Wednesday 15 February 2012

Car brands and what they mean to people

Car branding is such a big deal in Malaysia. This is mainly because people associate quality, reliability and resale value with the brand. For example Toyota is always held in high regard among most Malaysians because toyota cars have traditionally displayed good reliability, decent build quality and can offer good residual value. Toyota's brand recognition is so good that half the time the car sales representatives don't need to really put much effort to sell the car. The customer who walks into a Toyota showroom has already made up their mind to buy the car.
On the flip side, brands such as Renault, Citreon, Fiat and Ssangyong have quite the opposite.
Having a weak brand image may not mean that this image will continue on forever. The best example of a brand turning around and commanding respect is Volkswagen. Under the previous distributor AutoDunia, the VW brand suffered due to lack of proper marketing, poor spare parts support and inadequate dealer network. When VW themselves came into Malaysia in 2007, VW undertook a massive marketing exercise to develop the brand in Malaysia. VW was able to demonstrate that their cars were reliable, offered better value for money than its rivals, better technology and good after sales support.
After 4 years VW is now a force to be reckoned with in Malaysia. With the introduction of each new model, VW has taken away market share from its rivals. VW now offers 5 years warranty for all their cars and this shook the car industry. VW was the first European company to offer 5 years warranty for their cars. Other brands had to follow suit to be competitive. It is no longer just about buying a car, it is about the ownership experience.
VW is one of the few brands in Malaysia where a VW owner will buy another VW car.
This cannot be said for Kia, where the after sales and warranty support is sorely lacking. Their cars may be nice to  look at and are of decent value for money but the attitude of the distributor kills the ownership experience.

1 comment:

  1. For average Malaysian, they already burden with the cost of living and busy finding money to payoff the crazy properties cost here, owning good build quality cars like VW offered had become a luxury option, generally at a lower rank in their priority list. again, with the stupid and corrupt government that still glue on the seats, it is quite impossible to have the 90% Proton owners can trade in for a VW for now. I believe everyone should have the rights to own a better life just like others at a fair competitive environment, not only for a few because they are well-connected. who says politics does not affect economy? it is just simple logic to understand now on how bad government kills automotive industry too!

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