Advertising,  Brand  Image  &  Cultural  Space  ADVT13-101  

M a d i s o n   W a l l a c e                                           S I D :   1 3 2 2 0 2 7 3  

 

BMW  Group  

Cherise  Hoefler  

 

The BMW Group is considered one of the most successful companies in the

world, primarily manufacturing automobiles under its three brands – BMW,

MINI and Rolls-Royce. BMW has experienced an innovative and interesting

90-year history coupled with a continued momentum of their brand. As a

global company, the BMW Group operates 28 production and assembly

facilities in 13 countries and has a global sales network in more than 140

countries. In 2012, the BMW Group sold an estimated 1.85 million cars and

more than 117,000 motorcycles worldwide. The BMW profit has amounted to

76.85 billion. BMW’s success is attributed to its long-term thinking and

responsible action, establishing a strong strategy of brand extension and

integration throughout the value chain, comprehensive product responsibility

and a clear commitment to consumer satisfaction. A strategy of promoting

high-performing engines, high-recognition branding and high-profile racing

has also been adopted in the early stages of BMW’s life, which is still evident

in the company’s culture to this day. However, pushing the boundaries of

innovation and their premium competition are issues of concern. (The BMW

Group, 2014)

 

 

 

Brand elements

BMW has developed a brand platform of high-level awareness and familiarity with a strong and favorable brand associations in consumer memories. As purchasing automobile is a high-involvement process, maintaining positive customer based brand equity is vital and BMW has accustomed their marketing power around this knowledge. (Taylor III. A, 1993)

Over their growth, BMW has continued to develop its brand and in 1975, introduced the ‘Ultimate Driving Machine’ slogan, which still represents BMW today. Beyond that, each brand of vehicle under the BMW Group umbrella has its own distinct brand identity. These have been developed to resonate with the target audience and differentiate from other premium competitors. (UKessays, 2013)

The logo was designed to underline BMW’s innovative power and dynamism. The symbol represents the BMW attractive and covetous brand and thereby forms the core of the BMW’s Sheer Driving Pleasure philosophy. BMW uses its proprietary typeface ‘BMW’ to create an instant acknowledgement of the brand. Careful use of this element guarantees uniformity of appearance as well as a high degree of recognisability. The BMW symbol is subject to worldwide copyright and can only be used by BMW and its authorized contractual partners. BMW uses this consistency through all their communications and operates with the single brand logo throughout the globe. The current logo image has adapted throughout the BMW history to successfully achieve a well-developed and present brand logo. The inherent meaning of ‘prestige’ is effectively represented and visually reinforced with repetition of the iconic logo displayed on all their product makes. This has made recognition and recall extremely easy for consumers who actively seek out the brand. (Taylor III. A, 1993) These elements of memorability, meaningfulness, likability, transferability, adaptability and protectability, together have crafted strong and durable brand equity for BMW.

Concerns: The brand has continued to set the bar high in their innovation, design and technology, making it a constant battle to perform at this premium level or higher. BMW will have to maintain its prestige brand identity and momentum through evolving its brand and push the boundaries of the automobile market.

 

"The BMW Group is the world's leading provider of premium

products and premium services for individual mobility."

 

 

Brand value and position:  

BMW’s value propositions consist of offering individual mobility, safety, improved fuel efficiency and carbon dioxide emissions and a premium brand quality and experience.

BMW has been able prepare for the future by putting an emphasis towards understanding the global luxury automobile market and current market trends whilst retaining a key focus on the customer, innovation and their brand. BMW has been able to portray a premium quality brand image and the introduction of new models and new safety features annually has been a result of understanding the environment and economic conditions and listening to their customers. (BMW Group, 2014)

BMW has a business strategy of focusing on creating sustainable competitive advantages through innovation, technology, customer focus and its brand by producing premium vehicles exclusive to the luxury market. BMW has accomplished this through the implementation of new programs such as Efficient Dynamics, Individual Mobility and Project i. (Bloomberg, 2003)

BMW's worldwide positioning will not change, but with the launch of new models every year, the company will continue refining the promotion mix to attract new buyers, maintain brand image, and keep profits high.

Concerns: An abundance of option for the vehicle buyers exists with vehicle models with almost similar functional characteristics, BMW is now forced to manufacture unique products that will appeal to the needs and tastes of consumers. Commitment to innovation and product variety has brought on the greatest challenge in the companies history, the intricacy and complexity of the functions offered in BMW’s premium luxurious cars has multiplied, making manufacturing costs increase. These expenses force BMW to rise prices, which has backlashed with a CBBE of overpriced cars. (UKessays, 2013)

 

 

Brand extensions and leveraging  

BMW’s enormous success mainly comes from their big role in the automobile

industry, but a lot of knowledge has also been put into their motorcycle

division.

Their consistency in development and innovation has caught the world’s

attention and allowed this brand to have success in diverse markets. This

factor has allowed BMW to extend their brand footprint into lifestyle, fashion

and sports stores but also provide a merchandising experience for their 3,000

dealerships across the globe. (BMW Group, 2014) BMW has been

instrumental in executing branded projects with respected partners including

Puma on clothing, bags and footwear, also eyewear, luggage, and strollers.

 

 

Co-Branding

The BMW Group Technology Office and GoPro have announced the first-

ever, mass-produced integration of a GoPro camera with an automobile’s on

board infotainment system. GoPro is a natural fit for BMW enthusiast drivers

and greatly compliments either brand. The power and flexibility of the BMW

Group App Integration platform coupled with GoPro’s advanced camera

technology brings new, safe, and engaging experiences to the driver

enthusiasts. “Working with GoPro to design this integration was remarkable,”

announced Phil Johnston, Head of BMW Group AppCenter USA. He

continued to express, (Russell, 2014)

 

“The GoPro and BMW collaboration sets a new standard in the

category and is an important first step in a partnership designed

to deliver next-level integration between camera and car.”

Phil Johnston  

 

Brand integration BMW has integrated a large variety of marketing communications that focus on representing the brands exclusivity, style & elegance. These efforts enforce a consistent expression of high performance and exclusive features through both mass and direct marketing. BMW has explored the marketing mediums of billboards, print ads, an interactive - website, as well as "guerrilla" marketing, in which a Mini was mounted on top of a Chevy Suburban and driven around New York City. (BMW Group, 2014)

Movies have played a key role in BMW's promotions. The company has gained huge waves of publicity from having the Mini Cooper featured in The Italian Job and for arranging for James Bond to drive new BMWs. (Simms, 2006) To reach Internet- savvy car buyers, BMW also reach success through hiring top directors to make short films, especially for Web viewing.

BMWs sales promotion efforts also included samples-in the form of extended test drives-as well as participation in major automotive trade shows. Eye-catching point-of-purchase displays in dealer showrooms support the overall integrated marketing communications effort by echoing selected images from the company's advertising. Prices promotions are rare, although the company held its first end-of-year clearance sale on select U.S. models recently. The company also has offered special leasing deals to spark consumer interest. (Simms, 2006)

BMW implement these communication promotions to ultimately increase interest and traffic to the brands website. This platform has been developed with the same identity and value as the cars themselves, including elegance, style and exclusive features, offering, “Build you own BMW,” providing ownership and feel to consumers. Consumers also have the ability to virtually view the cars and if they wish to look further, they can opt to view the BMW online magazine. BMW also offers a social media newsroom, with a strong presence on Facebook, Twitter and YouTube channels to update on current and future activity.

While in Australia BMW is considered a luxurious brand, in other parts of the world the brand image and equity is not as strong. The BMW range is manufactured in South Africa therefore are priced cheaper and classed as a common car in this region. To distribute the BMW models overseas, the prices rise, increasing the exclusivity and perceived value.

BMW has invested a lot of money and time to assure their employees uphold the brands prestige image. Customer service employees complete a training course to understand all elements behind the brand and how to approach clients effectively with the knowledge.

 

Conclusion:

The BMW group has held onto its market leader position and brand identity in

the premium segment through their success in developing their brand

elements, value, position, extensions and integration to build prosperous

brand equity that will withstand against their competitors. These strategic

elements have positioned BMW as a premium brand that represents

exclusivity, elegance, innovation, luxury and covetous products. The future is

bright for BMW, although the concerns surround the organizations ability to

remain competitive and maintain its brand identity.

 

Bibliography    

Bloomberg. (2003, June 08`). BMW's Shifting Strategy . Retrieved October 20th, 2014, from Bloombernbusinessweek: http://www.businessweek.com/stories/2003-06-08/bmws-shifting-strategy

BMW Group. (2014). Home - News. Retrieved October 20th, 2014, from BMW GROUP: http://www.bmwgroup.com/e/0_0_www_bmwgroup_com/home/home.html

Russell, M. (2014, June 6). BMW Group Technology Office and GoPro Create First Automotive Sports Camera Integration. PressClub USA .

Simms, C. D., & Trott, P. P. (2006). The perceptions of the BMW Mini brand: the importance of historical associations and the development of a model. Journal Of Product & Brand Management, 15(4/5), 228-238. doi:10.1108/10610420610679593

Taylor III, A. (1993). BMW ROARS BACK FROM YUPPIE HELL. Fortune, 127(9), 12.

The BMW Group. (2014). BMW History. Retrieved October 20th, 2014, from BMW GROUP classic: http://www.bmwgroup-classic.com/bmw_classic/en/history/company/index.html

UKessays. (2013, March 3). Problems Facing Bmw Company . Retrieved October 21, 2014, from UKessays: http://www.ukessays.com/essays/marketing/problems-facing-bmw-company-marketing-essay.php