Posted: March 25th, 2021

MARKETING ASSIGNMENT – VOLVO

NDIVIDUAL MARKETING ASSIGNMENT – VOLVO
Executive Summary
Volvo is synonymous with safety. As a follower in the
luxury car market, Volvo positions itself against its
competitors using a differentiated strategy; a unique
combination of superior safety, durability, Scandinavian
styling and performance.
(Figure 19)
Volvo currently offers three SUVs in its ‘XC’ range, two
wagons (‘V’ range) and a sedan (‘S’ range). Prices start at $54990 for its baseline S60
Momentum and increase to roughly $92k for its top model XC90 R-Design, a sporty 7 seater
SUV. Globally, SUV sales comprise 63% of total sale (Volvo, 2020.) Volvo captures a small
portion of the market with a mere 0.7% of total new-car sales in Australia in 2019.
Volvo’s consideration set is Mercedes-Benz (the market leader), Audi, Lexus and BMW.
However, Lexus can be considered their biggest threat. Where its competitors emphasize
the high performance, sex appeal features of their brand, Volvo continues to leverage on its
reputation for safety in all marketing communications. Whilst the language has slightly
changed, from ‘durability, reliability, safety’ to words such as ‘confidence’, the strategy
largely remains the same. As consumer trends change, Volvo has now steered its future
strategy to growth through innovation in environmentally-friendly electric and hybrid models.
Table of Contents
Introduction …………………………………………………………………………………………………………….2
Describe the brand & why you like it…………………………………………………………………………….2
Why others like it ……………………………………………………………………………………………………3
Identify competitor set………………………………………………………………………………………….4
MarComms
Audit……………………………………………………………………………………………………
………………………… 5
Positioning
Statement………………………………………………………………………………………………
……………………… 9
Brand
promise…………………………………………………………………………………………………
………………………………10
Advertisements…………………………………………………………………………………………
…………………………………….11
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Media consumption
patterns…………………………………………………………………………………………………
………..14
Conclusion………………………………………………………………………………………………
………………………………………15
Referencing……………………………………………………………………………………………
……………………………………… 16
Introduction
Volvo: Scandinavian styling, safe, durable. The Swedish car
manufacturer has become synonymous with safety, due to its
history of innovation; most notably for the development of 3-point
seatbelts and side-impact airbags. (Forbes, 2019.)
The following report will discuss Volvo’s positioning in the market
against its competitors, namely BMW. To simplify this
discussion, this report will focus on Volvo Cars, and its image in
Western markets, namely
Australia.
(Figure 1)
PART 1:
1. Describe the brand and why you like it?
Fun fact: my dad has owned his
P1800 longer than anyone else in
Australia! Simply put, the Volvo brand is a fundamental part of who I
am, and that of my family. I essentially grew up in a Volvo, from the
1962 P1800, to the 1972 140, 1978 240,
1988 240 wagon and finally learning to
drive in my 1992 240 sedan. Fondly
named ‘Goldy’, the 240 carried me
through my Ls, driving around the Northern
Suburbs with my dad in the passenger
seat, bonding over car mechanics and the
like. Then through university, my weekly
trips to Moss Vale and back, Wollongong to
Sydney daily. I can attest to Volvo’s
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reputation for safety – the heavy rubber bumpers proving useful with minor bumps on
my Ls and Ps; and more impressively, after being gauged by a driver into my driver
door, my car was left without so much as a scratch! Whilst I love my new Toyota,
Volvos have an un-replicable quirk, and a body so strong that keeps them on the
roads for decades more than others.
Please note photos on this page are my own.
Why others like it:
Volvo is a Swedish manufacturer of cars, established in 1927. The brand has been built on
the core values of putting safety at the heart of all it does, with uniquely Scandinavian
styling. Volvo is understated, pragmatic and considerate – in a way that reflects the Swedish
way of life. Unlike its competitors, Volvo is a luxury car due to the high quality of its
products, its functionality and minimalistic styling. Conversely, BMW and BMW can be
considered ostentatious, with their customers wanting high performance status symbols.
Historically, Volvo’s reputation of safety has been a key motivator for purchasers. This
reputation has been built on continued innovation of safety features, starting with the
introduction of the three-point seatbelt by the
brand in 1958, the first of any in the market.
Whilst it patented this technology, it made the
patent available to all manufacturers, free of
licensing fees so as to encourage the widespread
adoption of seatbelts. Volvo was also the first
manufacturer to introduce side-impact airbags.
(Forbes, 2019.) As consumer trends change,
Volvo has now steered its future strategy to
growth through innovation in environmentallyfriendly electric and hybrid models (Volvo, 2020.)
Volvo currently offers three SUVs in its ‘XC’ range, two wagons (‘V’ range) and a sedan (‘S’
range). Prices start at $54990 for its baseline S60 Momentum and increase to roughly $92k
for its top model XC90 R-Design, a sporty 7 seater SUV. As shown in Figure 2, SUV sales
comprise 63% of total sales globally (Volvo Cars, 2020), and 97.8% in Australia (GoAuto,
2019.)
Volvo’s customers like ‘solid things, safety, reliability…possesses traditional, secure values,
and attaches more importance to the quality of his environment than to his status’ (Duprat,
1988.) As will be discussed further, customers are affluent and style conscious, but primarily
Volvo Sales by Range
(Figure 2)
14%
23%
63%
XC (SUV) V (Wagon) S (Sedan)
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interested in the safety features of its cars. Volvo’s customers are typically families,
purchasing from the 4WD ‘XC’ range.
Studies conducted by Nielsen Australia indicate that Australian families are 31% more likely
than those without children to purchase an SUV (Nielsen, 2018). Further, the average of the
luxury car buyer in Australia is now aged between 25-39, with people in this group earning
on average $1315 a week (ABS, 2018). Volvo sales continue to grow, in line with increased
luxury sales overall, despite worsened economic conditions due to the COVID-19 Pandemic.
Interestingly, in China, the perceived safety of a Volvo is not factored into customers’
purchasing decisions at all, with perceived social status being a key factor (Nga et al, 2019).
However,. In analysing these results it should be noted once again that
Volvo currently only has six models on the Australian market (with almost all sales achieved
by its SUV range), with its competitors offering at least twice that.
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With similar market share in recent years and an understated but luxurious design, Volvo’s
biggest threat in 2020 is Lexus. There have been many favourable comparisons made by
car reviewer’s between Lexus’ SUV, the RX and Volvo’s XC90 – such as by Carsguide,
Drive and Business Insider. Volvo’s entire strategy is focused on the customer experience,
including in the sales/after sales experience. it very well may be contended that this emphasis on security over styling has permitted its European

companions like BMW, Mercedes-Benz and BMW to control the market. Understanding that Volvo

was inadequate in brand thought as an extravagance vehicle, Volvo has since changed its

correspondences system to mirror a ‘cooler’ way of life.

(2) Identify its rival set and who is the greatest danger and why? Make sureyou

give proof to help your contention e.g., sites, gatherings, articles and so on

Volvo’s rival set is market pioneer Mercedes-Benz, BMW, Audi and Lexus. This is

in light of these brands’ present item offering and valuing.

As per the Federal Chamber of Automotive Industries, there were 1062867 new

vehicle deals in 2019 in Australia. Volvo’s deals of 7779 address simply 0.7%. Despite the fact that Volvo

keeps on being a little part in an exceptionally serious market, its 2019 development, fuelled by an

expanded advertising spending plan, positions the organization well against BMW, Audi and Lexus

(Volvo, 2020.) An examination of the five brands’ deals is appeared in the accompanying composite

chart (VFACTS, 2017-2020) Lexus appears to be following a similar
strategy, narrowly beating Volvo as #1 in Roy Morgan’s 2019 customer satisfaction survey –
at 98% vs. 95% (Roy Morgan, 2019.)
(3) MarComms Audit
Brand positioning is the process of creating a particular view of the brand in a consumer’s
mind, so that they will consider, and ultimately purchase the brand (Rossiter et al, 2018.) As
conveyed in the included examples, Volvo employs a differentiated positioning strategy as a
manufacturer of safer, more innovative cars, with sleek Swedish styling. Where its
competitors position themselves as sexy, high performance, luxury cars, Volvo continues to
focus on its minimalistic style and practicality.
The following print advertisements highlight Volvo’s ongoing strategy of differentiating itself
simply as being safer and more durable. Volvo often uses humour in its print advertisements
– embracing negative attitudes of the Volvo brand in popular culture – to market its ‘inferior
benefit’ (its boxy features e.g. rubber bumpers) as key to what makes a Volvo the safest car.
Further, the continuity of muted background colours, simple copy, leaving the focus on the
car shows cosmetic integration of Volvo’s campaigns:
Sales of Volvo and Competitors 2016-2019 Australia
45000
40000
35000
30000
25000
20000
15000
10000
5000
0
Mercedes-Benz Volvo BMW Audi Lexus
2016 2017 2018 2019
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(Figure 3) (Figure 4)
Volvo’s positioning strategy differs slightly with social media platforms. On Facebook, Volvo
attempts to appeal to favourable brand switchers by positioning the car as understated,
innovative and uniquely Swedish. Whilst ‘safety’ is
not explicitly mentioned, Volvo is attempting to
communicate a slightly ‘cooler’, more luxurious
brand personality, highlighting the car’s functional
benefits with more understated copywriting than
before.
On Instagram, Volvo appeals
to its brand loyals, with posts
alternating between nostalgic
reminders (“throwbacks”) of
(Figure 5 to left and 6 to
right)
iconic models, and advertisements of its new models. In comparison to
Volvo’s positioning of its ‘cool’ Swedish styling, Instagram highlights its
retro designs as quirky. However both are examples of an emotional
selling proposition, in that customers can be reassured of their safety,
without compromising on the features one would expect in a luxury car.
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(Figure 7)
Omtanke
The concept of ‘Ömtanke’, meaning ‘care and consideration’ was introduced to encapsulate
Volvo’s continued focus to build safe cars, with its commitment to produce environmentallyfriendly, carbon-neutral cars. As part of this campaign, Volvo produced the above television
advertisement to promote its collision avoidance feature.
Volvo’s key competitor, BMW also utilises an emotional selling proposition, highlighting the
high performance features (‘fasterpiece’), with emotive language such as ‘exhilarating’ and in
its former tagline, ‘sheer driving pleasure.’
Page | 8
(Figure 8)
Whilst Volvo drivers seek safety, BMW drivers are motivated by the anticipated thrill of
driving a high performance vehicle. The following chart highlights the two brand’s differing
brand attitudes:

Brand delivery
Emotional Benefit Volvo BMW
Reinforces owner’s feeling
of individuality and personal
focus 5 5
Driving pleasure 6 10
Safety, security 10 7
Feeling of having made an
intelligent choice 9 7
AssignmentTutorOnline

As per Rossiter et. al – Source: Hypothetical ratings inferred from the case description in
Bergstrom et al. (2002) (Figure 9) Rossiter et al.
When compared with BMW’s most recent tv ad campaign, which highlights the car’s high
performance, Volvo may be considered dull. Whilst BMW’s focus on its performance may be
regarded as ostentatious, (not in line with Volvo’s values), research shows that sex appeal is
key in making luxury car purchasing decisions, with 56% stating it is an important factor
Page | 9
(Nielsen, 2019.) Sex appeal as an extension of one’s self may prove more powerful than
luxurious safety for consumers comparing alternatives in the consideration set.
(4) Do a positioning statement for the brand/product using Rossiter et al’s, Rossiter
and Percy Grid, T-C-B model, I-D-U models(where appropriate).
Using the ‘product as hero’ approach to brand positioning:
“For the style-conscious driver and their family, Volvo is the safe choice when it comes to
purchasing a luxury car. Volvo embodies the ultimate in Scandinavian style, innovation and
driving confidence.”
When considered in regards to ‘brain levels’ theory, Volvo undertakes an emotional selling
approach to its positioning. Volvo ensures its customers are emotionally motivated to
purchase. It does this by creating content highlighting the cars’ key benefit; its safety
features, (and more recently environmentally-friendly features), with a believable message:
that Volvo is the safest choice for your family.
The T-C-B model: Target – Category – Benefit
Target
Volvo’s target customer is broadly families, with the creative target specifically being women
aged 25 to 39. This is because women have been found to influence 80% of car purchasing
decisions (Forbes, 2014). As previously discussed, based upon the sales of Volvo SUVs, it
is reasonable to assume that Volvo’s current/potential customers are largely families.
Category
Volvo is in the luxury car category.
Benefit
As discussed, Volvo’s key benefit is that it is superior in delivering safety – that their cars are
safest, with significant innovations – e.g. 3 point seatbelts and side impact airbag.
Page | 10
As brand loyals, some Volvo
customers may have low
involvement with their purchasing
decision, however overall, due to
the risk and emotional involvement
associated with purchasing a car –
particularly in the luxury market,
Volvo can be regarded as a
transformational high involvement
product. This is the group that’s
targeted in Volvo’s advertising.
products as uniquely safe.
Rossiter and Percy Grid
(Rossiter et al, 2018.)
According to Statista, safety is the
leading motivator for customers
when choosing among alternative
cars (2018.) It’s interesting that
whilst this may be considered an
‘entry ticket benefit’ i.e. a functional
benefit fundamental to the vehicle
product category, Volvo
differentiates itself by marketing its
(5) On the basis of your positioning statement please describe its brand promise toits
target market.
To produce the safest cars on the road, without sacrificing the features consumers expect in
a luxury car.
Page | 11
The all new XC40, the first fully
electric Volvo… The 390 horsepower
engine
PART 2: (Worth 10 marks)
1. Advertisements
The objectives of the following campaign are:
• To lessen negative brand attitudes towards the Volvo brand as being uninspiring, the
efficacy of this will be measured by surveying customer attitudes toward the brand,
their key motivating factors in purchasing, and their awareness of the campaign.
• This attitude change will also be seen by any measurable increase in sales (by a
desired 30% in 2021)
• Research shows that concern for the environment is growing, as 31% of Australian
consumers. Despite this, there is a lack of understanding about electric vehicles, with
only 16% stating that they feel sufficiently educated (Nielsen, 2019.) To increase
awareness of Volvo’s commitment to electric only vehicles, by achieving pre-order
sales in Australia of 3000 units by January 2021.
The following advertisements aim to be more engaging than Volvo’s current campaigns, reinjecting an element of ‘fun’ into the brand’s image, whilst remaining true to Volvo’s core
positioning strategy. Further, whilst Volvo has not historically used paid advertising in the
form of brand ambassadors/sponsorships, using a well known Swedish celebrity in Volvo’s
social media marcomm’s would improve the credibility of Volvo’s new claim to luxury.
TV Advertisement
1. *up beat, orchestral music plays*
(Figure 10)
Page | 12
And Pilot Assist
It’s a Volvo, but not as you know it…
(Figure 11)
(Figure 12)
(Figure 13)
With Intellisafe technology
including Oncoming Lane Mitigation
Page | 13
*music fades out*
(Figure 14)
Social media
1.
Collaboration with well known Swedish personality – video content on both Volvo and
Skarsgard’s accounts. “In an uncertain world, it can be difficult to know who to trust to
protect my family’s future. That’s why I choose Volvo, with more than 60 years of driving
innovation in safety, it’s now committed to protecting the environment too, with the first fully
electric XC40, fitted with recycled materials. It’s a Volvo. But not as you know it.”
(Figure 15) (Figure 16)
Page | 14
2. Specific to Instagram
(Figure 17)
Magazine Ad
“#TBT to 1959! At Volvo, our top priority
has always been your safety. That’s why in
1959 we developed the 3 point seatbelt
and quickly introduced it as standard in all
models. Because confidence never goes
out of style.”
(Figure 18)
3. Media Consumption Patterns
• Research conducted by Neilsen shows that 63% of luxury car buyers consider
themselves to be car enthusiasts, and therefore actively research their options when
looking to purchase. In starting this process, luxury car buyers often follow brand’s
social media platforms. It would be reasonable to assume also, that this group of the
market would have a somewhat positive view of Volvo, and therefore by creating
Page | 15
engaging digital content, Volvo can engage/sway favourable brand switchers. Part of
this interest in cars is innovation, and therefore they pay attention to new
advancements in technology. Further, they are 71% more likely than other car buyers
to view websites and videos and 40% more likely to view magazine ads. (Neilsen,
2019.)
• In regards to ensuring young families see the TV advertisement in particular,
research shows that most people (38%) view news content on the TV. Volvo would
therefore pay for its ad’s to be played between 6 – 6.30, the typical nightly news slot.
Further to this, 45% of Deloitte’s respondents stated that they were more likely to
engage with ads seen on TV over smartphones. (Deloitte, 2020).
• Social media ads will feature on Instagram and Facebook, with most people having
accounts with either of the two platforms (31% and 81%.)
Conclusion
Volvo Cars has a strong positioning strategy based on differentiation – of delivering the best
in safety, combined with unique Scandinavian styling and innovation. Despite this, the brand
has negative connotations with being ‘dull’ and ‘boxy’, as compared with its key competitors,
such as BMW which is able to capture a large proportion of the market by promoting its
products as high performance and sexy. As Volvo continues to enjoy the success of its
XC90 market, it should continue to invest in its marketing communications, namely social
media. This will be important in the long term in changing the brand attitudes of younger
generations, to ensure strong sales in the long term.
Page | 16
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Invest in durable goods from Volvo

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Figure 7
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Figure 8
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BMW’s Fasterpiece

Figure 9
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Figure 18
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