How Volvo markets its electric vehicles in a moment of uncertainty


The so -called “Big Beau Bill” by President Donald Trump puts an end to a tax credit on electric vehicles of $ 7,500 at the end of this month, which could have an impact on sales of electric vehicles – not to mention the economic -contrary winds and price effects on automotive prices.

Thanks to all this, Volvo tries to grow its market share in the United States from 1 to 2% and to push the sales of EV, according to Rafael Ugo, marketing manager at Volvo because Americas. To do this, the global automotive brand adopts an offline hyperlocal approach to its marketing strategy.

“We see this transformation, this transition, being a little slower than what we thought about years ago,” he said. “For us, I want to find the 2% that must really go from a gas to an electric vehicle. These customers, they are already there on the market.”

For Volvo, this change of money refers to 30% of its advertising budget which now goes to the brand’s awareness channels, including display panels, sponsorships, partnerships, influencers and events in person. (Ugo has not provided exact expenditure figures.) It is a distance from over-dependence on a large and national national digital strategy to educate and convince buyers not only to buy a Volvo EV, but to plead in favor of electric vehicles in general.

“We may need to focus on some of the states and areas that we think we can make a big difference,” said Ugo. “We are starting to move money to focus on areas that have much more sense in terms of market, in terms of commercial opportunities, in terms of culture export, etc.

Volvo’s hyperlocal approach is fueled by the IPG initiative, its new world media agency from January. Instead of targeting everyone in the 50 states, Volvo’s marketing strategy intends to focus on specific states which seem more capable of technological progress and / or sustainability, by UGO, which has not listed specific states or domains.

“We want to be recognized as premium electricity [vehicle] mark in the future. By saying this, we have to look at the state by a different way-in whom they are, how they behave, how they live and what is the important message behind electrification in these areas, “he said.

The change of strategy arrives at a pivotal moment. Admittedly, electric vehicles are still sold, but the boom cannot last automotive brands to rethink their EV strategies. (For example, the automaker EV Rivian published its very first brand campaign during the summer to increase its market share even in the light of the winds.)

In addition to the federal tax credit for electric vehicles, which should now sleep by September 30, import prices, legislative uncertainty and late infrastructure has slowed down the adoption of electric vehicles, at least in the United States, according to recent EY research, the United States should now reach the adoption of 50% of battery vehicles by 2039, five years later than forecast previous.

At the same time, Volvo Group felt the effects of what he called a “difficult environment for the automotive industry” in his earnings report in the second trimester. In this report, Volvo said that during the first six months of this year, car sales decreased 9% compared to the same period last year.

Daelin MacKey, integrated media director of the independent media agency, True Media, said that Volvo Playbook reflects what other major brands do to better balance the brand’s construction with localized performance marketing. “They position themselves as a mark of trust during uncertain moments,” she said.



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