Lamborghini has mental and monetary value to the

Lamborghini Urus advertisement

 

Lamborghini is a global automobile manufacturer. The company is owned by Volkswagen Group through its subsidiary Audi. The brand is known for manufacturing luxury supercars, sports car and SUV’s Their headquarters is in Sant’Agata Bolognese, Italy. Analyzing the marketing strategy that Lamborghini conducts explains why it has successfully fulfilled criteria to become a well-known brand.

 

 

1.0 Examination of brand Equity

 

The Aker model, created by David A. Aker defines the brand equity as the set of brand assets and liabilities linked to the brand. Brand equity is the added value that endowed to the products and services. This value may be reflected in how consumers think, feel, and act with respect to the brand, as well as the prices, Market share and profitability that the brand commands for the firm. Brand equity is an essential intangible asset that has mental and monetary value to the company. Brand equity has three basic components:

 

o   Brand Awareness is the magnitude to which a brand is known amongst the public, which can be measured using the following factors –

 

v Association Anchor: Depending on the strength of the brand name, more or fewer associations can be attached to it, which will influence brand awareness.

v Familiarity: Clients with a positive outlook towards a brand, will talk about it more and increase brand awareness.

v Commitment:  Brand loyalty.

v Consumers consideration: To what level does the brand form part of the evoked set of brands in a buyer’s mind.

 

o   Perceived quality is the magnitude to which a brand is considered to provide good quality products it can be measured on the basis of the following five standards.

 

v The value offered by the brand or product is a purpose to purchase it  

v Level of position in relation to rival brand

v Price: As the product becomes more difficult to evaluate, and status is at play, consumer tend to take price as a quality indicator.

v Availability in different sales channel: Consumers have a higher quality perception of brand that are widely available.

v The number of brand extensions: This can tell the consumers the brand stands for a firm quality and guarantee that is applicable on a wide scale.

 

o   Brand association is the Magnitude to which a certain brand comes to the mind when choosing products from general class. Association triggered by a brand can be evaluated on the basis of the five following indicators –

 

v The degree to which a brand name is able to ‘regain’ associations from the consumer’s brain: such information from TV promotion.

v The degree to which association contribute to brand differentiation in relation to the rivalry.

v The degree to which brand associations play a role in the buying process: the bigger this extent, the greater the total brand equity.

v The degree to which brand association create positive feeling: the superior this extent, the greater total brand equity.

v The number of brand extensions in the market: the larger this number, the better opportunity to add brand associations.

 

 

2.0 Analysis of the ad

 

 

This advertisement is selling a brand of luxury sports car called “Lamborghini Urus”. At first glance, the advertisement looks very dominant and alluring. This is most likely the intension of the sellers because it relates to their product. They are using the transfer technique to create a feeling of freshness, Raw power and new innovation in SUV Segment. They are using an off-road terrain as their background with bright white text and some other yellow coloring to portray that. The seller claims that their product is unique, for example, the advertisement says that “Lamborghini urus is the world’s fastest SUV ever driven” and with a “top speed of 190 mph it has a soul of supercar”. The seller uses these words to try and make their product unique to buyers. They want to stand out as a supercar that is luxurious and family friendly as they have stated in their advertisement that the car has place to accommodate all the family members. They imply that no other products in the same field offer these incentives. Given that this advertisement was found in a car magazine, one can assume that the target audience will be car enthusiast generally men. Upon further inspection of the advertisement, it is clear that the product’s target audience is middle aged men who are interested In SUV’s but with the performance of supercar. The words “Rambo lambo “, “super car”,” fastest SUV” all contribute to this. The elements of the advertisement obviously help the purpose of this product. The headline “Rambo Lambo” indicates that the car has 1″Wild styling and ferocious performance with this combination it will help the Urus to make its own indelible mark on the SUV world. With a twin-turbo 4.0-liter V-8 packing 641 horse power under its stubby hood, Lamborghini estimates a zero-to-62-mph time of 3.6 seconds and top speed of 190 mph. An all-wheel-drive system features a locking center diff, while an air suspension keeps the ride civilized. Enormous carbon-ceramic brakes should provide great stopping power”. The image in the advertisement also makes the buyer feel as though the product is a super SUV which is very civilised and designed to be driven in urban cities it can also handle off roading. The slogan for the product is “World’s fastest SUV driven”. This slogan will, no doubt, capture the attention of men who love fast cars.2 Lamborghini logo symbolizes the founder’s zodiac character – the Taurus or a bull. “The golden bull ready for bullfights is depicted on the black shield with the golden title “Lamborghini” above. The bull represents Lamborghini sports cars’ power, consistency and fortitude”

 

Association plays a role in buying process the answer is a major role as because of this customer remember the brand higher this extent Being a manufacturer of high-quality sporting cars, the logo has immense recognition deeply along with other brand logos. Lamborghini’s slogan and logo contributes to the overall feeling they want buyers to associate with their product. Every single piece of this print advertisement, from the pictures, the words chosen and the placement of the colours works together to try to sell the product.

 

 

3.0 Discussion of the ad and brand equity

 

v Brand equity refers to a value premium that a company generates from a product with a recognizable name, when compared to a generic equivalent. In this scenario, the ad is focusing of Lamborghini Urus. This is Lamborghini’s modern SUV, with the powerful brand attached to it lambo Urus has received lots of attention since its release date was announced. This is because of brand awareness, consumers have positive attitude towards this brand the reason for this is “Lamborghini creates sports cars that are unparalleled in terms of performance and extreme design with a touch of provocation for the discerning customer who wishes to stand out wherever he goes”. The ad does justice to the above statement the SUV has appealing design and has facts and figures which targets consumers who wants to stand out.

 

v Moving on to second component of brand equity which is perceived quality, often the quality offered by the brand is the reason customers buys the product, Quality is a Core competence of Automobili Lamborghini. its vision is to produce and design most reliable, appealing and innovative luxury super sport cars worldwide. Its position in relation to competing brand, Lamborghini’s cars are classified as super cars its main rival are Ferrari, Aston martin and Porche. Lambo is known well for the quality of its interior which is one of the best in its segment. Customers often perceive price as quality indicator Lamborghini is priced smartly it has pricing similar to its rivals but is slightly more expensive which makes its customer believe that its cars are more luxurious, people who drive them have higher status all these factors led to consumers mindset about the brand, let’s compare these facts with the ad Lamborghini urus is priced at $200,000 which is relatively higher than its rivals and the model is available widely that has had a positive effect on consumer they identify brand as more superior. At last Lamborghini also sells merchandise which have its brand on it for example clothes, shoes, watches etc. These are brand extensions which assures customer regarding the quality and the name of the brand. Merchandise have a positive impact on brand image as they have premium price which helps it to maintain superior position in the market.

 

v Finally, last component of brand equity is brand association, it is the extent to which a particular brand comes to the mind when choosing products from general category. Lamborghini doesn’t have any ads on TV as they don’t need to create a brand awareness since majority of world population know them. Brand association for Lamborghini would be speed, sound, scissor door and carbon fibre material that is used in it. Lamborghini’s unique scissor doors and sound helps the company to differentiate itself from its rivals. The degree to which brand associations play a role in the buying process is very high as it’s because of brand association people remember the product. Lastly, I would like to conclude this paragraph by saying higher the brand association higher and positive the brand equity is for the brand.

 

4.0 Conclusion

 

Hence, from the above study it can be concluded that brand equity is a major indicator of business strength and performance, specifically in the public markets. Often companies in same sector compete on brand equity as this is what distinguishes the product. Mass marketing campaigns can help to create brand equity. There is a function of marketing known as brand management it uses techniques which can be helps to increase the perceived value of a brand over time. Successful brand management enables the price of products to go up and builds loyal clients through positive brand associations. Brands have a powerful impact on customer engagement, rivalry in the marketplaces, and the management of a company. A positive brand presence in the market differentiates a company’s products from its rivals and creates brand attraction for a company’s products and services. It takes ages to establish a brand, but when it ultimately happens, it has to still be continued through creativity and innovation. I believe perceived quality is the single most important contributor to return on an investment since it provides customer a reason to buy the product, it helps consumers to distinguish different product on basis of quality. At last all 5 components of brand equity provide value to the customers by enhancing customers satisfaction, it increases customers confidence in the purchase decision on the other hand these components of brand equity also provide value to the firm by enhancing efficiency and effectiveness of marketing program.it increases brand loyalty and gives businesses competitive advantages.