I. Problem
When your brand name in the public mind is comparable to that of gutter oil, you may have a problem. As a consultant hired by Chris Hansen, I have noted some peculiar issues with Skoda’s brand that may put the launch of its new model, the Fabia, in quite the conundrum. The problem lies in the Western world, notably the UK, where the brand is seen as shameful, embarrassing, cheap (not in a good way), and quite frankly, garbage.
Recovering from a poor brand image then requires brainstorming through a variety of differing strategies. My inherent quandaries with this project lie in the target market, the brand aspects Skoda should push, and whether the brand image has cemented into Western culture, and if so, will a simple marketing strategy transform such long-held beliefs? Or will it require something more revolutionary?
II. Alternative Solutions
New brand, same old Skoda: Sometimes, the plasticity of the human mind and culture is very robust. In such a case, trying to market a brand with a negative image may be a waste of money. We know Hyundai has had success in the UK because it was seen as an original brand, a “Tabula Rasa” to the cultural mind, so to say. If we change the brand and logo of Skoda, perhaps it will see similar success as Hyundai.
+ Consumers will have a neutral opinion. Neutral is better than negative.
+ We can use the same marketing strategy, just under a different subsidiary, potentially eliminating the costs of creating a brand new marketing plan.
– It has the potential to backfire, as it will not be “top secret” that the new brand is simply Skoda behind a mask.
– Has the potential to leave consumers feeling as though they were deceived, further enhancing the negative image.
Out with the Brits: If it is the UK that is showing the most resistance, consider re-positioning to a different country to supplement market share. Marketing Skoda to the US or Canada may be an option as these countries do not have the cultural history of associating Skoda with a negative brand image.
+ potential for greater market share than the UK, while marketing to a similar demographic, as a low cost, fuel-efficient car.
+ Future potential benefits: if Skoda receives positive acclaim in the US and Canada, it can naturally strengthen the brand’s image, then the jokes can divert from Skoda to the “pompous” UK culture.
– Marketing costs may be significantly higher, as there is little or no brand awareness in these countries.
– If the Fabia does not perform well, it can result in a similar brand image. Then Skoda would be the laughing stock of the entire Western world.
Cultural Evolution: Reversing the step by step engineered patterns that embody the perceptions of a culture can be a difficult task, but when done effectively, it has the potential for profound results. If we allocate marketing funds to convince people that a pragmatic mindset is superior to a materialistic one, we are effectively convincing them that thinking negatively of the Skoda will reflect negatively on their character. Here, we will advocate that the Fabia is not only a practical and affordable car, but also that the mindset of placing negative labels on a depreciating material asset, simply because it is associated with the “poor man,” is rubbish.
+ Will effectively eliminate negative connotations associated with Skoda’s brand, resulting in consumers not only buying the Fabia, but feeling good about doing so.
+ Has the potential for this “mindset” to spread throughout Europe. The Czechs will have to change their language and find a new
word for “shame.”
– Cultural evolution in the proximate future is rather tricky, and it has the potential for substantial loss of marketing funds.
– There is a small risk of a “double down” effect, where the cultural evolution strategy may be seen as a clownish ploy, further
tarnishing the Skoda brand.
III. Recommendations
The recommended course of action is the “Cultural Evolution” approach. Though this approach has the potential for the most roadblocks, Skoda has lucked out; they hired a consultant with an extensive background in Evolutionary Psychology. We will position the Fabia as a low cost, efficient, and practical car, while in parallel, running our cultural evolution campaign.
This campaign will consist of promoting a less materialistic mindset, while actively discouraging classist thinking. One example of an ad would be two people discussing a car (not immediately addressing the Fabia), while one, with a pompous attitude, scorns it for being too cheap, claiming he is “too good” for such a car. The other character will sigh in hopelessness while mentioning the practical aspects of buying an affordable vehicle, chiding the former actor for foolishly wanting to spend more money on something that will eventually depreciate to nothing. After the dialogue, the Fabia will be shown, with the “reasonable” price shown underneath.
The target market will be middle-class individuals and families in the UK. If Skoda takes advantage of this strategy, not only will it eliminate the negative connotation associated with its brand, but also belittle those who continue, in their robust nature, to mock the Fabia. In the end, the joke will not be on Skoda, but on those who mock it.