Since
declaring design management as a core driver of the company’s future growth and
the hiring of President & Chief Design Officer Peter Schreyer in 2007, Kia Motors Corporation’s brand value has
skyrocketed by 480% from US$929 million to US$5.4 billion, according to
Interbrand’s exclusive list of 100 ‘Best Global Brands 2014’ which was released
today. This rise in brand value far outpaces the average growth rate over the
same period of all 11 other automakers on this year’s list.
Kia first entered Interbrand’s
annual 100 ‘Best Global Brands’ rankings in 2012, coming in 87th place with
brand value of US$4.1 billion, and subsequently rose four spots to 83rd
position in the 2013 study following a 15% increase in brand value to US$4.7
billion. During the past year, Kia’s
brand value increased by a further 15% to US$5.4 billion, elevating the Korean
automaker nine places to 74th position. Kia’s increase in brand value
according to this year’s study is more than double that of the top 100
companies’ average brand value growth rate of 7%.
The
significant increase in Kia’s
brand value over the past year can be attributed to factors such as the
continued roll-out of high profile marketing activities including this year’s
sponsorship of the 2014 FIFA World Cup Brazil™ and Australian Open tennis
championship, an ongoing new product offensive featuring the launch of twelve
next generation or significantly upgraded models in 2013 and 2014, and a 4%
rise in average selling price of exported vehicles during the first half of
2014 compared to the same period of the previous year.
Moreover,
Kia’s global brand campaign
based on its new brand identity introduced in 2012 – A Different Beat – has
provided the company with great internal clarity and strong core brand
attributes of “Vibrant, Distinctive and Reliable.” As a part of its efforts to
strengthen the brand’s ‘A Different Beat’ image and global customers’ emotional
attachment to the brand, Kia
has been executing various innovative marketing activities since 2012 including
sensory marketing initiatives such as the ‘Red Cube’ visual identity for
dealerships around the world as well as introduction of a brand signature sound
that is being applied to Kia’s television
commercial end frame jingle and other customer touch points.
Hyoung-Keun
(Hank) Lee, Vice Chairman of Kia Motors Corp., said, “We at Kia are committed to creating
unsurpassed levels of customer value in the automotive industry, and our rise
up Interbrand’s ‘Best Global Brands’ rankings this year is a testament to the
dedication of all Kia employees worldwide to exceeding customer expectations in
every area of the business.”
According
to Interbrand, “As a result of its continued branding efforts, expressed in the
slogan, ‘The Power to Surprise,’ the Korean automobile manufacturer
successfully repositioned itself from an image of low cost and low quality and
is now targeting more design conscious consumers who value an emotional
connection to their brand.”
This
latest recognition by Interbrand follows Kia’s rise from 37th to 35th place on
Interbrand’s list of 50 ‘Best Global Green Brands 2014’ released this past
June.
The
2014 edition of Interbrand’s annual 100 ‘Best Global Brands’ study was executed
through a comprehensive brand performance analysis using best practice research
methodology by expert analysts. The study measures a corporation’s financial
performance in terms of the raw financial return to investors; role that a
brand plays in the actual purchase decision; and brand strength, which is the
ability of a brand to secure the delivery of expected future earnings.
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