{"id":2465,"date":"2008-11-07T06:54:14","date_gmt":"2008-11-07T06:54:14","guid":{"rendered":"http:\/\/www.corporate-eye.com\/?p=2465"},"modified":"2008-11-06T21:16:55","modified_gmt":"2008-11-06T21:16:55","slug":"even-category-leaders-are-at-risk-in-a-weak-economy","status":"publish","type":"post","link":"https:\/\/www.corporate-eye.com\/main\/even-category-leaders-are-at-risk-in-a-weak-economy\/","title":{"rendered":"Even Category Leaders are at Risk in a Weak Economy"},"content":{"rendered":"

\"\"<\/a>Over a year ago, I wrote a post on a blog about branding that I used to write where I pointed out that Toyota might be the automotive category leader, but based on my experience at the time with a local dealership, Toyota was also quite arrogant about that position in the marketplace.\u00a0 In that post, I suggested that Toyota should rethink its brand strategy to remain in the leadership position in the long-term, because no matter how great a product is, consumers won’t stick with it if they don’t feel valued by the faces of that brand.<\/p>\n

So today, I read an article on BusinessWeek.com that talks about Toyota’s tumbling profits<\/a>.\u00a0 It seems even the arrogant, untouchable category leader is at risk in a weakened economy.\u00a0 The question is, will Toyota change its brand strategy from one of arrogance as in, “we’re doing customers a favor by letting them buy our cars,”\u00a0 or will the typical road of finding places to cut costs and reduce value to both employees and consumers be followed?\u00a0 I think we can assume the latter will be the likely path taken by Toyota, but of course, that remains to be seen.<\/p>\n

The important thing to take away from this story is this – never let your brand’s success cloud your brand’s promise, message and image.\u00a0 As your brand becomes more successful, it’s more important than ever to continue to deliver on your brand’s promises.\u00a0 Customer service should be better than ever, pricing should be fair and employees should be treated well and encouraged to become brand champions.\u00a0<\/p>\n

Let’s face it, Toyota began putting a premium price tag on its Toyota branded cars years ago as the brand became more popular and ultimately jumped ahead of the competition in terms of market share.\u00a0 However, was the premium price tag warranted?\u00a0 Instead of building a brand promise around what the brand could deliver that differentiated it from other similar brands, Toyota pursued a, “why wouldn’t<\/em> you want to buy a Toyota?” approach.<\/p>\n

Of course, all car manufacturers are feeling the negative effects of the weakened economy, but the point is this – times will not always be great for your brand.\u00a0 Plan ahead for external forces that will inevitably change the market and consumer demand.\u00a0 Don’t become an arrogant brand then be forced to backpedal and remember to be thankful that consumers want to do business with you.\u00a0 Instead, treat every customer like they’re your most important customer and your number one brand champion.\u00a0 That’s what creates customer loyalty and brand champions, and that’s what will help your brand survive during the bad times, like a weak economy.<\/p>\n

What do you think?<\/p>\n

Image: <\/em>Flickr<\/em><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Over a year ago, I wrote a post on a blog about branding that I used to write where I pointed out that Toyota might be the automotive category leader, but based on my experience at the time with a local dealership, Toyota was also quite arrogant about that position in the marketplace.\u00a0 In that […]<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[95],"tags":[927,212,104,105,928,185,807,929],"class_list":{"0":"post-2465","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-brand","7":"tag-arrogant-branding","8":"tag-brand-loyalty","9":"tag-brand-message","10":"tag-brand-promise","11":"tag-corporate-brand","12":"tag-customer-loyalty","13":"tag-toyota","14":"tag-toyota-earnings","15":"entry"},"yoast_head":"\nEven Category Leaders are at Risk in a Weak Economy<\/title>\n<meta name=\"description\" content=\"Don't be an arrogant brand else your brand will 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