Brand Image Repair Strategy For Volkswagen

The Brand Image Repair strategy is a key process for companies.Depending on the strategy chosen,several results can be obtained for a company that has suffered a crisis.In general,each company has a protocol with the actions to be taken to reduce damage to the company's brand,but the implementation of these protocols may not always be effective.The protocols do not always contain all the information,as they may happen unforeseen that had not happened so far or that had not been taken into account.Therefore,leaders will have a very important role in decision-making when inconveniences not stipulated in the protocols arise,and depending on their decisions,positive or negative results will occur.The following document analyzes the brand repair strategy used by Volkswagen for the “Dieselgate” case and demonstrates that there are aspects that had to be improved and implemented to obtain a more positive result.This document is an analysis of the background of the research in other companies and the current state of the car industry,together with the proposal of the brand repair plan that the company should have implemented.The following research is prepared to help understand how Volkswagen was able to gain a competitive advantage,in order to turn a weakness into an opportunity and better position itself in an increasingly limited and competitive market.The different possible influential factors,the challenges of implementing an effective brand repair strategy and the correct management of a sustainable company are analyzed.The main problem that has been observed has been the damage that the image of the brand has suffered.The company did not apply the knowledge of Brand Image Repair theory which resulted in communications failures internally and externally.These problems were largely generated by the fault of the managers,who did not offer all the information to the employees and the media.The directors did not take measures so that the damage was not greater,which caused the damage to be extended to other brands.The end result was the late delivery of information to customers and the loss of consumer confidence in the brand.In addition,it has been observed how the company has lost the relationship with several loyal customers,but they were affected and found no solutions to their problems.The differences in compensation models have generated concerns and induced the perception that the company does not value customer satisfaction.Above all,because the company was forced to take action by governments and not on its own initiative.The conversion of the company into a new leader in sustainability in the automotive sector is the strategy to recover the previous image and even improve it.The use of Brand Image Repair theory and Crisis Communication theory will facilitate the steps that the company has to follow during the strategy change and how to deal with the problem from the beginning.The theory of positioning and segmentation will find the points where the company has to focus based on market trends and the evolution of a VUCA environment.The Global Corporate Citizen theory will show the company what tools are needed to produce that shift towards a more sustainable model,as well as adding new ideas to improve the dealings with stakeholders.Strategic approaches such as PESTEL analysis are used to better understand the environment in which the company operates.SWOT analysis is used to study the internal environment of the company.