Bmw Target
For over three decades, BMW built its brand to be synonymous with performance and the driving experience. The brand character and tone (serious, focused, and engaged) remained unwavering for the most part, while drivers enjoyed innovative, high-performance-yet-accessible vehicles that connect them with the road, rather than isolating them from it. | | | |
| BMW created a highly coveted brand franchise by successfully cultivating an extremely loyal following of luxury-performance automobile consumers, especially in the face of stiff competition from Germany and Japan. Looking across the global automotive industry landscape, the premium automobile manufacturer from Munich has the most to lose, should the integrity of its brand begin to falter. Yet recent changes in BMW’s product development and marketing strategy leave us wondering whether the Bavarians are deliberately veering from their familiar route, or if they will in fact be caught off-guard as this otherwise finely-tuned machine drifts into another lane. The Brand in Context
First, let’s take a look at BMW in context of the global automobile industry. In recent decades, the industry has undergone significant consolidation among manufacturing enterprises. From multiple acquisitions by Ford to the Daimler-Chrysler merger, many automakers now enjoy economies of scale and global distribution networks that afford significant advantages in procurement, R&D, manufacturing, and distribution. The synergies borne by these scale economies allow larger manufacturers to better weather fluctuations in the macro-economic environment, yet profit from the evolving needs of the car consumer. For instance shifting production away from gas-guzzling SUVs to more economical automobiles helps manufacturers profit in years where oil prices rise; while developing innovative brands and designs can satisfy new segments of consumers who will pay premium dollars for differentiated features and styles. Manufacturers that
| BMW created a highly coveted brand franchise by successfully cultivating an extremely loyal following of luxury-performance automobile consumers, especially in the face of stiff competition from Germany and Japan. Looking across the global automotive industry landscape, the premium automobile manufacturer from Munich has the most to lose, should the integrity of its brand begin to falter. Yet recent changes in BMW’s product development and marketing strategy leave us wondering whether the Bavarians are deliberately veering from their familiar route, or if they will in fact be caught off-guard as this otherwise finely-tuned machine drifts into another lane. The Brand in Context
First, let’s take a look at BMW in context of the global automobile industry. In recent decades, the industry has undergone significant consolidation among manufacturing enterprises. From multiple acquisitions by Ford to the Daimler-Chrysler merger, many automakers now enjoy economies of scale and global distribution networks that afford significant advantages in procurement, R&D, manufacturing, and distribution. The synergies borne by these scale economies allow larger manufacturers to better weather fluctuations in the macro-economic environment, yet profit from the evolving needs of the car consumer. For instance shifting production away from gas-guzzling SUVs to more economical automobiles helps manufacturers profit in years where oil prices rise; while developing innovative brands and designs can satisfy new segments of consumers who will pay premium dollars for differentiated features and styles. Manufacturers that