Toyota’s troubles over the past year have been well documented since acceleration problems first surfaced in September 2009, and continuing through several recalls covering millions of vehicles. However, new E-Score Brand data shows that Toyota’s situation has taken a drastic turn for the worse in the past month following a Congressional inquiry and high-profile apologies by company executive.
A Drastic Decline
As recently as early February 2010, Toyota was showing a decline of about ten percent on average on a selection of key brand equity attributes measured by E-Score Brand from pre-crisis levels in August 2009. However Toyota’s most recent E-Scores are showing an average decline of 26 percent in just the past month – more than 34 percent since the story broke. While all parts of the company must respond decisively to the situation, the message to brand and crisis managers is clear: frequent and timely monitoring of brand equity is crucial.
Before the recall, Toyota’s High-Quality and Reliable scores were both well above the auto category average and among its top scoring attributes, reflecting Toyota’s strong brand position. Based on the most recent survey, Toyota’s scores on these core brand attributes are now at or below industry averages, indicating the magnitude of the problems facing Toyota.
E-Score Brand can help determine what actions a brand needs to take to achieve their desired position in the eyes of consumers, measuring brand equity not only on a timely basis, but also assessing the impact on core brand attributes.
Source: E-Score Brand