Volvo’s going back to safety. Good for them-- they owned it for so long and I am sure they can again. But they are also pursuing luxury. Really? Because in my experience, we're talking about diluting a major brand position now, not strengthening it.
Let's think about it. New Volvo CEO Jacoby explained to AdAge in a few short sentences he wants Volvo to be known again as a "safe" luxury good with Scandinavian design. Huh? When I grow up I want to be a police officer, a painter and a trapeze artist, too.
The problem isn’t just wanting to be too many things, either. It’s the specific claims. First- Scandinavian design in my mind, better or worse, is owned by IKEA. Far from luxury. Maybe good design, but more utilitarian than anything. Second- to put it bluntly, luxury's just not going to happen. And who cares if Volvo is perceived as luxury anyway, when it never has been--yet still commands a premium price?
If I were in Mr Jacoby’s shoes, I would recognize the total lack of branding Volvo’s experienced in the last 15 years or so-- and grasp a hold of what we might have the ability to own: Safety. Chasing luxury and claiming that “Scandinavian design” makes your brand a luxury product is a basic Branding 101 no-no-- because now I am just confused. My humble advice: Do yourself a favor, Volvo, and play it safe.
Sarah Szilagyi is elevator's director of strategy and client services.
