Ford's Blue Oval Ranked First Among Automakers

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Ford's Blue Oval ranked first among automakers

Published: July 20, 2000
Date of revision: None
Source: Interbrand, Polk Automotive, & ActivMedia Research
By: Steve Blake; Staff Writer, BlueOvalNews.com

The Blue Oval Division of Ford Motor Company is the world's most recognized automotive name plate according to a recent global study conducted by Interbrand.

Brand marketing plays a critical role in every type of market, including dot com's. From Amazon to Yahoo, brand recognition and top of mind awareness generate feelings of enthusiasm and trust that often times lead
to increased sales and profit margins.

For Ford Division, many consumers are purchasing the brand as much as the vehicle itself and of all vehicles currently on the market, the Mustang is the world's most recognized vehicle nameplate. Because of vehicles such as the F150, Explorer and Mustang... and now the Focus and redesigned Taurus, Ford Division is increasing its lead in brand awareness.

How successful has Ford been at converting their brand awareness into brand loyalty? According to Polk Automotive, Ford Motor Company captured the Manufacturer Owner Loyalty Award, for the first time, earlier this year and Ford Division maintained its leadership by receiving the Overall Make Loyalty Award for the forth consecutive year.

"Winning the Overall Manufacturer Loyalty Award is a great accomplishment for Ford Motor Company," said Karen Piurkowski, Polk's director of loyalty. "Their success in this category has not come easily, as they have invested significant time and resources in helping to serve their customers better. Ford was also one of the first manufacturers to offer an additional financial inventive to only its loyal customers, as opposed to offering the same rebate to all consumers regardless of previous ownership.. Given the commitment it has made to its customers, Ford has truly earned the top two Polk awards for the 1999* model year."

Jac Nasser, President and CEO of Ford Motor Company said, "Our consumer strategy will build consumer loyalty to our broad portfolio of products and services and grow the company from today's very strong base."

Ford is in the midst of a very long winning streak with many of their automotive products and services that is further distancing them from the rest of the pack. However, because of the Internet and a consumer's access to information, some cynics say that consumer loyalty is a thing of the past. But, ActivMedia Research disputes the cynics' claims.

According to ActivMedia Research, consumer loyalty rewards the company that earns the love of their customers...

• Seven of ten Product purchases are made by buyers who know exactly what they want to buy before going online. Product Loyalty is distinct from Vendor Loyalty.
  
• Two of every three purchases are made to buyers who had predetermined which Vendor they were going to visit before they go online. Vendor Loyalty is Distinct from Product Loyalty.
  
• Loyal purchasers don't stop to compare Products or Vendors for the lowest, penny-pinching price before buying -- other factors are more important. This reduces price pressure, increases gross margin and creates a sustainable platform for long-term profitability .
  
• Loyal purchasers are predisposed. They ignore competing advertising claims because they aren't in an evaluative, comparative frame of mind. Companies with a loyal customer base have lower costs per sale, spend less on customer acquisition, more on customer satisfaction.
  
• Companies that inspire loyalty emphasize back-stage activities as much as front-stage website designs. Their fierce commitment to customers doesn't leave openings for competitors to prey upon their target market.
  
• Consumer Loyalty results from attention to Key Success Factors specific to an online market. Apart from several web-wide success factors, Key Success Factors in one market can be substantially different than Key Success Factors in other online markets.
  
• There are currently Ten major online markets, where sets of Consumers shop for similar products offering a similar type of appeal. Shoppers in a given market tend to use substantially the same buying process for produce selection, but buying behaviors differ dramatically across the markets.

Will the Internet spell the demise of Ford's brand loyalty? Not at all. As a matter of fact, individuals that are considered "Ford Brand Evangelists" are utilizing the Internet to spread their words of belief and praise to a greater audience than was ever possible just a few years ago.

According to Yahoo!, there are currently 3258 enthusiast sites dedicated to the products of Ford, while GM can only muster a mere 990. This type of activity, if nothing else, will assist Ford in maintaining its number one "Top of Mind Awareness" ranking.

*The 2000 model year awards will be announced in January during the 2001 North American International Auto Show in Detroit, Michigan.