Recently I got a LinkedIn message from a reader of this blog about my Volvo Positioning articles (see Article 1, Article 2, Article 3). The question was: WHY did Volvo make the change to dump its historic positioning around safety?
While I do not have the exact answer on the Volvo case – I have seen in my brand advisory business and previous corporate life a couple of reasons WHY companies change their positioning.
But before going in the reasons WHY companies change their successful positioning, let me first explain WHY you should never radically change your positioning.
Brands are linked to a category or a ‘job to be done’. This is important to understand. In case of Volvo the category or the job the brand does (or did…) was being the safest car – great to protect your family! Of course, over time many other cars gotten safe as well, but being Volvo the only thing to do is to make sure you continue to link the brand Volvo with Safety by proper product development, focus on safety features, link the brand to safety PR campaigns etc… because eventhough other brands are safe too, the brand Volvo has a perceptual advantage. And above all… why would you want to waste millions of EURs in build-up brand positioning over years of marketing?
But what if my category or ‘job to be done’ is not relevant anymore in todays world? This is of course a real possibility – for example analog photo camera’s are not that relevant anymore, but cameras are (still). So, in this case your job as brand owner is to shift the brand from a camera that is analogue to a camera that is digital. There are plenty of examples that this works (Canon, Nikon), and the best being Fujifilm. Fujifilm was able to transition some of their amazing analog film rolls as simulations in their digital products. Fujifilm reinforced what made them big in the first place!
So… WHY do companies radically CHANGE the positioning of their brand(s)?
These are the three top wrong reasons I have come across for making big changes in positioning:
1: Boredom internally or with agencies
Many times people inside the organisation and their supporting agencies get bored with the brand. They have worked on it for too long, the brand has become their daily reality and when constantly seeing and hearing the same things, it is only natural for people to get bored. Yet, consumers only interact and think about your brand a fraction of the time you spend with it. And that valuable time is needed to keep reminding them about something they know! Unfortunately, most brands fall sooner or later in the boredom trap.
2: Significant change in shareholders
New owners is often THE reason to make changes. After all, why would one need NEW leadership if all stays the same? In many ways shareholders also expect that… when new leadership comes in big things are about to happen… and shares/ profits / … should go up. This is what likely happened to Volvo.
Ford Motor Company offered Volvo Cars for sale in December 2008, after suffering losses that year. On 28 October 2009, Ford confirmed that, after considering several offers, the preferred buyer of Volvo Cars was Zhejiang Geely Holding Group, the parent of Chinese motor manufacturer Geely Automobile. On 23 December 2009, Ford confirmed the terms of the sale to Geely had been settled. A definitive agreement was signed on 28 March 2010, for $1.8 billion. (source)
3: CV builders
Another one to watch for – CV builders have an interest in well… building the CV, and that means… something substantial needs to happen to the company they work for (‘the host’). Something really substantial is of course to change the positioning of a brand.
4: New Marketing Lead
An obvious one – but when companies assign a new marketing lead, they do expect the marketing to change. There is nothing more profound and more interesting to do for a marketer then changing the positioning of a brand.
In conclusion – whenever you do change your positioning, keep in mind that you do it for the right reasons and that you need to continually build on the brand that you own in the mind of the consumer. It is not just about “trying something new”, “renewing the essence of the brand” or “exploring the cool edges of the brand”. After all, learning and confirming the perception of a brand is done best through repetition.