Volvo No longer 'Exclusive'

As Volvo's future looks more assured within the Ford empire, the company has switched to a new sales and marketing strategy. Summed up by the theme "Life is better lived together", it will be launched locally in December with the arrival of the new XC70.

At this week's XC70 launch, Volvo Car Australia Managing Director Alan Desselss observed that the relationship between Volvo and Ford had worked for both parties.

Unlike Ford's other premium brands which have been sold off (or are about to be), including Aston Martin, Jaguar and Land Rover, Desselss observed that Volvo and Ford were close enough in several market segments to benefit from shared development and the transfer of technology.

"There is no doubt that Volvo has gained from the relationship and sales have improved as a result," said Desselss. He noted that Volvo could pursue its safety research and drivetrain development knowing that the costs and benefits could be spread over similar Ford models. In return, Ford could concentrate its resources on platform development with Volvo input.

"It frees up both companies to do what they do best," according to Desselss.

Prior to the arrival of Ford, Volvo was in a piecemeal relationship with Renault for its smaller models following the acquisition of the former Dutch company DAF. This Dutch connection later led to smaller Volvo models based on Mitsubishis which were produced on a shared Dutch assembly line.

Both eroded the strong brand equity built on Volvo's Swedish models, especially in Australia. They also played havoc with continuity and brand values across the model range when styling and engineering characteristics owed as much to their French or Japanese origins as Sweden.

The arrival of the latest XC70 marks a point where Volvo's complete range owes nothing to this chapter in Volvo history. There is now consistent Volvo DNA running through all models. In direct contrast to the "Bloody Volvo driver" campaign which poked fun at the isolation and conservatism of Volvo drivers, the new campaign is far more inclusive.

The new Volvo strategy which shifts its target from "modern families" to "modern lifers" is not dissimilar to Nissan's Pathfinder campaign which targeted families whatever they might be.

"The traditional family structure is changing, and this could be seen to limit our target segment," is Volvo's official explanation. The focus is now "on a consumer's attitude to life rather than a particular life stage."

In a media presentation this week, Volvo did not hang back in identifying the brands and personalities that represented the cult of "me! me! me!" while identifying groups that demonstrated "the power of we."

"Me" images included Donald Trump, Clint Eastwood as Dirty Harry, James Bond, American Idol, Paris Hilton, Mike Tyson, Marilyn Monroe, Hummer, BMW and Cadillac while the "We" images included the UN symbol, John and Yoko, U2, space shuttle, the removal of the Berlin Wall, Richard Branson, a sports team, the free Nelson Mandela movement and...Volvo.

The Volvo presentation then highlighted the fundamental divide between Volvo which was shown on the "We" end of the scale while BMW, Audi, Mercedes-Benz and Lexus were identified as catering for the "Me".

Potential Volvo buyers were then identified as "Do-ers" who were active and engaged, Strong and Determined with an inner compass, Enlightened as in evolved, open-minded and tolerant, and "We-centric" as in social, connected and family oriented. By implication, not at all like those who drive those German brands!

Australians will not be able to ignore the start of Volvo's new campaign when it features a quirky TV ad backed by a children's song with enough cringe factor to become a cult item. Without giving too much away, the ad features a couple who cannot resist sharing their new Volvo by picking up a series of passengers along their journey before going we, we, we, all the way home.

As an antidote to what was lost after 9/11 it would make more sense, which might suggest that Volvo's onto something. If nothing else, Volvo will be assured of a place back on the radar screen.