Professional Documents
Culture Documents
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We will lay out the current associations for the Lincoln brand and its three major
competitors. After that we will present a SWOT Analysis of the brand and follow that with
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Lincoln
Lincoln was used to represent an American dignified and luxurious lifestyle. With a
strong association to the Presidential image, Lincoln was a link with authority, power and
sophistication.But its core consumers, baby boomers, are aging and the brand is
struggling to redefine itself. Although consumers today still associate Lincoln with its
erstwhile prestige image, its desirability has fallen tremendously in the luxury segment.
Recently Lincoln was linked to rap culture because of the Navigator model that was
Cadillac
After its re-branding in 1997, Cadillac transformed itself from a conventional luxury
image to an edgy and active one. Cadillac¶s marketing campaigns have consistently
successfully delivers its strong performing image to consumers looking for a thrilling
Lexus
Lexus has the strongest female friendly perception within luxury segment. The brand,
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however, is able to have dual direction with its association. On one hand it has an urban,
innovative, elegant and stylish lifestyle associationand on the other a strong association
with mom, family, protection, and comfort. Its variety of model choices and import-quality
identity has established higher standard and value-added image for consumers. The
brand also considered to be environmental friendly and has strong link with hybrid.
Infiniti
Like its marketing theme, ³inspired performance´, Infiniti is able to promote a theme that
young luxury-car consumer can enjoy the excitement of driving without sacrificing
sociable and trendy character. With marketing campaigns that concentrate on young and
sporty lifestyle, Infinity has successfully reached its desirable awareness with one of the
youngest consumer bases in the entry luxury segment. As a result, Infiniti is able to
different itself from competitors by focusing on young, dynamic, and fun consumers who
would like a luxury image vehicle to be identified among its social group. Although
consumers do not directly compare Infiniti to other sporty luxury brands like BMW, such
as BMW, Infiniti has received recognition of performance driving with younger luxury-car
consumers.
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||see Exhibit-2 for SWOT Analysis|
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Combining the current association and SWOT analysis of the Lincoln brand, we can lay
out is current brand-pyramid (Exhibit-3Î and explain the future brand-building needs.
Spontaneous Awareness
As one of the oldest luxury brands in the market, Lincoln still enjoys high spontaneous
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awareness of its brand. Unfortunately, the awareness does not transfer to brand
recognition as consumer knows little about Lincoln besides its name. Moreover, the
Lincoln can utilize its high awareness to market a halo-product to restore its brand value.
Although Lincoln has consistently maintained the manufacturing quality it delivers, the
old-fashion styling and perception has destroyed any notion of technical quality it once
enjoyed. Furthermore, Lincoln¶s top 3 perceived qualities, i.e. comfort, durability, and
that its parent Ford delivers Lincoln can move towards a younger generation that heavily
Leadership Reputation
Lincoln has lost its erstwhile leadership reputation in style and comfort. Seen more as a
stodgy car with no product attribute that is unique and own-able, it is critical for Lincoln to
return to its leadership position by picking a luxury-automotive attribute that does not
Trust/Confidence
Consumers used to trust the brand as the flagship of American luxury. Over the past
thirty years, however, imports are considered better luxury vehicles and are more able to
engender trust in product than Lincoln. To gain the trust and confidence of the
consumers Lincoln will have to work, slowly but surely, to deliver desirable models and
Relevant Association/Imagery
The brand has lost any association with premium but maintains a strong American
association. Imagery is today associated with old and boring animals like camels and
Rhinos! Lincoln needs to pick a brand image that resonates with today¶s lifestyle choices
Loyalty/Bonding
Consumers, especially after financial crisis, are closer to be pragmatic now than ever.
Therefore, Lincoln must demonstrate that it not only understand what consumers within
the entry-luxury segment need, but also be able to fulfill their needs to gain their bonding,
and ultimately, the loyalty. Moreover, by more concentrating on mainstream needs, such
as performance, appearance, and consumer electronics features Lincoln can gain loyalty
as more and more consumers value the simplicity and pragmatism of its attributes.
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Primary Research
Our focus group consisted of individuals who were very interested in cars and follow the
trends in the automotive industry and car buyers not interested in the luxury market.
Though very few actually owned a luxury car at this point in time, most aspired to own
one in the near future. The focus group was very helpful in understanding the functional,
emotional and self-expressive needs of the luxury car aspirants. Some of the functional
needs that all the participants in the focus group unanimously agreed on were that a
luxury car must have performance, as defined by horse power and acceleration, and
appearance as defined by body and interior styling. The most prominent emotional
needs were, prestige, importance, pampered and that the car should catch the eye of the
beholder. Most of the respondents felt that foreign brands had more prestige and
credibility as a luxury brand than an American car. They also felt that it was important to
own the latest car in the market and most of them would change their car every 2-3 years
if possible. As for the self-expressive needs, there was a prominent two way divide,
some of them felt that they want to be perceived as aggressive, successful and confident
and the others would like to be perceived as sophisticated, intelligent and social. There
was also a divide in the people who wanted to show off their luxury and another group
would not want to show-off. The group unanimous agreed that the luxury car is a
personal effect and that they would not want to share it with anyone else. Lastly, as
echoed by interviewees, dealers had mentioned that the customers they encounter
already have a brand preference before they arrive at the showroom; they know what
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they want and the luxury car customers are generally well informed about their choices.
Secondary Research
For our secondary research we primarily relied on the Choices-III (C3Î database. We
also referred some reports on the automobile industry. C3 had specific inputs on the
customer needs, while the other reports and databases segmented the customer based
primarily on price. These broadly classify the customers as high-end, mid-level and entry
category. We used the choices three database to arrive at the needs of the customers.
We relied on the index of each of the ³need attribute´ to determine the relative
importance of the particular attribute for the customer. The C3 surveys showed that the
most prominent functional needs of the luxury car customers were ³Engine Horse Power,
Options and Appearance.The most important emotional attributes were ³Prestige, feeling
of driving the latest car in the market and the car should draw attention of people´. The
Based on our analysis we categorized our customers into ten different segments. There
is a clear overlap in the needs of the customers in these categories. We found that in all
these segments the customers want the most prominent need attributes described
above, but the combination of these needs makes them distinct. (Annexure - Î
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Based on our analysis in the segmentation section, we decided to target following three
Although BMW and Mercedes scored well on each segment analysis, we eliminated both
BMW and Mercedes for following analyses because Lincoln is not directly competing
with them. BMW and Mercedes are positioned in high-level luxury segment, unlike
three consumer segments because they are the top three rated segments by people
The current market leading brands of this customer segment are Audi and Lexus. This
segment appeals to Lincoln because the most of consumers in this segment are young
and successful enough to buy a luxury car. This is attractive segment to Lincoln whose
current customers are aging baby boomers. And Lincoln needs to replace them in order
Even though Mercedes is the current leading brand, we decided to pursue this segment
because this is new image that we want to create within Lincoln brand. Although there
are significant gaps between Mercedes and Lincoln, Lincoln is not far behind from the
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segment¶s second best leader Lexus in needs based analysis. We want to enhance
Audi is the current leading brand in this segment. This segment appeals to Lincoln
because Lincoln¶s core competency, leveraging Ford¶s strengths, is well matched with
this segment. Lincoln¶s technology inside the car can win this segment¶s customer who
loves technology inside the car, not necessarily to do with the performance. Also this
segment¶s customers are the young and up- coming professionals too. (Exhibit-5 and
Exhibit-6Î
On the contrary, we decided not to pursue µFlashy and Loud¶ segment because Lincoln¶s
core competency is not well match with the segment¶s love of speed and acceleration.
µVery Rich and Love to show that off¶ and µVery Rich, Aggressive and Love to show off
their Position¶ segments are not lined with Lincoln¶s entry-level luxury segment. Lincoln
cannot satisfy their high-level luxury customers who want to drive Rolls Royce or BMW.
Current Lincoln also cannot fulfill consumers of µQuiet, Private and Conservative¶
segment. They want to drive a luxury car because they deserve one and but not to
show-off, and lay high importance on performance of the car, which are not strengths of
Lincoln. µArrogant & Aggressive¶ is not also pursuable to Lincoln because Lincoln¶s
strength is not based on high horsepower and fast driving. Lastly, we decided not to
pursue µTraditional and Family Oriented¶ even though Lincoln is current leader in this
brands1. Even though luxury car markets are still recovering from economic recession,
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two trends have started to stir 2010 U.S. luxury car markets: a smaller size luxury car
and a hybrid luxury car. Historically, U.S. luxury consumers did not even look at the small
luxury car. And exchange rates made cars¶ price too high, so dealers opposed to sell it.
However, U.S. government¶s new focus on µfuel efficiency and CO2 emissions that affect
weight and size¶ encourages luxury brands to downsize cars2. Due to the regulation,
BMW is µconsidering selling a front-drive car slotted below the 1 series. And Mercedes
may offer its next-generation B class too. Audi also say they're watching the trends and
considering similar vehicles¶2. This new trend is a new price segment for luxury brands
and will attract younger future luxury car buyers, who want to save money for the car and
to save fuel costs.3 For Lincoln this is a great opportunity to generate its brand
awareness among younger luxury car buyers. This is important for Lincoln because baby
boomers, current Lincoln¶s consumers and Lincoln brand¶s weakness, rather trade down
to a non-luxury crossover than downsize to small luxury cars when they become
empty-nesters3. This new emerging trend also well matched with our targeted segments
because many of young luxury car buyers are tend to
and
Another trend is a hybrid luxury car. Foreign luxury brands had long doubted that µU.S.
consumers really wanted to buy hybrids and electrics¶4. But now they are changing their
doubt and developing the hybrid vehicles for U.S. luxury markets. Because U.S. fuel
economy regulations are getting stricter throughout the states. For example, California
standards µwill make it harder for any large carmakers without a zero-emissions vehicle
to do business¶ in California, the biggest car market in the U.S.4 And a luxury car is not an
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exception. The Mercedes already started to sell S400 in the U.S. They will also roll out
the ML SUV hybrid and S500 plug-in electric, which can get more than 60 mpg. BMW
also launched hybrid versions of the 7 series and X6. Audi has µall promised a hybrid
SUV/crossover within two years¶.4 Unfortunately, Choice 3 uses the data up to 2008 and
does not capture this new trend yet. However, this is the market in U.S. that does not
have a clear winner and a low entry barrier, if the brand has enough money to invest.
This is Lincoln¶s great potential market to go after one of possible
image to capture young and successful consumers who prefer a car that suits their work
personality but also has a youthful and trend appearance. A new halo product is great
way to create new brand image. Currently, Lincoln is promoting with new grilled design in
entire Lincoln product portfolio. But this design is not trendy enough and not appearing
much in this segment. In order to create an attractive halo product, Lincoln needs to
recruit better car designers who understand this segment¶s need. At the same time,
Lincoln needs to not interfering new designers¶ work within the company, especially
interference of top managements who tend to have business mindset and not enough
trendy design perspective. Joining prestige car-racing such as F1 will also capture the
attention of this segment¶s consumers. Since this consumers are not necessarily very
rich nor in a very powerful position, but are poised to reach there, they will enjoy
capturing the attention of sophisticated luxury consumers, since Lincoln has not pursued
this segment before. Increasing co-branding with other high-end product brands of
and sports events, such as tennis and golf, will also create opportunities too. When
Lincoln uses these approaches, Lincoln has to send a unified consistent message:
For segment, Lincoln needs
to advertise its strength more aggressively. Lincoln already has topnotch car interior
technology including IT, but customers are not currently aware of this. Lincoln needs to
do more than just airing its ads on TV and papers. Product placement in movie is one
Exhibit-8Î
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As was seen in the previous section, Lincoln needs a brand-building strategy to move
To achieve each specific needed association, Lincoln should undertake the following
tactics. Each of these tactics enforces a needed association and negates a current one.
Lincoln needs to raise its awareness in the marketplace manifold. They should start with
a Halo car that showcases aggressive outer styling and technologically savvy but sleek
interiors. Similar to the strategies used by Audi (A4Î and Cadillac (CTSÎ, Lincoln¶s halo
car will alter their old image by creating a new, very visible product that shakes up
consumers¶ perceptions and draws them into the showroom. This product will leverage
Ford¶s experience with making cars that appeal to the European drivability, use their
Eco-boost engines to deliver a light but powerful car, design an interior that resembles
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the interior of the spaceship USS Enterprise and an external design that is aggressive
and bullish rather than the older cavernous design. Specifically, the consumer
technologies in this halo car will feature one-touch controls, radars, artificial intelligence
Very importantly, as a luxury car brand, Lincoln¶s After Sales Service (ASSÎ will be
boosted through the use of technology. ASS is a very important functional need for
Luxury car owners. Among close competitors only Lexus has created a perception of and
has the network that provides great ASS. Lincoln should leverage its IT platform to
provide a new dimension to its service aspect i.e. using technology to make life easier
and smoother. They should come up with technology delivers seamless service
home-pickup service. This will surpass the quality levels in the Industry and create a new
paradigm for Service levels in its segment. This attention to service level, automation
and sophistication will also cater to the emotional need of being ³pampered´, especially
position in service levels and build a reputation of being the best after sales service
Lincoln will need to put its low-quality past behind it once and for all. Manufacturing
quality today is best represented by the JD Power Rankings. Ford has been able to climb
the rankings astonishingly fast in the last few years and today is #1. Similarly Lincoln will
have to strive to reach the top in the luxury segment. Specifically, Lincoln should publicly
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announce that they will jump to a top-3 rank in three years and then achieve it. By
publicly and loudly stating their quality goals, Lincoln can gain press and hence put their
consumers on notice about the seriousness of their goals. The risk in this move is that a
public announcement could backfire if Lincoln does not reach their goal.
No American car, luxury or otherwise, is known for its drivability. European cars on other
hand have a racing heritage and brand association of tight driving. The hallowed home of
auto racing in the world is the Nurbugring in Germany. The fastest and most visible way
of showcasing driving credentials for the Lincoln is to race around the track against a
BMW, Cadillac, Lexus and Infiniti. This race can be shown Live! or the results made
public after the fact. In fact Lincoln can use its Social Networking reach to create buzz for
the event and rope in famous US drivers to drive the Lincoln against other famous
drivers from other nationalities in each of the competitor cars. By proudly showing an
American car, driven by an American race driver, beating out international competition on
a technically challenging circuit Lincoln will fill American consumers with pride and bring
them into the showrooms to test-drive a Lincoln. A twist to the event could be the driver
and car driving off the race-track after the race directly to the after-party. This will
showcase the dual nature of a Lincoln as a driver¶s car that can turn heads at a party too.
One of the issues with the Lincoln brand today is the lack of awareness that Lincoln is
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producing good cars other than the old and boring Town-car. This issue can be rectified
with prominent product placement in movies. This tactic will serve to enhance the
perception of the brand as an exciting one. Product placement should be done in movies
and scenes that showcase the car as exciting, drivable and futuristic. Recent movies like
Mission Impossible, TRON, Mr. & Mrs. Smith and Killers are examples of such
opportunities. By associating the brand with middle-aged, beautiful, high-tech and savvy
stars like Ashton Kutcher, Angelina Jolie, Tom Cruise and Brad Pitt Lincoln can increase
perception of the brand towards the needed associations. These movies have exciting
car chases, high speed drives, fancy driving and head-turning stars; the biggest
advantage of this move will be to kill the association of Lincoln with Old & Boring once
The annual CES in Las Vegas has become the pre-eminent event to showcase
Ford already boosted its reputation in 2010 by having its CEO deliver the keynote
address at the event. Lincoln can leverage the halo effect by displaying its halo±car at
the show and exhibiting the consumer technologies that make the car the perfect
high-tech gadget! By tying up with CE firms like Microsoft, Intel & Samsung Lincoln can
show how one can control various aspects of one¶s life just by speaking to the car and
vice-versa. No one today looks at a car as a gadget but by showing seamless integration
with life, Lincoln can boost its futuristic and High-Tech cred.
Lincoln can take a page out of Google¶s branding playbook by sponsoring a competition
for the Connected Community (CCÎ. The CC will be a small community that will receive
lives. A Lincoln dealership will install the ability to connect to Lincoln cars wirelessly to
remind, schedule and complete maintenance. Lincoln owners will be able to voice
meals. Microsoft will install its software and hardware in a few Lincoln owner homes so
that the car and the home and talk to each other. Google maps will beam traffic and
weather updates directly to the navigator screens in the car. A bold move will be to loan
Lincoln cars to winners for a year and have a faux µreality¶ show that shows how these
owners are able to live a much more comfortable life because they drive Lincolns.
Ford used the American Idol sponsorship last year to associate its brand with the young
hip crowd. This worked wonders for the Fiesta and Fusion models. Lincoln can take that
concept further by sponsoring the Idol roadshow where Idol winners now olderÎ and
contestants ride in Lincoln cars during their roadshow. This will show the comfort,
spaciousness and all around luxury of the brand because most shots shown on TV are of
contestants IN the car. Furthermore, the association with Ô Idol will enhance the
Today¶s economic reality has put responsibility and humble confidence ahead of
arrogance and flashiness. People are looking for heroes and leaders that represent the
best of American ingenuity and µroll up the sleeves¶ hard work. The show follows CEOs
as they roll up their sleeves and go undercover in their own organization to learn how the
employees work, what their issues are and how high-level decisions affects the common
man and his family in their firms. By associating itself with this show, Lincoln can
showcase itself as the brand that responsible and humble CEOs drive. These leaders
eschew showmanship and flashiness by getting their hands dirty and at the end of the
day when they go back to their office they do so in a pensive and thoughtful manner
while driving their Lincoln themselves rather than being driven around. This image of
the CEO driving himself while thinking about how he is going to put the lessons he learnt
Tennis and Golf are sports played by the more affluent. Stars like Roger Federer (TennisÎ
and Michelle Wie (GolfÎ are examples of players that represent the harnessed
aggression of the Lincoln brand. These are players that are perfectionists that play
their games graciously and with a smile even though they are fierce competitors. Federer
is a successful player that has reached the pinnacle of his sport but has more to give and
Wie, while representing the successful woman, is a player that has a lot of potential and
is climbing her way up the ranks with her style and hard work. By sponsoring the US
Open tournaments in tennis and Golf and partnering with Federer and Wie, Lincoln can
This is by far the riskiest move Lincoln can make. But, if played right, this will finely blend
the Presidential association of the brand with its exciting future and cement that quality
and leadership reputation of the brand. Lincoln must make a bid to be the next
Presidential Limo and the official car of US Government agencies. By replacing the aging
design of the current presidential Cadillac limo with a stylish, American design that
represents the new quiet diplomatic power of the America Lincoln will build an excellent
association as a quality, responsible brand. The presidential limo travels the country and
the world with the president. It protects the leader of the free world and keeps him
connected with the crucial levers of government in any situation. What better association
to have for a brand that is High-Tech, futuristic and cat-like intelligent? Similarly, security
agencies like the Secret Service, FBI and CIA that represent technology, patriotism,
protection and excitement in American pop-culture are an excellent association for the
Lincoln brand.
See Exhibit-9 for a sample advertisement. Like Jason and Claire, Lincoln¶s target
customer is 30-45 years old, successful in careers that have the potential of going a long
way, grew up with Technology and use it to make their lives easier, are fond of the city
living, like being pampered but in a responsible manner, love their kids and are more
comfortable living life than showing off their successes. In other words, their aggression
Today, car marketing is more than just TV and printing ads and a showroom, which you
have to wait for right customers to see and right customers to come. After Web 2.0
revolution, a social network has become a place for not only social but also marketing
places to all products. Cars are not an exception. In order to create brand awareness for
Lincoln, we have to utilize social media. This fits with the brand image of technologically
savvy, young up and comers. Like Fiesta Movement campaign, we will have a campaign
to promote Lincoln µby placing one in the hands of 100 social ³agents´ and having each of
them promote the new vehicle through Twitter, Facebook, blogs, video, and events.¶
Lincoln will also create a digital website, µwhich is a hub of social-media-friendly stories,
photos, and videos optimized for easy reposting on social networks. A forum that is lead
by the social agents but contributed to by all wil help owners learn from each other how to
best use the Lincoln car and service to make their lives comfortable and seamless. When
Lincoln wants to develop news µapps¶ and services it can poll this forum and have the
Specifically, Lincoln needs to use Social Networking not as a tool but as a way of doing
business. Its forums must be active and employees must participate. Managed µleaks¶
should go to owners and social networks first. All in all, Lincoln needs to pursue a big part
of its product development, launch, sales and service as a socially connected and
responsible brand.
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Since Lincoln¶s appeal and core competencies are more interior, technology based, and
with its long-time prestige status image within the luxury segment, the extended product
lines should also fill in the same profile or lifestyle of a premium taste. For a list of
Lincoln could increase its luxury lifestyle image by licensing the brand name to Premium
Travel Package, boat/yacht and golf/ wine/ cigarette accessories. Lincoln doesn¶t have
these techniques or abilities to build all these products, however, by licensing the
well-known prestige Lincoln brand name to the luxury pleasure category, Lincoln should
be perceived as a modern luxury indulgence while these products could benefit from the
sophisticated taste and intelligent character, it could build sub-brands with high-end
designer brand for stationary sets, such as pen, key chain, business card holder and etc.,
for fashion accessories such as sun glasses or watches and for smart phones. For
example, Blackberry could introduce a series of ³designed by Lincoln´ with its classic
Individual product brand: Since Lincoln has very advanced IT feature in car industry.
Lincoln could also consider leveraging its technology abilities to other categories. For
example, Lincoln car is always equipped with GPS or THX®II Certified Audio System. It¶s
possible for Lincoln that creates an individual brand for these mature and advance
technology gadgets into mass market without hurting the prestige brand image itself.
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Advertisements will have to showcase the complete, drivable and smart luxury of the
Lincoln brand. The script that follows is an example of just such an effort.
Its 6pm on Thursday night in Chicago as Lisa wraps up her client call. She decides she
doesn¶t want to wait for the weekend to have fun but wants to go see the latest Ashton
Kutcher movie at 8.30pm and then drinks with her girlfriends. But what about her
husband, Jason and toddler, Claire? As she gets into her Lincoln she video chats with
Jason, who is still at work, and tells him of her plans. He tells her to go have fun and that
he¶ll be home by 7.30pm. She then connects with her girlfriends using Facebook and
tells them she¶ll pick them up at 8.15pm. She feels bad for leaving her family for the
evening so she voice-commands her Lincoln to call their favorite Italian restaurant where
she orders her husband¶s favorite dish and daughter¶s appetizer. Then her Lincoln
automatically sends her husband¶s Lincoln a message that he needs to detour to the
restaurant to pick up the order. As she nears Claire¶s day-care she buys her movie
tickets via the app on her Sync system and asks Google Maps for the fastest way to pick
up her friends and reach the theater on time. On the way from the day-care she controls
her home¶s lights and heater for the optimum environment by the time they get home.
She gets to their trendy condo in Lincoln Park, plays with Claire, welcomes a smiling and
elegantly dressed husband and then dresses in her sleek black dress. After a good night
kiss to Claire and hug for Jason, she tell her Lincoln to send an sms to her group telling
Exhibit-10:Brand Extensions
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