Brand Leadership Magazine  ·  Case 05 – Volvo Trucks

Managing a rollout
across 140 countries

Interview with Christer Lindqvist, (former) Global Brand Manager, Volvo Trucks

At Volvo Trucks there is a deep understanding of every employee's role in the brand-building process. Christer Lindqvist has contributed to this understanding through an extensive implementation effort. The key to internal buy-in has been the connection to business value.

A brand manager who has seen the world

For over a decade, Christer Lindqvist has been one of those responsible for developing and implementing Volvo Trucks' brand strategy. Over a period of two and a half years, he and his colleagues travelled to more than 140 countries, engaging employees and dealers to continue building and nurturing the Volvo brand — making Christer Lindqvist one of Sweden's most experienced brand managers.

A strong brand is as important as internal synergies

The Volvo Trucks brand rests on a solid foundation laid more than 80 years ago. At the time there were more truck brands than there are today, but Volvo's founders Assar Gabrielsson and Gustaf Larson saw that there were shortcomings and decided to develop trucks based on the core principles of safety and quality. These core principles contributed to establishing Volvo as one of the world's leading vehicle manufacturers. These core values still apply today, together with the core value of environment, which was introduced as far back as the 1970s. But since then the market has evolved and the world map has been redrawn.

New growth markets are expanding rapidly and Volvo Trucks is there to stake its claim. Helping them is the benefit of the extensive global implementation work initiated by Volvo's group management nearly ten years ago. The message from group management was clear: "To secure profitability and growth, it is just as important that we succeed in developing strong and differentiated brands as that we succeed in creating synergies within our internal operations."

A global implementation effort

Due to increasingly fierce competition, group management decided as early as 2002 to carry out a global implementation of a new brand platform. The purpose was to ensure that the core values of quality, safety and environment truly permeated the entire operation, explains Christer Lindqvist.

– Over two and a half years we travelled to all of our market companies and partners and met with every management team. The strategy in the brand platform is clear. We are a customer-oriented company and all communication starts and ends with the customer. Regardless of where in the organisation you are, you are a representative of Volvo Trucks — which is why it is important that everyone understands what Volvo stands for, explains Christer Lindqvist. The goal was, and still is, to secure the development of a leading premium brand in order to defend premium pricing.

Respect for local conditions

Having strong relationships with key employees in the local organisations recurs as a common thread in the discussion of what makes an implementation effort successful. Another is the openness required and the ability to listen to the local organisation.

– Internal brand work is very much about building relationships and trust, and that requires being present and meeting the local representatives in person, says Christer Lindqvist. In the implementation work you also need to be open and handle the differences that exist across markets. You cannot go to Australia and dictate terms, and you cannot arrive in France without understanding and respecting their mentality if you want your messages to be received. That sounds obvious to most people, of course, but you must also not forget how important it is to start from the role and responsibility of the people you are looking to engage. If the audience is a local CEO and their management team, I need to speak primarily in terms of business value and increased customer loyalty. If I am talking to local mechanics, it is better to focus on their impact on brand building in their interactions with the customer, explains Christer Lindqvist.

Local brand ambassadors

After reviews and workshops using the brand platform as a starting point, the local management teams appointed a brand ambassador — a Brand Team Co-ordinator — responsible for the continued implementation work. To ensure that the brand was communicated in a consistent way in all countries and at all levels, the ambassadors were provided with supporting material in their local language.

The overarching responsibility of the local ambassadors is to ensure that the local market follows the policies and strategic guidelines developed centrally. They also oversee everything from ensuring that local communications are in line with the brand's identity, to choosing the right type of distributors who can contribute to strengthening the brand. The ambassadors also have the task of monitoring various types of brand infringement — a problem that is becoming increasingly common, not least when it comes to Volvo Trucks' spare parts.

– Centrally, we operated in a matrix organisation, explains Christer Lindqvist. Those of us leading the brand work reported outward, and our local ambassadors reported inward. From one side came hard and soft offerings in the form of products and services, and from the other came the brand and communications. The overall picture worked well, says Christer Lindqvist.

Implementation support

To support the implementation of the brand platform, two strategy documents were produced: "The Challenge for Volvo Trucks" and "The Road Ahead for Volvo Trucks." The first book is a presentation of the brand, its history, future vision and an introduction to the brand platform. The second book serves as a roadmap for how to establish Volvo Trucks as the world's leading provider of transport solutions — and how achieving this requires involving every part of the company.

– The work of implementing the brand platform is ongoing, and the brand books, Brand-Into-Action workshop kits and our brand film are just some of the tools used to support the process. Through the Brand Center online website, you can find current information on brand management and brand development. Combined with good leadership, e-learning is also an effective way to implement the brand platform globally, thinks Christer Lindqvist. We also hold open seminars where employees are invited to receive an overview of the brand strategy and its significance for the company's success. Another of my objectives is to participate in kick-offs and similar events around the world.

Christer Lindqvist returns several times to how important it is that the brand work is anchored both with Volvo Trucks' company management and its support functions. To ensure that communication of the brand is consistent and in line with established policies, he collaborates with the brand department at Volvo Group's head office and with the various communications departments across Volvo's other business areas and companies.

Every corner of the earth

Working on an implementation effort in a large and global organisation has its challenges, but also offers many experiences that stay with you.

– It has been enormously rewarding and valuable to meet the people in our organisation on their home turf, says Christer Lindqvist. The travels have given me many interesting experiences from all over the world. There are very few places where I have not had local conversations about Volvo's brand strategy — from Iceland to Zimbabwe, from New Zealand to Brazil, from Alaska to Japan. Some situations have been quite challenging, but always enriching. On one occasion I was invited to speak about brands at a kick-off for our distributor in Greece. The kick-off was held at a tourist resort in the Greek mountains that had been built to resemble an American western town. There I suddenly found myself standing before a large audience among saloons, tethered horses and duelling cowboys, talking about the importance of the Volvo brand. On another occasion I was in Bulgaria in front of an audience that did not speak English. To help me I had an interpreter who did not speak much English either. It also turned out that there were no Bulgarian words for "brand" or "brand platform", which naturally complicated my task somewhat. To top it all off, we decided to compromise by using the Turkish word Marka — which I later understood had certain associations with the mafia, says Christer Lindqvist with a broad smile.

The brand management process

Today, the ongoing management of the Volvo brand is handled according to a well-defined process — the Volvo Brand Management Process. The process is directly linked to Volvo Group's overarching strategy and business goals, runs over 18 months and is divided into a global and a local perspective.

The global perspective focuses on the Volvo brand's core values of Quality, Safety and Environment. The local perspective focuses on how the Volvo brand and its core values can be developed to their fullest potential based on local conditions — starting from customers, competitors, existing brand strength and Volvo's actual opportunities. The analysis also encompasses a macro and a market perspective: that is, an analysis of trends and the country's economic development, as well as trends within the category in which Volvo operates.

– By starting from the conditions of the local market and the needs of local segments and specific customers, we can create a long-term plan for developing the Volvo brand for that particular market, explains Christer Lindqvist. To develop a local development plan, we first identify the image, strengths, weaknesses and local position of competing brands, and compare them with the Volvo Trucks image. Since Volvo offers its customers a complete solution, the local image study encompasses not just customers' views of the truck itself, but also of service, financing, business support and training. Once we have done our homework, we develop what is called an opportunity statement, which becomes a target picture for the local brand work over the coming 18 months, explains Christer Lindqvist.

The Volvo customer journey

To clarify how Volvo Trucks builds its brand around customers, a model has been developed — the Customer Journey. In the Customer Journey, the customer's touchpoints with Volvo before, during and after the sale are defined. Some examples of touchpoints are the first contact with Volvo, the sales occasion, delivery of the truck the customer has purchased, ongoing maintenance, service and the handling of any complaints. Volvo measures customer satisfaction at each touchpoint and then sets development goals and draws up a development plan for each one.

"It is important that everyone who works with the Volvo brand, internally and externally, feels strong engagement and understands the business value of our brand work — and that they know which values set us apart from our competitors."

— Christer Lindqvist, Global Brand Manager, Volvo Trucks

– We see ourselves first and foremost as business partners, and secondly as salespeople, continues Christer Lindqvist. We do not just sell a truck — we sell a complete ownership and usage concept. To maintain that relationship we need to understand the customer and the industry they operate in. The Customer Journey is a very useful model that employees and dealers can share. The more informed we are, the better solutions we can design. It is not just about matching customers' needs — our goal is to anticipate them, and that places demands on the organisation. Every employee at Volvo Trucks is a link in the chain, and for us to succeed, everyone must be involved. We have a structure with wholly owned, part-owned and fully private dealers — all are equally involved in building our brand and all therefore receive the same training and messaging. It is important that everyone who works with the Volvo brand, internally and externally, feels strong engagement and understands the business value of our brand work, and that they know which values set us apart from our competitors, explains Christer Lindqvist.

Regular measurements

To ensure that the brand develops and strengthens in line with the visions and goals that have been established, regular measurements and customer surveys are conducted in accordance with the Volvo Brand Management Process. The measurements focus on a number of brand-related KPIs that are in turn integrated into the overarching business plan. Some of the KPIs measured include Volvo's overall image, customers' experience in relation to the core values, and the degree of premium experience that customers associate with Volvo.

– Through our various types of surveys we know that the brand work has an effect. The financial crisis of 2008 showed, above all, the importance of a strong brand. Without a stable foundation to stand on, we would not have come through it as well as we did.

As a further sign of success, the Superbrands organisation named Volvo Trucks one of Sweden's strongest brands in 2010. Superbrands is an independent authority focused on brand work. Each year it conducts a study identifying the strongest brands, examining how a company has built, nurtured and refined its brand.

The core value of environment

Environmental responsibility is the third of Volvo Trucks' core values — and perhaps the toughest challenge.

– We tend to say that we are part of the problem, but also part of the solution, continues Christer Lindqvist. We were first with the seatbelt and airbags. We apply the same thinking when it comes to the environment. Our ambition is to lead the way towards an environmentally sustainable transport sector.

Volvo Trucks inaugurated the first carbon-neutral factory in Ghent, Belgium in 2007. The goal is for all facilities to become carbon-neutral. The group also has a proprietary platform for hybrid operation of heavy vehicles. Volvo Trucks was also the first to have a climate-neutral dealer in Verona, Italy — where solar panels on the facility's roof produce more energy than is needed to heat the offices and workshop.

– But to maintain our environmental position we need to constantly be one step ahead. We are increasing collaboration within the industry and accelerating the implementation of cleaner technology around the world. That requires close collaboration with government authorities and in some cases with our competitors as well. Just as with our other core values of Safety and Quality, Environmental responsibility must permeate the entire organisation and everything we do. We also fundamentally draw on our environmental management system and the strategies and goals we have set. We have high ambitions, and we need to if we want to be the world's leading truck manufacturer. The essence of our brand is to create transport solutions that are more profitable for customers and more beneficial for society as a whole, by delivering safety and quality with environmental responsibility. To achieve that we cannot rely solely on technological advances — our competitors can copy those. That is why we place a high priority on awareness of our brand. And the Volvo Trucks brand is created by our employees, underlines Christer Lindqvist in closing.

About the company

Volvo Trucks supplies complete transport solutions through our full range of medium- and heavy-duty trucks. We provide customer support via our global network of dealers with 2,200 service points in about 130 countries. Volvo trucks are assembled in 12 countries across the globe.

 Volvo Trucks is part of the Volvo Group, one of the world’s leading manufacturers of trucks, buses, construction equipment and marine and industrial engines. The group also provides complete solutions for financing and service.