Bmw Brand Analysis

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Brand Analysis

Steven Tyson
Marketing Analysis – Grau
April 2, 2012

Introduction and Purpose
The automotive market is defined by the common goal of high efficiency, with the aim of lowering production costs and raising revenues. In this highly competitive landscape, standardization, components, and mass production are king. Yet, there is an outlier that refuses to abide by the market trend of efficiency over quality. BMW continues to provide consistent growth both financially and in market share by believing that you can have the best of both worlds; a quality product that is made efficiently and doesn’t compromise the most important element of any car: the driver (Larrson, 2006). The purpose of this brand analysis is to dissect the BMW brand to better understand how Bavarian Motor Works has become the most successful premium automotive producer. Overview of Company

BMW Headquarters: Munich, Germany
BMW Headquarters: Munich, Germany
BMW has become one of the most distinguished brands in the world after starting as an aircraft motor manufacturer in Munich, Germany in 1913. Close to a hundred years later, when drivers see the highly recognizable Blue and White propeller symbol on the highway, they get the instinct to push the pedal to metal or role down their windows to hear the distinct purr of a BMW accelerate by. Brief History

The Dixi 3/15 PS made in 1928 became the first BMW made car in the world with just 15 horsepower, and after its first race win in 1930, The BMW Dixi started to make a name for itself selling over 18,000 cars. In 1933 BMW made its first distinguishing trademark with the twin-kidney shaped radiator grills on the 303. Its design can still be found on the manufacture’s cars today. After World War Two, the company was faced with destroyed factories and a three-year ban on producing anything because of an allied mandate for BMW’s participation in the manufacturing of rockets and aircraft engines during the war. In 1951, the manufacturer began producing cars again despite the lack of any solid financial backing, and it wasn’t until 1956 that BMW recovered with its famous 507 model and then later with the first sport sedan ever produced, the 1500. After continuing to market the luxury sports sedan, BMW successfully overtook Mercedes for the first time in European sales in 1992. Since then, the company has never looked back (Popescu, 2000). Brand Introduction

Since its struggles after the war, BMW has steadily grown into three brands (BMW, Mini, and Rolls-Royce), and has become one of the ten largest global carmakers (Larrson, 2006). BMW posted record sales of 1,668,982 vehicles in 2011, a rise of 14.2% from the previous year (Gabriela, 2012). Most of these record sales can be attributed to the highly recognizable brand that BMW has built through its quality engineered products. With its catch phrase, “the ultimate driving machine”, ranking as the most recognizable catch phrase out of automakers, BMW has positioned itself as the most successful premium segment manufacturer (Larrson, 2006). The German based automaker has become the number-one business brand in Germany and the number-one most searched for luxury brand in the United States, according RankingTheBrands.com. It is with this strong brand that BMW continues to go head to head with rivals Audi and Mercedes-Benz. BMW is committed on four core values to attain sustained success in what it describes as a, “niche market strategy”: innovation, quality engineering, high performance, and an exclusive product. These values are promised with a first-class price tag that propels the consumer to desire the status and visibility that comes with driving the, “ultimate driving machine”. The high degree of craftsmanship that comes with its core values has allowed BMW to foster into one of the most sought after and loved cars in the world, despite conducting in one of the most intensely competitive global industries. With the rise of Japanese...
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