Bmw - an Emotional Brand
BMW - AN EMOTIONAL BRAND
The automobile industry has grown to be a very dynamic one in the recent years. Even though the essential use of this industry has been to satisfy the customer’s need to travel from one place to another in comfort, the constantly changing market, has slowly changed customer’s needs into wants paving way for high competition in the automobile arena. This essay gives a brief analysis on BMW, one of the leading brands in the industry and how they effectively use marketing as a tool to achieve the status they enjoy now. Even though BMW produces various automobiles including motorbikes and are into financial service sector, this essay will look into only the cars produced by the BMW.
To summarise Bayerische Motoren Werke’s (BMW) history, they began manufacturing aero engines during world war two but later turned to become one of the biggest manufacturer of automobiles in Germany. This company better known for its high performance engines along with great quality, has not always enjoyed success and had faced bankruptcy in 1959, when it found a saviour in their major shareholder, Herbert Quandt.1
BMW, which mainly specialises in manufacturing cars, is always associated with its brand equity. They have high brand image based on how they target their audience and their pricing. The brand BMW mostly goes hand in hand with prestige and owning one is said to reflect the owner’s status in life. BMW produces premium range cars which are not affordable by all. They have extended their brand by acquiring the Mini and the phantom range of Rolls Royce, both having their own brand images. This association adds value to them as well as enhances BMW’s own brand value in the market.
Quality is not an issue in the automobile industry. Most competitors produce high quality cars.1 BMW stands out with their product differentiation strategy of high end design along with strong brand values with innovative improvisation in their product. Their target
The automobile industry has grown to be a very dynamic one in the recent years. Even though the essential use of this industry has been to satisfy the customer’s need to travel from one place to another in comfort, the constantly changing market, has slowly changed customer’s needs into wants paving way for high competition in the automobile arena. This essay gives a brief analysis on BMW, one of the leading brands in the industry and how they effectively use marketing as a tool to achieve the status they enjoy now. Even though BMW produces various automobiles including motorbikes and are into financial service sector, this essay will look into only the cars produced by the BMW.
To summarise Bayerische Motoren Werke’s (BMW) history, they began manufacturing aero engines during world war two but later turned to become one of the biggest manufacturer of automobiles in Germany. This company better known for its high performance engines along with great quality, has not always enjoyed success and had faced bankruptcy in 1959, when it found a saviour in their major shareholder, Herbert Quandt.1
BMW, which mainly specialises in manufacturing cars, is always associated with its brand equity. They have high brand image based on how they target their audience and their pricing. The brand BMW mostly goes hand in hand with prestige and owning one is said to reflect the owner’s status in life. BMW produces premium range cars which are not affordable by all. They have extended their brand by acquiring the Mini and the phantom range of Rolls Royce, both having their own brand images. This association adds value to them as well as enhances BMW’s own brand value in the market.
Quality is not an issue in the automobile industry. Most competitors produce high quality cars.1 BMW stands out with their product differentiation strategy of high end design along with strong brand values with innovative improvisation in their product. Their target
References: 1. Lencioni V, 2004, BMW Automobiles, Case Study 2. Jobber D, 2007, Principles and Practice of Marketing, Fifth Edition 3. Case study, BMW, Class Video 4. Denzing A, 2007, BMW changing lanes, http://www.brandchannel.com/features_profile.asp?pr_id=171 5. Kiley D, 2006, BMW targets new drivers, http://www.businessweek.com/autos/content/may2006/bw20060505_260847.htm?chan=autos_autos+index+page_news 8. 2008, Company Profile, Global Insight 9. http://www.bmwgroup.com/e/nav/index.html?../0_0_www_bmwgroup_com/home/home.html&source=overview