Dalia has sung the praises of brand tracking many times, but today we’ll walk you through a more concrete example of what you can do with the results of a brand tracking study.
In this case, a client from the luxury car industry approached us for a brand tracking study. They wanted quick, cheap and actionable insights that could help them understand their brand’s status as compared to their competition. We offered the client a brand tracking survey comprising 523 internet-connected respondents from the US. The results show not only which brand is leading the industry, but also which demographics have a high regard for certain brands. These insights will in turn help the client to re-strategize their marketing plan; whether by emulating the high performing brands or by targeting their core audience more efficiently. First, here’s a little background about the luxury car market:
About the Luxury Car Market
Despite the slight decline of car sales in the U.S., luxury car sales continue to rise dramatically. According to Jato Statistics and Statista, 28,500 luxury cars were sold globally in 2016, up from 24,500 in 2015. In fact, the United States is the largest market for high end vehicles, accounting for 30% of the global sales volume.
Clearly the industry is booming, but how well do the individual luxury car brands stack up against each other? Dalia’s brand tracking study shows that while BMW takes the lead for brand awareness, Jeep is the favorite for brand consideration among Americans.
Awareness of Luxury Car Brands
BMW comes in first place with 82% of respondents reporting awareness of the brand. Jeep and Nissan come in second place, both with a brand awareness rate of 80%. Tesla has the lowest brand awareness at 60%, which is impressive considering it is by far the youngest of these brands.
Luxury Car Brand Consideration
But just because Americans are aware of certain brands, doesn’t mean they would consider purchasing from them. This is where the brand consideration metric comes in: the percent of people who would consider “buying products or using services” from the listed brands in the next six months.
Brand consideration was found to be highest for Jeep (36%) and Nissan (31%). BMW comes in third place with 24%. At the other end of the spectrum, Volvo and Jaguar have the lowest brand consideration score of 13% each. Based on these results, it’s clear that brand recognition corresponds fairly well to brand awareness.
Additionally, the data shows that women and 40–65 year olds have the lowest brand consideration rates almost across the board. Meanwhile, men and 26–39 year olds have higher brand consideration across most of the listed luxury car brands. These findings match up with with some of the stereotypes associated with luxury cars, and with other research on the topic. For example, according to an analysis of 8 million car purchases in 2010 by TrueCar, men are more likely to choose European luxury brands and cars with great speed or hauling capacity while women prefer more affordable, fuel efficient cars. Additionally, many high-end car brands report a low average buyer age; for example, Larry Koch, brand manager for the BMW M3, says many customers are in their mid-20s.
Luxury Car Brand Consideration vs. Actual Sales
When comparing brand consideration to the respective sales made in 2017, a strong correlation emerges. A high brand consideration score generally corresponds with a high level of sales. Nissan is one of the exceptions; for the large number of sales Nissan made last year we’d expect to see a higher brand consideration score.
Using these Insights for Strategic Branding
These initial insights can help brand managers understand where they stand among the competition and get a better grasp on their core audience. However, the real gems are gained over time. As new marketing activities are implemented, the client will be able to measure how the public’s perception of their brand changes as a result of these activities, in real time. That is pretty powerful.