Volvo 1999 Annual Report Download - page 10
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The strength of a brand is
contained in its inherited
properties and ability to
sustainably live up to
given promises.
8
The Volvo brand name
The step from a focus on a single brand name
to a multiple-brand focus
Ever since AB Volvo was founded, “Volvo” has been the key name in building rela-
tionships with the outside world. Products and services have been developed with such
distinctive customer benefits that this name has long been associated with the core
values – quality, safety and concern for the environment – that have been identified
strongly with Volvo.
Volvo has taken the step from a focus on a single brand name to a multiple-brand-
name focus. As a result, Volvo is now also actively marketing transport-related
products and services with brand names other than Volvo.
Before a company acquisition is made, the ability of a prospective Group company
to meet the demands imposed by Volvo’s basic brand name strategy is analyzed
carefully.
The step to a multiple-brand-name focus does not now involve, nor will it in the
future, any change in the fact that the core values constitute the basic building blocks
for the Group’s companies and their brand names, as well as the basis for customer
loyalty – the customer loyalty which in itself is the most important prerequisite for
long-term profitability and growth.
A more hom ogeneous custom er structure
Through the sale of the passenger car business, the Volvo Group focuses on commer-
cial products. This means a more homogenous customer structure which consists of
commercial buyers for whom the Group’s products and services constitute an integral
and vital part of their business.
Rational buying decisions based on the products’ functions, related support and
financial factors – in which working time without unscheduled interruptions consti-
tutes the foundation for earnings capacity – are mixed with value-based rational and
emotional demands in connection with the choice of partners and suppliers.