Increasing Brand Equity in Chinese Automobile Market- A case study of Volvo Car Corporation

Abstract: The huge market potential of some fast growing markets attract many international organizations’ attention, especially China, as a huge automobile market is one of the most typical examples. Therefore, the purpose of this paper is to explore how Volvo Cars increase brand equity in Chinese automobile market. To answer this question, a literature review about brand equity and marketing strategy is done to create an analytical framework which is the foundation of the empirical observation and research analysis. Furthermore, the study constitutes a valuable source of information of Volvo’s operated marketing strategy, as well as providing practical situation on customer perception on a brand through interviewing Volvo's owners in different countries. The results of analysis and discussion indicated that there are distinctive customer perceptions in China and the appraised the Volvo brand equity is not completely matching the strategic goals. In this case, in order to increase brand equity in China, Volvo should craft and execute the corresponding marketing strategy on brand for the distinctive Chinese customer perceptions. As such, this paper complements previous research through presenting the current situation of Chinese automobile market and comprehending how Volvo as global car brand operating and performing in China from brand equity perspective. In that sense, this paper can contribute and add some useful information in this study field for other further studies.