• by Karl Greenberg , February 11, 2015

Editor's note: This week, Marketing Daily brings you exclusive coverage of the Brand Keys 2015 Customer Loyalty Engagement Index (CLEI). Each day, expect a report on key product/services categories from among the 64 surveyed for this year’s study, including automotive, electronics, retail, technology and alcoholic beverages (beer and vodka). This third installment hits the road with cars, and makes stops at major league sports, cosmetics, and athletic gear. But we will be driving right past the gas station, because we're cooking with hydrogen, not to mention telematics and infotainment. 

Autos

1. Ford/Hyundai (tie)

2. Jeep/Toyota

3. Mercedes/Lexus

4. BMW is fourth

Ford and Hyundai were number one last year, too, followed by a three-way among Jeep, Lexus and Mercedes, followed by BMW. So what's happening with second place? Product cadence, that's what. Jeep has had a huge year, with booming sales, and Toyota has been busy with the new Camry, Corolla, Prius and Tundra and Highlander. 

And with technological advances in the category moving quicker than Mac Roaches sticks at a Charlie Parker concert, every new rollout means big advances over the prior model. And that, says Brand Keys CEO Robert Passikoff, is driving opinion, sentiment and engagement. “Technology is driving changes and raising the table stakes.” A look at General Motors, which is in the midst of a 70-model product rollout, shows how its 4G LTE is helping to raise its rankings. The company is now tied for fifth with Subaru. 

The problem is that in-car tech lags behind every other technology, partly because of safety hurdles. “Two years ago we started to see stuff having to do with connected-vehicle technology,” he says. “They wanted to be able to do in a car what they could do on computer and smartphone. Chevy started the connected-vehicle program, and that helped move them up. And that kind of technology is becoming a driver.” 

He says that in the Index, auto brand identity is driven by technology and “right brand for me,” more than by even “driveability,” durability, reliability and safety. “But only 35% of cars have it right now, and everyone is playing catch up. So engagement metrics can tell you what people want and expect.”

Chrysler is tied for sixth. Honda is at eighth place, Audi at ninth, Volvo, which has big plans to revive itself in the U.S. (see upcoming story this week) is tenth. And Volkswagen, which simply hasn't been all that active with new product, is well down the list. “Consumers can only buy or engage with what's out there. From a primacy of product perspective. Volkswagen's own customers rate it low. There's a psychological test: if you say Mercedes-Benz, people say ‘luxury.’ If you say BMW they say, “performance and engineering.” VW and they go, ‘uh…’ that's the sound of a brand dying.” That said, globally VW is doing great. 

As mentioned, we are passing the gas station this year. The fact is, as Passikoff notes, we're talking about a commoditized category. No matter how much the companies spend on R&D and talking about additives, cleaners, lubricating molecules, and miracle chemistry, consumers are looking at just two things. “It's price and location. It reflects market dynamics. Primacy of product differentiation is the fourth most important driver here. After that, they are just talking to themselves.” On we drive.

Athletic Footwear

1. Nike

2. New Balance

3. Skechers

4. adidas

5. Reebok

6. Fila, tied with Zuno

7. Asics tied with Under Armour

Skechers moved up from its sixth place spot last year, and Nike again is on top, and New Balance is again number two. Skechers may be benefitting from a performance focus, and a shift away from entertainment and hip factor. “I think they have shifted direction. Less Kim Kardashian and more innovation,” says Passikoff. Under Armour, he says, is part of a wave of new brands showing up, creating differentiation and becoming popular. 

Cosmetics (luxury)

1. Lancome

2. Chanel

3. Estee Lauder

Cosmetics

1. L'Oreal/Mary Kay

2. Avon

3. Sephora

So the big question here is whether the general cosmetics category is still essentially a place-holding game between brands with little differentiation and meaning. The answer, says Passikoff, is probably yes. “The interesting thing about the cosmetics category is that when you look at the drivers, there really is higher level of emotionality with luxury brands than with everyone that's not.” 

The difference, he notes is that luxury cosmetics brands transcend the merely functional aspect of the category. “Buyers of luxury cosmetics feel that those products make them not only look good but feel good. And when they look at these brands, they feel that brand ‘knows’ them. It's a real emotional engagement.” And that pretty much sums up what every brand in every category aspires to.