Skoda has long been known as the cut-rate, budget car of the masses. In previous years, there has been nothing glamorous or fun about this automotive logo design. However, this is changing rapidly. Skoda is undergoing a rebranding process to position themselves as a hip, young alternative to their competition.

Why is this rebranding the right way necessary? First, with the automobile industry in a state of crisis, many auto brands are looking for a new and more compelling identity. With the economy poised on the brink of a recession, customers need a compelling reason to buy a new vehicle rather than driving their old one for another year. Second, Skoda is changing their product line to offer more features and more stylish models. A dramatic change such as this requires an equally dramatic change in marketing which could prevent rebranding the wrong way.

The first sign of this change in brand was the ‘Cake’ advertisements for the 2007 Fabia. Britons and Europeans everywhere began to see the Skoda as a more advanced, more youthful choice. Another sign was the release of the Yeti, a more savvy and deluxe vehicle than the company has ever offered. Clearly, Skoda is ready to shake off their low-cost image and woo a brand-conscious public. So far, this change in image has been successful, as Skoda has increased their market share two-fold.

How will Skoda complete the task of rebranding? First, by appealing to emotions. Rationally, most people know that they don’t need a new car. However, if auto companies position themselves well, they can appeal to emotions. People want to fall in love with an expensive purchase and Skoda is positioning themselves to be that purchase. We all want to have a vehicle that reflects well upon us, one that we enjoy driving on a daily basis.

Second, Skoda can use low cost marketing strategies to increase the positive buzz about their products. Customers increasing rely more upon social marketing and other internet media for new product information. Because these are for the most part free choices, there is no limit to the possibilities here.

Third, Skoda needs to be clear about the price range they are dealing with. The company is trending toward more deluxe cars, putting it in an entirely different price category. It’s important to keep an eye on the competition and your audience at the same time. In this intensely competitive business, one must always be repositioning the company to their best advantage.

One stumbling block for Skoda to look out for is the competition. There is no shortage of automobile makers, and all are vying to create a viable brand. This is a time to be both creative and courageous in marketing, laying it all on the line. Customers appreciate humour and honesty, so these are both good avenues to take. Skoda’s quirky past can be spun as a positive image and a key part of the overall brand.

This has been a hard year for automotive companies, but many are succeeding against the odds through offering high quality products and a cohesive brand. Skoda has not entirely won over the community, but the transition to a new and higher value brand is well underway.

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