Hyundai reaches highest ever brand value rating

Hyundai, one of the top-selling brands globally and in South Africa, saw its brand value post another 2-digit growth into the top 40 in 2014 for the first time – fueled by the successful launch of products such as the new Genesis, as well as the successful implementation of its Modern Premium brand direction.

The brand value of Hyundai Motor Company, which has been included in Interbrand’;s Best 100 Global Brands for 10 consecutive years, surpassed the $ 10 billion mark for the first time, its highest record so far. This is a 16% increase from last year’;s $ 9 billion value and a nearly 200% jump from its $ 3,5 billion value in 2005.

“Hyundai Motor is one of the fastest growing automotive brands in terms of both volume and brand value,” Interbrand said in a statement. “Hyundai Motor makes unique convenience features available across a broader range of vehicles to enhance driving experience and customer satisfaction, while its commitment to brand building extends to multiple touchpoints.

“As a result of these efforts, brand awareness of product attributes like design and the kind of brand loyalty that comes from an emotional connection are becoming key drivers over price.”

Hyundai Motor, whose brand value ranking rose 3 notches to reach the top global 40 ranking for the first time this year, is building a loyal fan base through continued enhancements in its product lineup, including innovative eco-friendly products such as the world’;s first assembly-line produced ix35 Fuel Cell vehicle.

Ongoing investment in the brand, such as active involvement in high-profile sports marketing activites with UEFA, FIFA, and the World Rally Championships also continue. In Seoul, the automaker opened its first brand experience space, Hyundai Motorstudio, while a second one is scheduled to open in Moscow later this year.

Hyundai Motor’;s ranking rose 44 notches since 2005, when it first announced its shift to brand management. Also, the brand value has increased an average of 20% each year after the company introduced its new brand direction in 2011, called “Modern Premium”, which has been creating not only a unified image for the brand worldwide, but also an emotional connection with its customers.

“We’;re implementing a wide variety of brand-related activites that aren’;t simply focused on increasing sales, but are aimed at becoming a brand that our customers genuinely love,” said Won Hong Cho, Hyundai Motor’;s chief marketing officer. “We will continue to invest in our brand, by providing Hyundai Motor’;s unique premium experience in all aspects of the customer’;s journey with our brand.”

Hyundai announced its latest brand direction, “Modern Premium”, and slogan, “New Thinking. New Possibilities.”, at the 2011 North American International Auto Show. Since then, a wide range of Hyundai Motor’;s divisions including product development, design, marketing, sales and after sales, have applied the direction to their work in a sustainable, consistent and systematic way. Enhanced global brand awareness and preference of the Hyundai brand through such efforts contributed to the increase in global sales and profits.

The Interbrand rankings are calculated using companies’; financial balance sheets combined with marketing activities, while also reflecting each brand’;s potential profit.

Automotive Brand Rankings

Rank (Auto)	Brand	Brand Value (US$ billion)		2014 Rank (total)
		?	Y-o-Y
1	Toyota	42,4	19,9%	8
2	Mercedes-Benz	34,3	7,6%	10
3	BMW	34,2	7,5%	11
4	Honda	21,7	17,2%	20
5	VW	13.7	23,3%	31
6	Ford	10,9	18,5%	39
7	Hyundai	10,4	15,6%	40
8	Audi	9,8	26,6%	45
9	Nissan	7,6	22,9%	56
10	Porsche	7,2	10,8%	60
11	Kia	5,4	14,6%	74
12	Chevrolet	5,0	10,0%	82
13	Land Rover	4,5	new	91

;

Hyundai Motor’;s Brand Value (2005 – 2014)

Year	Brand Value (US$ billion)	Rank (total)
2005	3,5	84
2006	4,1	75
2007	4,5	72
2008	4,8	72
2009	4,6	69
2010	5,0	65
2011	6,0	61
2012	7,5	53
2013	9,0	43
2014	10,4	40

;

Hyundai reaches highest ever brand value rating

Hyundai reaches highest ever brand value rating

Hyundai, one of the top-selling brands globally and in South Africa, saw its brand value post another 2-digit growth into the top 40 in 2014 for the first time – fueled by the successful launch of products such as the new Genesis, as well as the successful implementation of its Modern Premium brand direction.

The brand value of Hyundai Motor Company, which has been included in Interbrand’;s Best 100 Global Brands for 10 consecutive years, surpassed the $ 10 billion mark for the first time, its highest record so far. This is a 16% increase from last year’;s $ 9 billion value and a nearly 200% jump from its $ 3,5 billion value in 2005.

“Hyundai Motor is one of the fastest growing automotive brands in terms of both volume and brand value,” Interbrand said in a statement. “Hyundai Motor makes unique convenience features available across a broader range of vehicles to enhance driving experience and customer satisfaction, while its commitment to brand building extends to multiple touchpoints.

“As a result of these efforts, brand awareness of product attributes like design and the kind of brand loyalty that comes from an emotional connection are becoming key drivers over price.”

Hyundai Motor, whose brand value ranking rose 3 notches to reach the top global 40 ranking for the first time this year, is building a loyal fan base through continued enhancements in its product lineup, including innovative eco-friendly products such as the world’;s first assembly-line produced ix35 Fuel Cell vehicle.

Ongoing investment in the brand, such as active involvement in high-profile sports marketing activites with UEFA, FIFA, and the World Rally Championships also continue. In Seoul, the automaker opened its first brand experience space, Hyundai Motorstudio, while a second one is scheduled to open in Moscow later this year.

Hyundai Motor’;s ranking rose 44 notches since 2005, when it first announced its shift to brand management. Also, the brand value has increased an average of 20% each year after the company introduced its new brand direction in 2011, called “Modern Premium”, which has been creating not only a unified image for the brand worldwide, but also an emotional connection with its customers.

“We’;re implementing a wide variety of brand-related activites that aren’;t simply focused on increasing sales, but are aimed at becoming a brand that our customers genuinely love,” said Won Hong Cho, Hyundai Motor’;s chief marketing officer. “We will continue to invest in our brand, by providing Hyundai Motor’;s unique premium experience in all aspects of the customer’;s journey with our brand.”

Hyundai announced its latest brand direction, “Modern Premium”, and slogan, “New Thinking. New Possibilities.”, at the 2011 North American International Auto Show. Since then, a wide range of Hyundai Motor’;s divisions including product development, design, marketing, sales and after sales, have applied the direction to their work in a sustainable, consistent and systematic way. Enhanced global brand awareness and preference of the Hyundai brand through such efforts contributed to the increase in global sales and profits.

The Interbrand rankings are calculated using companies’; financial balance sheets combined with marketing activities, while also reflecting each brand’;s potential profit.

Automotive Brand Rankings

Rank (Auto)	Brand	Brand Value (US$ billion)		2014 Rank (total)
		?	Y-o-Y
1	Toyota	42,4	19,9%	8
2	Mercedes-Benz	34,3	7,6%	10
3	BMW	34,2	7,5%	11
4	Honda	21,7	17,2%	20
5	VW	13.7	23,3%	31
6	Ford	10,9	18,5%	39
7	Hyundai	10,4	15,6%	40
8	Audi	9,8	26,6%	45
9	Nissan	7,6	22,9%	56
10	Porsche	7,2	10,8%	60
11	Kia	5,4	14,6%	74
12	Chevrolet	5,0	10,0%	82
13	Land Rover	4,5	new	91

;

Hyundai Motor’;s Brand Value (2005 – 2014)

Year	Brand Value (US$ billion)	Rank (total)
2005	3,5	84
2006	4,1	75
2007	4,5	72
2008	4,8	72
2009	4,6	69
2010	5,0	65
2011	6,0	61
2012	7,5	53
2013	9,0	43
2014	10,4	40

;

Hyundai reaches highest ever brand value rating

Hyundai reaches highest ever brand value rating

Hyundai, one of the top-selling brands globally and in South Africa, saw its brand value post another 2-digit growth into the top 40 in 2014 for the first time – fueled by the successful launch of products such as the new Genesis, as well as the successful implementation of its Modern Premium brand direction.

The brand value of Hyundai Motor Company, which has been included in Interbrand’;s Best 100 Global Brands for 10 consecutive years, surpassed the $ 10 billion mark for the first time, its highest record so far. This is a 16% increase from last year’;s $ 9 billion value and a nearly 200% jump from its $ 3,5 billion value in 2005.

“Hyundai Motor is one of the fastest growing automotive brands in terms of both volume and brand value,” Interbrand said in a statement. “Hyundai Motor makes unique convenience features available across a broader range of vehicles to enhance driving experience and customer satisfaction, while its commitment to brand building extends to multiple touchpoints.

“As a result of these efforts, brand awareness of product attributes like design and the kind of brand loyalty that comes from an emotional connection are becoming key drivers over price.”

Hyundai Motor, whose brand value ranking rose 3 notches to reach the top global 40 ranking for the first time this year, is building a loyal fan base through continued enhancements in its product lineup, including innovative eco-friendly products such as the world’;s first assembly-line produced ix35 Fuel Cell vehicle.

Ongoing investment in the brand, such as active involvement in high-profile sports marketing activites with UEFA, FIFA, and the World Rally Championships also continue. In Seoul, the automaker opened its first brand experience space, Hyundai Motorstudio, while a second one is scheduled to open in Moscow later this year.

Hyundai Motor’;s ranking rose 44 notches since 2005, when it first announced its shift to brand management. Also, the brand value has increased an average of 20% each year after the company introduced its new brand direction in 2011, called “Modern Premium”, which has been creating not only a unified image for the brand worldwide, but also an emotional connection with its customers.

“We’;re implementing a wide variety of brand-related activites that aren’;t simply focused on increasing sales, but are aimed at becoming a brand that our customers genuinely love,” said Won Hong Cho, Hyundai Motor’;s chief marketing officer. “We will continue to invest in our brand, by providing Hyundai Motor’;s unique premium experience in all aspects of the customer’;s journey with our brand.”

Hyundai announced its latest brand direction, “Modern Premium”, and slogan, “New Thinking. New Possibilities.”, at the 2011 North American International Auto Show. Since then, a wide range of Hyundai Motor’;s divisions including product development, design, marketing, sales and after sales, have applied the direction to their work in a sustainable, consistent and systematic way. Enhanced global brand awareness and preference of the Hyundai brand through such efforts contributed to the increase in global sales and profits.

The Interbrand rankings are calculated using companies’; financial balance sheets combined with marketing activities, while also reflecting each brand’;s potential profit.

Automotive Brand Rankings

Rank (Auto)	Brand	Brand Value (US$ billion)		2014 Rank (total)
		?	Y-o-Y
1	Toyota	42,4	19,9%	8
2	Mercedes-Benz	34,3	7,6%	10
3	BMW	34,2	7,5%	11
4	Honda	21,7	17,2%	20
5	VW	13.7	23,3%	31
6	Ford	10,9	18,5%	39
7	Hyundai	10,4	15,6%	40
8	Audi	9,8	26,6%	45
9	Nissan	7,6	22,9%	56
10	Porsche	7,2	10,8%	60
11	Kia	5,4	14,6%	74
12	Chevrolet	5,0	10,0%	82
13	Land Rover	4,5	new	91

;

Hyundai Motor’;s Brand Value (2005 – 2014)

Year	Brand Value (US$ billion)	Rank (total)
2005	3,5	84
2006	4,1	75
2007	4,5	72
2008	4,8	72
2009	4,6	69
2010	5,0	65
2011	6,0	61
2012	7,5	53
2013	9,0	43
2014	10,4	40

;

Hyundai reaches highest ever brand value rating

Survey finds Although Price Matters, Brand Reputation is Important for Low-Cost Vehicle Purchases

One in every 3 South African owners rated price as the most important purchase decision influencer, according to a recent study conducted by Ipsos. Price is followed by brand reputation, with roughly 16% of car owners placing great importance on the latter aspect.

This indicates that although price matters; vehicle quality, pre- and post-sales service (which contribute to brand reputation) are a key consideration for local automotive purchases; including lower-costing, ‘entry level’ buys. Adding to this, a review of official sales figures for the period October 2013 to March 2014 revealed that the more established, entry level automotive brands grew market share – of between 1% and 6%.  This is in contrast with lower-priced, new entrant brands which recorded losses in market share ranging between -1% and -4% during the same period.

It therefore appears that even for low cost vehicles, South African consumers prefer to buy a car with ‘good return’ in terms of durability, dependability and trade-in value. In some cases, opting for the lower priced, new entrant brand can come with draw backs, such as limited service and warranty plans. A few of the new entrants, low cost automotive suppliers offer 3 year / 45,000 km service plans as compared with the more established automotive brands that offer 5 year / 100,000 km service plans for new vehicle purchases ( and this includes their entry level models). Some of the new, lower-priced entrants are also much lighter on innovation and do not have boot lights, electric windows or radio.

According to Klaus Paur, Head of Ipsos’ Global Automotive, “consumers within recession-plagued and emerging markets look for the famous ‘value-for-money’ offer by demanding practical functionality while skipping on non-essential gadgets”.  To avoid negative image effects caused by these stripped down versions, some vehicle makers have an interest to protect the core marque, and launch their low cost offering under a different (budget) brand”

In South Africa, it would be a wise approach to follow for those leading automotive brands suffering a decline in sales volumes in their new entrant brands during the October 2013 to March 2014 period. With consumers prioritising quality, leading global suppliers have adopted an approach that has seen them manufacture market-entry level models that carry the car maker’s brand and are produced at quality standards similar to their higher level model ranges. Based on experiences in the developed world and other developing markets, the more established automotive suppliers are convinced that the adoption of this strategy is expected to deliver success within entry-level markets where price and brand reputation are the most important purchase decision influencers.

By James Maposa and Klaus Paur

Also view:

Vehicle Finance, Car Insurance and Road Safety

Buying and Selling a Vehicle – Informed decisions and the Vehicle Retailer

About Ipsos

Ipsos is an independent market research company controlled and managed by research professionals. Founded in France in 1975, Ipsos has grown into a worldwide research group with a strong presence in all key markets. Ipsos ranks third in the global research industry.

With offices in 86 countries, Ipsos delivers insightful expertise across 6 research specializations: advertising, customer loyalty, marketing, media, public affairs research, and survey management.

Ipsos researchers assess market potential and interpret market trends. They develop and build brands. They help clients build long-term relationships with their customers. They test advertising and study audience responses to various media and they measure public opinion around the globe.

Ipsos has been listed on the Paris Stock Exchange since 1999 and generated global revenues of €1,712,4 million (2 274 M$ ) in 2013.

Visit www.ipsos.co.za to learn more about Ipsos’ offerings and capabilities.

Survey finds Although Price Matters, Brand Reputation is Important for Low-Cost Vehicle Purchases

Survey finds Although Price Matters, Brand Reputation is Important for Low-Cost Vehicle Purchases

One in every 3 South African owners rated price as the most important purchase decision influencer, according to a recent study conducted by Ipsos. Price is followed by brand reputation, with roughly 16% of car owners placing great importance on the latter aspect.

This indicates that although price matters; vehicle quality, pre- and post-sales service (which contribute to brand reputation) are a key consideration for local automotive purchases; including lower-costing, ‘entry level’ buys. Adding to this, a review of official sales figures for the period October 2013 to March 2014 revealed that the more established, entry level automotive brands grew market share – of between 1% and 6%.  This is in contrast with lower-priced, new entrant brands which recorded losses in market share ranging between -1% and -4% during the same period.

It therefore appears that even for low cost vehicles, South African consumers prefer to buy a car with ‘good return’ in terms of durability, dependability and trade-in value. In some cases, opting for the lower priced, new entrant brand can come with draw backs, such as limited service and warranty plans. A few of the new entrants, low cost automotive suppliers offer 3 year / 45,000 km service plans as compared with the more established automotive brands that offer 5 year / 100,000 km service plans for new vehicle purchases ( and this includes their entry level models). Some of the new, lower-priced entrants are also much lighter on innovation and do not have boot lights, electric windows or radio.

According to Klaus Paur, Head of Ipsos’ Global Automotive, “consumers within recession-plagued and emerging markets look for the famous ‘value-for-money’ offer by demanding practical functionality while skipping on non-essential gadgets”.  To avoid negative image effects caused by these stripped down versions, some vehicle makers have an interest to protect the core marque, and launch their low cost offering under a different (budget) brand”

In South Africa, it would be a wise approach to follow for those leading automotive brands suffering a decline in sales volumes in their new entrant brands during the October 2013 to March 2014 period. With consumers prioritising quality, leading global suppliers have adopted an approach that has seen them manufacture market-entry level models that carry the car maker’s brand and are produced at quality standards similar to their higher level model ranges. Based on experiences in the developed world and other developing markets, the more established automotive suppliers are convinced that the adoption of this strategy is expected to deliver success within entry-level markets where price and brand reputation are the most important purchase decision influencers.

By James Maposa and Klaus Paur

Also view:

Vehicle Finance, Car Insurance and Road Safety

Buying and Selling a Vehicle – Informed decisions and the Vehicle Retailer

About Ipsos

Ipsos is an independent market research company controlled and managed by research professionals. Founded in France in 1975, Ipsos has grown into a worldwide research group with a strong presence in all key markets. Ipsos ranks third in the global research industry.

With offices in 86 countries, Ipsos delivers insightful expertise across 6 research specializations: advertising, customer loyalty, marketing, media, public affairs research, and survey management.

Ipsos researchers assess market potential and interpret market trends. They develop and build brands. They help clients build long-term relationships with their customers. They test advertising and study audience responses to various media and they measure public opinion around the globe.

Ipsos has been listed on the Paris Stock Exchange since 1999 and generated global revenues of €1,712,4 million (2 274 M$ ) in 2013.

Visit www.ipsos.co.za to learn more about Ipsos’ offerings and capabilities.

Survey finds Although Price Matters, Brand Reputation is Important for Low-Cost Vehicle Purchases

Survey finds Although Price Matters, Brand Reputation is Important for Low-Cost Vehicle Purchases

One in every 3 South African owners rated price as the most important purchase decision influencer, according to a recent study conducted by Ipsos. Price is followed by brand reputation, with roughly 16% of car owners placing great importance on the latter aspect.

This indicates that although price matters; vehicle quality, pre- and post-sales service (which contribute to brand reputation) are a key consideration for local automotive purchases; including lower-costing, ‘entry level’ buys. Adding to this, a review of official sales figures for the period October 2013 to March 2014 revealed that the more established, entry level automotive brands grew market share – of between 1% and 6%.  This is in contrast with lower-priced, new entrant brands which recorded losses in market share ranging between -1% and -4% during the same period.

It therefore appears that even for low cost vehicles, South African consumers prefer to buy a car with ‘good return’ in terms of durability, dependability and trade-in value. In some cases, opting for the lower priced, new entrant brand can come with draw backs, such as limited service and warranty plans. A few of the new entrants, low cost automotive suppliers offer 3 year / 45,000 km service plans as compared with the more established automotive brands that offer 5 year / 100,000 km service plans for new vehicle purchases ( and this includes their entry level models). Some of the new, lower-priced entrants are also much lighter on innovation and do not have boot lights, electric windows or radio.

According to Klaus Paur, Head of Ipsos’ Global Automotive, “consumers within recession-plagued and emerging markets look for the famous ‘value-for-money’ offer by demanding practical functionality while skipping on non-essential gadgets”.  To avoid negative image effects caused by these stripped down versions, some vehicle makers have an interest to protect the core marque, and launch their low cost offering under a different (budget) brand”

In South Africa, it would be a wise approach to follow for those leading automotive brands suffering a decline in sales volumes in their new entrant brands during the October 2013 to March 2014 period. With consumers prioritising quality, leading global suppliers have adopted an approach that has seen them manufacture market-entry level models that carry the car maker’s brand and are produced at quality standards similar to their higher level model ranges. Based on experiences in the developed world and other developing markets, the more established automotive suppliers are convinced that the adoption of this strategy is expected to deliver success within entry-level markets where price and brand reputation are the most important purchase decision influencers.

By James Maposa and Klaus Paur

Also view:

Vehicle Finance, Car Insurance and Road Safety

Buying and Selling a Vehicle – Informed decisions and the Vehicle Retailer

About Ipsos

Ipsos is an independent market research company controlled and managed by research professionals. Founded in France in 1975, Ipsos has grown into a worldwide research group with a strong presence in all key markets. Ipsos ranks third in the global research industry.

With offices in 86 countries, Ipsos delivers insightful expertise across 6 research specializations: advertising, customer loyalty, marketing, media, public affairs research, and survey management.

Ipsos researchers assess market potential and interpret market trends. They develop and build brands. They help clients build long-term relationships with their customers. They test advertising and study audience responses to various media and they measure public opinion around the globe.

Ipsos has been listed on the Paris Stock Exchange since 1999 and generated global revenues of €1,712,4 million (2 274 M$ ) in 2013.

Visit www.ipsos.co.za to learn more about Ipsos’ offerings and capabilities.

Survey finds Although Price Matters, Brand Reputation is Important for Low-Cost Vehicle Purchases

Survey finds Although Price Matters, Brand Reputation is Important for Low-Cost Vehicle Purchases

One in every 3 South African owners rated price as the most important purchase decision influencer, according to a recent study conducted by Ipsos. Price is followed by brand reputation, with roughly 16% of car owners placing great importance on the latter aspect.

This indicates that although price matters; vehicle quality, pre- and post-sales service (which contribute to brand reputation) are a key consideration for local automotive purchases; including lower-costing, ‘entry level’ buys. Adding to this, a review of official sales figures for the period October 2013 to March 2014 revealed that the more established, entry level automotive brands grew market share – of between 1% and 6%.  This is in contrast with lower-priced, new entrant brands which recorded losses in market share ranging between -1% and -4% during the same period.

It therefore appears that even for low cost vehicles, South African consumers prefer to buy a car with ‘good return’ in terms of durability, dependability and trade-in value. In some cases, opting for the lower priced, new entrant brand can come with draw backs, such as limited service and warranty plans. A few of the new entrants, low cost automotive suppliers offer 3 year / 45,000 km service plans as compared with the more established automotive brands that offer 5 year / 100,000 km service plans for new vehicle purchases ( and this includes their entry level models). Some of the new, lower-priced entrants are also much lighter on innovation and do not have boot lights, electric windows or radio.

According to Klaus Paur, Head of Ipsos’ Global Automotive, “consumers within recession-plagued and emerging markets look for the famous ‘value-for-money’ offer by demanding practical functionality while skipping on non-essential gadgets”.  To avoid negative image effects caused by these stripped down versions, some vehicle makers have an interest to protect the core marque, and launch their low cost offering under a different (budget) brand”

In South Africa, it would be a wise approach to follow for those leading automotive brands suffering a decline in sales volumes in their new entrant brands during the October 2013 to March 2014 period. With consumers prioritising quality, leading global suppliers have adopted an approach that has seen them manufacture market-entry level models that carry the car maker’s brand and are produced at quality standards similar to their higher level model ranges. Based on experiences in the developed world and other developing markets, the more established automotive suppliers are convinced that the adoption of this strategy is expected to deliver success within entry-level markets where price and brand reputation are the most important purchase decision influencers.

By James Maposa and Klaus Paur

Also view:

Vehicle Finance, Car Insurance and Road Safety

Buying and Selling a Vehicle – Informed decisions and the Vehicle Retailer

About Ipsos

Ipsos is an independent market research company controlled and managed by research professionals. Founded in France in 1975, Ipsos has grown into a worldwide research group with a strong presence in all key markets. Ipsos ranks third in the global research industry.

With offices in 86 countries, Ipsos delivers insightful expertise across 6 research specializations: advertising, customer loyalty, marketing, media, public affairs research, and survey management.

Ipsos researchers assess market potential and interpret market trends. They develop and build brands. They help clients build long-term relationships with their customers. They test advertising and study audience responses to various media and they measure public opinion around the globe.

Ipsos has been listed on the Paris Stock Exchange since 1999 and generated global revenues of €1,712,4 million (2 274 M$ ) in 2013.

Visit www.ipsos.co.za to learn more about Ipsos’ offerings and capabilities.

Survey finds Although Price Matters, Brand Reputation is Important for Low-Cost Vehicle Purchases

Survey finds Although Price Matters, Brand Reputation is Important for Low-Cost Vehicle Purchases

One in every 3 South African owners rated price as the most important purchase decision influencer, according to a recent study conducted by Ipsos. Price is followed by brand reputation, with roughly 16% of car owners placing great importance on the latter aspect.

This indicates that although price matters; vehicle quality, pre- and post-sales service (which contribute to brand reputation) are a key consideration for local automotive purchases; including lower-costing, ‘entry level’ buys. Adding to this, a review of official sales figures for the period October 2013 to March 2014 revealed that the more established, entry level automotive brands grew market share – of between 1% and 6%.  This is in contrast with lower-priced, new entrant brands which recorded losses in market share ranging between -1% and -4% during the same period.

It therefore appears that even for low cost vehicles, South African consumers prefer to buy a car with ‘good return’ in terms of durability, dependability and trade-in value. In some cases, opting for the lower priced, new entrant brand can come with draw backs, such as limited service and warranty plans. A few of the new entrants, low cost automotive suppliers offer 3 year / 45,000 km service plans as compared with the more established automotive brands that offer 5 year / 100,000 km service plans for new vehicle purchases ( and this includes their entry level models). Some of the new, lower-priced entrants are also much lighter on innovation and do not have boot lights, electric windows or radio.

According to Klaus Paur, Head of Ipsos’ Global Automotive, “consumers within recession-plagued and emerging markets look for the famous ‘value-for-money’ offer by demanding practical functionality while skipping on non-essential gadgets”.  To avoid negative image effects caused by these stripped down versions, some vehicle makers have an interest to protect the core marque, and launch their low cost offering under a different (budget) brand”

In South Africa, it would be a wise approach to follow for those leading automotive brands suffering a decline in sales volumes in their new entrant brands during the October 2013 to March 2014 period. With consumers prioritising quality, leading global suppliers have adopted an approach that has seen them manufacture market-entry level models that carry the car maker’s brand and are produced at quality standards similar to their higher level model ranges. Based on experiences in the developed world and other developing markets, the more established automotive suppliers are convinced that the adoption of this strategy is expected to deliver success within entry-level markets where price and brand reputation are the most important purchase decision influencers.

By James Maposa and Klaus Paur

Also view:

Vehicle Finance, Car Insurance and Road Safety

Buying and Selling a Vehicle – Informed decisions and the Vehicle Retailer

About Ipsos

Ipsos is an independent market research company controlled and managed by research professionals. Founded in France in 1975, Ipsos has grown into a worldwide research group with a strong presence in all key markets. Ipsos ranks third in the global research industry.

With offices in 86 countries, Ipsos delivers insightful expertise across 6 research specializations: advertising, customer loyalty, marketing, media, public affairs research, and survey management.

Ipsos researchers assess market potential and interpret market trends. They develop and build brands. They help clients build long-term relationships with their customers. They test advertising and study audience responses to various media and they measure public opinion around the globe.

Ipsos has been listed on the Paris Stock Exchange since 1999 and generated global revenues of €1,712,4 million (2 274 M$ ) in 2013.

Visit www.ipsos.co.za to learn more about Ipsos’ offerings and capabilities.

Survey finds Although Price Matters, Brand Reputation is Important for Low-Cost Vehicle Purchases

Survey finds Although Price Matters, Brand Reputation is Important for Low-Cost Vehicle Purchases

One in every 3 South African owners rated price as the most important purchase decision influencer, according to a recent study conducted by Ipsos. Price is followed by brand reputation, with roughly 16% of car owners placing great importance on the latter aspect.

This indicates that although price matters; vehicle quality, pre- and post-sales service (which contribute to brand reputation) are a key consideration for local automotive purchases; including lower-costing, ‘entry level’ buys. Adding to this, a review of official sales figures for the period October 2013 to March 2014 revealed that the more established, entry level automotive brands grew market share – of between 1% and 6%.  This is in contrast with lower-priced, new entrant brands which recorded losses in market share ranging between -1% and -4% during the same period.

It therefore appears that even for low cost vehicles, South African consumers prefer to buy a car with ‘good return’ in terms of durability, dependability and trade-in value. In some cases, opting for the lower priced, new entrant brand can come with draw backs, such as limited service and warranty plans. A few of the new entrants, low cost automotive suppliers offer 3 year / 45,000 km service plans as compared with the more established automotive brands that offer 5 year / 100,000 km service plans for new vehicle purchases ( and this includes their entry level models). Some of the new, lower-priced entrants are also much lighter on innovation and do not have boot lights, electric windows or radio.

According to Klaus Paur, Head of Ipsos’ Global Automotive, “consumers within recession-plagued and emerging markets look for the famous ‘value-for-money’ offer by demanding practical functionality while skipping on non-essential gadgets”.  To avoid negative image effects caused by these stripped down versions, some vehicle makers have an interest to protect the core marque, and launch their low cost offering under a different (budget) brand”

In South Africa, it would be a wise approach to follow for those leading automotive brands suffering a decline in sales volumes in their new entrant brands during the October 2013 to March 2014 period. With consumers prioritising quality, leading global suppliers have adopted an approach that has seen them manufacture market-entry level models that carry the car maker’s brand and are produced at quality standards similar to their higher level model ranges. Based on experiences in the developed world and other developing markets, the more established automotive suppliers are convinced that the adoption of this strategy is expected to deliver success within entry-level markets where price and brand reputation are the most important purchase decision influencers.

By James Maposa and Klaus Paur

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About Ipsos

Ipsos is an independent market research company controlled and managed by research professionals. Founded in France in 1975, Ipsos has grown into a worldwide research group with a strong presence in all key markets. Ipsos ranks third in the global research industry.

With offices in 86 countries, Ipsos delivers insightful expertise across 6 research specializations: advertising, customer loyalty, marketing, media, public affairs research, and survey management.

Ipsos researchers assess market potential and interpret market trends. They develop and build brands. They help clients build long-term relationships with their customers. They test advertising and study audience responses to various media and they measure public opinion around the globe.

Ipsos has been listed on the Paris Stock Exchange since 1999 and generated global revenues of €1,712,4 million (2 274 M$ ) in 2013.

Visit www.ipsos.co.za to learn more about Ipsos’ offerings and capabilities.

Survey finds Although Price Matters, Brand Reputation is Important for Low-Cost Vehicle Purchases

General Tyre relaunches its range and brand profile in South Africa

 

• Relaunch strategy builds on proud legacy and consumer support in SA


• All-new passenger car tyres and expanded 4×4 line-up complement existing range


• Builds on General Tyre core values of performance, reliability and heritage, linked to strong value proposition

PORT ELIZABETH, South Africa, 16 July 2014 - General Tyre is embarking on a bold relaunch campaign as it sets out to dramatically expand its product portfolio and increase its profile in the South African market.

Some 65 years since opening its manufacturing plant in Port Elizabeth, General Tyre – which has been owned by Continental AG since 1987 – is undergoing a resurgence in SA with a focused campaign that aims to capture a larger share of the market.

The relaunch programme is built on an expanded and thoroughly modern product line-up that combines innovative new technologies with General Tyre’;s proven core values of reliability, performance, heritage and overall value.

“General Tyre enjoys an extremely loyal following and a strong historical association with the South African market,” says Niel Langner, marketing manager for Continental Tyre SA (CTSA).

“We are building on this legacy with an up-to-date product range that employs the latest design and technology derived from the Continental Tyre group to provide customers with excellent levels of safety, performance, quality and reliability.

“This is matched to a strong value-for-money proposition that is crucial in our extremely competitive market, and gives buyers a wider range of choice.”

While Continental is a global leader in the development and manufacture of original equipment (OE) tyres to vehicle manufacturers, and retains its status as CTSA’;s premium tyre brand, General is now positioned as a fully-fledged offering in the value segment as part of the company’;s new multi-brand strategy.

With the high level of brand recognition that General Tyre enjoys in SA, the new plan sees it replacing the Barum-branded tyre range locally.

“Although our Barum tyres offered good quality and pricing, the marque was never able to match the levels of brand awareness carried over more than 6 decades by General Tyre. Accordingly, the General Tyre range now fulfils the role as our value segment contender, followed by our exclusive Matador range, that competes in the budget tyre sector.”

Modern range, latest technology

The relaunch of General Tyre in SA is spearheaded by an exciting line-up of new products that deliver innovative technologies and contemporary design.

General Tyre heralds its return to the passenger car segment with 2 all-new tyre ranges: the Altimax Sport and the Altimax Comfort. Developed based on stringent European demands, the Altimax range delivers superlative braking and handling performance, combined with low rolling resistance in the interests of improved fuel efficiency.

The General Grabber GT is the company’;s latest offering in the rapidly growing high-performance SUV segment. It is introduced alongside the award-winning Grabber AT and the rugged Grabber MT – both of which are already highly rated contenders in the all-terrain and mud-terrain 4×4 segments, respectively.

2 significant new features make their debut on the Altimax and Grabber GT ranges as part of General Tyre’;s innovative Monitor Technology.

The Visual Alignment Indicator (VAI) allows vehicle owners to identify uneven wear within the first 1 000 km of driving, highlighting potential wheel alignment issues and assisting in preventing premature wear.

The Replacement Tire Monitor (RTM) represents an important innovation in driving safety. The tyre boasts the ‘Replacement Tire Monitor’; inscription in the centre rib that changes to ‘Replace Tire’; as the 3 mm tread depth is reached, thereby indicating that the tyre should be changed.

Building on a proven legacy

The expansion of the General Tyre range and introduction of several important new models in the passenger and off-road categories builds on the long-standing legacy of the brand’;s existing top performers.

Over the decades, General Tyre has established a solid foundation in the light and heavy truck segments with a mix of bias and radial-type tyres, and these continue to be offered in the SA market in a variety of popular sizes.

The brand also enjoys a strong presence in the off-the-road (OTR) sector, particularly in the agricultural market. This is complemented by a vast array of specialist tyres for mining and earthmover applications, as well as logging and road grading.

Investing in success

A vast range of General Tyre products have been produced at the Port Elizabeth plant since the start of local production in 1949, however the facility has benefited from massive investment and expansion, particularly in recent years.

A multi-million rand investment in the Continental Tyre SA factory has ensured that locally produced tyres offer the latest technology and meet the highest international standards for quality, performance and efficiency. The production volume caters for OE customers and the domestic market, as well as for export.

Within the new General Tyre range, local production encompasses selected sizes of the Grabber AT, Altimax Comfort and Altimax Sport, as well as an extensive range of agricultural, mining and truck tyres.

The line-up also incorporates selected imported sizes, while the Grabber MT is fully imported from the US.

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General Tyre relaunches its range and brand profile in South Africa