Car Brands - UK - July 2009

Abstract

About this report

In the largest sales category, volume brands, brands are closely matched with no little differentiation in the mind of the consumer. Brand image and reputation are the common weaknesses for volume brands. A volume brand that could cultivate a distinctive brand image or reputation, perhaps through niche semi-premium products, that differentiates it from its main competitors could increase share in this segment.

• Consumers often aspire to owning premium car brands but end up purchasing volume brands: cost considerations (purchase price and running costs) win the day. The choice is often a new volume brand or a used premium brand in the £7000-£10,000 price range which accounts for 25% of all car purchases.
• Is car buying an emotional journey or a rational process? Mintel’s car brands research shows that different brands have different purchase processes.
• Mintel’s car brands research shows that different brands have different purchase processes. Volume brand car buying is primarily a rational process based on economic fundamentals such as price and fuel consumption. In contrast, premium brands car buying is more of an emotional process based on style, design, comfort and brand image. For greater success, car manufacturers need to develop stronger emotional responses and ties to their car brands.
• Purchase criteria and brand preference differs between men and women car buyers. Men place greater emphasis on build quality, comfort and brand image. Women place more importance on price reliability and safety. The result is that men prefer the premium brands and women prefer volume brands.
• Car manufacturers want to attract and retain customers throughout his/ her car-owning lifecycle to include used cars, new cars, aftersales and service. But the extent of a customer’s brand loyalty may extend to just one model or one model derivative. This result? Brand loyalty is both transient and only model-specific.