The BMW Group concentrates on selected premium segments in the automobile market. This means that it is the only multibrand automobile manufacturer in the world that is not active in the mass market, i.e. the volume segments of the automobile market.
The aim of the premium brand strategy is to achieve higher revenues per vehicle, on the basis of a high-value product substance and an unmistakable brand profile. The BMW Group pursues this premium brand strategy with the BMW and MINI brands, and, since 1st January 2003, with Rolls-Royce. This means that it will cover the premium segments from the small car to the absolute luxury category.
The premium brand is thus creating the preconditions for further profitable growth for the BMW Group. The Company expects that in the next ten years, the premium segments of the automobile market will grow worldwide by around 50%. In contrast, the mass volume segments will increase by "just" 25% or so during the same period. The BMW Group is aiming to achieve profitable growth in the future too, and in that order of priority - "profitable" followed by "growth".
Beside their premium brand strategy, BMW wants to offer sportiveness and status. Compared to other car brands, BMW does not want to announce that they want to be an leader in technology or a global player. The slogan “BMW.Sheer driving pleasure” wants to show their concentration in a well developed and fun orientated car. That they indeed often develop at the latest state- of –art technology is not standing in the foreground. This is very tricky. The customers feeling that he and his fun is the most important thing for BMW gives him a feeling for being important. Being close to the customers fun is the message. And the customer knows quite well that the technique is also in the car.
Inhaltsverzeichnis (Table of Contents)
- 1. "BMW.Sheer driving pleasure"
- 1.1 What goals is the BMW Group pursuing with its premium brand strategy?
- 1.2 Outlook annual report 2003. Automobile sector expected to revive in 2004.
- 1.3 Assessment:
- 2. AUDI- Vorsprung durch Technik (headstart through technic)
- 3. DaimlerChrysler- global presence, strong brands, broad product range and technology leadership.
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This document analyzes the premium brand strategy of BMW, examining its goals, market outlook, and performance in 2003-2004. It also provides a brief comparison of BMW's approach with Audi and DaimlerChrysler.
- Premium Brand Strategy: The BMW Group's focus on premium segments and its goals for profitable growth.
- Market Outlook: The expected revival of the automobile sector in 2004, with specific emphasis on the US and Asian markets.
- Product and Market Offensive: The BMW Group's plans to expand its product range with new models and its expectations for sales volume growth.
- Assessment of Performance: Analysis of BMW's sales volume growth in 2004, including market disposals and customer reaction to new models.
- The New "Ler": BMW's entry into the compact class and its potential challenges in competing with established brands.
Zusammenfassung der Kapitel (Chapter Summaries)
- Chapter 1: "BMW.Sheer driving pleasure" outlines the BMW Group's premium brand strategy, focusing on achieving higher revenues per vehicle through high-value products and a strong brand identity. The chapter also discusses the BMW Group's anticipated profitable growth in premium segments, projecting a worldwide growth rate of around 50% in the next ten years. This growth is contrasted with the expected 25% growth in the mass volume segments.
- Chapter 1.2: "Outlook annual report 2003" presents the BMW Group's perspective on the global economic recovery in 2004 and its impact on the automobile sector. The report anticipates a modest revival in worldwide car sales, driven by the US market, while European and Japanese markets are expected to see only small increases. The BMW Group expects its premium brands to perform better than the market as a whole, and plans to capitalize on this trend with the introduction of numerous new models.
- Chapter 1.3: "Assessment" evaluates the BMW Group's performance in the first half of 2004. The chapter reports on sales volume growth, market disposals, and customer reaction to new models, highlighting the importance of the Asian market and challenges in the US market. It also discusses the BMW Group's expectations for the second half of the year, especially in light of the launch of the new "Ler" model.
Schlüsselwörter (Keywords)
This preview focuses on the premium brand strategy of BMW, examining its goals for profitable growth, its market outlook, and its performance in 2003-2004. Key terms and concepts include premium segments, market share, product offensive, sales volume growth, customer reaction, and competition in the compact class. This analysis highlights the challenges and opportunities associated with BMW's strategy in a changing global automotive market.
- Quote paper
- Silke Gießler (Author), 2004, Analyzing and Comparing of Visions of BMW, AUDI and Daimler- Chrysler, Munich, GRIN Verlag, https://www.grin.com/document/32621
