Think about it: Brand value is all about distinction and scarcity. The brand appeals, in a particular way, to a particular group of people. And that’s why those people will:

1. Pay a premium for it (which results in increased margins);

2. Go out of their way for it (which results in increased margins; and/or

3. Talk about it and show it off to their family and friends (which results in increased margins).

So this struck me as ill-informed (from Adweek, 8/31/2009):

“Explaining that it was embarking on a search for a new advertising agency, VW vp of marketing Tim Ellis said, ‘Our goal of rapidly increasing our volume in a mature market requires the Volkswagen brand to evolve into a more relevant mainstream choice.’”

“The Volkswagen brand needs to inspire our base of enthusiasts as well as reach out and captivate those in mainstream America.”

Sorry Tim, but that’s an oxymoronic statement. Enthusiasts are not the same as mainstream. Pursuing that goal is a commodity strategy destined for low margin, GM-like performance. Instead, inspire your base of brand enthusiasts, and then empower and motivate them to inspire the mainstream. See the difference?

This article has been republished from A Clear Eye, a great branding blog by Tom Asacker. It is licensed under the Creative Commons 2.0 license.