Kia won’t back away from brand as it navigates impact of COVID-19, says GM of Marketing
Kia won’t back away from brand as it navigates impact of COVID-19, says GM of Marketing
Self-described auto brand challenger Kia is resisting the urge to pull stumps on brand marketing in the face of challenges posed by COVID-19.
Rather than now favouring performance marketing, the car maker will ensure the brand continues to build bigger foundation blocks that will elevate it in the future, says Kia’s General Manager of Marketing, Dean Norbiato.
Speaking on Reset Now, an initiative between the Australian Association of National Advertisers (AANA), Nine and Mi3 for marketers to share their experience and evolving strategies as they manage the COVID-19 crisis, plan for the recovery, and see how deep consumer mindsets and behaviour might shift, Norbiato says Kia has had “some really successful results over the last two years by starting to invest more heavily in brand, and educate the wider business about the importance and results of that”.
Norbiato is confident that Kia’s focus on brand as the automotive industry, and indeed most industries, re-examines strategies to navigate the impact of COVID-19 on the economy will allow the brand to break free of an ocean of sameness that can swell across the car sector.
“One thing we’ve done well is look at the wider market and not operate in a vacuum, and understand that our actions transpire in a bigger environment. Therefore, if everybody else is using the same data to get to campaign, we use that data a bit differently,” he says.
“With everyone coming out of COVID and retailing in high volumes, that gives us an opportunity to, again, be that challenger brand, to stand out by doing brand when there are thousands of end of financial year sales going on.
“If you go into our dealerships, absolutely you’ll get the best deal. However, we’re using brand to cut through and stand out in a market that you would see in that sea of sameness. If everyone’s retailing and we go brand, that gives us an opportunity to stand out because we don’t have the media dollars and clout of some of the bigger competitors.”
For Kia, leveraging sponsorships effectively can help the brand stand out and make waves in a highly competitive industry.
“The research we’ve found is that when someone sees a car ad, they just see another car ad and then a façade comes down. We need to ensure that when we’re marketing, we’re cutting through with the dollars we’ve got, and are also taking advantage of those big blue-chip moments, like Friday Night Footy and the partnerships with the Broncos and the Australian Open, to stand out in a very cluttered market,” Norbiato says.
“I’m still a big believer in TV and those magic moments that are omnipresent with the Australian public. You look at the numbers from the Aussie Open last year (2019), they were significant. You look at the numbers in the early rounds before the NRL stopped – there’s significant opportunity to use big platforms to make noise. We just need to ensure that we’re standing for something, being distinct, and getting cut-through.”
However, while brand is crucial for Kia, the real strategy is around the brand remaining nimble and responding quickly to changing consumer sentiment – something that was integral in how the brand responded in the early days of COVID-19 impacting on Australia.
“We executed a campaign really early on, around the mid-to-end of March, when COVID was really kicking off. That was a stay in, stay safe campaign. We tracked that campaign and looked at the view through rate (VTR) of our campaign, especially on digital, and found it was tracking exceptionally well, if anything better than our hero brand campaign,” Norbiato says.
“That view through rate was a key indicator for us to identify that the campaign was working, but at the start of April the numbers started to significantly decrease, which was the moment we switched and went back into our hero brand campaign.
Norbiato explains the importance of keeping an eye on metrics like VTR, as with many brands jumping into a similar territory with stay safe messaging, the level of misattribution of ads to brands amongst consumers “would be quite high”.
“But we monitor it very closely. It did a really good job for us at the start, but looking at the VTR we then came off and went back to our hero campaign,” he says.
For an auto brand like Kia, data is integral to exploring opportunities and challenges presented by COVID-19, with consumers’ concerns around public transport presenting potential opportunities.
“A big one that we’re seeing is the lack of confidence around public transport. Therefore, people are looking to take power of their own transport and step into a vehicle,” says Norbiato.
“The numbers are down compared to same time last year and other metrics, however we are seeing an emerging trend around people looking to take ownership of their own transport. The information we’re getting from the dealer network at the moment is that there are still opportunities. The one around transport is something we’re monitoring.”
According to Nine’s Consumer Pulse, a weekly consumer sentiment poll conducted via short online surveys and deeper-dive monthly surveys with Nine’s audience across linear television, 9Now, nine.com.au, plus readers of The Sydney Morning Herald, The Age and The Australian Financial Review across print and digital, audiences are driving more than they were last week.
According to Consumer Pulse, 11 per cent of 9Nation audiences are driving more than last week, while readers of The Sydney Morning Herald and The Age are driving 12 per cent more than last week and 16 per cent of The Australian Financial Review readers are also driving more than last week.
Looking to the future, Norbiato remains humble on Kia’s trajectory within the auto sector.
“We’re just trying to do the best that we can in the auto market. Hopefully we can surprise a few people with the way the way we communicate and get a lot more consumers on board with our brand. But anywhere above where we are now, as we look to use momentum and continually move forward, is a win for us.”