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BMW Case Study 2006 ad campaign as "Company of Ideas"

Bayerische Flugzeug-Werke

BMW Origin
• BMW was founded in 1913, when Karl Friedrich Rapp (Rapp) set up Bayerische Flugzeug-Werke to manufacture aircraft engines in the Munich district of Germany. • Originally was founded in 1918 by Franz Josef Pope.

BMW LOGO
• The Circular blue & white BMW logo or roundel is portrayed by BMW as the movement of an aircraft propeller, to signify the white blades cutting through the blue sky.

History BMW
• After world War I, BMW was forced to cease aircraft (Engine) Production by the term of the versailles Armistics Treaty. The Company consequently shifted to motorcycle production in 1923 once the restrictions of the treaty started to be lifted, followed by automobiles in 1928 – 29.

BMW - The Ultimate Driving Machine
• Old ad Campaign BMW owned the word "driving" and this had been etched in the minds of consumers over a period of three decades with the tagline "The Ultimate Driving Machine."

Positioning
• What comes to the mind when you think about BMW? A car that's fun to drive. The ultimate driving machine. BMW owns the word "driving" in the mind, by taglines such as "The Ultimate Driving Machine" and "Sheer Driving Pleasure"

Yuppies
• BMW targeting Yuppies. • Informal for (Y)oung (U)rban (P)rofessional, or Yup. turned into yuppie in the 1980's. • A term used to describe someone who is young, possibly just out of college, and who has a high-paying job and an affluent lifestyle. Can now be used to describe any rich person who is not modest about their financial status. • Eg: Yuvraj Singh, Siddharth Mallya

Numbers & Research
• In 2005, BMW branded automobile sales in the US were 266,200 units when compared to 260,079 units in 2004.

• The company's new products were also well received. However, an inhouse research study, in 2005, revealed that about 75 % of luxury car buyers in the US did not consider any BMW vehicle at the time of purchase

The “Company of Ideas” Campaign
• The BMW’s new ad Campaign: ("Company of Ideas") targeting wider section of the affluent class (Going Beyond yuppies). • The dynamic campaign was aimed at the creative class -consumers who shared many of BMW's principles -an independent spirit, a drive to challenge conventional wisdom, and an appreciation for a brand's ability to offer both substance and style. • The campaign tried to communicate BMW's independence and freedom to pursue innovative ideas.

Demographic Segmentation
• The ad targeted influential demographic segment in the US. • Demographic segmentation: Age, Gender, Income, Social class, Lifestyle

The “Company of Ideas” Campaign
Outdoor Billboards Television

cable network

magazines

Internet

newspapers

BMW India

BMW India
• BMW officially entered the Indian market in 2005, Headquarted in Gurgaon & a manufacturing unite in Chennai. • Within two years of entering the Indian passenger car market in 2007, BMW toppled rival Mercedes – Benz to become the numbro uno luxury car maker of the country. • In 2010, the company recorded a & percent growth in sales volume, maintaining its leadership position in the category.

Brand Essence
• 20 years old BMW expressed its core identity in the US & UK in the slogan ‘BMW – The Ultimate driving machine’. This is exactly how drivers of the brand sum up there automotive experience to researchers. Globally, the brand now positions itself with the pay-off: ‘The joy of Driving’.

Branding Strategies in India
• BMW has aimed at a target group that drives the future of the country. • There are a few things that have help BMW be different – The product, marketing, dealership network as well as the sprit of the people. • BMW is perceived as a dynamic, sporty, innovative and aesthetic brand, and hence they have done well with a younger target group. The average age of the BMW buyer in India is 40 year.

Branding Strategy in India
• Instead of having a huge advertising spend, BMW has developed more touch points where people can have a personal connect with the brand. • For example, if you walk into a BMW dealership today, you will see that the place is sophisticated and you will be treated in a certain way.

Branding Strategy in India
• Innovative marketing activities that have built BMW brand in India that have helped BMW get close to customer are like : Professional golf tournaments. Wine tasting sessions Events with fashion designers. • BMW have also spent a lot of time creating a unique spirit a lot of time creating a unique sprit within the company which have emotionally connected people within the organisation has made huge contribution to its success.

Branding Strategy in India
• Last year (2010), BMW launched its financing arm in India to service the credit needs of retail customers, fleet owners and dealers. India is a strong financing market and 80 % of the cars that we sell are financed. The financing option plays a very crucial part in the buying process further helping in increased customer satisfaction & relationship leading to improved brand experience.

• Every localisation would weaken this fundamental positioning of the brand. Therefore they follow the one-global-brand-approach. • But, these are minor changes to guarantee that products are running without any fault. • For e.g.: BMW has minor adaptations for the Indian road and weather conditions. These include- a higher suspension as ground clearance in India is low, and different intake filters as the air in the country is more polluted.

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