This links back to what
Volkswagen represents, in which the blue colour in the Volkswagen logo
represents excellence and class, while the white colour depicts purity and
charm (Famous Logos 2012). Primary research conducted found 100% of
respondents answered ‘blue’ when asked what colour first comes to mind
when they think of Volkswagen (See Appendix 11-20). This reinforces how
strong the colour blue is associated with the brand Volkswagen. 20% of
respondents also mentioned the colour silver alongside blue, which is
prominent in the logo highlighting how the colours in the logo are highly
recognizable.
Figure 8 illustrates Volkswagen’s brand identity from adaption of Kapferer’s
(1997) brand identity prism. This prism identifies brand attributes of
Volkswagen through industry information and prior knowledge. It highlights
how Volkswagen successfully communicates their brand identity through
their relationship between the consumer and the brand through personal
anecdotal experiences they advertise. For instance the “Think Blue”
advertising campaign can be depicted as memorable, meaningful and likable
illustrated in Figure 9. It establishes a relationship with the consumer by
depicting a father trying to get his child to sleep by driving around during the
night, which consumers can relate to. This reiterates Aaker and
Joachimsthaler’s (2000) viewpoint that an effective brand identity needs to
resonate with customers, differentiate the brand from competitors, and
represent what the organization can and will do over time.
These brand attributes can also be sourced from the answers that the
questionnaire participants gave which filters through the pyramid. Brand
attributes ‘personality’ and ‘physique’ were the two most relevant attributes
to Volkswagen (See Appendix 11-20). In terms of physical attributes, when
respondents were asked what comes to mind when they first think of
Volkswagen, the colour blue and the logo were amongst the top answers;
highlighting the strong association of physical attributes of Volkswagen. In
regards to personality, 100% of respondents stated Volkswagen targets
primarily at males with 80% describing the brand as masculine, reliable,
mature, family-orientated and concerned about the environment (See
Appendix 11-20).

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Figure 8 - Volkswagen’s Brand Identity Prism
Figure 9 - Brand Elements
Memorable Meaningful Likable Transferable Adaptable Protectable
Physique:
 Product spectrum
ranges from
motorcycles to low-
consumption small
cars and luxury
vehicles.
 Recognisable through
the blue and white VW
logo, keeping the
traditional icon
Relationship:
 Personal anecdotal
experiences
 Family orientated
 Trust
Reflection:
 Reliable
 Suited for everyone
 Person who feels
concerned about the
environment
Personality:
 Masculine
 Reliable
 Mature
 Family-orientated
 Concerned about the
environment
Culture:
 German
 Worldwide
 Family values
 Offer attractive, safe,
environmentally
sound vehicles
Self Image:
 Confident
 Safe
 Stylish
 Self-assured
 In control

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3.2. Brand Image
Brand image must not be confused with brand identity. According to Keller
(1993) brand image can be described “as the perceptions involving both the
functionality and the emotions of a brand as reflected by the brand
associations held within consumers’ minds”. It is concerned with the
perceptions reflected by the brand associations held in consumer memory
through negative or positive experiences (Keller 2013).
Volkswagen is a globally recognised brand thanks to its iconic brand image
with 96% of respondents stating they have heard of the brand (Mintel 2014)
with 10/10 of respondents agreeing they have heard of the brand from
primary research conducted. It can therefore fit into the ‘my beloved brand
for life’ stage illustrated in Figure 10 illustrating it is not just a brand that
produces quality cars but is a brand that illustrates a unique brand image
through emotional associations. Consumers move along the brand curve
whereby the focus is now on experience rather than the product, which is
evident in the “Think Blue” campaign. This is explored, more in-depth in
Section 4.0.
Figure 10 - The Brand Love Curve
Consumers perceived evaluation of a brand can be linked through key
attributes such as image heritage which embodies the consumer’s past brand
related experiences about a brand (Rindell et al. 2011). Mintel (2014)
identifies how Volkswagen is considered to have a strong reputation, by over
55s and men in particular, which may arise from its German manufacturing
and consumers’ previous experiences with the brand. Statistics also show
how only 7% perceive Volkswagen as out-dated with 2% perceiving it as
unreliable reinforcing how Volkswagen have a high brand image (Mintel
2014). This could be due to having a high image heritage and image-in-use

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which stands for the consumer’s current image construction process
influenced by image heritage (Rindell 2007). However, this is dependent
upon where a consumer is in the decision making process illustrated in Figure
11. It can be suggested that consumers of Volkswagen will only consider the
brand when they identify a need for a car and must compare which brand to
choose from competitors. Careful consideration needs to be accounted for
through the evaluation of alternatives stage, as this is a high-involvement
purchase.
Figure 11 - Consumer Decision Making Process
(Source adapted from Belch, et al., 2012)
Figure 12 identifies where Volkswagen are in regards to their brand image.
Primary research shows that the target audience perceive VW in a similar way to
how they position themselves in their mission statement that they are mature,
family-orientated and concerned about the environment (See Appendix 11-20).
Due to the fact that Volkswagen have high trust levels competing against Audi
and Mercedes Benz reinforces how they are working towards a positive brand
image. These three car brands are all German branded cards suggesting that
Germany has a strong positive association with car production and engineering
(Mintel 2014). Again, this resonates with the fact that Volkswagen has a positive
brand image and relates back to image heritage whereby consumers’
experiences with Germany are clearly positive. Mintel (2014) identifies how
Volkswagen are perceived as highly trusted in regards to brand image with 80%
of respondents from primary research conducted stating Volkswagen have good
loyalty (See Appendix 11-20). However Volkswagen’s brand equity is low,
therefore they need to further increase their self-image by working to gain more
reach as currently it is perceived as a male brand with 100% of respondents
agreeing it is a masculine brand that targets majority at males (See Appendix 11-
20).
Problem
Recognition
Information
Search
Evaluationof
Alternatives
Purchase
Decision
Post Purchase
Evaluation

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Figure 12 - Image Congruence Hypothesis
Adapted from Heath and Scott, (1998).
Positive brand evaluation
Brand image Self image
Negative brand evaluation

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3.3. Brand Equity
Brand equity is important for brands to uphold through consumers’
perceptions and associations they hold about a brand. Aaker (1996) defines
brand equity as a “set of assets and liabilities linked to a brand, its name and
symbol, which add or subtract from the value provided by a product or
service to a firm and/or that firm’s connection”.
It is evident that consumers’ perceptions of automotive brands continue to
climb based on the EquiTrend Brand Equity Index compromising of
familiarity, quality and purchase consideration (Harris Interactive 2014).
Figure 13 outlines how full line auto brands have made significant gains in
continuing to vie for Brand of the Year status with Toyota, Honda, Chevrolet
and Ford all claiming top spot at least once in the last nine years. This in
comparison with Volkswagen has been ranked below category average in
2013 and 2014 indicating low brand equity. It was however ranked 8th place
in 2012, which is illustrated in Appendix 7.9 of 53.39% (Harris Interactive
2012).
From my understanding of awareness and not meeting at customer
relationship management, Volkswagen are lacking equity, therefore they
need to build on this. Primary research conducted found 100% of
respondents stated Volkswagen targets at males and mentioned it was a
masculine brand (See Appendix 11-20). This can be achieved through
positioning the brand more towards females to build brand equity. In order
to reach brand equity, it is recommended Volkswagen follow Johansson and
Carlson (2014) brand equity pyramid illustrated in Figure 14 by reaching the
loyalty stage through consumer bonding.
Figure 13 - 2013 and 2014 EquiTrend Rankings for Full Line Automotive Brand of
the Year
Full Line Automotive Brand of the Year
2013 Harris Poll EquiTrend 2014 Harris Poll EquiTrend
1 Toyota Vehicles Honda Vehicles
2 Honda Vehicles Toyota Vehicles
3 Chevrolet Vehicles Ford Vehicles
4 Ford Vehicles Chevrolet Vehicles
5 Nissan Vehicles Nissan Vehicles
Other Full Line Automotive brands in study ranked below category average:
Buick Vehicles, Chrysler Vehicles, Dodge Vehicles, Fiat Vehicles, Hyundai Vehicles,
Kia Vehicles, Mazda Vehicles, MINI Cooper Vehicles, Mitsubishi Vehicles, Subaru
Vehicles, Volkswagen Vehicles
Source Adapted from: EquiTrend (2013) and EquiTrend (2014)

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Figure 14 - Brand Equity Pyramid
Source Adapted from: Johansson and Carlson (2014)
AttitudeEvaluation
Image
Characteristics
Functional
Characteristics
Awareness Familiarity
Loyalty
Rational Emotional
Consumer Bonding
Consumer Response
Consumer Perception
Consumer Recognition

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3.4. Brand Personality
Brand personality is essentially the way the “brand walks, talks and dresses”
(Schwartz McDonald, 1990). The UK car industry represents a good example
of brand personality. Spandler (1987) identifies how car advertising has
undergone a transformation towards adding brand values. The advertising is
now appealing to the hearts as well as the heads of potential buyers. Cars are
becoming more uniform and it is harder to make them stand out both in
terms of product and style of advertising (Spandler 1987). According to Brand
Channel (2014) a brand’s personality must resonate intuitively in all who are
involved with the brand. For 60 years Volkswagen has successfully branded
itself on the democratic values of “for the people”. Despite moving into the
luxury car category, it has maintained its down-to-earth values and respectful
behaviour through telling a personal story that invites a deeper relationship
with consumers (Brand Channel 2014). In subsequent campaigns Volkswagen
has shifted the focus more towards sustainability and lifetime values. This
elicits sympathy and here the brand and the customers share a common
interest in caring for the environment (Brand Channel 2014).
An image-loyalty table is useful in establishing where the target audience fits
in Figure 15. Customers can be identified as ‘frustrated’ as they are not
satisfied with the brand, which is reflected by Volkswagen’s low brand equity
covered in Section 3.3. Percy & Elliot (2014) identify that to retain frustrated
customers – the main objective is through overcoming their perceived risk in
switching, as although they are highly trusted, they are not reaching equity.
Figure 15 – Image Loyalty Model Grouping Table
Source adapted from Percy & Elliot (2014) p104
Satisfaction
Low High
Perceivedriskinswitching
LowHigh
Frustrated Loyal
Switchable Vulnerable

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3.5. Brand Personality Pyramid
A brand pyramid enables the core promise of the brand to be characterised
determining the brand essence through the construction of the pyramid (De
Chernatony 2010). From using De Chernatony’s advised method, a
personality pyramid has been constructed in Figure 16 from the function
benefits working its way up towards the personality traits of Volkswagen as a
brand. From identifying two key attributes, the pyramid highlights how this
can be illustrated through the stages.
Figure 16 - Brand Personality Pyramid:
(Source Adapted from De Chernatony, 2006)
Volkswagen are trying to illustrate the human characteristics of the brand
through conveying an emotive brand personality used throughout their
“Think Blue” campaigns, through attributes such as their eco-friendliness and
quality service. They are trying to engage consumers that they are concerned
about the environment through the quality and eco-friendliness service they
provide. This is reflected in their aim to become the global economic and
environmental leader among automobile manufacturers by 2018 (See
Appendix 7.4). Figure 17 reiterates how Volkswagen fits in with
‘sophistication’ from adopting a slice of life approach through promotional
activity comprising of television and magazine advertising, which is explored
fully in Section 4.0.
Figure 17 - Aaker’s 5- Dimension Brand Personality Model
Source Adapted from Aaker (2010)
Personality
Traits
Successful
Concerned
about the
environment
Successful
Values Luxury
Sense of
responsibility
Luxury
Emotional
Rewards
Confident Caring
Confident
Benefits
High
performance
car
Safety
Attributes
Quality
Service
Eco-friendly
Sincerity Excitement Competence Sophisitcation Ruggedness

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4.0. Special Interest - Advertising
Advertising is a major factoring in leveraging brand equity (Achenbaum
1989). According to Meenaghan (1995), its prime function is to achieve for a
brand a particular personality or character on the perception of its market.
This can be achieved by imbuing the brand with specific associations or
values. To achieve becoming the most innovative and sustainable volume
carmaker, Volkswagen created the "Think Blue" campaign aiming to make
products and production even more environmentally friendly (Volkswagen
Group 2014). The “Think Blue” campaign is concerned around promoting
energy-efficient products and technology.
4.1. Application of how Volkswagen uses advertising
One of Volkswagen’s “Think Blue” baby campaign promotes technology that
switches off a car’s engine when it comes to a standstill featuring a father
taking his child out for a drive to get him to sleep (Campaign Live 2013). The
ad launched on 27th April 2013, just in time for Father’s Day and is a personal
anecdotal experience fathers can relate to (See Appendix 7.6). Through word-
of-mouth and trial-and-error, many parents have discovered how the
vibrations of a car can soothe their baby to sleep (Patricios 2013). The ad is
based on the scenario whereby every parent can relate to; the common tried
and trusted trick of driving your baby around in order to get them to sleep
(Little Black Book 2013).
The ad effectively communicated its fuel-saving Start/Stop technology
whereby every time the father stops at a traffic light, the Volkswagen
Tiguan’s engine automatically switches off when stationary. This happens
several times during the ad disturbing the baby to wake up and start crying.
Once the engine starts again, the baby drifts happily back to sleep. The ad
ends with the father spotting another father alongside him in another
Volkswagen in the same position with his baby also crying. The fathers are
able to empathise with one another and the ad ends with the voice-over “At
least you’ll save money on fuel”.
A transformational attitude was required for this advertising campaign, which
Figure 18 illustrates and identifies what is needed based upon the motivation
of consumers. It is clearly identifiable how a high-involvement
transformational attitude is needed to engage with consumers, as a car is a
high involvement purchase. It is essential that a transformational brand
attitude strategy must portray an emotional approach that is unique to the
brand, which Volkswagens achieves through emotional authenticity (Percy &
Elliot 2014). This reiterates Fletcher’s (2014) viewpoint how there is clear
evidence that ‘emotional’ advertisements are more effective than
unembellished factual advertisements. Fill (2009) agrees that emotions play
an important role in advertising when used to build awareness levels and
brand strength.

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Figure 18: Brand Attitude Strategy Quadrants from the Rossiter-Percy Grid
Motivation
Informational Transformational
(negative) (positive)
Source Adapted from Percy & Elliot (2014) p187
4.2. Performance Evaluation of Volkswagen’s Think Blue Campaign
By applying the hierarchy of effects model illustrated in Figure 19,
Volkswagen successfully appeals to the affective phase through ‘liking’ as it
received many positive reviews including being named ad of the week (Flood
2013). It was also the winner of Thinkboxes May/June 2013 ad (Thinkbox.tv
2014). This was due to parents being able to identify themselves with the ad
which is reiterated by Volkswagen’s smart strategy to rebrand its vehicles as
family cars, moving away from its previously established image of sporty or
fun cars for the young, single person (Patricios 2013). According to Patricios
(2013) the ad successfully appeals to those consumers with children and who
are energy-conscious/ the ‘greenies’ amongst us to make better choices that
will benefit our offspring.
National Communications Manager at Volkswagen UK, Kirsten Stagg, stated
how happy they were to be able to communicate this technical message in an
engaging way (Thinkbox.tv 2014). They wanted to build on the success of
their 2012 Polo “Dad” campaign by reflecting their communications strategy
to leverage the warm and human side of the Volkswagen brand (Little Black
Book 2013). According to Interbrand (2014) it recently won Germany's
National Energy Globe Award for the initiative and for its commitment to
making its global car plants more sustainable by 2018 which can be from the
success of the “Think Blue” campaign. This effectively links in with the
affective and conative phase of the hierarchy of effects model illustrated in
Figure 19 reflecting consumers positive attitude towards the brand being
voted ad of the week. However, Volkswagen does not communicate any
information about the product itself in the ad about the features of the
Start/Stop technology. It could therefore be suggested that the cognition
stage is not reached in Figure 19 since consumers have no knowledge about
the features of the think blue technology posing an opportunity for
Volkswagen to position itself towards proving more information in their
advertising campaigns.
Volkswagen
Low
High
Involvement

23
Figure 19 - Hierarchy of Effects Model
Purchase
Conviction
Preference
Liking
Knowledge
Awareness
Behavioural/Conative Phase
Affective Phase
Cognitive Phase

24
5.0. Brand Management Recommendation
After undertaking analysis of Volkswagen, it is evident that Volkswagen are
lacking brand equity in regards to being perceived as a masculine brand.
Volkswagen as a brand need to build on this problem by positioning towards
a more female orientated audience since 100% of respondents stated
Volkswagen target primarily towards males (See Appendix 11-20). Employing
a credible, recognisable female celebrity ambassador would help leverage
the brand equity. Positive female role models such as Gwyneth Paltrow, Keira
Knightley, Nicole Kidman amongst a few would be an ideal fit to the brand
Volkswagen as they resonate positive associations being a mother and having
qualities females idolise with being reliable and sophisticated.
In order to guarantee the strengthening of brand equity through celebrity
endorsement, it is essential to convey a credible and relevant brand image;
reiterating how the ambassador must fit the brand. Findings from primary
research conducted found 90% felt Gwyneth Paltrow was a good celebrity
ambassador for the brand (See Appendix 11-20). This is due to her ability to
appeal to females and mothers, thus fitting in with the target market.
Figure 20 highlights how Volkswagen can improve and leverage brand equity
through delivering customer satisfaction and customer delight. By positioning
itself towards targeting females, this will help Volkswagen deliver customer
delight through enhancing customer satisfaction at the female audience. As
established in Section 3.3, brand equity is low for Volkswagen, therefore it is
evident leveraging the brand equity will help Volkswagen through positioning
itself at females to gain a larger reach.
Figure 20 - PCDL Model – Building brand identity in competitive markets
(Source Adapted from Ghodeswar, 2008)
Positioning the brand
- Features
- TangibleAttributes
- IntangibleAttributes
- Product Functions
- Benefits
- Operational
Communicating the
brand message
- Advertising
Campaigns
- Themes
- Celebrities
- Events
-Shows
- Consumer
Delivering the Brand
Performance
- Product Performance
- ServicePerformance
- Customer Care
- Customer Satisfaction
- Customer Delight
Leveraging the Brand
Equity
- Line Extension
Brand Extension
- Ingredient Branding
- Co-Branding
- Brand Alliance
- Social Integration

25
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York, NY, pp. 13, 27, 40, 48.
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Brand Channel (2014) Brand Personality: Communicating Character and
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building and sustaining brands. London: Butterworth-Heinemann.
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Fill (2009) Marketing Communications: Interactivity, Communities and Content. FT
Prentice Hall. Essex. 5th Ed.
Fletcher, W. (2010) Advertising – A Very Short Introduction. Oxford. UK. First
published 2010. P12
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product and Brand Management, 17, (1), 4-12.
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<http://www.motorauthority.com/news/1026205_vws-new-tagline-das-auto>
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Benz and Honda Lead; Kelley Blue Book's KBB.com Debuts as Online Auto Shopping
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Heath, A. and Scott, D. (1998) The self-concept and image congruence hypothesis:
an empirical evaluation of the motorvehicle market. European Journal of
Marketing, Vol. 32, Issue 11/12, pp 1110 – 1123.
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<http://bestglobalbrands.com/2014/volkswagen/> [Accessed 23 Oct.14].
Johansson, J.K & Carlson, K.A. (2014) Contemporary Brand Management. London:
Sage Publication Inc.
Kapferer, J. N. (2004). The new strategic brand management. London: Kogan Page.
Keller, K.L. (1993) Conceptualizing, Measuring, and Managing Customer-Based
Brand Equity. Journal of Marketing, Vol. 57, No. 1 (Jan., 1993), pp. 1-22. American
Marketing Association. Available from: <http://www.jstor.org/stable/1252054 .>

27
Keller, K.L. (2013) Strategic Brand Management (4th Ed). Boston: Pearson.
Little Black Book (2013) adam&eveDDB 'Think Blue' for VW [online] Available from:
<http://lbbonline.com/news/adameveddb-think-blue-for-vw/> [Accessed 02
Dec.14].
Mahajam, V. & Wind, Y. (2002) Got emotional product positioning? Marketing
Management. Chicago: May/June 2002. Vol. 11, Iss. 3; pg. 36, 6 pgs
MarketLine Advantage (2014) Volkswagen [online] Available from:
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Meenaghan, T. (1995) The role of advertising in brand image development. Journal
of Product & Brand Management, Vol. 4 Iss 4 pp. 23-34
Mintel (2014) Car Purchasing Process. [online] Available from:
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Ornico. 08.11.13 [online] Available from: <http://website.ornico.co.za/2013/11/ad-
of-the-week-with-oresti-patricios-stop-start-cry-sleep/> [Accessed 02 Nov.14].
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Press, 4th Ed, UK.
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consumer practices: uncovering embedded brand strength. Journal of Product &
Brand Management, Vol 20, 6, 2011, 440-446.
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28
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<http://www.youtube.com/watch?v=xHOvyQu57cc> [Accessed 23 Oct.14].

29
7.0. Appendices
7.1. Appendix 1 – Company Background
The product spectrum ranges from motorcycles to low-consumption small
cars and luxury vehicles. In the commercial vehicle sector, the products
include ranges from pick-ups, buses and heavy trucks highlighting the diverse
range of audiences it targets (Volkswagen Group 2014)
7.2. Appendix 2 – Slogan “Das Auto”
Throughout the years, Volkswagen have incorporated slogans into their
advertising strategies, their most recent slogan “Das Auto” unites the three
core messages that distinguish the Volkswagen Passenger Cars brand:
innovative, offering enduring value and responsible (Volkswagen 2014). The
simple tagline “Das Auto” translates into “The Car” from German. This slogan
helps consumers identify the brand through this tagline. It successfully aims
this at customers to create memorable taglines that help anchor the brand in
consumer’s mind (Yalch, 1991). It is difficult to create a name/slogan for a
brand without having global difficulties and interpretations. However, Hall
(2007) agrees in the retrospect that unlike the previous slogan, “Das Auto” is
effective because it translates to roughly the same meaning in many of the
world’s major languages.
7.3. Appendix 3 – Positioning
We can guarantee our customers the best service they can ask for in terms of
providing professional expertise and offering the smoothest driving
experience. Unlike other cars, the sustainability Volkswagen offers ensures
the best eco-friendly handling cars. Exceptional service and our best handling
cars on the road reiterate how we are the best in the automobile market
(Volkswagen Annual Report 2013).
7.4. Appendix 4 – Volkswagen’s Aims
The Volkswagen Group aims to increase its unit sales and profitability for the
long term. This is why its Strategy 2018 – with which Volkswagen intends to
become the global economic and environmental leader among automobile
manufacturers by 2018 – has been anchored in the Company (Volkswagen
Annual Report 2013).

30
7.5. Appendix 5 – Think Blue Campaign
“Think Blue” is Volkswagen’s holistic philosophy to promote environmentally-
friendly mobility and encourage individuals to act sustainably. Volkswagen’s
“Think Blue.” philosophy encompasses technology to create more efficient
cars, the development of alternative drives, new mobility concepts such as
Quicar, a car-sharing project, and numerous alliances with environmental
associations worldwide. Volkswagen launched its “Think Blue. Factory.”
program in 2011 on the theme of “More sustainability – less environmental
impact!” The aim is to continuously make production more ecologically
efficient and to reduce energy consumption, waste, water consumption,
solvent and CO2 emissions by 25 percent until 2018.
Volkswagen Group (2014) Our Strategy UK [online] Available from:
<http://navigator.volkswagenag.com/index.html#group/vw-group/strategy>
[Accessed 23 Oct.14]
7.6. Appendix 6 – Think Blue. Baby Television Advert
Youtube (2013) Think Blue. Baby Television Advert. [online] Available from: <
http://www.youtube.com/watch?v=xHOvyQu57cc> [Accessed: 23 Oct.14].
7.7. Appendix 7 - Think Blue Baby Campaign - Complaints
Complaints were issued to the Advertising Standards Authority due to the
babies featured in the ad were too young and did not weigh enough to be
sitting in front-facing car seats (Decision Marketing 2013). Although the ASA
rejected the complaints, the criticisms were not to do with the ad itself;
reiterating the success of Volkswagen’s advertising strategy. That being said,
the ad did receive negative criticism especially towards the concept around
taking the mick out of their own brand, which was a risky move for
Volkswagen. However, that being said Volkswagen was able to get away with
this with being such an established and recognised brand. It managed to be
both self-effacing and to create a charming commercial that beautifully
positions its new, green innovation (Patricios 2013).

31
7.8. Appendix 8 – Consumers viewpoint on how ethical brands are
How would you match the word ‘ethical’ to the brands below
Brand Image – macro image, February 2014
%
Volkswagen 30
Audi 29
Ford 28
Vauxhall 24
Peugeot 23
Hyundai 23
Citroen 22
Kia 22
Fiat 21
Renault 21
(Source Adapted from: Mintel, 2014)
7.9. Appendix 9 – Consumers viewpoint on which brands they trust
Consumers were asked to rate the below brands on ‘A brand
that I trust’ Brand Attitude, February 2014
%
Volkswagen 38
Audi 37
Ford 39
Vauxhall 25
Peugeot 19
Hyundai 15
Citroen 15
Renault 15
Kia 13
Fiat 12
(Source Adapted from: Mintel, 2014)

32
9.9. Appendix 9 – 2012 Harris Poll EquiTrend – Full Line Automotive Brand of
the Year
(Source Adapted from: Harris Interactive 2012)
62.55
62.51
62.1
61.95
57.29
55.4
53.61
53.39
48 50 52 54 56 58 60 62 64
Honda Vehicles
Toyota Vehicles
Ford Vehicles
Chevrolet Vehicles
Nissan Vehicles
Subaru Vehicles
Hyundai Vehicles
Volkswagen Vehicles
2012 Harris Poll EquiTrend – Full Line Automotive Brand of the
Year

33
9.10. Appendix 10 – Survey Questions
This survey is intended to research consumer's perceptions towards Volkswagen as a brand in
regards to how they view their brand personality and image. This survey is for the sole
purpose of Leeds Beckett University and I understand that all data will be completely
anonymous. I give my informed consent to take part in this study.
1. What is your gender?
Male
Female
2. What age group do you fall under?
18-24
25-34
35-44
45-54
55+
3. Have you heard of Volkswagen before?
Yes
No
4. What colour comes to mind when you think of Volkswagen?
5. What first comes to mind when you think of Volkswagen?
6. Select the words you feel are most relevant and best describes Volkswagen as a brand
Masculine
Feminine
Daring
Conservative
Family
Youthful
Ethical
Boring
Fun
Reliable
Stylish
Out-dated
7. Imagine Volkswagen as a person, what characteristics would they have.
Powerful, confident and daring
Reliable, trustworthy and conservative
Boring, out-dated and safe
Mature, family-orientated, concerned about the environment

34
8. If Volkswagen were to have a celebrity endorser, out of the following who do you feel
fits the brand the best?
George Clooney
Hugh Jackman
Bradley Cooper
Tom Hardy
Brad Pitt
David Beckham
9. Would you say that Volkswagen targets majority at males?
Yes
No
10. If VW were a female celebrity, who would it be?
Jennifer Anniston
Angelina Jolie
Keira Knightley
Nicole Kidman
Sarah Jessica Parker
11. Do you agree that Volkswagen have maintained a consistent brand image throughout
the years and has a good reputation?
Yes
No
12. Would you recommend a Volkswagen car to a friend, family member or colleague
looking to purchase a car?
Yes
No
13. Do you feel Volkswagen as a brand has memorable advertising e.g. Think Blue campaign
with father driving his child around at night to get him to sleep?
Yes
No
14. Do you trust Volkswagen as a brand in terms of loyalty?
Yes
No

35
9.11. Appendix 11 – Survey Results 1
This survey is intended to research consumer's perceptions towards Volkswagen as a
brand in regards to how they view their brand personality and image. This survey is for the
sole purpose of Leeds Beckett University and I understand that all data will be completely
Male
Female
18-24
25-34
35-44
45-54
55+
Yes
No
4. What colour comes to mind when you think of Volkswagen? Blue
5. What first comes to mind when you think of Volkswagen? Reliability
Masculine
Feminine
Daring
Conservative
Family
Youthful
Ethical
Boring
Fun
Reliable
Stylish
Out-dated

36
8. If Volkswagen were to have a celebrity endorser, out of the following who do you feel
fits the brand the best?
George Clooney
Hugh Jackman
Bradley Cooper
Tom Hardy
Brad Pitt
David Beckham
Yes
No
Angelina Jolie
Keira Knightley
Nicole Kidman
Gwyneth Paltrow
11. Do you agree that Volkswagen have maintained a consistent brand image
throughout the years and has a good reputation?
Yes
No
Yes
No
13. Do you feel Volkswagen as a brand has memorable advertising e.g. Think Blue
campaign with father driving his child around at night to get him to sleep?
Yes
No
Yes
No

37
Male
Female
18-24
25-34
35-44
45-54
55+
Yes
No
5. What first comes to mind when you think of Volkswagen? The logo VW
Masculine
Feminine
Daring
Conservative
Family
Youthful
Ethical
Boring
Fun
Reliable
Stylish
Out-dated

38
8. If Volkswagen were to have a celebrity endorser, out of the following who do you feel fits
the brand the best?
George Clooney
Hugh Jackman
Bradley Cooper
Tom Hardy
Brad Pitt
David Beckham
Yes
No
Angelina Jolie
Keira Knightley
Nicole Kidman
Gwyneth Paltrow
Yes
No
Yes
No
Yes
No
Yes
No

39
Male
Female
18-24
25-34
35-44
45-54
55+
Yes
No
5. What first comes to mind when you think of Volkswagen? The logo
Masculine
Feminine
Daring
Conservative
Family
Youthful
Ethical
Boring
Fun
Reliable
Stylish
Out-dated

40
the brand the best?
George Clooney
Hugh Jackman
Bradley Cooper
Tom Hardy
Brad Pitt
David Beckham
Yes
No
Angelina Jolie
Keira Knightley
Nicole Kidman
Gwyneth Paltrow
Yes
No
Yes
No
Yes
No
Yes
No

41
This survey is intended to research consumer's perceptions towards Volkswagen as a
brand in regards to how they view their brand personality and image. This survey is for the
sole purpose of Leeds Beckett University and I understand that all data will be completely
Male
Female
18-24
25-34
35-44
45-54
55+
Yes
No
5. What first comes to mind when you think of Volkswagen? The brand VW and Golf
Masculine
Feminine
Daring
Conservative
Family
Youthful
Ethical
Boring
Fun
Reliable
Stylish
Out-dated

42
the brand the best?
George Clooney
Hugh Jackman
Bradley Cooper
Tom Hardy
Brad Pitt
David Beckham
Yes
No
Angelina Jolie
Keira Knightley
Nicole Kidman
Gwyneth Paltrow
Yes
No
Yes
No
Yes
No
Yes
No

43
Male
Female
18-24
25-34
35-44
45-54
55+
Yes
No
5. What first comes to mind when you think of Volkswagen? VW
Masculine
Feminine
Daring
Conservative
Family
Youthful
Ethical
Boring
Fun
Reliable
Stylish
Out-dated

44
the brand the best?
George Clooney
Hugh Jackman
Bradley Cooper
Tom Hardy
Brad Pitt
David Beckham
Yes
No
Angelina Jolie
Keira Knightley
Nicole Kidman
Gwyneth Paltrow
Yes
No
Yes
No
Yes
No
Yes
No

45
Male
Female
18-24
25-34
35-44
45-54
55+
Yes
No
4. What colour comes to mind when you think of Volkswagen? Blue and silver
5. What first comes to mind when you think of Volkswagen? Mother’s car, reliable
Masculine
Feminine
Daring
Conservative
Family
Youthful
Ethical
Boring
Fun
Reliable
Stylish
Out-dated

46
the brand the best?
George Clooney
Hugh Jackman
Bradley Cooper
Tom Hardy
Brad Pitt
David Beckham
Yes
No
Angelina Jolie
Keira Knightley
Nicole Kidman
Gwyneth Paltrow
Yes
No
Yes
No
Yes
No
Yes
No

47
1.What is your gender?
Male
Female
18-24
25-34
35-44
45-54
55+
Yes
No
5. What first comes to mind when you think of Volkswagen? Reliability and comfort
Masculine
Feminine
Daring
Conservative
Family
Youthful
Ethical
Boring
Fun
Reliable
Stylish
Out-dated

48
the brand the best?
George Clooney
Hugh Jackman
Bradley Cooper
Tom Hardy
Brad Pitt
David Beckham
Yes
No
Angelina Jolie
Keira Knightley
Nicole Kidman
Gwyneth Paltrow
Yes
No
Yes
No
Yes
No
Yes
No

49
Male
Female
18-24
25-34
35-44
45-54
55+
Yes
No
Old, middle-aged man in his 50s family car
Masculine
Feminine
Daring
Conservative
Family
Youthful
Ethical
Boring
Fun
Reliable
Stylish
Out-dated

50
the brand the best?
George Clooney
Hugh Jackman
Bradley Cooper
Tom Hardy
Brad Pitt
David Beckham
Yes
No
Angelina Jolie
Keira Knightley
Nicole Kidman
Gwyneth Paltrow
Yes
No
Yes
No
Yes
No
Yes
No

51
Male
Female
18-24
25-34
35-44
45-54
55+
Yes
No
Reliable family cars that have been around for many years
Masculine
Feminine
Daring
Conservative
Family
Youthful
Ethical
Boring
Fun
Reliable
Stylish
Out-dated

52
the brand the best?
George Clooney
Hugh Jackman
Bradley Cooper
Tom Hardy
Brad Pitt
David Beckham
Yes
No
Angelina Jolie
Keira Knightley
Nicole Kidman
Gwyneth Paltrow
Yes
No
Yes
No
Yes
No
Yes
No

53
Male
Female
18-24
25-34
35-44
45-54
55+
Yes
No
4. What colour comes to mind when you think of Volkswagen? Blue/Silver
5. What first comes to mind when you think of Volkswagen? "Golf" (Type not sport!)
Masculine
Feminine
Daring
Conservative
Family
Youthful
Ethical
Boring
Fun
Reliable
Stylish
Out-dated

54
the brand the best?
George Clooney
Hugh Jackman
Bradley Cooper
Tom Hardy
Brad Pitt
David Beckham
Yes
No
Angelina Jolie
Keira Knightley
Nicole Kidman
Gwyneth Paltrow
Yes
No
Yes
No
Yes
No
Yes
No

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