A Good Brand Is Better Than A Bailout

Tweet

When your product’s quality and your organization’s action convey a perception of credibility and value, customers will prefer to do business with you because it is in their own best interest.

That’s what Ford proved when they turned down a taxpayer bailout General Motors and Chrysler urgently requested in 2009. Not only did consumers respond favorably to Ford’s decision to avoid adding more burden to the national debt, but so did the very government that had already funded the financial relief of their competitors.

In two separate articles published recently on Brandchannel.com, the highlights of Ford Motor Company’s financial performance during the last two years was reported.

One article states that year-to-year consumer market share shifts between major manufacturers is typically measured in tenths of a point. Ford’s share ended 2008 at 14.2 percent. It grew to 15.3 percent by the end of 2009. And it is expected to end 2010 at 16.5 percent. It has been a long time since such large back-to-back increases have been experienced by any U.S. auto manufacturer. Read the full article.

The second article recounts Ford’s sales success to US-government fleets. Although Ford’s total sales count was just higher than General Motors, the government bought 3 hybrid vehicles from Ford for every one they purchased from GM. It seems Ford’s quality and broad array of product options is a favorite of this administration’s green initiatives.
So to come back to the point I made when this article began, customers desire, prefer and will enthusiastically purchase brands that they perceive offer them a significantly better value than other competitors. Read the full article.

That turns the tangible improvements Ford has made in their vehicles combined with the emotional goodwill from turning down the bailout money into a very strong brand value boost. Which has translated into their significant revenue and market share increase. Plus an even healthier bottom line.

And a strong brand and bottom line beats a bailout any day of the week.

When you’re ready to turn a stronger brand into a healthier bottom line, contact us by e-mail or phone 903-534-5220.